CHAPTER 1,2,5 :

Customer Value and Satisfaction 

Key Markets

• Consumer markets

•Business markets

• Global markets

•Nonprofit/Government markets

Product flow and type of Markets

Supplier

Manufacturer

Distributor

Retailer

Customer

Business Market (B‐B)

ConsumerMarket (B‐C)

C‐C

C‐B

7 Ps

4

Product• Variety• Quality• Design• Features• Brand• Services• Packaging

Price• Basic price• Payments• Credit• Discounts

Place• Channel• Coverage• Location• Inventory• Transport

Promotion• Sales Promotion• Advertising• Direct marketing• CSR

People• Employees• Management• External stakeholders

Process• Communication process• Service delivery process

Physical environment

• Culture• Facilities

Marketing Mix ( is the set of 

marketing tools that the firms uses to pursue its marketing objectives in 

the target market)

Perceived Value/Experience < Expectation

Perceived Value/Experience = Expectation

Perceived Value/Experience > Expectation

How we can measure customer satisfaction level?

Understanding Customer Value

A Satisfied customer

• Stays loyal longer• Buys more as the company introduces new products and services•Talks favorably about the company and the brands• Offers ideas to the company• Cost is low

Why do we need our Customer to be satisfied

• Customer Development plan

• Levels of responses in building relationship

Relationship Marketing is the key to retaining customers

Customer Development plan

Suspects ProspectsFirst time Customer

Repeat Customer

Clients Members

Partner

Advocates

Disqualified prospects

Inactive/ex‐customer

Porter’s Value Chain Model

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CHAPTER:2Developing Marketing Strategies and Plans

Why Marketing is Strategically important 

• Market is lot more – Open and wider

– Competitive and complex

– Dynamic and demanding

– Dependant

– Customer centric

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Red Vs Blue Ocean Strategy???

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Red Ocean Strategy:‐Compete in existing market space‐Beat the competition‐Exploit existing demand 

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Blue Ocean Strategy:‐Create uncontested market space‐Make the competition irrelevant‐Create and capture new demand

Examples of mission statement

Dell: Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve.

Honda: Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction

Nike: To bring inspiration and innovation to every athlete* in the world. *"If you have a body, you are an athlete." ‐ Bill Bowerman 

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Product Orientation vs. Market Orientation

Company Product Market

IBM We manufacture hardware and software

We build network

Xerox We make copying equipment

We improve office productivity

Standard Oil We sell gasoline We supply energy

Columbia Pictures We make movies We entertain people

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2. Establishing Strategic Business Units

Examples of SBUs

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GE  Digital Energy

GE Capital

GE Technology Infrastructure

GE Home & Business Solutions

GE  Electric distribution

GE  Energy

GE  Oil & Gas

GE  Water & process technology

GE Aviation

GE Healthcare

GE Transportation

GE Consumer financeGE Leasing GE Real estate financing

GE  Consumer electronics

GE  Appliances

3. Assign resources to SBUs

• Identify each and every resources

• Portfolio evaluation model

1. Boston Consulting Group’s2. General Electric Approach

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The Boston Consulting Group’s /Growth‐Share Matrix

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General Electric Approach/ Multifactor Portfolio Analysis

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Protect current position Invest to build

Build selectively Selectively/Manage for earnings

Protect and Reinforce

Build selectively

Manage for Earnings

Harvest

Divest

MARK

ET ATTRA

CTIVEN

ESS

Low

Med

ium

High

Strong Medium WeakBUSINESS STRENGTH

Thank You

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CHAPTER: 4Conducting Marketing Research and 

Forecasting Demand

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Marketing Information System (MIS)

• MIS consists of people, equipment and procedure to gather, sort, analyze, evaluate and distribute needed, timely and accurate information to marketing decision makers.

• Source can be either Primary or Secondary

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Marketing Research

Is the systematic design, collection, analysis and reporting of data and findings relevant to specific marketing situation facing the company.

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Marketing Research Process

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Define the problem and objectives

Develop the research plan (ReMe)

Collect the Information

Analyze the Information

Findings and Conclusion

Action and follow up

Research Methodology

• Type of research• Sampling plan

– Sample– Sample size– Probability and non‐probability sampling

• Data collection plan– Type of data– Source– Method– Instrument

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Types of Marketing Environment

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Micro‐Internal: Organization structure, policy, strategy, employees

Micro‐external: Customer, supplier, competitors, intermediaries, Shareholders, Creditors

Macro….

Thank You

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CHAPTER: 6Analyzing Consumer Market

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Marketing efforts to meet diversified consumers

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Cultural diversity

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• In China, white is the color of mourning and brides wear red.In USA black is the symbol of morning and brides wear white

• NOVA an economical brand of GM literally means“doesn't go” in Spanish

• Pepsi had to change its color of coolers and vendingequipments from deep regal blue to light ice blue in SoutheastAsia as this color is associated with death and morningin this part

HighInvolvement

Significantdifferences

betweenbrands

Fewdifferences

betweenbrands

LowInvolvement

Types of Buying Behavior

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ComplexBuying

Behavior

Variety-SeekingBehavior

Dissonance-Reducing Buying

Behavior

HabitualBuying

Behavior

Factors determining the level of involvement 

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• Previous experience• Interest• Perceived risk of negative consequences• Situation• Social visibility

Learning

Psychodynamic theory

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Thank You

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CHAPTER:7Analyzing Business Markets

Business Market and Consumer Market

Characteristics Business Market Consumer Market

Demand Organizational Individual

Purchase volume Large Smaller

No. of customers Fewer Many

Location of buyers Geographically concentrated Dispersed

Distribution structure More direct More indirect

Nature of buying More professional More personal

Type of negotiations More complex Simpler

Use of reciprocity Yes No

Use of leasing Greater Lesser

Primary promotional method Personal selling Advertising

Thank You

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