14 Part One | Defining Matketing and the Marketing Process RS ee ae Real Marketing DT orn = lighted” or even “fanatical iyal” might say it beter The restaurant chain has developed an unparalleled cult folowing, When ane In-N- In-N-Out Burger: ccnhucrrca nena pede nets The Power of Customer Delight hour togetabug, hes anda shke Fre have been known to campovernight ta be fist, inne, When the first Asizona store opened in In-N-Out Burger opened its fist restaurant in amored with technoloces ike cryogenically Scotidale, people waited inline for a long as Baldwin Prk, California, in 1948, twas asim- fozed ingredients and offsite food prepara- four hours while news helicopters buzzed ple afar with two dive-through anes a walk tin, you won't find a single freeze, heat above the parking lot Lup window, outdo seating, and a menu that lamp|or microwave oven at an In-N-Out Every Ardent fans willingly go out of their way boasted only burgers. shakes, fies, and soft meal is custom-made with fresh ingreconts. to satisfy an In-N-Out Surger caving, J Rose, inks, That was 8 prety standard format for "We Serve every customer, one burger at @ a financal planner fm Carbondale lino, a the time. in fact, ancther Californie burger time, says one restaurant manager, \nays stops at In-N-Out fist when he vss his stand fitting about the same desciption was _“Athough the meru might seem lirited, rather in Las Vegas. “You have topassit when ‘opened that same year just 45 minutes away In-N-Out employees will gladly customize a you drive to her house,” he says in his owe de- by the McDonald brothers, Today, however, burg to each customers tastes. In fact ver _fense. ut how does he explain that he once In-N-Out is petty much the exact opposite of the ybas, “secret menu" has emerged for paid an extra $40 in cab fare to vit an In-N- MeDonalals Whereas McDonald now operates customers who know the right cade words Out onthe way tothe San Diego airport? ‘ore than 32,000stores ward and puis in (which arent advertied or posted on the InN-Out doesnt spend much on ‘ore than $73 bilon i annual systemavide men board). So a customer in the know advertsing—it doesn't have to. Other than a sales, r-N-Out has less than 250 stores in four might order a “Double-Double Animal Style” smsll promotional bude for loca bilboards States and about $400 milion in annual sales. _(Goutile burger and double cheese, with pick- and some radio ad, when it comes to getting ut In-N-Out Burger never wanted to be le, oiled oriors, extra spread, and fied mus the word out, n-N-Gut ets its customers do #3 another MeDonald’s. And despite its smaller tard, Ordering @ 4X4 gets you four beet heavy tng. Loyal customers are tre apostles slze—or perhaps because of In-N-Out pats and foursices of cheese, anda “giled for the brand. They proucly wear In-N-Out ‘ustomers ie the regional chain just the way cheese” isan IreN-Out cheeseburger without Tshirts and sap i-tOut bumper stickers on itis, When itcomes to customer Satsfaction— the rheat. Knowing the secet menu makes ther cars. Robi egulesdrag a constant stream ‘make that customer defghi—I-N-Out beats _regulrs feel even more special. of new devotees into r-N-Out restaurants, an McDonalds hends down. eregulatly posts the tS not just In-N-Out food that pleases act often referred fo as “the conversion.” They highest customer satisfaction scores of any custommersbut also its riendlyandwel-traines can't weit to pas along the secret menu codes fast-food restaurant in its market area. Just eImoloyees In-N-Out teats its employees very and shar the sublime plasures of dvr into a ‘about anyone who's been toln-N-Out thinks it well) pays ew part-time staff $10 an hour 4X4 Animal tye. “When you tel someone ese ‘makes the best burger they've eve had. to statend gies them regular pay raises. Fart- what ‘animal syle" means,” says an anahst, InsN-Out has earned an almest cutie fot timers also get paid vacations. General man- “you fel lie you'e passing on a secret hand ‘owing by doing something unthinkable: not agers make at least $100,000 a year plus shake. People realy get into the whole thing ‘hanging. From the start the chain has focused bones and a ful beneft pack tenaciously on customer well-being. founding