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Introduction
Marketing Orientated companies focus on customers

needs. Changing needs present potential market opportunities, which drive the company. Marketing Orientated companies get close to their customers so they can understand their needs and problems. Market-oriented strategy defines goals and focuses action based on the structure of the marketplace.

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 Understanding the marketplace provides a strong foundation for answering

many questions that are critical to success such as: Which growth opportunities are worth attention? What new products or services should we develop? How will we create competitive advantage for our company? Strategy that is grounded in the marketplace provides a realistic basis for aligning day-to-day actions with long-term ambitions, setting goals and objectives, allocating resources and focusing actions. Market oriented strategies are the keys to success in today's business world. Before a strategy is made, a study of the structure of the market place A thorough understanding of the marketplace will provide the necessary ingredients of success of a company or business.
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Levels of Market orientation

The various levels of this strategy should be: 1. To identify the growth opportunities for a specific sector, to know where is the need and how to fulfill them.
2.

The second level would be identifying the products and/or services which are in demand an hence should be developed

3. The third level should be a research of how a competitive edge could be developed for the business.
4. The forth level should be setting up of long term goals and objectives. This will allow the proper allocation of resources and putting the action items in with the required time-lines

EX: In economic terms like in the textile sector, use of market oriented strategy is becoming common and it increases the competitiveness and innovation of the industry. As demands of the customers changes very frequently therefore, market oriented strategy can bring innovations and competencies SJ AP-I\CA\SOC

 They use focus groups, discussions, develop quality circles, do

brainstorming by involving various representatives from the customers for idea generation. You can employ same techniques to understand the market and to introduce the new market oriented product by involving customers in the idea generation process.

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Customer Acquisition Strategies

Managing customer acquisition consists of a variety of interrelated

tasks and activities. Customer acquisition is the process of acquiring new customers for business or converting existing prospect into new customers.

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Search Engine Optimization

Customer acquisition and management

Stages:
Broad customer segments identified Customer needs, behaviors and values clarified Virtual intimacy with individuals achieved

The current state of the play

Understanding Micro-segments Analyzing profitability Drivers Intelligent data mining

Supporting sales and service staff with advanced technology

The role of sales incentives

Innovation in recruitment , training and development Enhance brand value with superior service

Strategic imperatives
Overcome obstacles that impede progress
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stages
Broad customer segments identified Profitability based segmentation and house holding for current

customers is the primary weapon Undefined analyses of customers have some influence on the product , channel, pricing , retention, cross-selling and service mix offered. Generally , the organization is internally focused. Customer needs, behaviors and values clarified Proactive prospects and customer management enabled by combining profitability and behavioral segmentation analysis. Information is delivered to customer touch points;(branches or call centers) to influence customer activity and workflow management. Intense internal conflicts erupt due to traditional also organization structure.
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stages
Virtual intimacy with individuals achieved
Major transformation of strategies, processes, systems and structures. Advanced predictive capability used for customer acquisition and cross

selling Gain influences over competitor strategies Testing, measuring and retooling of strategy and tactics are automatic , leaning is continuous Traditional organizational design is redrawn, I T infrastructure redesigned.

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The current state of the play

Understanding Micro-segments
The bank that can tie the various types of data together and leverage

that combination to segment its customer base in dynamic and multidimensional ways Ex: banking services not limited to people age Analyzing profitability Drivers In depth segmentation can produce surprises when it comes to profitability. 1. Analyses the union 2. Careful analysis of customer data also allowed union to design a new product. Intelligent data mining Groups of customers to develop a relationship with each one individually
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Supporting sales and service staff with advanced technology

To reach stage 3 of the evolutionary path requires employees

with strong sales skills and an unwavering commitment to highquality customer service.

