Analyzing On Managing Profitable Customer Relationship
Marketing is all around us .It is useful not only but manufacturing companies, wholesales and retailers but also by all kinds of individuals and organizations. Lawyer’s accountants and doctors use marketing to manage demand for their service. Even politician follow marketing because they need vote and to get vote they campaign which is advertisement which is a part of marketing promotion.
Technological advances, rapid globalization, economic shifts, and cultural and environmental developments are causing profound changes in the marketplace. So marketers should keep abreast with the changing market environment. In doing this they need to focus on market or customer. They must attract customers with strong value propositions, then keep and grow customers by delivering superior value and satisfaction which is the way to make profitable customer relationship. Building and profitable customer relationship is an important goal of marketing. To day to be succeed in making the profitable customer relationship marketers are following socially responsible ways.
The History of Coca Cola
John Pemberton was the inventor of Coca Cola
In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. The name was a suggestion given by John Pemberton’s bookkeeper Frank Robinson.
Birth of Coca Cola
Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who first scripted “Coca Cola” into the flowing letters which has become the famous logo of today.
The soft drink was first sold to the public at the soda fountain in Jacob’s Pharmacy in Atlanta on May 8, 1886.
The History of the Sony Corporation
Originally called Tokyo Tsushin Kogyo (Tokyo Telecommunications Engineering Company),
Sony’s roots go back over half a century to 1946 when it was founded by Masaru Ibuka and Akio Morita. In the crippled post-war Japanese economy Ibuka and Morita made their living repairing radios and manufacturing small numbers of voltmeters whilst looking to develop a future in designing and manufacturing new electronics. Perhaps surprisingly, their first electronic innovation was an automatic rice cooker. Its success was limited but it was the first in a long line of innovations which continue today.
|Although the name of the company was not officially changed to Sony Corporation until 1958, the first Sony branded product was the TR-55 transistor radio which went on sale in 1955. This was shortly followed by Sony’s world first “pocketable” transistor radio|
Aarong is the handicraft-marketing arm of BRAC, the largest NGO in Bangladesh. In the Bengali language, “Aarong” means a village fair. Aarong is an outlet for craftsmen from various trades to sell their traditional handicraft. Aarong began in 1978 and currently supports over 37,000 Bangladeshi artisans of whom 85 percent are women. Aarong’s mission is to help sustains rural craftsmanship and find a wider market for their products nationally and internationally.
Aarong products include pottery, crafts on brass, natural fibers, wood, leather, woven cloth and silk products, jewelry and a wide variety of candles. The store specialties are Nakshi Kantha (an icon Bangladeshi craft product with artistic stitch work on cloth is done by village women) and Jamdani sarees.
In 1865, an engineer named Fredrik Idestam established a wood-pulp mill and started manufacturing paper in southern Finland near the banks of a river. Those were the days when there was a strong demand for paper in the industry, the company’s sales acheived its high-stakes and Nokia grew faster and faster. The Nokia exported paper to Russia first and then to the United Kingdom and France. The Nokia factory employed a fairly large workforce and a small community grew around it. In southern Finland a community called Nokia still exists on the riverbank of Emäkoski.
In the beginning of 1970, the telephone exchanges consisted of electro-mechanical analog switches. Soon Nokia successfully developed the digital switch (Nokia DX 200) thereby replacing the prior electro mechanical analog switch. The Nokia DX 200 was embedded with high-level computer language as well as Intel microprocessors which in turn allowed computer-controlled telephone exchanges to be on the top and which is till date the basis for Nokia’s network infrastructure.
(Bengali:, is the third largest cellular service provider in Bangladesh. As of July, 2007, banglalink has a subscriber base of 6.61 million subscribers <href=”#_note-1″ title=””>. It is a wholly owned subsidiary of Orascom Telecom. In August 2006, banglalink became the first company to provide free incoming calls from BTTB for both postpaid and prepaid connections.
Banglalink had 1.03 million connections until December 2005. The number of banglalink users increased by more than 253 per cent and stood at 3.64 million at the end of 2006. By June, 2007 the company had acquired 6.04 million subscribers according to the country’s telecom watch dog. This translates to 21.8% of total mobile phone subscribers in the country, making the company the second largest mobile phone operator in Bangladesh by market share.
