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8/7/2019 Marketing Crises

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MARKETINGSTRATEGIES

 اترايجي التسوقية

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MANAGEMENTةرادلا 

Marketingقيوستا

Salesعبا

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The Selling and Marketing The Selling and Marketing 

ConceptsConcepts عععع ععععع ععع ععععععععع ععععع ععع ععععع

 عععععععععععععععع

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All of the people in the company aim allefforts to satisfy the customer.

1. Customer satisfaction

2. A total company effort

3. Profit (value added ) as an objective

Marketing as Customersatisfaction Concept

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Marketing is hard.

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The Marketing ConceptThe Marketing Concept• To be successful, a company must

determine the needs and wants of specifictarget markets and deliver the desiredsatisfactions better than the competition.

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Tell me more about

your company 

• How do you know that there are somemarketing crises ??

• Who in your organization is responsible for

marketing crises ??

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How do you see your customer??

  يف ترى عميلك 

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• Tangible

– touch– see

– taste

– smell– Feel

• Intangible

– can’t see– can’t touch

– can’t smell

– can’t taste– Cant feel

Tangible / Intangiblemarketing crises 

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Product marketing crisesProduct marketing crises GoodsGoods - crises you can touch -

ServicesServices - crises you can’t touch -but you can see their effect

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•  Product has no physicalcharacteristics;

• Design of produce doesn’t meet theconsumer want satisfaction.

Service Crises

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“َ Quality Crises : A product’s ability to

satisfy a customer’s needs or requirements…”

الجو عته لقدعى بية

يملا يتحا 

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فضما ما ةدوجا

Quality And Value Added 

Quality is often tied in to comparison

with what the competitor does at thesame price

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What is a Product?• “Most customers think aboutproduct in terms of the total

satisfaction …”

• “we don’t sell cars, we sell safety ! “

• we don’t sell houses, we sell homes

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Who is your customer ??

ى مك احى

Define and specify your customer

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Service Providers

service providers have product lines andservice providers have product lines andproduct mixes as wellproduct mixes as wellexamplesexamples

• MasterCardMasterCard

• insuranceinsurance• telephone servicestelephone services

• cable servicescable services

• internet service providersinternet service providers• airlines, first class, economy classairlines, first class, economy class

• banksbanks

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Characteristics of Crises

Marketing Strategies

Crises

4Ps•

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The Four Ps of the Marketing Mix The Four Ps of the Marketing Mix 

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Maslow’s Hierarchy of Needs

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Brand NameCrises

Words, letters, or symbols that make up aname used to identify and distinguish thefirm’s offerings from those of itscompetitors.

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A brand that has been given legal protectionand has been granted solely to its owner.

Trademark 

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Customer Satisfaction Crises

• Product’s performance

• Relative to buyer’s

expectations

• Basis for expectations

• past experience

• friends and associates

• seller’s information

• competitor’s concern

What is customer satisfaction?

© 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

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Understanding the Customer 

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CUSTOMER SATISFACTIONOBJECTICES

Setting Your Organization

Apart from the Competition 

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CUSTOMER PERCEPTION

Customers perceive service intheir own unique, emotional, and

totally human terms.

Perception is all there is!

Tom Peters

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S.W.O.T. ANALYSIS

 • S for strengthsةوا طن• W for weaknesses ضا طن

• O for opportunities اص

• T for threats ايهتا 

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h CG G h h i

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The BCG Growth-share Matrix The BCG Growth-share Matrix 

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It is not importantIt is not important

to increase theto increase the

Sophistication of Sophistication of 

a microscope if aa microscope if a

monkey ismonkey is

looking into it.looking into it.

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FIVE TIMES TO AVOID

CUSTOMER'S CRISES 1. When they do business with you, every time.

  2. When they compliment you or your organization.

  3. When they offer suggestions or comments.

  4. When they recommend you to a friend.

  5. When they try a new product or service.

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  6. When they are patient and when they are not sopatient.

