Connecting with customers & Creating

Long-Term Loyalty Relationship

John Aldous Michael B. Aonuevo
What is a Customer?

a person or organization that buys goods or services from a store

or business.
In sales, commerce and economics, a customer (sometimes known
as a client, buyer, or purchaser) is the recipient of a good, service,
product or an idea - obtained from a seller, vendor, or supplier via
a financial transaction or exchange for money or some other
valuable consideration.
Why Build Connection to Customers?

Customers are the blood-line to every

organization so satisfying their needs is
very important.
Modern Ways to Connect With Customers

1.Survey your customers. - Surveys allow businesses to identify user needs directly.

2.Use newsletters. - It should have a table of contents up front so people will at

least take three seconds to scan it, and the five to six articles should be short
(two to three sentences) and include links to useful resources.

3.Blog/Social Media. - If you actively keep up a quality blog, not only will your
customers read your blog, but they will respond to your blog. With social media,
you can reach out to your customers at any moment rather than wait for
customers to send you emails or phone calls with feedback,
Modern Ways to Connect With Customers
(cont.)

4.Pick up the phone. - in a world saturated with one-way

communication, the phone provides instant feedback.

5.Go visit. - when visiting customers, it is critical to listen--and not

walk in the door trying to sell them something.

6.Send a personalized note or a postcard - Physical mail is so

uncommon these days, it's remembered also when customers feel
valued, they buy and refer their friends.
Modern Ways to Connect With Customers
(cont.)

7.Provide exceptional customer service. - One of the most

powerful tools an organization has to connect with its customers is
its employee base, Every interaction between a customer and
employee, whether that is pre-sale, the actual sales process, after
sales support or billing, provides an opportunity to either add or
detract from the equity of your brand and company
Creating Long-term Loyalty Relationships

The Cornerstone of holistic marketing is strong customer

relationships. Marketers must win customers by connecting
with them - listening and responding to them, informing,
and engaging them, and maybe even energizing them in
the process.
Building Customer Value, Satisfaction, and
Loyalty

Consumers are better educated and informed than ever, and they
have the tools to verify companies claims and seek out superior
alternatives.
Customer Perceived Value (CPV)

Customer-perceived value (CPV) is the difference between the

prospective customer's evaluation of all the benefits and all the
costs of an offering and the perceived alternatives.
CPV

Total customer benefitis the perceived monetary value of the bundle of

economic, functional, and psychological benefits customers expect from a
given market offering because of the product, service, people, and image.
Total customer costis the perceived bundle of cost customers expect to
incur in evaluating, obtaining, using, and disposing of the given market
offering, including monetary, time, energy, and psychological costs.
Loyaltyis a deeply held commitment to rebuy or re-patronize a preferred
product or service in the future despite situational influences and marketing
efforts having the potential to cause switching behavior.
Value delivery systemis all the experiences the customer will have on the
way to obtaining and using the offering.
Customer relationship management (CRM)

Customer relationship management (CRM) is the process of

carefully managing detailed information about individual
customers and all customer touch points to maximize loyalty.
Attracting and Retaining Customers

Companies seeking to expand their profits and sales must spend

considerable time and resources searching for new customers. The
main steps in attracting and retaining customersshowin term of a
funnel.
Database Marketing

Database marketing is the process of building, maintaining, and

using customer databases and other databases (products,
suppliers, resellers) to contact, transact with and build
relationship with customers.
References

https://en.wikipedia.org/wiki/Customer
Reizenstein 2004, pp.119.
http://ayemyomyintaung.blogspot.com/2013/01/creating-long-
term-loyalty-relationships.html
http://www.cio.com/article/2384419/online-marketing/14-
proven-ways-to-connect-with-customers.html
Analyzing Consumer
Markets
Influencing buyer behavior

