MANAGEING PROFITABLE CUSTOMER RELATIONSHIP

MANAGEING PROFITABLE CUSTOMER RELATIONSHIP Introduction Marketing is all around us .It is useful not only but manufacturing companies, wholesales and retailers but also by all kinds of individuals and organizations. Lawyers accountants and doctors use marketing to manage demand for their service. Even politician follow marketing because they need vote and to get vote they campaign which is advertisement which is a part of marketing promotion.

Technological advances, rapid globalization, economic shifts, and cultural and environmental developments are causing profound changes in the marketplace. So marketers should keep abreast with the changing market environment. In doing this they need to focus on market or customer. They must attract customers with strong value propositions, then keep and grow customers by delivering superior value and satisfaction which is the way to make profitable customer relationship. Building and profitable customer relationship is an important goal of marketing. To day to be succeed in making the profitable customer relationship marketers are following socially responsible ways.

Coca cola The History of Coca Cola John Pemberton was the inventor of Coca Cola In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. The name was a suggestion given by John Pemberton's bookkeeper Frank Robinson.

Birth of Coca Cola Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who first scripted "Coca Cola" into the flowing letters which has become the famous logo of today.

The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886.

Sony The History of the Sony Corporation Originally called Tokyo Tsushin Kogyo (TokyoTelecommunications Engineering Company), Sony’s roots go back over half century to 1946 when it was founded by Masaru Ibuka and Akio Morita. In the crippled post-war Japanese economy Ibuka and Morita made their living repairing radios and manufacturing small numbers of voltmeters whilst looking to develop a future in designing and

a

manufacturing new electronics. Perhaps surprisingly, their first electronic innovation was an automatic rice cooker. Its success was limited but it was the first in a long line of innovations which continue today.

Although the name of the company was not officially changed to Sony Corporation until 1958, the first Sony branded product was the TR-55 transistor radio which went on sale in 1955. This was shortly followed by Sony’s world first "pocketable" transistor radio Aarong Aarong is the handicraft-marketing arm of BRAC, the largest NGO in Bangladesh. In the Bengali language, "Aarong" means a village fair. Aarong is an outlet for craftsmen from various trades to sell their traditional handicraft. Aarong began in 1978 and currently supports over 37,000 Bangladeshi artisans of whom 85 percent are women. Aarong's mission is to help sustains rural craftsmanship and find a wider market for their products nationally and internationally.

Aarong products include pottery, crafts on brass, natural fibers, wood, leather, woven cloth and silk products, jewelry and a wide variety of candles. The store specialties are Nakshi Kantha (an icon Bangladeshi craft product with artistic stitch work on cloth is done by village women) and Jamdani sarees.

Nokia In 1865, an engineer named Fredrik Idestam established a wood-pulp mill and started manufacturing paper in southern Finland near the banks of a river. Those were the days when there was a strong demand for paper in the industry, the company's sales acheived its highstakes and Nokia grew faster and faster. The Nokia exported paper to Russia first and then to the United Kingdom and France. The Nokia factory employed a fairly large workforce and a small community grew around it. In southern Finland a community called Nokia still exists on the riverbank of Emäkoski.

In the beginning of 1970, the telephone exchanges consisted of electro-mechanical analog switches. Soon Nokia successfully developed the digital switch (Nokia DX 200) thereby replacing the prior electro mechanical analog switch. The Nokia DX 200 was embedded with high-level computer language as well as Intel microprocessors which in turn allowed computer-controlled telephone exchanges to be on the top and which is till date the basis for Nokia's network infrastructure. banglalink (Bengali: , is the third largest cellular service provider in Bangladesh. As of July, 2007, banglalink has a subscriber base of 6.61 million subscribers[2]. It is a wholly owned subsidiary of Orascom Telecom. In August 2006, banglalink became the first company to provide free incoming calls from BTTB for both postpaid and prepaid connections. banglalink had 1.03 million connections until December 2005. The number of banglalink users increased by more than 253 per cent and stood at 3.64 million at the end of 2006. By June, 2007 the company had acquired 6.04 million subscribers according to the country's telecom watch dog. This translates to 21.8% of total mobile phone subscribers in the country,

making the company the second largest mobile phone operator in Bangladesh by market share.

