Chapter 4 book Flashcards
(17 cards)
What is the cornerstone of holistic (= parts of something are intimately interconnected) marketing?
A strong customer relationship
Customer Perceived Value (CPV)
Is the difference between a customers evaluation of a good/service/etc. and the cost of the good/service/etc. or that of any perceived alternatives
Total customer benefit
Is the perceived monetary value of the benefits that customers expect from a given good/service/etc.
Total customer cost
Is the perceived amount of costs customers expect to incur for obtain/using a good/service/etc.
Can be monetary, time, energy, etc.
Loyalty
A deeply held commitment to rebuy or repatronize a preferred product or service in the future
The value proposition
Is the whole cluster of benefits a company promises to deliver
The value delivery system
All of the experiences a customer will have on the way to obtaining and using a good/service/etc.
Satisfaction
A persons feelings of pleasure or disappointment that result from comparing a product performance with its expectations
Quality
A products features and characteristics that bear the ability to satisfy certain needs
What is the activity based costing (ABC) accounting technique?
It is an analysis that can conduct and determine customer profitability on a lifetime basis.
What is customer lifetime value (CLV)?
It describes the net present value of the stream of future profits expected over the customers lifetime purchases minus the expected costs of attracting, selling and servicing the customer.
Customer relationship management (CRM)
The process of carefully managing detailed information about individual customers to maximise loyalty.
What use does the marketing funnel and its conversion rates have?
It allows marketers to identify any bottleneck or barrier to building loyalty.
What three types of marketing activities do companies use to improve loyalty and retention?
- Interacting with customers (listening, understand their views)
- Developing loyalty programs (reward frequent customers through frequency programs (FP))
- Creating institutional ties (Supply customers with special equipment/services that help them manage orders or inventory)
Database marketing
The process of building, maintaining and using customer data bases to contact, transact and build relationships with customers.
Data mining
Extracting useful information from the mass of databases about individuals, trends and segments.
When is database marketing and CRM prevented from being used? (5)
- When product sales are small (once in a lifetime purchases, big machines)
- When the investment in staff, hardware, software, programs is larger than the benefit
- Getting everyone in the company to use the information is a challenge
- Not all customers want a relationship with a company
- The assumptions behind CRM may not always be true