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The role of sales incentives

An incentive program is a formal scheme used to promote or

encourage specific actions or behavior by a specific group of people during a defined period of time. A sales incentive plan (SIP) is a business tool used to motivate and compensate a sales professional (or sales agent) to meet goals or metrics over a specific period of time Incentive programs are particularly used in business management to motivate employees, and in sales to attract and retain customers. These programs are primarily used to drive sales, reduce sales costs, increase profitability, develop new territory, and enhance margins. Sales incentive programs have the most direct relationship to outcomes.
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Innovation in recruitment , training and development

Training their employees to process transactions
Everyone here is expected to make learning a part of their

personal mission, whether theyre brand-new or theyve been with us for years.

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Enhance brand value with superior service

Companies that manufacture consumer products invest

considerable resources to establish and maintain the value of their brands. Brand value encompasses an understanding by the consumer of what the product is, how it looks, how it tastes and how it complements their lifestyle. Measured brand value is the investment made by the company to establish the brand Building a strong market position, one in which the consumer has a well recognized and positive association with the product
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Strategic imperatives(necessary)
Strategic Imperatives customizes each engagement to meet

the client's needs and objectives. It works with clients to create forward-thinking strategies, develop strong leaders, transform cultures and engage stakeholders.

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Overcome obstacles that impede(prevent) progress

Overcome several key obstacles in business. Customer-segmentation

Constraints on information analysis and learning

Organization focused on products or geographic matters rather than

customer segments Weak analysis of link between customer needs, behavior, product usage and profitability. Senior executives will need to focus on Skills sets and organization Technical architecture and tools Strategy and goals Processes 17 SJ AP-I\CA\SOC feedback and learning. Information,

CUSTOMER RETENTION
OLIVER SAYS Defined the concepts of Loyalty : Deeply held

commitment to re-buy or re-patronize (visit) a preferred product or service consistently in the future ,despite situational influences and marketing efforts having the potential to cause switching behavior.

If we dont take care of our customers, someone else will.

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COMPONENTS OF CUSTOMER RETENTION COMPONENTS OF CUSTOMER RETENTION

Overall satisfaction

Perceived Value For Money

Customer Retention

Brand Strength

Future Intentions
Perceive-to realize SJ AP-I\CA\SOC

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8 CS OF CUSTOMER RETENTION

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The Path to customer retention involves six steps!

Step 1 - Ask
Step 2 - Evaluate Step 3 - Stimulate

Step 4 Reward
Step 5 - Aggregate Step 6 Take action

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Best Customer Retention Strategies

Welcome the complaints Instigate loyalty programs Send questionnaires and surveys

Check for repeat sales

Do regular reviews

Reactivate dormant customers

Make good first impression

Frequent communication plans

Provide exceptional services

instigate-to suggest and encourage dormant-not dead but not active

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Marketing Mix for retaining customers

Product extras

Reinforcing promotions

Sales force connections

Post purchase communication

reinforce-to make stronger Sales force: customer service - success

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Benefits of Customer Retention

Reduced costs for customer acquisition. Fostering(look after for a period of time) greater

interaction between business and customer. Having more delighted customers. Possibility of repeat business.

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Challenges in retaining a customer: Pricing

Inconvenience

Core service failure Service encounter failure

Response to service failure Competition

Ethical problems
Involuntary switching

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Conclusion:
With the support of professional and efficient customer satisfaction activities a company has many advantages over its competitors. The target of customer retention is to build and maintain a long term relationship with customers. Customer retention could and should be implemented in every company.

The earlier a company start with professional customer retention the faster , first results can be experienced.
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What is a Loyal Customer

3.

Definition: customers with a long record of purchases from a

preferred provider caused by their psychological and emotional bond with that provider OLIVER SAYS Defined the concepts of Loyalty : Deeply held commitment to re-buy or re-patronize (visit) a preferred product or service consistently in the future ,despite situational influences and marketing efforts having the potential to cause switching behavior.

Are there various types of loyalty?

Types of Loyal Customers

+ + Frequency of Purchases

3.

High loyals
Attachment

Latent loyals

Spurious loyals

Low loyals

Differentiated Strategy to Loyalty Segments

Not all customers were created equal
customers)

3.

