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Copyright © 2002 All rights reserved. 1 CHAPTER 1 The Customer: Key to Market Success.

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Presentation on theme: "Copyright © 2002 All rights reserved. 1 CHAPTER 1 The Customer: Key to Market Success."— Presentation transcript:

1 Copyright © 2002 All rights reserved. 1 CHAPTER 1 The Customer: Key to Market Success

2 CHAPTER 1 PART 1 Customer Behavior: A Managerial Perspective Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 2 The Marketing Concept Customer Orientation (Satisfaction) Total Company Effort ( “Synergy/Value”) Goal Orientation (Profit) The Marketing Concept [Perreault and McCarthy (2006) Essentials of Marketing. NY: McGraw-Hill.]

3 CHAPTER 1 PART 1 Customer Behavior: A Managerial Perspective Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 3 Superior Customer Value Total Company Effort to Satisfy Customers Superior Customer Value Total Company Effort to Satisfy Customers Customer Acquisition Customer Satisfaction Customer Retention Customer Acquisition Putting It All Together [Perreault and McCarthy (2006) Essentials of Marketing. NY: McGraw-Hill.] Customer Retention Profitable Relationships with Customers

4 CHAPTER 1 PART 1 Customer Behavior: A Managerial Perspective Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 4 Competitive Advantages Through Customer Satisfaction Repeat Buying Higher Prices Loyalty in Crisis Word of Mouth New Product Innovation Corporate Performance One-Stop shopping GrowthProfits Customer Satisfaction

5 CHAPTER 1 PART 1 Customer Behavior: A Managerial Perspective Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 5 Increased Profitability Advantages  Cost efficiencies from repeat customers  Price premiums from established customers  Customer loyalty in corporate crisis

6 CHAPTER 1 PART 1 Customer Behavior: A Managerial Perspective Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 6 Increased Growth Advantages  Increased word of mouth  One-stop shopping  New product innovations

7 CHAPTER 1 PART 1 Customer Behavior: A Managerial Perspective Copyright © 2002 All rights reserved. Copyright © 1999 by Thomas Southwestern. All rights reserved. 7 Creates Pride in Employees Customer orientation has an effect on employee morale in the company  Satisfied employees create satisfied customers  Happy customers lead to employee happiness

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