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Marketing management Chapter 5

CHAPTER 5 CREATING CUSTOMER VALUE, SATISFACTION, AND LOYALTY. Today, companies face t h e i r t o u g h e s t c o m p e t i t i o n ever. M o v i n g f r o m a p r o d u c t and sales p h i l o s o p h y t o a m a r k e t i n g philosophy, however, gives a company a b e t t e r chance of o u t p e r f o r m i n g c o m p e t i t i o n . | I PART CONNECTING WITH CUSTOMERS IN THIS CHAPTER WE WILL ADDRESS THE FOLLOWING QUESTIONS 1. What are customer value satisfaction and loyalty and how can companies deliver them 2. What is the lifetime value of customers 3. How can companies both attract and retain customers 4. How can companies cultivate strong customer relationships 5. How can companies deliver total quality 6. What is database marketing Difference CHAPTER 5 CREATING CUSTOMER VALUE SATISFACTION AND LOYALTY Today companies face their toughest competition ever. Moving from a product and sales philosophy to a marketing philosophy however gives a company a better chance of outperforming competition And the cornerstone of a well-conceived marketing orientation is strong customer relationships. Marketers must connect with customers informing engaging and maybe even energizing them in the process. John Chambers CEO of Cisco Systems put it well Make your customer the center of your culture. Customercentered companies are adept at building customer relationships not just products they are skilled in market engineering not j ust product engineering. w elk into most banks andyou ll notice that human contact is kept to a minimum. The scenario at a branch of Washington Mutual known affectionately as WaMu fWa-moo by its employees and loyal L customers is a sharp contrast. There are no teller windows. No ropes. If you need to open a checking account with free checking you step right up to the concierge station and a friendly person directs you to the right nook. WaMu gets cozier with customers by training its sales associates to be approachable and to find out about customers needs. If a customer s child just got into college they can walk him or her over to a Ioan officer or they can steer a prospective homeowner to the mortgage desk. If your children are with you and ger restless you can send them to the WaMu Kids corner Employee wsfcomes customers to a Las Vegas WaMu bank Wallington Mutual prides llseif on .