High loyals most profitable, make them feel like family (20% of your
Latent(dormant) loyals find out why they cant come more often, find

other ways they can help, dont discount

Spurious (fake) loyals come but dont care, make them connect with

you, make them wish for special treatment

Low loyals dont get distracted (troubled) with them, but make sure

they are satisfied (approx. 40-60% of your customers)

Measurements
Customer Satisfaction
I expectedI got it

Customer Loyalty
I got more than I expected

Perceived Value
Defined by your customers

Example: Retail Industry

Understanding Loyalty
Transactional Loyalty

Transactional loyalty covers recency, frequency(rate), customer lifetime and customer share. It is based on transactional records or some historical evidence that shows how recent, frequent, long (customer lifetime) and deep (customer share) the customer is with your company. Ex: However, with reference to the restaurant example, you may not be loyal to that restaurant anymore if you move to a new place to live or if a new restaurant opens nearby with slightly better prices, food or service.
Emotional Loyalty

Emotional loyalty includes the willingness to pay premium price, making your product the de facto standard, recommending your products and services to others, and a willingness to provide feedback to help make your product better. It is based on emotions and relationships, rather than purely the transactional records. Of course, this would be difficult to observe purely by looking at customer purchasing records. In-depth surveys and other observations need to be done.
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Factors contributing to Loyalty:

Main factors to consider:
The Customer interaction
Develop your brand experience and deliver it every time

The Promise
A clear definition of the brands promise
Segment! segment! segment! For real value.

Demand
Create and shape the demand for your brand
Constantly innovate and develop offerings which are relevant to more

customers
HARNESS( attach) THE ABILITY OF YOUR TALENT AND THE

POWER OF TECHNOLOGY
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What to expect from loyal customers

Behaviors:
Come back frequently Buy most expensive products

2.

Recommend provider to friends

Give important suggestions

Emotions: Are attached to the provider/staff Trust the provider Resist (oppose) changing despite competitors persuasion(influence) Willing to forgive mistakes
?

4.

How to foster(promote) loyal relationships

Current loyalty programs

Ineffective in creating a bond Most are simply frequency programs Make people shop around and look for deals Make customers price sensitive Erode(wear) profits

We can identify loyal customers but we dont know how to generate customer loyalty

4.

The relationship Triangle

Social Network

R.I.M.
Provider Customer

R.I.M.
Resource Investment Model
Retribution to the provider Protect customers equity Customers investment of special resources

4. RIM

Providers investment of special resources

Customers loyalty to provider

Loyal relationships facilitate special treatment Retribution Worthy

Morais, Dorsch, & Backman (2004)

4. RIM

Types of Investments
Give to your valuable customers
1.
2.

Make sure that your special customers receive special treatment

Send cards for birthdays rather than just for the holidays

3.
4.

Make them feel unique (use name, compliment them for helping)
Educate them about front and back stage

Receive from customers

1. 2.

Give them opportunities to get to know you (your staff) Help them become advocates of your company (merchandize, web)

3.
4.

Seek their opinion

Allow them to commit to you with a long term program
?

B.C. Brand Communities

Definition: group of individuals united through the

4. BC

consumption( utilization) of your products

Harley-Davidsons HOGs Club Meds Gracious Members

Characteristics Communality help and expect help from others Brand fests are used to share history Keep consuming(strong) to stay connected

Building a Community
Community
1. 2. 3. 4. 5. 6. 7.

4. BC

Use a newsletter to share news about customers Develop an online forum for customers to stay in touch

Organize annual events by invitation for VIP customers

Facilitate picture / story sharing Help customers help each other

Give a name to the community

Action Outline
1. Select your market segment

4.

Identify most valuable customers (what criteria?) Identify customers who might become valuable

2. Design a relationship-building service culture

Identify what type of treatment promotes customer loyalty Identify what loyal customers want to give to you

Identify potential for the development of a brand community

3. Implement a loyalty treatment

Design specific communication strategy and message Train staff to understand the importance and the process Create opportunities to invest and receive investments Generate a sense of community among your customers

4.