Grameenphone is one of the largest private sector investments in the country with an accumulated investment of BDT 5200 crore up to December 2005. Grameenphone is also one the largest taxpayers in the country, having contributed nearly BDT 5000 crore in direct and indirect taxes to the Government Exchequer over the years. Of this amount, BDT 1670 crore was paid in 2005 alone.
GP was also the first operator to introduce the pre-paid service in September 1999. It established the first 24-hour Call Center, introduced value-added services such as VMS, SMS, fax and data transmission services, international roaming service, WAP, SMS-based push-pull services, EDGE, personal ring back tone and many other products and services.
|Headquarters||301-Dhabi Tower, Hamdan Street, Post Box 44222, Abu Dhabi, United Arab Emirates|
|Key people||Sheikh Nahayan Mabarak Al Nahayan, Chairman|
(NASDAQ: AMZN) is an American e-commerce company based in Seattle, Washington. It was one of the first major companies to sell goods over the Internet and was one of the iconic stocks of the late 1990s dot-com bubble. After the bubble burst, Amazon faced skepticism about its business model, but it made its first annual profit in 2003.
Founded by Jeff Bezos in 1994, and launched in 1995, Amazon.com began as an online bookstore, though it soon diversified its product lines, adding VHSs, DVDs, music CDs, MP3s, computer software, video games, electronics, apparel, furniture, food, toys, and more.
Unilever was arguably the world’s first packaged goods manufacturer, and is still one of its biggest companies with operations in every corner of the globe. “Meeting the everyday needs of people everywhere” is how the group describes itself. It is the world #1 in personal wash, prestige fragrances and deodorants, with brands including Dove, Omo and Axe/Lynx. Following a series of high-profile acquisitions, including US-based Bestfoods, Unilever’s foods business is the world’s third largest after Nestle and Kraft. It is a global leader in culinary foods, ice cream, margarine and tea-based beverages. Brands include Knorr, Lipton and Magnum.
In the late 1990s, the group initiated a strategy to prune its vast portfolio which then numbered literally thousands of different brands, disposing of regional products and rebadging others in order to concentrate on a smaller roster of global power brands. Advertising Age estimated global measured Adbrands coverage of Unilever is split across several different pages.
The group operates through two main global businesses, Unilever Home & Personal Care and Unilever Foods. In addition, Adbrands tracks several geographic units: Unilever USA, Hindustan Lever (India), Unilever Australasia, Unilever South AfricaandUnilever UK.Individual brands or businesses covered include Knorr, Hellmann’s, Bertolli, Dove, Lynx / Axe, Persil, Domestos, Cif, Rama, Flora, Lipton, Slim-Fast,Bovriland Unilever Ice Cream.
Neither William Procter nor James Gamble ever intended to settle in Cincinnati. Although the city was a busy center of commerce and industry in the early nineteenth century, William, emigrating from England, and James, arriving from Ireland, were headed farther west.
The Moon and Stars began to appear in the 1850s as the unofficial trademark of Procter & Gamble. Wharf hands used the symbol to distinguish boxes of Star Candles. By the 1860s, the Moon and Stars appeared on all Company products and correspondence. Once a staple of the Company’s product line, candles declined in popularity with the invention of the electric light bulb. The Company discontinued candle manufacturing in the 1920s.
Twenty-two years after the partnership was formed, P&G sales reached $1 million. The Company now employed 80 people.
To address the storm of local and national labor unrest, P&G instituted a pioneering profit-sharing program for factory workers. This voluntary program, conceived by William Cooper Procter, grandson of the founder, gave employees a stake in the Company. William Cooper Procter wanted this program to help workers realize their vital roles in the Company’s success.
William Alexander Procter assumes leadership of the Company.<href=”#accessible_nav”>
Marketing is a social process which satisfies consumers’ wants. The term includes advertising, distribution and selling of a product or service. It is also concerned with anticipating the customers’ future needs and wants, often through market research and managing profitable customer relationship.
