4 of 40

Lesson Objectives

Define Marketing

Explain the term Services Marketing and Relationship Marketing.
Understand the advantages of relationship marketing

Identify explicit stratagems for integrating customer-oriented perspective into an organization’s [health institutions] operations.
List some of the sources of customer [client/patient] value.
Identify key elements in managing customer’s experience: trust, commitment, satisfaction and loyalty

eapiiga14807@gmail.com

24/05/2019

5 of 40

Introduction

The greatest difﬁculty in writing an academic book about marketing is that people already know much about the subject.
Typically, people associate marketing with advertising or selling but while there is no doubt that marketing practice deﬁnitely encompasses both, there is much more to the subject than a narrow focus on either advertising or selling might suggest.
The true scope of the subject is astonishing and a central aim is to provide a ﬂavour of the diverse nature of marketing. Another key aim is to ensure that your knowledge of marketing is built on solid foundations.

eapiiga14807@gmail.com

24/05/2019

6 of 40

Marketing : A new paradigm

Over the last two and a half decades, marketing has witnessed a paradigm shift. The enigma of marketing is that it is one of the oldest activities of man and yet it is regarded as the most recent of the business discipline.

Philip Kotler(1989) defined Marketing as-

‘’Social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others’’

eapiiga14807@gmail.com

24/05/2019

7 of 40

Marketing : A new paradigm

The American Marketing Association (1985) defined marketing as ‘’the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individuals and organizational objectives’’.
The concept now is that marketing has shifted from customer acquisition (transaction marketing) to customer retention now (relationship marketing)
It also involves all the activities associated with winning and retaining loyal customers.

eapiiga14807@gmail.com

24/05/2019

8 of 40

Marketing Approaches

Service marketing:

Service marketing is a specialized branch of marketing.

In the early1980’s service marketing sector started attracting attention.

Service is performed and the performers are employees (often referred to as ‘’actors’’). Gummesson (1987) Stress the critical marketing role performed by frontline employees who interact with customers and their contribution towards delivery and service satisfaction. Related to this was the emergence of customer care and quality philosophies.

eapiiga14807@gmail.com

24/05/2019

9 of 40

Some x’ teristic of Services

Intangibility: Services are intangible and do not have a physical existence, Hence service cannot be touched, held tasted or smelt.
Heterogeneity/Variability: Service offering is unique and cannot be exactly repeated even by the same service provider.
Perishability: Services cannot be stored, returned or resold once they have been used. Once rendered to a customer the service is completely consumed and cannot be delivered to another customer.
Inseparability/simultaneity : Services are generated and consumed within the same time frame.eg a haircut is delivered to and consumed by a customer simultaneously unlike, say, a takeaway burger which the customer may consume even after a few hours of purchase.

eapiiga14807@gmail.com

24/05/2019

10 of 40

Overview of Relationship Marketing

Relationship marketing is an ‘old new’ idea but with a new focus . It is well- known to marketers as well as academia.
Relationships are not develop overnight. Until the customer senses some attachment to the company, then no relationship can be said to exist. At best, it is a satisfying encounter, which if it reoccurs often enough, could become a relationship.

Thus, relationship are born of excessive experience of customer satisfaction.

The term ‘’Relationship Marketing’’ was popularized by Leonard Berry (1983). He defined relationship marketing as ‘’the process of attracting, maintaining and in multi-service organization, enhancing customer relationship.

eapiiga14807@gmail.com

24/05/2019

11 of 40

Overview of Relationship Marketing

On the basis of the definition cited above, it can be said that relationship marketing aims at building long term strong relationship with customers to cultivate and foster customer loyalty, that will benefit both the customer and the organization.

It is also claimed that 5% improvement in customer retention can cause an increase in profitability between 25% and 85% net present value depending the industry

eapiiga14807@gmail.com

24/05/2019

12 of 40

Fundamental requirement of relationship marketing

Focus on the customer; It emphasis on understanding and satisfying the needs, wants and resource of select customer rather than those of mass market or market segment. Customer centricity emphasis placing the customer at the core of the operations and then designing all the process and activities around him.
Focus on profitability:: The next step involves the shifting of focus from sales volume to profitability. Delivering higher customer satisfaction in each chosen segment to produce loyal customers, whose repeat purchase would lead to increased profitability.
Focus on marketing practices: Marketing practices or strategies are adopted to give the customer some preferential treatment and help tailor their needs or wants.

