Customer Satisfaction

1
Customer Satisfaction

• Customer satisfaction is the extent to which a
  firm fulfills a consumers needs, desires, and
  expectations
• As some needs are met, others may become more
  important
• Expectations may change based on experiences
• Satisfying experiences may lead to increasing
  expectations
• Disappointing experiences may reduce expectations
• Expectations may be realistic or unrealistic

2
What Is Marketing?

• MICRO-MARKETING
• the performance of activities that seek to
  accomplish an organization's objectives by
  anticipating customer or client needs and
  directing a flow of need-satisfying goods and
  services from producers to customer or client
• MACRO-MARKETING
• a social process that directs an economy's flow
  of goods and services from producers to consumers
  in a way that effectively matches supply and
  demand and accomplishes the objectives of society
• AMA COMMITTEE DEFINITION
• marketing is the process of planning and
  executing conception, pricing, promotion, and
  distribution of ideas, goods, and services to
  create exchanges that satisfy individual and
  organizational objectives

3
Economic Systems
4
Micro-Macro Dilemma

• Micro-macro dilemma what is "good" for some
  producers and consumers may not be good for
  society as a whole.
• Examples
• some consumers want handguns, but guns can be
  dangerous
• all terrain vehicles are fun for some people, but
  may result in injuries or damage to wilderness
  areas
• non-returnable soft drink bottles are convenient,
  but sometimes result in litter and dangerous
  broken glass along highways.
• repairing an old air-conditioning system might
  save the owner money, but might require continued
  use of ozone depleting fluorocarbons (used as
  coolant)

5
Stages of Economic Development

• 1. Self-supporting agriculture
• 2. Preindustrial or commercial
• 3. Primary manufacturing
• 4. Nondurable and semidurable consumer products
  manufacturing
• 5. Capital equipment and consumer durable
  products manufacturing
• 6. Exporting manufactured products

6
Nations Macro-Marketing Systems Are Connected

• Economic growth has prompted more international
  trade
• World Trade Organization (WTO)
• Only international body dealing with the rules of
  trade between nations
• Replaced the General Agreement on Tariffs and
  Trade (GATT)
• Tariffs and quotas may reduce trade

7
Economies of Scale

• Economies of Scale as a company produces larger
  numbers of a particular product, the cost for
  each of these products goes down.
• Facilitated by mass production
• Facilitated by mass distribution
• Not always possible (for example, in labor
  intensive services)
• Flexible production--to meet varying or changing
  needs--may be more important than economies of
  scale in creating real customer value

8
Facilitators

• Ad agencies
• Marketing research firms
• Information technology suppliers
• Product testing labs
• Public warehouses
• Transporting specialists
• Financial institutions
• . . . and others

9
Some Criticisms of Marketing

• Some criticisms focus on micro-marketing and some
  focus on the whole macro-marketing system
• "Too many ads are annoying, misleading, or both."
• "There are too many unnecessary products."
• "Middlemen raise prices but don't add value."
• "Marketing makes people materialistic."
• Many criticisms result from misunderstandings
  about marketing!

10
Marketing Orientation

• Trying to carry out the marketing concept
• Maintaining a customer orientation
• All departments work together guided by customer
  needs
• Focus on profit objective (or other overall
  objective)
• NOT just trying to "unload" what the firm has
  produced