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Determinants of Customer
Delivered Value
Image
Image value
value
Personnel
Personnel value
value Total
Total
customer
customer
Services
Services value
value value
value
Product
Product value
value Customer
Customer
delivered
delivered
Monetary
Monetary cost
cost value
value
Time
Time cost
cost Total
Total
customer
customer
Energy
Energy cost
cost cost
cost
Psychic
Psychic cost
cost
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 Defining the Problem & Research
Objectives
Sheds
Shedslight
lighton
onproblem
problem--
Exploratory suggest
suggestsolutions
solutionsor
or
Research new
newideas.
ideas.

Descriptive
Research Ascertain
Ascertainmagnitudes.
magnitudes.

Test
Testcause-
cause-and-effect
and-effect
Causal relationships.
relationships.
Research Tests
Testshypotheses
hypothesesaboutaboutcause-
cause-
and-effect
and-effectrelationships.
relationships.
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 Research Approaches

Observational
Observational

Focus-group
Focus-group

Survey
Survey

Behavioral
Behavioral

Experimental
Experimental
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 Secondary-Data Sources

InternalSources
Government Publications
Periodicals and Books
Commercial Data
On-Line
Associations
Business Information

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 The Marketing Research
Process

Defining
Defining the
the Developing
problem
problem and
and Developing Collect
Collect the
the
research the
the research
research information
research plan
plan information
objectives
objectives

Present
Present the
the Analyze
Analyze the
the
findings
findings information
information

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 Good Marketing Research:

Is scientific
Is creative
Uses multiple methods
Realizes the interdependence of models
& data
Acknowledges the cost & value of
information
Maintains healthy skepticism
Is ethical
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 Demand

Company
Demand

Market
Demand

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 Estimating Current Demand

TotalMarket Potential
Area Market Potential
Industry Sales
Market Share

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 Estimating Future Demand

Survey of Buyers Intentions

Composite of Sales Force Opinion
Expert Opinion
Past Sales Analysis
Market Test Method

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 Basic Market-Preference
Patterns
(a) Homogeneous (b) Diffused (c) Clustered
preferences preferences preferences
Creaminess

Creaminess

Creaminess
Sweetness Sweetness Sweetness
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 Market-Segmentation
Procedure
Survey
Motivations
Attitudes
Behavior
Analysis
Factors
Clusters
Profiling

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 Bases for Segmenting
Consumer Markets
Geographic
Region, City or Metro
Size, Density, Climate Demographic
Age, Gender, Family size
and Fife cycle, Race,
Occupation, or Income ...

Psychographic
Lifestyle or Personality

Behavioral
Occasions, Benefits,
Uses, or Attitudes

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 Bases for Segmenting
Business Markets
Demographic
Operating Variables
Purchasing Approaches
Situational Factors
Personal Characteristics

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 Effective Segmentation
Size, purchasing power,
Measurable
Measurable profiles of segments can
be measured.

Substantial
Substantial Segments must be large or
profitable enough to serve.

Segments can be
Accessible
Accessible effectively reached and
served.

Segments must respond

Differential
Differential differently to
different marketing mix
elements & actions.

Must be able to attract and

Actionable
Actionable serve
2000 Prentice Hall the segments.
 Segment-by-Segment
Entry Plan
Customer Groups
Airlines Railroads Truckers
Product Varieties

Large
computers

Mid-size
computers

Personal
computers

Company A
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 Objectives

IdentifyDifferentiating Attributes
Choosing & Communicating Effective
Positioning
Marketing Strategies Along the Product
Life Cycle
Marketing Strategy & Market Evolution

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Positioning is the act of
designing the
companys offering and
image to occupy a
distinctive place in the
the target markets
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 The BCG Competitive
Advantage Matrix
Number of Approaches
to Achieve Advantage
Few Many
Advantage
Size of the

Large Volume Specialized

Small Stalemated Fragmented

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 Product Differentiation

Conform-
Fea- Perfor-
Form Quality ance
tures mance
Quality

Dura- Relia- Repair-

Style Design
bility bility ability

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 Services Differentiation

Ordering
Ordering Customer
Customer
Installation
Installation

Miscellaneous
Ease
Ease Consulting
Consulting

Services
Customer Maintenance
Customer Maintenance
Delivery
Delivery Training
Training &&Repair
Repair

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 Image Differentiation

Media Atmosphere
Symbols

Events

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 Important
Important

Profitable
Profitable Distinctive
Distinctive

Differences Worth
Establishing
Affordable
Affordable Superior
Superior

Preemptive
Preemptive

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 Market Evolution

Emergence
Growth
Maturity
Decline

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 Sales & profits ($)
Sales & Profit Life Cycles

Introduction Growth Maturity Decline

Time
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 Four Introductory
Marketing Strategies
Promotion
High Low

Rapid-
Rapid- Slow-
Slow-
High skimming skimming
skimming skimming
strategy
strategy strategy
strategy
Price
Rapid-
Rapid- Slow-
Slow-
Low penetration
penetration penetration
penetration
strategy
strategy strategy
strategy
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 The Business as a System

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 Satisfaction is a persons
feelings of pleasure or
disappointment resulting
from comparing a products
perceived performance (or
outcome) in relation to his or
her expectations.

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 Satisfied Customers:

Are loyal longer

Buy more (new products & upgrades)
Spread favorable word-of-mouth
Are more brand loyal (less price
sensitive)
Offer feedback
Reduce transaction costs

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 Quality

Quality is the
totality of features
#1 and characteristics
of a product or
service that bear on
its ability to satisfy
stated or implied
needs.

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 Customer Development

Suspects

First-time Repeat
Prospects customers customers
Clients Advocates Partners

Disqualified
prospects Inactive or
ex-customers

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 Levels of Relationship
Marketing
High Medium Low
margin margin margin
Many Basic or
customers/ Accountable Reactive reactive
distributors

Medium
number of Proactive Accountable Reactive
customers/
distributors

Few
customers/ Partnership Proactive Accountable
distributors
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 Levi Strauss
Value-Delivery Network

Order Order Order Order

Du
Du Pont
Pont Milliken
Milliken Levis
Levis Sears
Sears Customer
(Fibers)
(Fibers) (Fabric)
(Fabric) (Apparel)
(Apparel) (Retail)
(Retail) Customer

Delivery Delivery Delivery Delivery

Competition is between networks, not companies.

The winner is the company with the better network.
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