Marketing, more than any other business function deals with customers. Building customer relationships based on customer value and satisfaction is at the very heart of modern marketing.
Two major factors of marketing are the recruitment of new customers (acquisition) and the retention and expansion of relationships with existing customers (base management). Once a marketer has converted the prospective buyer, base management marketing takes over. The process for base management shifts the marketer to building a relationship, nurturing the links, and improving the product/service continuously to protect the business from competitive encroachments. The goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction. For example Bata promises for durable shoes and keep their promise by delivering durable shoes. Thus it is the one of the well known company for shoes in the world.
Nokia – “connecting people”, highly successful company gain most of the mobile market share by providing highly qualitative mobile set. They promise to deliver superior value and keep their promise by delivering it.
Our definition of marketing applicable in a business or a non profit organization each as follows “marketing is total says of business activities designed to plan, price, promote and distribute want-satisfying products to target market to achieve organizational objictives.
The American Marketing Association (AMA) states, “Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives”.
A market-focused, or customer-focused, organization first determines what its potential customer’s desire, and then builds the product or service. Marketing theory and practice is justified in the belief that customers use a product or service because they have a need, or because it provides a perceived benefit. If marketers does a good job of understanding consumer needs, develops products that provide superior value, and prices , distributes, and promotes them effectively, these products will sell very easily. thus selling and advertising are only part of a larger “marketing mix”- a set of marketing tools that work together to affect the marketplace.
And that is why- marketing is a social and managerialprocess whereby individualsand groupsobtain what they need and want through creating and exchanging products and value with others.
Social process: It is a social process because it starts in a organization staying in society and conducts it job for the social people as well as social wellbeing. Marketers want to build builds strong economic and social connection by promising and consistently delivering superior value.
Managerial process: As marketers work for understanding consumer needs, develops products that provides superior value and prices, distributes and promotes them effectively, thus product will sell easily and that is why marketing is a managerial process.
In this definition of marketing, core concepts of marketing are lying there. These core marketing concepts are –
needs, wants, and demands
marketing offers (products, services, and experiences)
value and satisfaction
exchanges transactionsm and relationships
Fig-1: Components and outcomes of the marketing concepts
Core marketing concepts
Fig-2: Core Marketing Conceptes
Needs Wants and Demands
Needs: The most basic concept underlying marketing is that of human needs; Human needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression. Marketers can not create human need. These need a basic part of human life.
Abraham Maslow s sought to explain why people are driven by particular needs at particular times. Why does one person spend much time and energy on personal safety and another on gaining the esteem of others? Maslow’s answer is that human needs are arranged in hierarchy. They include physiological needs, safety needs, social needs, esteem needs, and self-actualization needs.
A person tries to satisfy the most important need first. When that need is satisfied, it will stop being a motivator and the person will then try to satisfy the next most important need.
Fig- 3 : Maslaw’s Need Theory
Wants: Wants are the form human needs take as they are shaped by culture and individual personality. All people needs food but Bangladeshi people need rice and a American people may needs hamburger. Wants are shaped by one’s society and are described in terms of objects that will satisfy needs.
When want are backed by buying power then it becomes demands.If the Bangladeshi people or American people have enough money to buy rice and hamburger then want will becomes demands.Given their wants and resources, people demand products with benifit that gives the most value and satisfaction.
What do marketers do?
Outstanding marketing company learn about and understand their customers needs, wants and demands by conducting customer research and analyzing mountains of customer sales, service data.
Their people at all levels- including top management stay close to customers.
Agora, a well known super store,its top executive visiting several times in a month in Agora and stay close to customers. Thus Agora can understand and serve the needs and wants of its customer well.
Marketing offers- products, services, and experiences
To satisfy customer needs and wants companies
provide products, services and experiences and make marketing offers. Marketing offers are combination of products, services, information, or experiences offered to a market to satisfy a need or want.
Product: Products include more than just tangible goods. Broadly defined, products include physical objects, services, events, persons, places, organizations, ideas, or mixes of these entities. Product is a key element in the market offering. This offering becomes the bases upon which the company builds profitable relationships with customers.