  7. When they help you to serve them better.

  8. When they complain to you.

  9. When they make you smile.

FIVE TIMES TO AVOIDCUSTOMER‘S CRISES

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ATTRACTING AND

RETAINING CUSTOMERS

• Attracting Customers

• Cost of lost customers• Customer retention

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CUSTOMER PROFITABILITY

• Customer sigmentation• Classify your customers :

  large, small and mid-size customers• Customer profitability analysis

• Creation high value with low cost:

• Create Competitive advantages

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T Q M• Total quality management• Total quality Marketing

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TOTAL QUALITY MARKETING 

Quality Improvement Program Requirements:

• identifying needs and wants

• communicating with R&D• timing

• instruction and training

• handle the complains• listen the advise for improvements.

 

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Crises Type - 1Customer & Company expectations of service

Expected service

Perceived service

Service delivery

Customer-driven

service designs andstandards

Company perceptions of Customer expectations

Externalcommunications

to customers

Company

Customer

Gap

1

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Expected service

Perceived service

Service delivery

Customer-driven

service designs andstandards

Company perceptions of Customer expectations

Externalcommunications

to customers

Company

Customer

Gap 2

Crises Type - 2

Customer & Company standards

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Crises Type- 3

Customer standards & delivered serviceExpected service

Perceived service

Service delivery

Customer-driven

service designs andstandards

Company perceptions of Customer expectations

Externalcommunications

to customers

Company

Customer

Gap 3

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Crises Type - 4MISCOMMUNICATION

Source: Zeithaml(1996)

Expected service

Perceived service

Service delivery

Customer-driven

service designs andstandards

Company perceptions of Customer expectations

Externalcommunications

to customers

Company

Customer

Gap 4

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Crises Type - 5Expected and perceived service

Expected service

Perceived service

Service delivery

Customer-driven

service designs andstandards

Company perceptions of Customer expectations

Externalcommunications

to customers

Company

Customer

Gap 5

© 1999 Prentice-Hall Canada Inc Scarborough Ontario

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Productvalue

Servicesvalue

Personnelvalue

Imagevalue

Psychic

cost

Energy

cost

Time

cost

Monetary

cost

Customer delivered

value

Total customer 

value

Total customer 

cost

Customer Delivered Value

© 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

© 1999 Prentice-Hall Canada Inc Scarborough Ontario

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Customer Satisfaction and Loyalty

• In highly competitive

markets …

• A huge difference exists• Between the loyalty of 

• Satisfied customers and

• Completely satisfiedcustomers

• Customer delight creates

an emotional affinity!

© 1999 Prentice Hall Canada Inc., Scarborough, Ontario

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Customer Satisfaction and Loyalty

• Building Value with

QualityHow??

© 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

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Customer Retention Crises

Costs five timesmore to attracta new customer

vs. retaining anexisting

© 1999 Prentice Hall Canada Inc., Scarborough, Ontario

© 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

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Steps in Analyzing CompetitorsAssessing

competitors’

objectives,strategies,

strengths,

weaknesses,

and reactionpatterns

Identifyingthe

company’s

competitors

Selecting

whichcompetitors

to

attack or 

avoid

© 1999 Prentice Hall Canada Inc., Scarborough, Ontario

© 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

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Competitor Analysis

• Who are our competitors?

• Selling similar products and services to same

customers at same prices?

• All firms making the same product or class of 

products?

• All companies making products that supply thesame service?

• All competing for same consumer dollars?

, g ,

© 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

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Assessing Competitors

• Firms in an industry

• following the same or similar strategy in

• a given target market

• Competition increases

as firms strategies

become more similar 

• Benchmarking

Strategic Group

, g ,

© 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

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Selecting Competitors

to Attack and Avoid

• Help increase total demand• Share costs of market and product

development

• Help legitimize new technologies• May serve less attractive segments

• Less antitrust risk - more bargaining power 

Strategic Benefits of Competition

g

© 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

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Selecting Competitors

to Attack and Avoid• Well-behaved Competitors

• Stable and healthy industry

• Set reasonable prices in relation to costs

• Motivate to lower costs and differentiate

• Accept reasonable market share and profits

• BAD Competitors• Take large risks - Buy share rather than earn

© 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

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Basic Strategies

Michael Porter’s Three Winning Strategies

Focus

Overall cost

leadership

Differentiation

© 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

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Market leader 

40%

Market nichers

10%

Market follower 

20%Market challenger 

30%

HypotheticalMarket

Structure

© 1999 Prentice-Hall Canada Inc., Scarborough, Ontario

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Evolving Company Orientations

