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Chapter2BuildingCustomerSatisfactionMarketingManagementTenthEdition1ObjectivesDefinevalue&satisfaction-understandhowtodeliverthemThenatureofhigh-performancebusinessesHowtoattract&retaincustomersImprovingcustomerprofitabilityTotalqualitymanagement2DeterminantsofCustomerDeliveredValueImagevaluePersonnelvalueServicesvalueProductvalueTotalcustomervalueMonetarycostTimecostEnergycostPsychiccostTotalcustomercostCustomerdeliveredvalue3Satisfactionisaperson’sfeelingsofpleasureordisappointmentresultingfromcomparingaproduct’sperceivedperformance(oroutcome)inrelationtohisorherexpectations.4ResourcesOrganizationandaligning...HighPerformanceBusinessProcessesByimprovingcriticalbusiness...Stake-holdersSetstrategiestosatisfykey...5MarginMarginTheGenericValueChainPrimaryActivitiesSupportActivitiesProcurementServ-iceTechnologyDevelopmentHumanresourcemanagementFirminfrastructureInboundLogisticsOpera-tionsOut-boundLogisticsMarket-ingandsales6LeviStrauss’

Value-DeliveryNetworkCompetitionisbetweennetworks,notcompanies.Thewinneristhecompanywiththebetternetwork.DeliverySears(Retail)Levi’s(Apparel)OrderDeliveryOrderCustomerDeliveryDuPont(Fibers)OrderDeliveryOrderMilliken(Fabric)7SatisfiedCustomers:AreloyallongerBuymore(newproducts&upgrades)Spreadfavorableword-of-mouthAremorebrandloyal(lesspricesensitive)OfferfeedbackReducetransactioncosts8LevelsofRelationshipMarketingManycustomers/distributorsMediumnumberofcustomers/distributorsFewcustomers/distributorsAccountableProactivePartnershipProactiveAccountableReactiveAccountableReactiveBasicorreactiveHighmarginMediummarginLowmargin9Inactiveorex-customersCustomerDevelopmentPartnersAdvocatesClientsRepeatcustomersFirst-timecustomersSuspectsProspectsDisqualifiedprospects10Customer/ProductProfitabilityAnalysisP1HighlyprofitableproductP2ProfitableproductP3LosingproductP4Mixed-bagproductProducts+++Highprofitcustomer+-Mixed-bagcustomer+--LosingcustomerC1C2C3Customers11TheProfitTriangleValuecreationCompetitiveadvantageInternaloperationsProfit12QualityQualityisthetotalityoffeaturesandcharacteristicsofaproductorservicethatbearonitsabilitytosatisfystatedorimpliedneeds.#113ReviewDefinevalue&satisfaction-understandhowtodeliverthemThe

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