eapiiga14807@gmail.com

24/05/2019

13 of 40

Benefits of Customer Relationship Management

Companies can gain many benefits from CRM implementation. These benefits are found in one of these areas.
1. lower cost of recruiting customers : The cost of recruiting or obtaining customers will decrease since there are savings to be made on marketing, mailing, contact follow-up, fulfilment services and so on.
2. Higher customer profitability: The customer profitability will get higher since the customer wallet share increases, there are increase in up selling, cross selling and follow up sales and more referrals come with customer satisfaction among existing customers.

eapiiga14807@yahoo.com

24/05/2019

14 of 40

Benefits of Customer Relationship Management

3. Evaluation of customer profitability: A firm will get to know which customers are profitable, the one who never might become profitable, and which ones that might be profitable in the future . Once a firm has found this never let them go.

4. Increase customer retention and loyalty: The customer retention increases since customers stay longer, buy more and buy more frequently.

5. Long-term customers tend to be less inclined to switch, and also tend to be fewer prices sensitive.

eapiiga14807@gmail.com

24/05/2019

15 of 40

Benefits of Customer Relationship Management�

6. Long-term customers may initiate free word of mouth promotion and referrals.

7.Long-term customers are more likely to repurchase related products from you.

8.Regular customer, tend to be less expensive to service and tend to be consistent in their purchase habits.

9.Increased customer loyalty makes employees job easier and more satisfying.

eapiiga14807@gmail.com

24/05/2019

16 of 40

Who are your customers ?

Customers are people who need your assistance. They are not an interruption to your job, they are the reason you have a job…
Customer is king

In presence scenario where products, marketing campaigns and even sales channels are becoming more dynamic, business managers have accepted that the customer is king and rules the market. Market researcher has proved that an increase of 5 % in customer retention leads to about 25- 85 % increase in company’s profit.

eapiiga14807@gmail.com

24/05/2019

17 of 40

Why organization loses customers ?

Price-related reasons: If the customer perceives a mismatch between the price and the value, he will opt for a competitor brand.
Product- related reasons: : In view of technology advancement, the new brand which makes market entry would be capable of offering better performance as compared to already existing brand.
Service- related reasons: Customer concentrate not only on the brand, but also on the accompanying services, namely pre-sales, during sales and after sales. Any dissatisfaction as regards to service will cause the customer to move away from the brand.

eapiiga14807@gmail.com

24/05/2019

18 of 40

Cont.….

Benefits – related reason: The customers may be attracted by various augmented benefits offered by the competitors.
Personal reasons: On the personal front, a customer would become a brand defector due to changes in life cycle, consequently leading to changes in brand preference: anger, distrust or just sentimental reasons.

eapiiga14807@gmail.com

24/05/2019

19 of 40

Marketing strategies

Marketing strategy is the process that allows the organization to focus on available resources and utilize them in the best possible manner to boost sales and gain leverage over competitors.
A Marketing strategy consists of a plan identifying what marketing goals and objectives will be pursued and how they will be achieved in the time available.

eapiiga14807@gmail.com

24/05/2019

20 of 40

Elements of marketing strategies

Segmentation: Your existing and potential customer fall into particular groups or segments characterized by their ‘needs’. Identifying these groups and their needs through market research and market reports, and then addressing those needs more successfully than your competitors.
Targeting and positioning: You should aim to sell to the market segments that will be most profitable for your business. If a particular group of customers is looking for quality first and foremost, give them.

eapiiga14807@gmail.com

24/05/2019

21 of 40

Cont…

Promotional tactics: Once you have created your marketing strategy, you must then decide which marketing activity or activities will be ensured. Eg adverts, exhibition.
Monitoring and evaluation: Monitoring and evaluating how effective your strategy has been, eg through interviews, questionnaires.
Marketing plan: Once you have decided on your marketing strategy, draw up a marketing plan that sets out how you intend to execute that strategy and evaluate its success.

eapiiga14807@gmail.com

24/05/2019

22 of 40

Strategies for practicing relationship Marketing.

Strategies towards practicing and maintaining sustainable relationship differ from one organization to another, depending on certain factors. Such as firm size, volume of sales, nature of product etc.
People: People within the organization form the primary basis of building relationships. Everyone in the organization must realize the fact that their work is towards satisfying customers.
Product: The product offered must constantly provide value addition. A satisfied customer of a given product may soon become a dissatisfied customer in view of the changes that take place in his / her expectation.

eapiiga14807@gmail.com

24/05/2019

23 of 40

Cont….

