CUSTOMER EXPECTATION AND CUSTOMER VALUE

Customers will always expect something of marketing firms. These expectations often
increase over time, thus marketing companies must meet and manage them effectively.
Meeting customer expectations provides customer value which, in turn, contributes to
customer satisfaction and loyalty.

CUSTOMER EXPECTATION - refers to the perceived benefits and results a

customer expects when buying and using a product or availing of a service.

MAIN ASPECTS OF CUSTOMER EXPECTATION

Reliability - the ability to provide the expected benefits and results consistently.

Tangibles - the quality of physical facilities, personnel, and communication services.

Responsiveness - the willingness to provide prompt service and assistance.

Assurance - the ability to convey trust and confidence through expert knowledge and
courteous service.

Empathy - the care and attention given to each customer.

UNDERPROMISE AND OVERDELIVER Strategy. This strategy is often

employed in businesses and services that rely on quick delivery of products and
services.

BLUE OCEAN STRATEGY. This strategy encourages businesses to expand their

market base and acquire new customers by creating new value which will give rise to
new demand.

CUSTOMER VALUE

The customer’s perceived value refers to a customer’s assessment of the benefits

gained from buying and using a product compared to its cost as well as the competing
offers on the market.

CUSTOMIZATION means matching the specific wants of every customer with a

certain product offering of the company, creating value and ensuring customer
satisfaction.

CUSTOMER RELATIONSHIP AND CUSTOMER SERVICE

CUSTOMER RELATIONSHIP MANAGEMENT( CRM) refers to the

development of strategies to establish and sustain desirable customer relationships.

CRM aims to maximize the exchange relationship between the company’s investment
on customer relations and the profit generated by customer loyalty.
RELATIONSHIP MARKETING is a type of marketing that focuses on establishing
and maintaining customer loyalty.

Relationship Marketing strives to;

1. Understand the customer’s needs

2. Deepen the buyer’s trust
3. Enable customers to participate in the creation of value
4. Enhance cooperation and mutual dependence, and
5. Build satisfying exchange relationships

CUSTOMERS EQUITY AND LIFETIME VALUE

Recognizing the value of the customer is essential in marketing. The central

importance of the customer is echoed in statement such as “ the customer is king” and
the customer is always right”.

Customer lifetime value are determined by calculating the profit gained form each
customer within a specific time period( usually within a year). The sum of the
customer life time values of all current and future customers determines customer
equity.

CUSTOMER SERVICE is marketing.

All activities related to customer service is part of marketing. Customer- related

activities, including face- to face interaction, phone calls, and emails are part of
marketing. Marketers utilize considerable resources to build positive realtionships
with their customers and the public.

THE MARKETING ENVIRONMENT

THE MICROENVIRONMENT

Microenvironment refers to the forces closely influencing the company and directly
affecting the organization’s relationships.

Microenvironment Actors/Factors

1. The Company - Marketing decisions about the company’s product offerings and
pricing, where to sell its products, and how these will be communicated to its target
customers require resources like cash, materials, and skilled people, among others.
2. Suppliers - These are individuals or companies that provide the necessary
resources to produce goods and services.
3. Marketing Intermediaries - Help the company promote, sell, and distribute its
products to the final buyers.
4. Competitors - The one selling or buying goods or services in the same market or
another.

Types of Competition:
A. Brand Competition. It occurs when brands in the same segment and industry
compete against each other.
B. Substitutable Product Competition. Involves products whose characteristics and
benefits meets the same customer needs.
C. Generic Competition. Involves variety of products that provide the same benefits
and value to the customer.

5. Public - It is any group that has an actual or potential interest in or impacts on an

organization’s ability to achieve its objectives. (Kotler, 2013)
6. Customers - They are vital factor in the company’s microenvironment. They are
the actual buyers of goods and services.

Types of Customer Market

1. Consumer Market - These are individuals or households that buy goods and
services for individual consumption.
2. Business Market - They buy goods and services for further processing, production,
and eventually selling to customers.
3. Reseller Market - They buy goods and services and sell them at a profit.
4. Government Market - Agencies that buy goods and services for government use
or in order to produce public services.
5. International Market - Buyers of all types in foreign countries.