Cultural factors
Social factors
Personal factors
CULTURAL FACTORS

Culture- values, perceptions, and preferences that are the

most fundamental determinant of a persons
wants and behavior
Subcultures- nationalities, religions, racial groups,
geographical regions
Social class- hierarchically ordered divisions in a society;
members share similar values, interests
and behavior
SOCIAL FACTORS

Reference groups- all groups that have an influence on

attitudes or behavior
Family- the most influential primary reference group
Roles and statuses- activities a person is expected to
perform and the status
associated with each other.
PERSONAL FACTORS

Age and Life cycle stage

Occupation and economic circumstances
Life style
Psychological factors:
Motivation
Learnings
Beliefs and attitudes
 Analyzing
Business Markets

(Connecting with Customers)

Rachelle B. Vendicacion
Group 2
Business Market

- consists of all organizations that

acquire goods and services used in
the production of other products
or services that are sold, rented,
or supplied to others.
The Buying Center
Initiators

Users

Influencers

Deciders

Approvers

Buyers

Gatekeepers
 IDENTIFYING MARKET
SEGMENTS AND TARGETS

BY:
OLIVIA V. SAGARIO
Bases for Segmenting Consumer Markets

Market segment- consists of group of customers who

share a similar set of needs and wants

1. Descriptive Characteristics
a. Geographic Segmentation
b. Demographic Segmentation
Age and Life-Cycle Stage
Life Stage
Gender
Income
Generation
Race and Culture
 c. Psychographic Segmentation
Psychographics- the science of using psychology and
demographics to better understand consumers
Lifestyle
Personality
Values

2. Behavioral segmentation
Behavioral variables
Occasions
Benefits
User status
User rate
 Loyalty status
Hard-core loyals
Split loyals
Shifting loyals
Switchers

Buyer readiness stage

Example of Marketing Funnel
 Attitude
Multiple bases
 Major Segmentation Variables for Business Markets

Demographic
Operating Variables
Purchasing Approaches
Situation factors
Personal Characteristics
Market Targeting
Steps in the Segmentation Process
1) Needs- Based Segmentation
2) Segment Identification
3) Segment Attractiveness
4) Segment Profitability
5) Segment Positioning
6) Segment Acid Test
7) Marketing Mix Strategy
Effective Segmentation Criteria

Four Approaches
Full Market Coverage
Multiple Segment Specialization
selective specialization
product specialization
market specialization
Single-Segment Concentration
Individual Marketing
References:

Marketing Management, 14 th Edition by Philip Kotler and Kevin Lane Keller

Marketing Management, Millennium Edition by Philip Kotler

What is a brand?
Is a name, term, sign, symbol, or design, or a
combination of them, intended to identify the goods or
services of one seller or group of sellers and to
differentiate them from those of competitors. American
Marketing Association.

Is the promise,reputation, and big idea,...It is a highly valued asset.A

brand creates emotional connections,good or badWe respond to
brands with loyalty, or reject them.-Sean Adams
Is a peculiar identity of a thing, person (natural or juridical), or service to
differentiate one from the other.-MJR
 Prada Group: PRADA,
MIU MIU, CHURCHS,
CAR SHOE, MARCHESI

symbol

name

symbol
Top 10 Filipino Brands known globally are: Bench, San Miguel Beer, Penshoppe,
PLDT, Banco De Oro, Tanduay, Jollibee, Chowking, Philippine Airlines and Cebu
Pacific.-BlogPH.net
Building strong brands
Attributes Selection
Benefits Protection
Beliefs & Values

Brand Brand name

positioning selection

Brand Brand
development sponsorship

Line extensions Manufacturers brand

Brand extensions Private Brand
Multibrands Licensing
New brand Co-branding
Building strong brand
TRAN, TU MINH <TED>
 DEFINITION ABOUT
BRAND
 COMMON TRAITS OF STRONG BRANDS
 BRAND FALLACY

BUILDING A STRONG BRAND IS SOMETHING THAT ONLY LARGE CORPORATIONS SHOULD BE

X INTERESTED IN.
SMALL COMPANIES SHOULD BE ABLE TO BUILD STRONG BRANDS AS WELL.

