1. Creating Value Through Customer Satisfaction and Quality

2. Did you know? z22,000 checks would be debited from the wrong bank each hour z500 incorrect surgical operations would be performed each week z35,000 newborns would be dropped on the delivery floor each year If 99% service was acceptable

3. Value and Quality zValue is the customer’s perception of the balance between the quality of goods or services that a firm provides and their price zQuality describes the degree of excellence or superiority of an organization’s goods and services

4. Building Brand Equity Through Quality

5. Customer Retention zThe cost of acquiring new customers is five times greater than the expense of keeping old ones zStudies demonstrate that 95 percent of dissatisfied customers don’t complain directly to the company, but each one tells 11 others about the negative experience

6. Understanding Customers zMarketing executives sometimes fall into the trap of believing that they already know what will satisfy customers without actually asking the customers themselves LOVE GROUPSWING GROUPHATE GROUP APOSTELS (VOCAL)TERRORIST

7. Internal Customers zInternal marketing involves managerial actions that help all members of an organization understand, accept, and fulfill their respective roles in implementing its marketing strategy.

8. Measuring Customer Satisfaction zMarketers must keep in mind that there may be gaps, or differences between expected quality and perceived quality of the firm’s goods and services zSuch gaps can produce favorable or unfavorable impressions zThe foundation of marketing is understanding what customers need and want

9. Customer Turn-offs

10. Customer Satisfaction Measurement (CSM) zThe CSM program provides a procedure for tracking customer satisfaction over time zThe value inherent in CSM programs is tracking changes from an established benchmark

11. TQM zAn attempt to involve all employees in a firm to continually improve products and work processes with the goal of achieving customer satisfaction zA true competitive advantage results when organizations move beyond continuous improvement to practice continuous product innovation

12. Building Long-term Relationships

13. Involving Top Management zEffective TQM programs begin with the involvement of top managers who believe in the importance of quality and customer satisfaction

14. Involving Employees zEmployee involvement seeks to unleash the energy, creativity, and talents of all employees zEmpowered employees gain increased authority and responsibility for implementing the organization’s mission and strategy

15. Marketing Audit zA thorough, objective evaluation of an organization’s marketing philosophy, goals, policies, tactics, practices, and results zMarketing audits generate especially valuable insight about areas in which managerial perceptions differ sharply from reality

16. Profitability Flow Chart