GrameenPhone Grameenphone is one of the largest private sector investments in the country with an accumulated investment of BDT 5200 crore up to December 2005. Grameenphone is also one the largest taxpayers in the country, having contributed nearly BDT 5000 crore in direct and indirect taxes to the Government Exchequer over the years. Of this amount, BDT 1670 crore was paid in 2005 alone.

GP was also the first operator to introduce the pre-paid service in September 1999. It established the first 24-hour Call Center, introduced value-added services such as VMS, SMS, fax and data transmission services, international roaming service,WAP, SMS-based push-pull services, EDGE, personal ring back tone and many other products and services.

Warid Warid Telecom International is an Abu Dhabi based mobile telecommunication firm providing telephony services in Bangladesh and Pakistan.

Warid is expected to launch in Congo and in Uganda soon.

Warid Telecom

Type Founded Headquarters

Key people Industry Products Slogan Website

Private 2004 301-Dhabi Tower, Hamdan Street, Post Box 44222, Abu Dhabi, United Arab Emirates Sheikh Nahayan Mabarak Al Nahayan, Chairman Mr. Bashir A. Tahir, CEO Abu Dhabi Group & Warid International Telecommunication Telephony We Care www.waridtel

Amazon.com Amazon.com, Inc.

(NASDAQ: AMZN) is an American e-commerce company based in Seattle, Washington. It was one of the first major companies to sell goods over the Internet and was one of the iconic stocks of the late 1990s dot-com bubble. After the bubble burst, Amazon faced skepticism about its business model, but it made its first annual profit in 2003.

Founded by Jeff Bezos in 1994, and launched in 1995, Amazon.com began as an online bookstore, though it soon diversified its product lines, adding VHSs, DVDs, music CDs, MP3s, computer software, video games, electronics, apparel, furniture, food, toys, and more.

Amazon has established separate websites in Canada, the United Kingdom, Germany, Austria, France, China, and Japan. It ships globally on selected products.

Uniliver Unilever was arguably the world's first packaged goods manufacturer, and is still one of its biggest companies with operations in every corner of the globe. "Meeting the everyday needs of people everywhere" is how the group describes itself. It is the world #1 in personal wash, prestige fragrances and deodorants, with brands including Dove, Omo and Axe/Lynx.

Following a series of high-profile acquisitions, including US-based Bestfoods, Unilever's foods business is the world's third largest after Nestle and Kraft. It is a global leader in culinary foods, ice cream, margarine and tea-based beverages. Brands include Knorr, Lipton and Magnum.

In the late 1990s, the group initiated a strategy to prune its vast portfolio which then numbered literally thousands of different brands, disposing of regional products and rebadging others in order to concentrate on a smaller roster of global power brands. Advertising Age estimated global measured Adbrands coverage of Unilever is split across several different pages. The group operates through two main global businesses, Unilever Home & Personal Care and Unilever Foods. In addition, Adbrands tracks several geographic units: Unilever USA, Hindustan Lever (India), Unilever Australasia, Unilever South Africa and Unilever UK. Individual brands or businesses covered include Knorr, Hellmann's, Bertolli, Dove, Lynx / Axe, Persil, Domestos, Cif, Rama, Flora, Lipton, Slim-Fast, Bovril and Unilever Ice Cream.

Neither William Procter nor James Gamble ever intended to settle in Cincinnati. Although the city was a busy center of commerce and industry in the early nineteenth century, William, emigrating from England, and James, arriving from Ireland, were headed farther west.

1837 — 1889 1890 — 1945 1946 — 1979 1980 — 1999 Since 2000

Trademarks & Facts

The Moon and Stars began to appear in the 1850s as the unofficial trademark of Procter & Gamble. Wharf hands used the symbol to distinguish boxes of Star Candles. By the 1860s, the Moon and Stars appeared on all Company products and correspondence. Once a staple of the Company's product line, candles declined in popularity with the invention of the electric light bulb. The Company discontinued candle manufacturing in the 1920s.

Twenty-two years after the partnership was formed, P&G sales reached $1 million. The Company now employed 80 people.