Product orientation

Competitor orientation

Customer orientation

Market orientation

No Yes

Customer - centred

No

Yes

C o m

p   e t it io n-C e  nt re d 

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http://www.ebay.com/

E- MARKETING &

TECHNOLOGICALCRISES 

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Delighting CustomersDelighting Customers

TechnologyCustomer 

value

Quality

RelationshipsSatisfaction Loyalty

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Satisfaction & LoyaltySatisfaction & Loyalty

Outcomes:

– Growing business to increase revenues

– Less price sensitivity

– Lower organization’s costs

Satisfaction:

Feelings from experienceLoyalty:

Choice of brandover others

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Think About It!Think About It!

Why is it important to achieve both satisfaction and loyalty to avoidcustomer crises ?

CASE STUDY

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Customer Defections

15%

20%

65%

TreatmentProduct

Other 

Anderson, Fornell, Lehman (1994)

Reasons for Defection:

Factors Influencing Company Marketing StrategyFactors Influencing Company Marketing Strategy

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Microenvironment ForcesMicroenvironment Forces

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 Microenvironment ForcesMicroenvironment Forces

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Major Macroenvironment ForcesMajor Macroenvironment Forces

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Loyalty1. Product capability and quality

2. Customer service experience

3. Ease of doing business

4. Price versus value

5. Company reputation

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Customer Satisfaction Measuring

CRISES• Most Service providers have a survey process to measure

customer satisfaction

– Periodic surveys

– Event/Transactional surveys

• Establish required sample size, target response rates andconfidence level

• Quantitative results and verbatim feedback gathered• Results are analyzed and communicated

• Avoid averaging monthly Satisfaction percentages – will produceinvalid result

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Customer Satisfaction Rating Scales

Example from seven point scale

ExtremelyDissatisfie

d

VeryDissatisfied

VerySatisfied

ExtremelySatisfiedSatisfied

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Four Categories of Customer loyalty

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Customer- Crises Segmentation 

• Segmentation of customers forloyalty analysis

– Top revenue accounts – 80/20 rule– Geography

– Products and Services

– Markets

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Complaint is one way to avoid Crises 

• Company wide process that will expedite theresolution of all customer complaints

• Follow up on negative comments fromsurveys

• Complaints are opportunities to increase

loyalty

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Scorecard Crises Employee Satisfaction Accountability

Customer Satisfaction &

Loyalty

Financial Results

 

 

 

 

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Conclusion

Lake of Loyalty and commitment could be theLake of Loyalty and commitment could be the

main reason of missing your customersmain reason of missing your customersongoing profitable relationshipongoing profitable relationship

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Think About It!Think About It!

How does a company find outdefects?CASE STUDY 

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Think About It!Think About It!

Should companies encourage

customers to complain?

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FREIGHT AND LOGISTICSMANAGEMENT

ااة خد اق و اشحنيسجلاو 

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  قيسا زا ع  خط

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ي ز  • Rank and position your company ح ارد

(analyze, BCG, SWOT,classify ,rank….)

• Define and specify objectives. امشل بد(market-share,profit,penetration,..others)

• Study possible scenarios. مما وحا ومج ردا 

(local,global,capability,resources, environments…….)

• Select optimum solution.ثا حا وأ تخا(easy,cost,time,strategic,feasible,….)

• Put your plan.  اتسويع ازخ ع ار ود  (flexible,clear,specific,matching…..)

• Implement (plan-do-check-react) اأ فى اتذ امى امى(organize,lead,control,motivate,……..)

ئتا رظتنا د لً أءخا رسما ح ى مئاد صا

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