Services are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. Example are banking, hotel, airline, retail, tax preparation, and home repair services.
A company’s market offering often includes both tangible goods and services. Each component can be a minor or a major part of the total offer. At one extreme, the offer may consist of a pure tangible good , such as soap, toothpaste, or salt- no services accompany the product. At the other extreme are pure services, for which the offer consists primarily of a service. Examples include a doctor’s exam of financial services. Between these two extremes, many goods-and-services combinations are possible.
Today, as products and services become more and more commoditized, many companies are moving to new level increasing value for their customers. To differentiate their offers, they are developing and delivering total customer experiences. Whereas products are tangible and services are intangible, experiences are memorable. Whereas products and services are external, experiences are personal and take place in the minds of individual consumers. Companies that market experiences realize that customers are really buying much more than just products and services. They are buying what those offers will do for them.
When marketers focus only on existing wants and loose sight of underlying customer needs then the marketing myopia happen. They make mistake paying more attention to the specific products they offer less or not to the benefits and experiences produced by these products.
seeing themselves as selling a product rather than providing a solution to a need
Harms of marketing myopia:
The sellers will have trouble if a new product comes along those servers the customer’s need better or less expensively.
Seller lose their market
How to overcome marketing myopia?
Firstly, when designing products, marketers must define the core, problem –solving benefits or services that consumers seek. For example, a consumer wants to buy television. In selling television, marketers should be careful that he is not selling the television only but selling the television with other quality (good quality picture tube, good sound system etc.) that can meet the customer core benefits well.
Secondly, product planners must turn the core benefit into and actual product.
They need to develop product and service features, design, a quality level, a brand name, and packaging. A sony LCD television is an actual product. Its name , parts, styling features, packaging and other attributes have all been comnbined carefully to deliver the core benefit .
Finally, product planners must build an augmented product around the fore benefit by offering additional consumer services and benefits.
SONY must offer more than just a colour television. It provides consumers with a complete satisfaction of watching television as well as solution of problem TV set. Thus, when consumers buy a Sony television, Sony and its dealers also might give buyers a warranty on parts and workmanship instructions on how to use the tv set and a toll-free telephone number to call if they have problems or questions.
What do marketers do?
To look beyond the attributes of the products and services they sell
To create brand meaning and brand experiences for customers
Pizza hut that serves people not only pizza but also deliver experiences for the customers . People come here to meet people and pass their time by gossiping. They are not getting the
pizza only but also having nice experience.
Value and satisfaction
When consumer buys any product then he or she face array of products and choose the product which gives more value and satisfaction.
Customer value: It is the difference between the galues the customer gains from owing and using a product and the costs of obtaining the product .
Customer form expoectations about the value of various marketing offers and buy accordingly. Customer expectations are based on past buying experiences the opinions of friends marketers and competitor information and promises
Customer satisfaction: Customers satisfaction with a product depends on how well the products pwrformance lives op to the customer’s expectations.Customer satisfaction is the key influence on future buying behavior.If cusomer like any producdt then he buy this product regularly and say others around him or her to use this product. Then there will be free advertisement of this product. But if consumer does not get satisfaction by using the products he will not buy this product anymore and must say to others not to buy this product. Then company wills loss their current customer and also loss probable market.
Fig-4: Customer Value and Satisfaction
What do marketers do to add value and to satisfy customers?
Marketer must be careful to set the right level of expectations. Not to set expectation to high or to low.
Customer value and satisfaction are key building blocks for developing and managing customer relationships.
Exchange, Transactions, and Relationships
When people decide to satisfy needs and wants through exchange then marketing occurs.
Exchange: Exchange is the act of obtaining a desired object from somebody by offering something in return. Exchange needs five conditions-
a. There at least two parties
b. Each party has something that might be a value to the other party.
c. Each party is capable of communication and delivery,
d. Each party is free to accept or reject the exchange offer,
e. Each party is believes it is appropriate job desirable to deal with the other party.
