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PART II Connecting with Customers
C H A P T E R
4
Creating Customer Value, Satisfaction, and Loyalty
In this chapter, we will address the following questions:
1. How can companies deliver customer value, satisfaction, and loyalty? 2. What is the lifetime value of a customer, and why is it important to marketers? 3. How can companies cultivate strong customer relationships? 4. What is the role of database marketing in customer relationship management?
MARKETING
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Suppose the buyer for a residential construction company wants to buy a tractor from either Caterpillar or Komatsu. After evaluating the two tractors, he decides that Caterpillar has greater product benefits, based on perceived reliability, durability, performance, and resale value. He also decides that Caterpillar’s personnel are more knowledgeable and perceives that the company will provide better services, such as maintenance. Finally, he places higher value on Caterpillar’s corporate image. He adds up all the benefits from these four sources—product, services, personnel, and image—and perceives Caterpillar as delivering greater customer benefits. The buyer also examines his total cost of transacting with Caterpillar versus Komatsu, including money plus the time, energy, and psychic costs expended in product acquisition, usage, maintenance, ownership, and disposal. Then the buyer compares Caterpillar’s total customer cost to its total customer benefits and Komatsu’s total customer cost to its total customer benefits. In the end, the buyer will buy from the source he thinks delivers the highest perceived value.
A Framework for Marketing Management, Fourth Edition, by Philip Kotler and Kevin Lane Keller. Published by Prentice Hall. Copyright © 2009 by Pearson Education, Inc.
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Chapter 4 Creating Customer Value, Satisfaction, and Loyalty
After comprehensive research into the beer market specifically focusing on the four beer brands Little Creatures, Heineken, Budweiser and Victoria Bitter, our group propose the introduction of a new product into the Little Creatures product line. Similar to Heineken, we believe Little Creatures would benefit from the introduction of a Bright Ale keg. This line extension would promote bulk buying of Little Creatures beer and expand their cultural persona by encouraging community gatherings. Which is perfectly aligned with the ethos they have built to date. The sharing of what is one of their premium beers would further attract potential customers through this social networking focal point.
Armstrong, G. & Kotler, P. (2005), Marketing: An Introduction, 7th edn, Pearson Education, Inc., Upper Saddle River, New Jersey.
The core benefit of the ‘Kraft Tiger Energy Choc’ (Kraft Tiger) biscuit is its nutritional value. These biscuits are fortified with the nine vitamins and six minerals recommended by the World Food Programme. They are enriched with Vitamins such as Vitamin A, B1, B2, B5, B6, B12, D, E, Calcium, Magnesium, Phosphorus, Zinc and Iron. These vitamins can help to fulfill consumer’s daily intake of vitamin nutrition in addition to keeping their stomach full.
ELLIOT, G, et al, 2008, Marketing: Core Concepts and Applications, John Wiley & Sons, Australia
Armstrong, G. & Kotler, P., (2003), Marketing--An Introduction, 6th edition, Prentice Hall, U. S. A.
Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers—directly or indirectly—about the products and brands that they sell. The marketing communications mix consists of six major modes of communication. List and briefly explain each using a specific product or service to illustrate their use.
The word “KTV” stands for Karaoke Television. It is a form of interactive entertainment where amateurs sing along recorded music using a microphone and public address system with a screen of displayed lyrics. There are over 100 KTV establishments in Singapore. Party World KTV is an established karaoke entertainment in Singapore, boasting 12 outlets throughout the island. Equipped with the latest in entertainment technology, user-friendly systems and comfortable spacious rooms, patrons are ensured utmost pleasure and comfort. Party World KTV strives to enrich patron’s experience in singing quality and ‘beyond singing’ experience.
c/ Bedenk voor 3 maatschappelijke evoluties naar keuze een voorbeeld van hoe jouw merk daarop zou kunnen inspelen. Of toon aan hoe jouw merk vandaag al inspeelt op de veranderende opvattingen van de mens.
This report was prepared for the Chief executive officer for Axiata PLC as requested to analyze the internal and external environment and identify both external and internal factors shaping their competitive position which accounts for their success or failure in the market. This report is based on both primary and secondary information derived from Dialog Axiata PLC.