To address the storm of local and national labor unrest, P&G instituted a pioneering profitsharing program for factory workers. This voluntary program, conceived by William Cooper Procter, grandson of the founder, gave employees a stake in the Company. William Cooper Procter wanted this program to help workers realize their vital roles in the Company's success.

William Alexander Procter assumes leadership of the Company.

Marketing Marketing is a social process which satisfies consumers' wants. The term includes advertising, distribution and selling of a product or service. It is also concerned with anticipating the customers' future needs and wants, often through market research and managing profitable customer relationship.

Marketing, more than any other business function deals with customers. Building customer relationships based on customer value and satisfaction is at the very heart of modern marketing.

Two major factors of marketing are the recruitment of new customers (acquisition) and the retention and expansion of relationships with existing customers (base management). Once a marketer has converted the prospective buyer, base management marketing takes over. The process for base management shifts the marketer to building a relationship, nurturing the links, and improving the product/service continuously to protect the business from competitive encroachments. The goal of marketing is to attract new customers by promising

superior value and to keep and grow current customers by delivering satisfaction. For example Bata promises for durable shoes and keep their promise by delivering durable shoes.

Thus it is the one of the well known company for shoes in the world.

Nokia – “connecting people”, highly successful company gain most of the mobile market share by providing highly qualitative mobile set. They promise to deliver superior value and keep their promise by delivering it.

Our definition of marketing applicable in a business or a non profit organization each as follws “marketing is total says of business activities designed to plan, price, promote and distribute want-satisfying products to target market to achieve organizational objictives.

The American Marketing Association (AMA) states, “Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives".

A market-focused, or customer-focused, organization first determines what its potential customer’s desire, and then builds the product or service. Marketing theory and practice is justified in the belief that customers use a product or service because they have a need, or because it provides a perceived benefit. If marketers does a good job of understanding consumer needs, develops products that provide superior value, and prices , distributes, and promotes them effectively, these products will sell very easily. thus selling and advertising are only part of a larger “marketing mix”- a set of marketing tools that work together to affect the marketplace.

And that is why- marketing is a social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others.

Social process: It is a social process because it starts in a organization staying in society and conducts it job for the social people as well as social wellbeing. Marketers want to build builds strong economic and social connection by promising and consistently delivering superior value.

Managerial process: As marketers work for understanding consumer needs, develops products that provides superior value and prices, distributes and promotes them effectively, thus product will sell easily and that is why marketing is a managerial process.

In this definition of marketing, core concept of marketing are lying there. these core marketing concepts are – needs, wants, and demands marketing offers (products, services, and experiences) value and satisfaction exchanges transactionsm and relationships markets

Customer Customer orientation orientation

Organizational Organizational performances performances

Coordinated Coordinated marketing marketing

Customer Customer satisfaction satisfaction

Organizational Organizational success success

activities activities

Fig-1: Components and outcomes of the marketing concepts Core marketing concepts

What are Consumers Needs , Wants and Demand ?

Needs, wants and demands Who Purchases Products and Services?

Markets

How Do Consumers Obtain Products and Services?

Exchange transactions, and relationships

What Will Satisfy Consumer’s Needs and Wants?

Products services and experiences

How Do Consumers Choose Among Products and Services?

Customer value and satisfaction

Fig-2: Core Marketing Conceptes Needs Wants and Demands Needs: The most basic concept underlying marketing is that of human needs; Human needs are states of felt deprivation. They includes basic physical needs for food, clothing, warmth,

and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression. Marketers can not create human need. These need a basic part of human life.

Abraham Maslow s sought to explain why people are driven by particular needs at particular times. Why does one person spend much time and energy on personal safety and another on gaining the esteem of others? Maslow’s answer is that human needs are arranged in hierarchy. They include physiological needs, safety needs, social needs, esteem needs, and self-actualization needs.

A person tries to satisfy the most important need first. When that need is satisfied, it will stop being a motivator and the person will then try to satisfy the next most important need.

Self actualization needs Esteem needs Social needs Safety needs Physiological needs

Fig- 3 : Maslaw’s Need Theory Wants: Wants are the form human needs take as they are shaped by culture and individual personality. All people needs food but Bangladeshi people need rice and a American people may needs hamburger. Wants are shaped by one’s society and are described in terms of objects that will satisfy needs.