Measure effects of program and redesign

Maintain constant communication with your loyal customers Monitor costs and results of your program

The relationship Triangle

Social Network

Provider

Customer

Customer involvement in product/ service development

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CONSUMER INVOLVEMENT
Consumer involvement refers to degree(LEVEL) of information

processing or extent of importance that a consumer attaches to a product. The degree of involvement has a very significant effect on consumer behavior. When more expensive products are to be purchased, the consumer gets more involved in purchase process but he may not be equally involved in a product which is just a rupee or two priced.

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EXAMPLES OF CONSUMER INVOLVEMENT

Take the example of:

CAR - As it is a expensive product so consumer will get highly

involved resulting in higher involvement.

BOOK - The book purchased by a student for preparing

competitive exam may not be as expensive as car, yet the customer gets highly involved because it is a important product.
MEDICINE - When a medicine is being purchased, which may not

be very expensive, yet the customer may be highly involved in checking that it shouldnt react him.
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LEVELS OF INVOLVEMENT

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LEVELS OF LOW INVOLVEMENT

LOW INVOLVEMENT purchases are not really important to

consumers, have little relevance and need very limited information processing.

SOME INVOLVEMENT- Some involvement purchases are of little

bit importance to customers. It includes some evaluation of alternatives.

HIGH INVOLVEMENT- High involvement purchases are those

which are important to consumers such as complex, expensive, risky or ego-intensive products & require extensive(broad) information processing.
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TYPES OF INVOLVEMENT MEDIA

HIGH INVOLVEMENT MEDIA- Print media such as newspaper &

magazines are high involvement media because information is processed clearly leading to attitude formation and finally behavior.
LOW INVOLVEMENT MEDIA- TV is a low involvement media

because it is a primarily pictorial, allowing viewers passive(inactive) and holistic(view based on function or nature) processing of information.

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Intensive-Great care Persist-keep doing Persuasion- to make

FACTORS AFFECTING DEGREE OF INVOLVEMENT

1) MODERATING FACTORS : are those which may limit the

opportunity & the ability to process the information and influence the level of involvement. For example: a consumer is planning the purchase of a mobile phone & the commercial he is watching would be quite interesting to him. Suddenly somebody knocks on the door & this distracts his attention from the ad and the consumer may not posses much knowledge about a particular product and fails to understand some of the information contained in the ad. So this would limit the evaluation of alternative brand in a satisfactory manner.

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FACTORS AFFECTING DEGREE OF INVOLVEMENT

2) INVOLVMENT VARIABLES:

PERSON - The variable related to person refer to personal needs, values,

interests & experiences etc .

For example: a person interested in computers is very likely to have personal

interest in computer related magazines to learn about new development.

STIMULUS /OBJECT - refers to product or stimuli(MOTIVATION)

that consumer perceives(Understand) to be closely related to his/her values, experience and interest. For example : in case of computers, one should not expect the same level of involvement for all consumers. SITUATIONAL: this involvement represents a mind set;
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FACTORS AFFECTING DEGREE OF INVOLVEMENT

3) INVOLVEMENT PROPERTIES:

INTENSITY : Involvement intensity refers to the severity of

involvement as experienced by the consumer and is generally categorized as high or low. DIRECTION : Direction refers to the focus of involvement and involvement variables will strongly affect this focus. The focus could be a product, service, ad or purchase decision. PERSISTENCE (DETERMINE) : Persistence describes the length of time the consumer remains involved with purchase decision.
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FACTORS AFFECTING DEGREE OF INVOLVEMENT

4) RESPONSE FACTORS:

Response factors concern how a consumer behaves under

involvement condition of different intensity. These factors includes

different pattern of information search,
information processing, evaluation of alternatives and post-decision actions.

One may expect that consumer is high in enduring involvement(ego

involvement) for a product will undertake regular, ongoing search for information & low involvement will result in little search for information.
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