Transaction: Transaction is marketing’s unit of measurement .it is a trade of value between two parties one party gives something to another party and gets something. For example: If a person pay some amount of money to SONY for a TV set.
Creating exchange relationships involves following work-
Searching for buyers
Identifying buyer’s needs
designing good marketing offers
Setting price for products
Sorting and delivering product
Fig-5 : Exchange, transaction and relationship
Marketers tries to build and maintain desirable Exchange relationships with target customers by exchanging products, services, ideas or other objects.
Beyond simply attracting new customers and creating transactions marketers must set a goal to retain customer and grow business.
To build strong economic and social connections by promising and delivering superior value.
The concepts of exchange and relationships lead to the concept of a market. A market is a asset of all actual and potential buyers of a products.
The size of market depends on the number of the people who
Exhibit the need (Want to buy something)
Have resources to engage in exchange, ( have enough money to by needed product)
Are willing to exchange these resources for what they want (wants to spend money to buy the needed product)
If we think about economy we will see that the economy consist of markets . These markets are linked through exchange process and marketers have concern about these market. A marketer tries to understand the need and wants of specific markets or target markets A marketer try to add value to satisfy customer in the markets. Keeps long term profitable customer relationships.
after knowing the core concept of marketing we found that marketing maintains a process . First of all it search for buyers then it identify its buyers(target market ), identify their needs, design goods according to their needs and want, set prices considering the buyers ability, promote them and deliver them , all of these help make profitable customer relationships. It is true for all the company.we can see marketing process in following table.
Fig-6 : Marketing Process
In modern age , every company follow these process to reach their goal or obtain their objectives.As a successful fashion house Aarong also these activities. It has many departmental shop in different place in country.
Dhaka Aarong has many show rooms. In comparing the collection of show room between Rankin Street and Gulshan , we found that showroom in Gulshan is more larger than Rankin street and has more collection.why? Because Gulshan is a large and people of that area have more uying power. They have strong financial position and thus they are fashionable ; where in Rankin street both middle class and upper class people live. Middle class people are not as fashionable as upper class people like people in Gulshan. That is why they found the Gulshan area is more profitable than Rankeen Street and decorate the showroom with huge collection. So, we can see they understand the market place first.
Then they identify the need and want of those areas peole and decorate the showroom keeping in mind – the need want of those area.
In developing marketing strategy Aarong some times follwo market development and sometimes follow product development. After Asad Get show room When they open their new showroom in Gulshan and Rankeen Street without changing their collection – they follow market development strategy. And when they increase the varities of collection without changing the number of showroom – they follow the product development strategy.
When Arrong advertise and sells their product they performing marketing activities. Aarong gives it products advertisement in magazines, in signboard and in TV. At their website we can know about their product . Aarong not only provide the products it also create a brand name.They have different collection of our cultural icon nakshi katha, Jamdani share. They are success to identify the want of different ages people and deliver the new attractive designed dresses for them.Thus they sucess to provide superior value to the customer and get their satisfaction. People may have to spend much but want to have Aarong collection and that is for their brand. By satisfying customer and creating brand meaning they are succeed to make a profitable relationship to their customer.And making profitable relationship Aarong reach their goal.
In marketing system Aarong have to face competitors like Nipun, the another well known fashion house.Aaron and its competitors offers and messages to the end user either directly or through marketing intermediaries.In this marketing system all of actors – Aarong, competitors Nipun , marketing intermediaries , suppliers are affected by major environmental forces.
It is the art and science of choosing target markets and building profitable relationships with them.Marketing management is not concerned with serving all customers in every way.It suggest that marketers should serve that customer whom they can serve profitably.
Every organization has limitation has a limitation to serve the customer and that is why that has a desired level of demand for its product.Demand may have one of four state any at any point of time-
Too much demand
Marketing management always try to deal with these demand in remembaring the company’s limitation.If demand increase too much then company try to shift reduce the demand temporarily or permanently which is called demarketing.For example, in dhaka city we have to face hard traffic jam.In Mohakhali it is also a common scenery .RAJUK had taken a step to make a flyover and made it and suggest the people driving automobile using this flyover. To reduce the traffic jam RAJUK shift the demand of road to the flyover.