age that rivals anything inthe jhiosophy is as strongly held tod as it was rpdtate world. Managers ‘when the fist inf-Out Burger opened ts doors who meet goals are sent on Give customers the freshest, highest quality lai! tip with ther spouses, foods oucantouy and provicethem with endly often to Europe in fst-lass sence ina sparking clean envicrment Stats] Managers are also pro- Unite McDonald’ or BurgerKing, which motes from within—B0_ per introduce a seemingly unending stream of cent lof i-N-Out managers new menu items, in-N-Cuts simple menu start atthe very bottom. As never changes. stead, n-N-Out sill focuses a resi, krN-Out has one of ‘onvwhatit does well: making realy good ham- the lwestturover fate In on ‘burgers, realy good fries, and realy good indusky famous for high shakes—that’ it.The burgers ate made from — turncber 100 percent pure, fresh beef with no adltves, Happy, motivated ems filers, or preservatives. Potatoes and other ployees hel to create loyal, ‘resh vegetables are hand cut dal at every satsfled customers In fact, restaurant, and shakes are made from—yes— word ike “loyal” and “sats "eal ice cream. n an industry inreasingly en- fied” don't do justice to how InsN-Out Burger delights customers by focusing on {tiendly service and what it does well making realy good hhamburgers, really good fries, and really good shakes thats itChapter 1 | Marketing: Creating and Capturing Customer Value 15, sapped Ses se pi endosers, but | | inaLout Burger i prnatey med and N-Out sticks tots guns,” says the anast. “in route wouh, Teauaty lows trom the | dott lease sale ana proft ours, But if avs. itsymboizes the ieal American way of Rin Sow ee eet | When former | thd ong hes stating ‘ot Uo ast ing busines: Heating people wel, focusing Tonight Show bost Conan O'Bfen once asked lu time are any indication the chains doing ‘on product quality, an being very succesful, Te aan What he recommended doing in vet} wel fnencally, estore average sales n-N-Outs customers couldnt agiee move, {0s Angeles, Hanks rene, “One of the tly | pedstore are coud tn Indust average ard When it comes to fast-food chains, elighted Binge nearer 125 Anades Is te Out wel ahead of aden MDonan are Burger customers wil tell you, "thee In-N-Out and Bat te oat 8 Fl Mickeon ted. |kips "The more Gui he seen and Sanaa somuch tht heer heft |Buber King change and econ ‘mere n= 2 losing sites, sportsuiters began suggesting that he cut back on the Double-Doublos Once SF EN RETEG ae ‘hen celebrity soca Paris Hilton wes pulled ut BUGHrs Matting Mag” usenet, Apr 28, 10D, occa nc chaged wh ating he yf, Te Sct Sau LO Bayes” Busse Se 209, er apa erg ‘oK fara re Sztb Seow of NO Bugs" Ft Company gl 2 Ge0a nea Tete areas etshe es on erway Of Dena Te joie Re.“ Fars Came Out En Mae Orn Opin Ca eld {Osatiy an "In-N-Out urge” (aterm otiginat- rere 20,200; Usa ngs, “Reional Fatod Chas Top Sattanon Sune,” Restaurant Hews, fy siting the “Band the "off Fay es nb onions aloo hans tep ation oo ‘tom the company name on bumper stickers), Hm tires” aya, 25,210 sand ates ‘then theres eveyone ese." Pofevetalthough customer-centered em seeks to deliver high customer satisfac- rr ocompetitor,it doesnot attempt to maximize custome satisoctan com- pon, ottably. This requires a very delicate balance: The marketer mat ‘0 generate more customer value andl satisfaction but not “give aay wan Customer Relationship Levels and Tools Compas depending on the nature ofthe target mécket. At one extreme, a in customers may seek to develop hone or call om al of its constim ates relationships through brand: but (www.Nike.com).Atthe other ‘extreme, in markets with few ‘hese vj extemes other levels of customer relationships ae appropriate, Sears consistently high Value and satisfaction, marketers can use specific ‘Tarkating fools to develop stronger bonds with customers For on "Morea is. More points. More to love.” The airline's ® highlights real TrueBlue members who are nominat for thes ThueBlue dedication to inepiring causes chet ompanies sponsor cub marketing programs tha offer nem ‘crate eriber communities. @ For example, Haley-Davi “Be True” marketing came ed by JetBlue crewmembers bers special boneits and idson sponsors the Hatley Owners