Demand: When want are backed by buying power then it becomes demands.If the bangladeshi people or american people have enough money to buy rice and hamburger then want will becomes demands.Given their wants and resources, people demand products with benifit that gives the most value and satisfaction. what do marketers do?

Outstanding marketing company learn about and understand their customers needs, wants and demands by conducting customer research and analyzing mountains of customer sales, service data.

Their people at all levels- including top management stay close to customers.

Agora, a well known super store,its top exeicutive visiting several times in a month in Agora and stay close to customers. Thus Agora can understand and serve the needs and wants of its customer well.

Marketing offers- products, services, and experiences To satisfy customer needs and wants companies products, services and experiences and make marketing offers. Marketing offers are combination products, services, information, or experiences to a market to satisfy a need or want.

Product: Products include more than just tangible Broadly defined, products include physical objects, events, persons, places, organizations, ideas, or these entities. Product is a key element in the market

provide of offered goods. services, mixes of offering.

This offering becomes the bases upon which the company builds profitable relationships with customers.

Service: Services are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. Example are banking, hotel, airline, retail, tax preparation, and home repair services.

A company’s market offering often includes both tangible goods and services. Each component can be a minor or a major part of the total offer. At one extreme, the offer may consist of a pure tangible good , such as soap, toothpaste, or salt- no services accompany the product. At the other extreme are pure services, for which the offer consists primarily of a service. Examples include a doctor’s exam of financial services . Between these two extremes, many goods-and-services combinations are possible.

Today, as products and services become more and more commoditized, many companies are moving to new level increasing value for their customers. To differentiate their offers, they are developing and delivering total customer experiences. Whereas products are tangible and services are intangible, experiences are memorable. Whereas products and services are external, experiences are personal and take place in the minds of individual consumers.

Companies that market experiences realize that customers are really buying much more than just products and services. They are buying what those offers will do for them.

Marketing Myopia: When marketers focus only on existing wants and loose sight of underlying customer needs then the marketing myopia happen. They make mistake paying more attention to the specific products they offer less or not to the benefits and experiences produced by these products. seeing themselves as selling a product rather than providing a solution to a need Harms of marketing myopia: The sellers will have trouble if a new product comes along that servers the customer’s need better or less expensively.

Seller lose their market How to overcome marketing myopia?

Firstly, when designing products, marketers must define the core, problem –solving benefits or services that consumers seek. For example , a consumer want to buy television. In selling television, marketers should be careful that he is not selling the television only but selling the television with other quality ( good quality picture tube, good sound system etc.) that can meet the customer core benefits well.

Secondly, product planners must turn the core benefit into and actual product.

They need to develop product and service features, design, a quality level, a brand name, and packaging. A sony LCD television is an actual product. Its name , parts, styling features, packaging and other attributes have all been comnbined carefully to deliver the core benefit .

Finally, product planners must build an augmented product around the fore benefit by offering additional consumer services and benefits.

SONY must offer more than just a colour television. It provide consumers with a complete satisfaction of watching television as well as solution of problem TV set. Thus , when consumers buy a Sony television, Sony and its dealers also might give buyers a warranty on parts and workmanship instructions on how to use the tv set and a toll-free telephone number to call if they have problems or questions.

What do marketers do ?

To look beyond the attributes of the products and services they sell To create brand meaning and brand experiences for customers

Pizza hut that serves people not only pizza but also deliver experiences for the customers .

People come here to meet people and pass their time by gossiping . They are not getting the pizza only but also having nice experience.

Value and satisfaction When consumer buy any product then he or she face array of products and choose the product which gives more value and satisfaction.

Customer value:It is the difference between the galues the customer gains from owing and using a product and the costs of obtaining the product .

Customer form expoectations about the value of various marketing offers and buy accordingly. Customer expectations are based on past buying experiences the opinions of friends marketers and competitor information and promises Customer satisfaction: Customers satisfaction with a product depends on how well the products pwrformance lives op to the customer’s expectations.Customer satisfaction is the key influence on future buying behavior.If cusomer like any producdt then he buy this product regularly and say others around him or her to use this product. Then there will be free advertisement of this product. But if consumer does not get satisfaction by using the products he will not buy this product anymore and must say to others not to buy this product. Then company wills loss their current customer and also loss probable market.

