Marketing - 8520 Words

Because of permissions issues, some material (e.g., photographs) has been removed from this chapter, though reference to it may occur in the text. The omitted content was intentionally deleted and is not needed to meet the Universitys requirements for this course. PART II Connecting with Customers C H A P T E R 4 Creating Customer Value, Satisfaction, and Loyalty In this chapter, we will address the following questions: 1. How can companies deliver customer value, satisfaction, and loyalty? 2. What is the lifetime value of a customer, and why is it important to marketers? 3. How can companies cultivate strong customer relationships? 4. What is the role of database marketing in customer relationship management? MARKETING†¦show more content†¦Suppose the buyer for a residential construction company wants to buy a tractor from either Caterpillar or Komatsu. After evaluating the two tractors, he decides that Caterpillar has greater product benefits, based on perceived reliability, durability, performance, and resale value. He also decides that Caterpillar’s personnel are more knowledgeable and perceives that the company will provide better services, such as maintenance. Finally, he places higher value on Caterpillar’s corporate image. He adds up all the benefits from these four sources—product, services, personnel, and image—and perceives Caterpillar as delivering greater customer benefits. The buyer also examines his total cost of transacting with Caterpillar versus Komatsu, including money plus the time, energy, and psychic costs expended in product acquisition, usage, maintenance, ownership, and disposal. Then the buyer compares Caterpillar’s tota l customer cost to its total customer benefits and Komatsu’s total customer cost to its total customer benefits. In the end, the buyer will buy from the source he thinks delivers the highest perceived value. A Framework for Marketing Management, Fourth Edition, by Philip Kotler and Kevin Lane Keller. Published by Prentice Hall. Copyright  © 2009 by Pearson Education, Inc. 2008933525 Chapter 4 Creating Customer Value, Satisfaction, and LoyaltyShow MoreRelatedMarketing Analysis : Marketing And Marketing966 Words   |  4 Pagesreflect back over these last five weeks I now have a clearer view of marketing and how it affects not just the consumers of the world and the companies with their marketing managers, but how it affects me. Yes, I am a consumer who clips coupons, budgets my finances, and looks for sale items and this marketing class has taught me that marketing is more than selling or advertising. 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This approach concentrates on delivering value to the consumers or customers, the 4Ps approach is evidently concentrated not on customersRead MoreMarketing Analysis : Marketing And Marketing1878 Words   |  8 PagesIntroduction Marketing research is the process that associates the consumers, customers, and end users to the marketer through information — information used to classify and describe marketing prospects and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and development understanding of marketing as a process. Marketing research identifies the information required to address these issues, designs the method for collecting information, manages and implements