Chapter 6

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University of Toronto Scarborough
Management (MGM)
Ingrid L.Stefanovic

INTRODUCTION Final aspect of the marketing planning process is control determining whether the objective of achieving consumer satisfaction has been met and marketing plans realized o Achieving these goals leads to competitive advantage and profits for firm Total Customer Satisfaction means that a good or service fully and without reservation conforms to the customers requirements o Objective is to create raving fans o Recognizes that goods and services must be designed for specific target markets Financial measures only tells you where a company has been, it doesnt help you look forward toward building success in the areas that lead to long-run competitive advantage o Key success factors Product Quality After-Sale Service Corporate Flexibility Employee Innovativeness What is customer satisfaction really? Here are some answers o Customers do not care about your system. They care about satisfaction; having problems handled o Customers do not care how you track his order. They dont care about how you execute, but that it gets done. They care about results. o Figure out the definition of customer satisfaction and quality from the customer perspective Customer satisfaction comes down to the ability to better serve your customers Customer satisfaction must be defined from an external, customer-based viewpoint Total customer satisfaction must be a constant byword of managing every facet of the marketing program LIFETIME-CUSTOMER VALUE (LCV) Total customer satisfaction leads to customer loyalty and a focus on existing customer loyalty can generate spectacular gains The Value of Customers A Totally Satisfied Customers contributes 2.6 times as much revenue to a company as a Somewhat Satisfied Customer A Totally Satisfied Customer contributes 14 times as much revenue as a Somewhat Dissatisfied Customer A Totally Dissatisfied Customer actually decreases revenue at a rate equal to 1.8 times what a Totally Satisfied Customer contributes to a business Increased Sales
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