Building the Right Relationships

with Right Customers

Case: Best Buy
1. An Overview of
Charging restocking fee 15% for returned goods

Marketing
Two types of customers

Angels and Demons

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Outline
Scope of Marketing
 The Scope of Marketing  Products
 Marketing Tasks  Services
 Core Marketing Concepts  Experiences
 Company Orientations Towards the Market  Places
 The Holistic Marketing Concept  Persons
 Ideas
 Organizations
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1
 Demand States and
Defining Marketing
Marketing Tasks
 Identifying and Meeting Needs of Target • Negative Demand
Markets Profitably. • No Demand
• Latent Demand
• Declining Demand
• Irregular Demand
• Full Demand
• Overfull Demand
• Unwholesome Demand
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Core Marketing Concepts The marketplace isn’t what it used to be…

Information technology
 Target Market Globalization
 Customer Orientation Competition
 Coordinated Marketing Disintermediation

 Profitability Convergence
Consumer Resistance
Retail Transformation
Deregulation

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2
 Company Orientation Towards The Holistic Marketing Concept
the Market
 Relationship Marketing
 Production
 Integrated Marketing
 Product
 Internal Marketing
 Selling  Social Responsibility Marketing
 Marketing
 Societal Marketing
 Holistic Marketing

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Figure 1.4 Holistic Marketing Dimensions Socially Responsible Marketing

(Performance Marketing)
 Financial Accountability
 Social Responsibility

Example: Ben & Jerry’s

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3
 Customer Delivered Value Marketing Mix
Starting The set of marketing tools used to achieve
point Focus Means Ends
marketing objectives in the target market.
Factory
Existing Selling and Profits through  Product
products promotion sales volume
 Promotion
(a) The selling concept  Place

 Price
Customer Integrated Profits through
Market needs marketing customer
satisfaction

(b) The marketing concept

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管理學院:
管理學院
Slide
Source:Creating value for
1-4
customers
Peter The Consequences of Superior
by Churchill &

Figure
1.4 Creating Value to Customers
Customer Value
 Value-Delivery Network (Supply Chain)
 Competition is between networks not
Superior Customer Customer Long Term companies
Customer Satisfaction Loyalty Profitable
Value and Delight Relationships

Irwin/McGraw-Hill Shan-Yu Chou ?The McGraw-Hill Companies, Inc., 199815 Shan-Yu Chou 16

4
 Retaining Customers
 Getting new customers costs 5 times as much as
retaining a satisfied customer.
 Profit loss from losing a customer
Customer Lifetime Value (CLV)
 Cost of reducing the defection rate
 How to increase customer retention?

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