“MARKETING MANAGEMENT ORIENTATION”
For building profitable relationships with target customers marketing management is necessary. Organizations conduct their marketing activities under 5 marketing management concepts. They are as follows:
A. The Production concept
B. The Product concept
C. The selling concept
D. The marketing concept
E. The societal marketing concept
The Production concept
The production concept holds that consumer will favor product that are available and highly affordable. Therefore management should focus on improving production and distributing efficiency. The production concept is shill use philosophy in two types of situation.
When the demand for a product exceeds the supply.
Here management should good for ways to increase production.
When the product’s cost is too high.
Here improved management is needed to bring it down. A company can reduce its product price to make it affordable to the peephole.
Coca cola increases its production to
meet the demand of customer. When
they do not change coca cola’s taste ,
that means they do not think about
their product , just increase their
product to meet the demand –then they
follow Production concept
Although useful in some situations, the production concepts lead to marketing myopia. Company focus too narrowly on their own operations and losing sight of the real objectives- satisfying customer needs.
The product concept
The product concepts hold that customers will favor products that offer the most in quality, performance and innovative features. Thus an organization should devote energy to making continuous products improvement.
The production concept leads to marketing myopia.
Banglalink serves its customer to meet the need of communication over mobile phone. But they developing their product and improving and changing their advertisement frequently to attract customer .Thus they are following product concept.
The selling concept
It is a concept that hold the idea – consumer will buy enough of the firm’s product unless the organization unless the organization undertakes large scale selling and promotion effort. This concept is suitable for unsought goods those buyers do not normally think of buying.
When to use this concept?
Most firm practice the selling concept when whey face over capacity.
The aim of the company is to sell what they make rather than make what the market wants.
Feature of selling concept
It focuses on creating sales transaction rather than on building long –term profitable customer relationship.
It views marketing as ‘hunting’.
Maintain a philosophy –“Find the right customer for the product”.
It believes in ‘make and sell’.
It takes the inside out side perspective
It focuses on companies existing product.
Company obtains profit by heavy selling and promotion.
This concept keeps a poor consumption that consumer who buy the product will like it . Or if they don’t like they possibly forget their disappointment and buy it again later.
But in this modern age market is competitive and in competitive market many substitutes products are available. So if people feel disappointment with any product they will not take the product any more and they will advice the people around them not to buy this product. So the company following this concept will be in very risk.
The marketing concept
This concept develops in competitive market .the marketing concept holds that achieving organization goals depends on knowing the needs and wants of target market ,delivering the desired satisfactions better than competitors do.
Feature of marketing concept
The marketing concept is a customer centered “sense and respond” philosophy.
The job is not to find the right customer for the product , but the right product for the customers.
It is marketing not as “hunting” but as gardening.
It focuses on customers needs and wants
The company earns profit through customer satisfaction
The marketing concept starts with a well defined market, focused on consumers need and integrates all the marketing activities that affect customers. In turn, it yields profit by creating long term customer relationships based on customer value and satisfaction.
In our country many well-known company have adopted marketing concept. Liver Brothers, ACI. Square Aarong Nipun , Banglalink Grameen Phone and so many company uses this concept.
Arong designs its dress by keeping the choice of customer in their mind. In different season they change their design to make the dress suitable for the customer. In winter, they identify, people wear shawl and they produce fashionable shawl not only to meet the customer need but also make them satisfied. Thus they focus on customer needs.
Fig-7: Selling and Marketing concept
The societal marketing concept
The societal marketing concept is the latest concept of marketing concept. this concept holds the idea that the organizations should determine the needs , wants and interests of target markets and deliver the desired the desired satisfaction more effectively and efficiently than do competitors in a way that maintains or improves the consumer’s and society’s well-being.
A firm may totally satisfy its customers (in the process achieve a healthy profit ) , while adversely affecting society. To illustrate, and Indiana still producer might be supplying its customer in Texas with the right product at a reasonable price. But to do might be polluting the air and water in Indiana .