Customer value

Customer satisfaction

Fig-4: Customer Value and Satisfaction What do marketers do to add value and to satisfy customers?

Marketer must be careful to set the right level of expectations. Not to set expectation to high or to low.

Customer value and satisfaction are key building blocks for developing and managing customer relationships.

Exchange, Transactions, and Relationships When people decide to satisfy needs and wants through exchange then marketing occurs.

Exchange: Exchange is the act of obtaining a desired object from somebody by offering something in return. Exchange needs five conditionsa. There at least two parties b. Each party has something that might be a value to the other party. c. Each party is capable of communication and delivery, d. Each party is free to accept or reject the exchange offer, e. Each party is believes it is appropriate job desirable to deal with the other party.

Transaction: Transaction is marketing’s unit of measurement .it is a trade of value between two parties one party gives something to another party and gets something. For example: If a person pay some amount of money to SONY for a TV set.

Creating exchange relationships involves following workSearching for buyers Identifying buyer’s needs designing good marketing offers Setting price for products Promoting product Sorting and delivering product

Identifying need and want Identifying need and want

Serving product, Serving product, service and idea service and idea

Exchange and Exchange and Transaction Transaction

Obtaining profit Obtaining profit

Making profitable relationship with customer Making profitable relationship with customer

Fig-5 : Exchange, transaction and relationship Marketers concern: Marketers tries to build and maintain desirable Exchange relationships with target customers by exchanging products, services, ideas or other objects.

Beyond simply attracting new customers and creating transactions marketers must set a goal to retain customer and grow business.

To build strong economic and social connections by promising and delivering superior value.

Markets The concepts of exchange and relationships lead to the concept of a market. Amarket is a aset of all actual and potential buyers of a products.

The size of market depends on the number of the people who Exhibit the need (Want to buy something) Have resources to engage in exchange, ( have enough money to by needed product) Are willing to exchange these resources for what they want (wants to spend money to buy the needed product)

Marketer’s concern If we think about economy we will see that the economy consist of markets . These markets are linked through exchange process and marketers have concern about these market. A marketer tries to understand the need and wants of specific markets or target markets A marketer try to add value to satisfy customer in the markets. Keeps long term profitable customer relationships . after knowing the core concept of marketing we found that marketing maintains a process .

First of all it search for buyers then it identify its buyers(target market ), identify their needs, design goods according to their needs and want, set prices considering the buyers ability, promote them and deliver them , all of these help make profitable customer relationships. It is true for all the company.we can see marketing process in following table.

Fig-6 : Create Create profit profit Build profitable Build profitable relationship relationship Conduct Conduct marketing marketing activities deliver activities deliver superior superior value develop value develop marketing marketing strategy and strategy and design product design product

Understand Understand the market the market place and place and customer need customer need and want and want

Marketing Process

In modern age , every company follow these process to reach theier goal or obtain their objectives.As a successful fashion house Aarong also these activities. It has many departmental shop in different place in country.

Dhaka Aarong has many show room. In comparing the collection of show room between Rankin Street and Gulshan , we found that showroom in Gulshan is more larger than Rankin street and has more collection.why? Because Gulshan is a large and people of that area have more uying power. they have strong financial position and thus they are fashionable ; where in Rankin street both middle class and upper class people live. Middle class people arenot as fashionable as upper class people like people in Gulshan. That is why they found the Gulshan area is more profitable than Rankeen Street and decorate the showroom with huge collection.

So, we can see they understand the market place first.

Then they identify the need and want of those areas peole and decorate the showroom keeping in mind – the need want of those area.

In developing marketing strategy Aarong some times follwo market development and sometimes follow product development. After Asad Get show room When they open their new showroom in Gulshan and Rankeen Street without changing their collection – they follow market development strategy. And when they increase the varities of collection without changing the number of showroom – they follow the product development strategy.

