marketing crises
TRANSCRIPT
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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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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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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 ,
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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
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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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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
ئها