Processes

A process involves a logical sequence of activities right from the need identification of potential customers to the need of fulfilment. The performance of each link must be objectively analyzed and corrected in tune with the internal and external customers, expectation; just as a customer once put in his thoughts on delighting him – ‘Do not offer me shoes, offer me comfort and the pleasure of walking feat. Do not offer me book , offer me the benefit of knowledge’.

eapiiga14807@gmail.com

24/05/2019

24 of 40

How to build and maintain relationship with your clients

Have you ever lost a client, but didn’t fully understand what happened? Maybe it seemed as if they had a change of heart overnight and if so why ?

In fact, when you give clients the attention they deserve, it can become easy to feel when they’re unhappy about something.

eapiiga14807@gmail.com

24/05/2019

25 of 40

Here are few steps to maintaining lasting relationships with your clients;

Communicate openly and effectively: , it is also good to keep in contact with your clients from email, and social media. You should make yourself as available as possible for clients to get in contact, and reply promptly and politely to any enquires.
Be Honest and be yourself :All human relationship work best when both parties are open and honest. Also do not mislead your clients about what you cannot provide. Be yourself , don’t pretend !
Confidentiality: As a nurse, it is imperative to maintain confidentiality—of every patient. To illustrate the success of a therapy, names and specifics of such client should never be given.

eapiiga14807@gmail.com

24/05/2019

26 of 40

Cont…

Keep in touch: By keeping in touch with your customers, you’ll stay “top of mind”—this is key to making sure your customers don’t leave you for someone else, or forget about you altogether.
Promise and deliver: Most people have the best of intentions, but sometimes they just don’t follow through. While that’s annoying in personal relationships, it’s downright deadly to a business.

eapiiga14807@gmail.com

24/05/2019

27 of 40

Customer experience management

Most companies today are striving to provide a better customer service by implementing some CRM initiatives.

Companies will have to create and manage a positive and unforgettable experience for their customers based on their real needs and expectations

Customer experience management is defined as the practice of designing and reacting to customer interactions to meet or exceed customer expectations and, thus, increase customer satisfaction, loyalty and advocacy.

eapiiga14807@gmail.com

24/05/2019

28 of 40

Cont….

Customer satisfaction, trust, commitment and loyalty as predictors of customer loyalty within business environment

eapiiga14807@gmail.com

24/05/2019

29 of 40

The relationship marketing ladder of loyalty.

Loyalty, like so many other concepts, is a state of mind. It is a subjective concept that is defined by the customers themselves.
Often longevity of customer patronage and repeat buying are used by businesses as proxies for loyalty.
Satisfied customers will be more likely to tell others about their experiences and to recommend the business.
Loyal customers want to see the business strive to the point where they feel a sense of ownership towards the company.
Customers who are genuinely loyal feel an emotional bond to the company

eapiiga14807@gmail.com

24/05/2019

30 of 40

The relationship marketing ladder of loyalty.

To increase loyalty a business must increase each customer level and sustain that level of satisfaction overtime.
The stages through which a prospect becomes a customer, a client and finally a partner is shown by the ladder of loyalty. A very concise picture of how a prospect climbs through the ladder and becomes a partner in business. These pyramid from bottom- up are:

Prospect: An individual or an organization in the market that fulfills the needs of the marketers’ definition of target is known as a prospect. A telecom service provider, for example, may divide the market and target the executives in blue chip companies with a special offer

eapiiga14807@gmail.com

24/05/2019

31 of 40

The relationship marketing ladder of loyalty.

Customer: when a prospect is convinced and impressed by the marketer’s offerings and buys the product or service he becomes a customer.
Client: A customer becomes a client when he makes repeat purchase of the product or service of the business organization.
Supporter: when a client is satisfied with the offering and recommends it to his friend, relatives and acquaintances, the client becomes a supporter.

eapiiga14807@gmail.com

24/05/2019

32 of 40

The relationship marketing ladder of loyalty.

Advocate: A supporter, who in addition to referring customers proactively works with the company for improving its product and services, is an advocate.
Partner: When an advocate becomes actively involved in the decisions of the company, he becomes a partner.
In the the first two steps in the ladder, namely, prospect and customers, the marketer’s emphasis is on customer attraction, while in the subsequent steps ,the emphasis is on developing and enhancing the relationships.

eapiiga14807@gmail.com

24/05/2019

33 of 40