Download Lecture 2 py focus on consumer

Strategic thinking and
thinking strategically
Market
sensing
and
learning
strategy
Strategic
market
choices
and
targets
Customer
value
Strategic
strategy
relationships
and
and
positioning
networks
Strategic
transformation
and strategy
implementation



The customer conundrum (puzzle)
The sophisticated customer
Market shifts and quakes
consumer market changes
 market granularity
 re-shaped business-to-business markets


How can marketing processes respond to these
changes?


Customer service is bad all over
Customer satisfaction and customer loyalty


The real customer problem




satisfaction and loyalty are not the same
do we know what service to maximise?
can we deliver what we promised?
happy customers and happy employees?
The problem is strategy

We do it all for you - the customer
Customer loyalty
High
High
Low
Happy
Satisfied
stayers wanderers
Customer
satisfaction
Hostages
Low
Dealers
The service and quality
we promise
High
Good
The service
and quality
the customer
receives
Bad
Low
I am in
LOVE – I
OK.
You get what didn’t know
you pay for. you were this
good!
OK.
I HATE you
It’s bad,
bastards –
but it’s what
you lied to me!
I expected.
Impact of service and quality on
customer satisfaction/retention
High
High
Service and
quality level
Low
Low
Smart
Overservicers servicers
UnderNonservicers servicers
External customer satisfaction
High
High
Internal
customer
satisfaction
Low
Synergy
“happy”
customers
and “happy”
employees
Low
Internal
euphoria
“Never mind the
customer, what
about the
squash ladder?”
Coercion Alienation
“you WILL be
committed to
customers,
or else…
“unhappy”
customers
and “unhappy”
employees
Issue
Customers and markets have changed:
Customers wised up to marketing
 Know what marketers are up to
 Traditional marketing consistently underestimates
intelligence of customer


Your parents



Unwised to marketing
No idea what marketers were up to
Their intelligence underestimated by marketers who
now recognise it

The typical family


The MySpace Generation –


– women are a new phenomenon
The wealthy


that’s me!
The pink market


ok, but they eat, drink, clothe themselves etc
Saga Louts –


a new phenomenom?
- too
The poor –

too – a novelty!

Ethnic markets


The green and ethical consumer


– vegetarians? Ethical?
The Neo-Cromwellians –


– 21st C.?
Puritans existed pre Cromwell
Scared consumers –

ho yus!



Shift in focus from “megatrends” to
“microtrends”
Broad market trends average out important
differences
The issue shifts from huge cultural shifts to
new “identity groups”



Dominant customers
Impact of customer power
Bad customers
who play the rules
 who break the rules
 who make the rules



Radical and disruptive changes in market
structures have left traditional marketing behind
The urgent challenge is to update how we “do”
marketing to reflect how customers and markets
have changed
 ????