However this need not be the case a fronts social responsibility can be quite compatible with the marketing concept. Compatibility depends on two things –
-how broadly a firm perceives its marketing goals
-how long it is willing to wait to achieve those goals
A firm that sufficiently extends the ‘breadth’ and ‘time’ dimensions of its marketing goals to fulfill its social responsibilities is practicing what has become known as the social marketing concept.
for instance we can say (in our example ) –The Indiana still mill has several “customer” groups to satisfy –
the Texas buyers of the still
the consumers of the air that contains impurities given off buy the mill and
the recreational users of the local river where mill releases its waste matter.
Time: or a company to prosper in the long run it must satisfy its customer’s social needs as well as their economic needs.
Thus the marketing concept and a company social responsibility are compatible if management strives over the long run to
satisfy the wants of its products – buying customers
Meet the social needs of others affected by the firm’s activities.
Achieve the company’s performance objectives.
The societal marketing concept marketers have to consideration in setting their marketing policies; company profits, consumer wants, and society’s interests.
Fig-8 : Three consideration under the societal marketing concept
Pepsodent , a product of Uniliver, is a familiar toothpaste. Sometimes it lunch a program for free dental care. Pepsodent’s this free service programe is for the social well being and such a program give them a different and strong place in comparing to their competitors. They are following the social marketing concept.
Customer Relationship Management
Customer Relationship Management (CRM):
The overall process of building and maintaining profitable customer relationship by delivering superior customer value and satisfaction.
Today’s companies are going beyond designing strategies to attract new customer and create transaction with them. They are using CRM to retain current customer and build profitable, long-term relationship with them. The new view is that marketing is the science and art of finding, retaining, growing profitable customer.
Figure-09: Different CRM Strategies
|Banglalink Ladies first||Banglaling Desh||Warid|
|Package price-150 to 200||Package price-||Package price-|
peak hour: 2.50+vat
off – peak hour: 2+vat Call rate-
peak hour: 1.75+vat
off – peak hour: 1.15+vat Call rate-
peak hour: 1.20+vat
off – peak hour: .99+vatFnF-2FnF-3FnF-20Free BTTB incoming and outgoing Free BTTB incoming and outgoing Free BTTB incoming and outgoing
How to attract repeat customer
According to the following chart we can say that Banglalik Desh offer much more benefits rather than Ladies Fast. For attracting and growing repeat customer shares. They also offer free migration opportunities to the customers. So customer can adopt Desh instead of Ladies fast with free migration also more opportunities.
Simply we can say that when company creates more value and satisfaction than customer’s expectation then customers can repeat purchase product from that company.
How to attract competitor’s customers and new customers
According to the following chart Bangllink Desh package price, call rate FnF facility etc. more than Warid. Customers consideration not only on a single factor but also on call rate package price etc. We can see that Warid givrs more cheap and attractive offers than Banglalink. So competitor’s customers and new customers feel attraction to Warid’s offer and adopt Warid package.
Customer Lifetime Value:
Companies are also realizing that losing a customer means losing more than a single scale. It means losing the entire stream of purchase that the customer would make over a lifetime of patronage that is called customer lifetime value.
Fantasy Kingdom is one of the best entertainment parks in Bangladesh. To keep customer coming back this park created two main characteristics such as Ashu & Lia. They are the king &queen of the kingdom. They also arrange different types of concert &cultural programme. The rides they have in their park most of them are very interesting and the idea of the rides comes from the famous theme parks of the world such as Disney land.
Nandon Park is also one of the beautiful & entertaining parks of our country. It is the best picnic spot for the group of people who want to pass their times with great pleasure. The water rides of Nondon Park are so charming. For attracting people of different ages they offers various types of facilities such as in summer their picnic spots are paid less for school group, in winter office groups are allowed to pay less.
Figure-10: Customer Relationship Management
Attracting, Retaining and Growing customers:
Customer relationship creates superior customer value and satisfaction. Satisfied customers are more likely to be loyal and loyal customers are more likely to give the company a larger share of their business. Now we are trying to visualize more closely at the concepts of –
1) Customer Value
2) Customer satisfaction
3) Growing Customer share
4) Customer loyalty and Retention
The Customers evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offer.
