REPORTER 1

April Joy Manuel

Trisha Ann Tabunan
COMPETITION
A competitor is any company in an
industry or a similar industry that
offers a similar product or service.
LEVELS OF COMPETITION

A firm’s competition can be classified

either as a desire, generic, form or
brand competitor.
1. Desire Competitors 2. Generic Competitors

“ What desire do I want to satisfy?” “ What do I want to eat?”

• Eat • Sandwich
• Text • Dimsum
• Read • Pasta
• Drink • Chicken

3. Form Competitors 4. Brand Competitors

“What kind of sandwich?” “What brand of hamburger sandwich?”

• Chicken • Wendy’s
• Cheese • McDonald’s
• Hotdog • Jollibee
• Hamburger • Burger King
• Army Navy
The most basic type of competition is
desire competition. For example,
eating is a “desire” or “need” that a
customer wants to satisfy at a particular
time or occasion. This is identified and
established first before the customer
starts thinking of a possible destination
to satisfy his “desire” or “need”.
The generic and form competitors
( sometimes called “indirect”
competitors). Although these two levels of
competition serve different types and
forms of food items, they are still
competitors.
 Brand competitors are the most
“direct” competitors because they offer the
same form of product the costumer has
finally decided to consume.
THE CONCEPT OF MARKET SHARE

The effectiveness of marketing strategies

in an industry can be measured using what
is referred to as market share. Market
share, expressed in percentage, is the share
of a company’s divided by the total revenues
of its industry in particular year.
Market share is calculated using the following
formula:
Company A’s market share= Company A’s annual revenue
Total annual of Company A’s industry
X 100
MARKET LEADER

Market leadership is aspired after by

many industry participants. Aside from
the prestige, market leader usually lead
the industry in price changes, advertising
and promotional intensity, and new
product introductions.
TRADITIONAL APPROACHES TO
MARKETING

Evident up to the late 1960’s,

traditional approaches in marketing
focused on production methods,
product quality, and effective selling
methods as profit drivers in marketing.
1.The production concept
The production concept assumes that customers
prefer products that are inexpensive, affordable, and
widely available.
2.The product concept
The product concept assumes that customers will
always prefer and patronize products of high quality.
3.The selling concept
The selling concept emphasizes aggressive selling
and promotional efforts.
CONTEMPORARY APPROACHES
TO MARKETING

In contrast, contemporary
marketing approaches are centered
on the customer, relationships, and
the well-being of society.
1. The marketing concept
The marketing concept considers the needs of both
the customer and the product offered.
2. The relationship marketing concept
The relationship marketing concept believes that all
marketing activities are for the purpose of establishing,
maintaining, and strengthening meaningful long-term
relationship with customer.
3. The societal marketing concept
The concept is similar to marketing concept.
CHAPTER 2
Customer relationship:
customer service
 A customer is a person or
organization that transact with a
business person or business
organization to buy goods or services
for monetary or other valuable
considerations.
CUSTOMER SERVICE

Customer service is the

process of ensuring customer
satisfaction with the product or
service
CUSTOMER SERVICE PROGRAM

Retail establishments have realized that

customer and are not only drawn to stores
because of their product offerings and
convenient locations, but also by the
superior customer service they provide.
MANAGING CUSTOMER SERVICE
QUALITY

Maintaining high levels of

customer service quality may be
challenging due to variability of
services.
Companies can be best manage customer service
quality by:
 establishing service objectives with specific and
measurable target.
 Committing sufficient organizational resources
towards the achievement of these targets.
 Collecting customer feedback on service quality
regularly.
 Reviewing target accomplishment.
 Identifying customer service weaknesses and
connecting them.
MANAGING CUSTOMER SERVICE
DIFFERENTIATION
Customer centered organizations can
differentiate their customer service through:
(1) the development and training of
competent customer contact personnel and
(2) designing the implementing a superior
service delivery environment and process.
The following are some of the more popular customer service practices
in the Philippines:
Customer service practice Practicing organization(s)

free delivery most restaurants and fast food chains

Automated in-home ordering system Most department stores and drug stores

Free gift wrapping/plastic book jacket most department stores and bookstores

Merchandise/document pick-up Selected Courier services

Free parking some churches and religious organizations

valet parking some hotels and resorts

Reservations, installment plans Some large department stores, bookstores

Complimentary refreshments, waiting lounge Most car dealership

Help desk, touch phone access, 24- hour customer hotline Most utility firms and telecommunication firms

free appliances installation most appliance center

scheduled floral bouquet delivery some flower shops

drive through most fast food outlets

free alternation on garments selected apparel detailers

complimentary message some barbershop and salons

CUSTOMER RELATIONSHIP
MANAGEMENT

Customer relationship
management (CRM) is a process
of managing an organization
interaction with current and future
customer.
SUCCESSFUL CUSTOMER RELATIONSHIP
MANAGEMENT STRATEGIES

The effective guidelines in

the implementation of
customer relationship
management:
1.Adapt the right mindset towards
customer service.
Product improvement is not anymore effective
businesses turn to customer service.
2. Purchase a developed CRM software.
Through CRM, a company managers and
company’s interaction with current and future
customers with ease.
3. Estimate customer acquisition and rentention
costs.
Using think CLV, the total cost for acquiring or
retaining a customer can be calculated and it
determined. The CVL can also be a guide in
selective product discounting.
4. Develop and implement the customers service
training program.
The customer are the lifeblood of any business.
This makes customer service critically important.
5. Empower salesperson to make decisions.
The salespeople is the one responsible for sealing
the deal with the customer.
6. Establish communication lines between your
customer and customer contact staff.
Communication is essential for the CRM strategies.
Personalized and humanize the business and it’s
atmosphere.
7. Shop your competition.
Keep track of what competition are doing in the
area of customer service.
8. Keep innovating customer
service.
You may be satisfied with the
level of your service.
9. Promote genuine customer
service with passion.
Customer can easily discern if
customer service is insincere.