MKTG1501 Lecture Notes - Lecture 2: Product Differentiation, Cost Leadership, Capital Requirement

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apricotworm539

29 Jun 2018

School

Department

Marketing

Course

MKTG1501

Professor

All

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MKTG1501 –Lecture 2 Notes

*Customer Relationship Management (CRM)

- CRM is important for business to build a customer-driven marketing strategy

and constructing marketing programs so that it can lead to a profitable

customer relationship

- CRM involves in managing detailed information about individual customer

and managing customer touch points to maximise customer loyalty

- is a process of managing and maintaining profitable customer relationship

- The key to build a long-lasting customer relationship is to create a superior

customer value and satisfaction

*Customer value

- is the difference what customers gains from the cost of obtaining the product

- customers will buy goods from the firm which gives them the highest

perceived value (from the value deduct the cost of buying it)

- customers’ perception of the value is most important predictor of purchasing

the good

- customer satisfaction is vital for all the firms and it is influenced by:

1) Past experience of the buying behaviour

2) the promise that given by the selling firm

3) compare with other competitors

4) the fair value they think

* Customer satisfaction

- Depend on the product’s perceived performance relative to a buyer’s

expectation

- Study has showed that higher levels of customer satisfaction lead to greater

customer loyalty

- Some of the smart firms would choose to delight their customers by

promising them what can deliver rather than delivering more than they

promise

- Delighted or satisfied customers would make repeated purchases and share

their experiences with others

*Competitive advantage

- the brand logo itself is the most common competitive advantage for most of

the brand (so that means the brand positioning is vital for each brand as they

are the advertisement for its brand)

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Document Summary

Crm is important for business to build a customer-driven marketing strategy and constructing marketing programs so that it can lead to a profitable customer relationship. Crm involves in managing detailed information about individual customer and managing customer touch points to maximise customer loyalty. Is a process of managing and maintaining profitable customer relationship. The key to build a long-lasting customer relationship is to create a superior customer value and satisfaction. Is the difference what customers gains from the cost of obtaining the product. Customers will buy goods from the firm which gives them the highest perceived value (from the value deduct the cost of buying it) Customers" perception of the value is most important predictor of purchasing the good. Customer satisfaction is vital for all the firms and it is influenced by: past experience of the buying behaviour, the promise that given by the selling firm, compare with other competitors, the fair value they think.

Related Questions

few years, British Sky Broadcasting has transformed the way people in Britain watch and use their television. Before Sky, people could never have imagined ordering a pizza or sending an email from their set. Today it's an accepted thing.

Part of Sky's success has been in its brand - in defining what makes Sky special and in expressing that difference visually, in products and in the actions of people in the company. And that brand has become one of the company's greatest assets. Brands help companies build a relationship with a customer. A good brand not only helps differentiate a company, it also helps the customer feel something as a result. A pair of Nike trainers might make a person feel more fashionable. A Sony minidisc player might make a person feel they are at the cutting edge of miniature technology. A Rolls Royce might make a person feel that they have reached the top.

Some brands even go beyond that and become so well known that they become generic. This means they're used as a general term for that type of product, even if it's a competitor's product. Walkmans, and Hoovers are a good example. People Hoover the carpet, even if they're really using an Electrolux.

A brand helps customer recognition and enables recognition to be spread by word of mouth as well as by advertising. A brand also adds value. It can allow a company to offer its products at a premium, without reducing the customers' perception of value for money. It also allows a company to extend what they offer to the customer - if a customer trusts one product from that company, they are more likely to trust (and buy) another product from the same company.

That is why Sky has invested so much in its brand. As the first entrant 16 years ago in the field of multichannel television, it had the opportunity to build strong recognition and to even establish itself as the generic brand for multichannel television.

Source: (viewed 10 February 2019)

QUESTIONS

1. In the above article, "if a customer trusts one product from that company, they are more likely to trust (and buy) another product from the same company". Discuss different ways that companies can use to increase brand loyalty. Justify your answers with relevant examples. (5 marks) (500 words)

2. In the above article "brand has become one of the company's greatest assets". Do you agree? Justify your answers with arguments and examples. (5 marks) (500 words)

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MKTG1501 Lecture Notes - Lecture 2: Product Differentiation, Cost Leadership, Capital Requirement

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