X BRANDS ARE ONLY FOR CONSUMER PRODUCTS.

WITH A PRODUCT YOU HAVE TANGIBLE BENEFITS TO SELL BUT WITH A SERVICE THERE IS
NOTHING TO SEE, TASTE OR TOUCH, WHICH MEANS YOU HAVE TO BUILD A LEVEL OF
TRUST AND CONFIDENCE WHICH IS MUCH EASIER WITH A STRONG BRAND.
 WHY IS IT IMPORTANT TO BUILD A STRONG BRAND?

To provide a vital differentiator.

To create trust with the consumer.
To influence choice.
To create loyalty and advocacy.
To command a premium.
To help growth come easier.
Toact as a barrier to competition.
 HOW TO BUILD A STRONG BRAND?
What is Brand Equity?

Is the differential effect that knowing the

brand name has on customer response to the
product and its marketing. Its a measure of
the brands ability to capture consumer
preference and loyalty.- Phillip Kotler, Gary
Armstrong
 A brand has a positive BRAND EQUITY when consumers react
more favorably to it than to a generic or unbranded version
of the same product.

It has a negative BRAND EQUITY if consumers react less

favorably than to an unbranded version.
Brand Equity Models

Brand Asset Valuator

Aaker Model
BRANDZ
Brand Resonance
Brand Asset Valuator
Aaker Model
Brandz
Brandz is an annual study of the views and opinions of
consumers who use and buy brands.
As per this model brand building involves series of steps: The
objectives of each steps are presence, relevance,
performance, advantage and bonding.
Kantar Millward Brown research shows that meaningfully
different brands grow faster, and brands that also grow
salience perform even better
Brand Resonance
THANK YOU
Crafting the Brand Positioning
What is Positioning?

The act of designing the companys offering and image to occupy a

distinctive place in the minds of the target market.
Positioning Requirements

(1) determining a frame of reference by identifying the target

market and relevant competition
(2) identifying the optimal points of parity and points of difference
brand associations given that frame of reference
(3) creating a brand mantra to summarize the positioning and
essence of the brand
Determining a Competitive
Frame of Reference
Category membership the products or sets of
products with which a brand competes and which
function as close substitute
Announcing category benefits
Comparing to exemplars
Relying on the product descriptor
Identifying Optimal Points-of-
Difference and Points-of-Parity
Points-of-parity (POPs)
Points-of-difference
(PODs) Associations that
arent necessarily
Attributes or benefits
that consumers unique to the brand
strongly associate with but may in fact be
a brand, positively shared with other
evaluate, and believe brands.
they couldnt find to Category points-of-
the same extent with a parity
competitive brand. Competitive points-
of-parity
Key Criteria for Points-of-
Difference
Desirability Criteria
Relevance
Distinctiveness Deliverability Criteria

Believability Feasibility

Communicability

Sustainability
Differentiation Strategies

Competitive advantagea companys ability to perform in one or

more ways that competitors cant or wont match.

Few are sustainable, but a leverageable advantage can be used as a

springboard to new advantages.
Focus on building competitive advantages as customer advantages.
Product Differentiation

Form
Features Durability

Customization Reliability

Repairability
Performance quality Style

Design
Conformance quality
Service Differentiation

Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance and repair
Returns
MEANS OF DIFFERENTIATION

Employee differentiationChannel
Channel differentiation
Image differentiation
Services differentiation
Brand Mantras

is an articulation of the heart and soul of the brand and is closely

related to other branding concepts like brand essence and core
brand promise.
DESIGNING A BRAND MANTRA

Communicate
Simplify
Inspire
EMOTIONAL BRANDING

Mystery
Sensuality
Intimacy
Analyzing potential threats

BRAND NARRATIVES AND STORYTELLING

Setting
Cast
Narrative arc
Language
BRAND JOURNALISM
CULTURAL BRANDING