THE MACROENVIRONMENT

The macroenvironment consists of external forces that have a significant influence

on the marketing strategy. The external forces in the macroenvironment cannot
controlled; therefore, companies should learn to adapt to these forces.

PESTLE Analysis identifies the external forces and determines opportunities and
threats that arise from them. One of the frameworks in conducting environmental
scanning.

The Major External Forces:

1. Political Forces - These refer to government actions that influence the economy at
large, such as policies and laws in taxation, trade and labor.
2. Economic Forces - It refers to the influence of the purchasing power of the peso
on spending patterns, in the context of inflation and other economic forces that may
affect the economy.
3. Social Forces - These include aspects of culture and society, demographic,
lifestyle, values, social trends, and other similar changes.
4. Technological Factors - It refers to the development in technology which may
affect consumers, businesses, and the society at large.
5. Legal and Regulatory Forces - Legal forces refer to laws, regulations, and
government policies that impact the business organization and its operation.
6. Environmental Forces - Environmental concerns such as ecology, climate,
weather, and climate change have an impact on businesses, particularly with regard to
resources such as land and raw materials. They are about the natural resources which
are needed as inputs by marketers or which are affected by their marketing activities.

TRENDS refer to particular behavior of a certain group of individuals which lasts for
a certain period.
Fads - trends that are short lived such as a particular fashion or hairstyle among
young people, or a certain activity that gains popularity among a specific group of
people over a given period of time.

Megatrends - trends that persist over a long period of time.

UNDERSTANDING COMPETITIVE FORCES THROUGH THE FIVE

FORCES ANALYSIS
1. The entry of competitors
2. The threat of substitutes
3. Bargaining buyer of buyers
4. Bargaining power of suppliers
5. Competitive rivalry

DEVELOPING AND IMPLEMENTING MARKETING STRATEGIES

A business does not operate in isolation. It is always subjected to the positive and
negative effects of the environmental factors where it is operating. Thus, it needs to
examine its changing environment and plan courses of action to take or strategies to
pursue in the period of time.

STRATEGIC PLANNING IN MARKETING

According to Kotler (2011), STRATEGIC PLANNING “ sets the stage for the rest
of the planning in the firm.” That is , companies must be able to develop and maintain
a strategic fit between its goals and capabilities and its changing market opportunities.

STRATEGIC PLANNING is a process by which the company defines the general

direction it will take and translate this into broadly defined goals.

BUSINESS PORTFOLIO means collection of businesses that the company owns.

THE STRATEGIC MARKETING PROCESS

After the strategic planning of an organization where it assesses its strategic direction,
the next step is for the various departments to implement their plans. The marketing
department will proceed with resource allocation, interpretation of the strategic plan
into specific actions and analysis of the projected plan.

SITUATION( SWOT) ANALYSIS

SWOT Analysis is used to identify a company’s strengths, weaknesses, opportunities

and threats.
The SWOT Analysis can be used in the following circumstances:

1. Exploring avenue of new plans

2. Determining possibilities of introducing new products or entering new markets
3. Identifying possible areas of change
4. Making decisions about the direction of the company’s plans
5. Adjusting plans when new opportunities come up
6. Communicating information gathered from studies or surveys

STRENGTHS include internal capabilities, resources, and all positive situational

factors that may help the company serve its customers and achieve its objectives.

WEAKNESSES include internal limitations and negative situational factors that may
interfere with the company’s performance.

OPPORTUNITIES are favorable factors or trends in the external environment that

the company may be able to exploit to its advantage.

THREATS are unfavorable external factors or trends that may present challenges to
performance.

The SWOT Analysis allows marketer to closely examine the strong and weak points
that have not been previously considered. Once identified and enumerated, the
company will be able to;

1. Build on the company’s strengths

2. Correct a prevailing weaknesses
3. Take advantage of an opportunity outside the company, and
4. Avoid potential threats