Dhaka Bank added new service for its customers as they introduce money- sending service from abroad. It is so fast and speedy service that sends money from abroad to our country within only 24 hours. It helps their customer to get more benefited in exchange of little of money. Dhaka Bank also gives loans such as car loan housing loan business loan for their existing customers with a very simple installment.
2) Customer satisfaction:
The extent to which a product’s perceived performances relative to a buyer’s expectations. The key is that a company can always increase customer satisfaction by lowering its price or increasing its services.
The key is that to match customer’s expectations with company’s performance. Satisfactions are classified as-
Highly satisfaction or Delight :
The extent to which Product’s perceived performance is more than buyer’s expectation. Smarts companies aim to delight customers by promising only what they can deliver, then delivering more than they promise.
The extent to which Product’s perceived performance matches buyer’s expectations. Satisfied customers make repeat purchases and tell others about their good experiences with the product.
If the product’s performance falls short to expectations, the customer’s is dissatisfied.
In perspective of Shampoo-
If the shampoo makes the customers hair more soft smooth silky strong and healthy, which is beyond his or her satisfaction then the customer, shall be more satisfied. This type of user may be called highly satisfied user.
If the Shampoo does only what actually customer want that would be just like make customers hair soft, smooth, &silky then we can say the customer will be satisfied.
If the Shampoo fails to give the customer what he or she want then the customer will be dissatisfied. Just like if hair falls and the hair will more harsh after using the shampoo then the dissatisfied customer does not use this shampoo & he always avoid it
3) Growing Customer share:
Marketers want to constantly increase their shares of customers – the share they get of the customers purchasing in their product categories. They may do this becoming the sole suppliers of products the customers are currently buying. Or they may persuade the customer to purchase additional company products. Thus, banks wants to greater “Share of Wallet”, Supermarkets want to increase their “Share of stomach”, car companies want a greater “ Share of garage ” and airlines want a greater “ Share of travel”.
At first Amazon. Com only sales books but recently it has blossomed from an obscure .com upstart into one of the best-known names on the Internet. In the process it has forever changed the practice of marketing. They increase their sell such kind of products like Videos, CDs, toys, Consumers electronics, hardware and so on. Their say about their marketing process is: We make the internet buying experience fast, easy and enjoyable – we are the place where you can find and discover anything you want to buy online. Amazon. Com increases the customer by increasing their product line. As their product increase their users also increase.
4) Customer loyalty and Retention:
Highly satisfy customers produces several benefits for the company. Satisfied customers are less price sensitive. They talk favorably to others about the company and its products and remain loyal for a longer period. However, the relationship between customer satisfaction and loyalty varieties greatly across industries and competitive situations.
Customer Satisfaction Customer Loyalty
The relationship between customers satisfaction and loyalty in five different markets. In all cases, as satisfaction increase , so does loyalty. Highly competitive markets, such as those for automobiles and personal computers, show surprisingly little difference between the loyalty of less satisfied customers and those who are somewhat satisfied . However they show a tremendous difference between the loyalty of satisfied customers and completely satisfied customers.
This means that companies must aim high if they want hold on to their customers. Customer delight creates and emotional relationship with a product or service, not just a rational preference. This , in turns , creates high customer loyalty.
Customers who are highly satisfied are much more loyal. For example: We can say the user of Sony TV are full satisfied and loyal with their TV set. If any offer has given to the customers which price is high, the customers will not be so anxious because loyal customers are fewer prices sensitive. So it can be said that loyal customers are great assets for the certain company.
Building customer relationships and customer equity:
Customer relationship management is oriented towards the long-term. Today’s smart companies not only want to create customers, they want to “own” them for life, capture their customer lifetime value and build overall customer equity.
The total combined customer lifetime values of all of the company’s customers. The aim of CRM is to produce high customer equity. The more loyal the firms customer the higher the firms customer equity. Customer equity may be a better measure of a firm’s performance than current sales or market share. Where as sales and market share reflect the past, customer equity suggests the future. Moreover, customer lifetime value and customer equity are the name of