When Arrong advertise and sells their product they performing marketing activities.

Aarong gives it products advertisement in magazines, in signboard and in TV. At their website we can know about their product . Aarong not only provide the products it also create a brand name.They have different collection of our cultural icon nakshi katha, Jamdani share.

They are success to identify the want of different ages people and deliver the new attractive designed dresses for them.Thus they sucess to provide superior value to the customer and get their satisfaction. People may have to spend much but want to have Aarong collection and that is for their brand. By satisfying customer and creating brand meaning they are succeed to make a profitable relationship to their customer.And making profitable relationship Aarong reach their goal.

In marketing system Aarong have to face competitors like Nipun, the another well known fashion house.Aaron and its competitors offers and messages to the end user either directly or through marketing intermediaries.In this marketing system all of actors – Aarong, competitors Nipun , marketing intermediaries , suppliers are affected by major environmental forces.

Marketing Management : It is the art and science of choosing target markets and building profitable relationships with them.Marketing management is not concerned with serving all customers in every way.It suggest that marketers should serve those customer whom they can serve profitably.

Demand Management Every organization has limitation has a limitation to serve the customer and that is why that has a desired level of demand for its product.Demand may have one of four state any at any point of timeNo demand Adequate demand Irregular demand Too much demand Marketing management always try to deal with these demand in remembaring the company’s limitation.If demand increase too much then compay try to shift reduce the demand temprorarily or parmanently which is called demarketing.For example, in dhaka city we have to face hard traffic jam.In Mohakhali it is also a common scenery .RAJUK had taken a step to make a flyover and made it and suggest the people driving automobile using this flyover. To reduce the traffic jam RAJUK shift the demand of road to the flyover.

“MARKETING MANAGEMENT ORIENTATION” For building profitable relationships with target customers marketing management is necessary. Organizations conduct their marketing activities under 5 marketing management concepts. They are as follows: A. The Production concept B. The Product concept C. The selling concept D. The marketing concept E. The societal marketing concept The Production concept The production concept holds that consumer will favor product that are available and highly affordable. Therefore management should focus on improving production and distributing efficiency. The production concept is shill use philosophy in two types of situation.

When the demand for a product exceeds the supply.

Here management should good for ways to increase production.

When the product’s cost is too high.

Here improved management is needed to bring it down. A company can reduce its product price to make it affordable to the peephole.

Coca cola increases its production to meet the demand of customer. When they do not change coca cola’s taste , that means they do not think about their product , just increase their product to meet the demand –then they follow Production concept Limitation Although useful in some situations, the production concepts lead to marketing myopia.

Company focus too narrowly on their own operations and losing sight of the real objectivessatisfying customer needs.

The product concept The product concepts hold that customers will favor products that offer the most in quality, performance and innovative features. Thus an organization should devote energy to making continuous products improvement.

Limitation The production concept leads to marketing myopia.

Banglalink serves its customer to meet the need of communication over mobile phone. But they developing their product and improving and changing their advertisement frequently to attract customer .Thus they are following product concept.

The selling concept It is a concept that hold the idea – consumer will buy enough of the firm’s product unless the organization unless the organization undertakes large scale selling and promotion effort. This concept is suitable for unsought goods those buyers do not normally think of buying.

When to use this concept?

Most firm practice the selling concept when whey face over capacity.

The aim of the company is to sell what they make rather than make what the market wants.

Feature of selling concept It focuses on creating sales transaction rather than on building long –term profitable customer relationship.

It views marketing as ‘hunting’.

Maintain a philosophy –“Find the right customer for the product”.

It believes in ‘make and sell’.

It takes the inside out side perspective It focuses on companies existing product.

Company obtains profit by heavy selling and promotion.

Limitation: This concept keeps a poor consumption that consumer who buy the product will like it . Or if they don’t like they possibly forget their disappointment and buy it again later.

But in this modern age market is competitive and in competitive market many substitutes products are available. So if people feel disappointment with any product they will not take the product any more and they will advice the people around them not to buy this product. So the company following this concept will be in very risk.

The marketing concept This concept develops in competitive market .the marketing concept holds that achieving organization goals depends on knowing the needs and wants of target market ,delivering the desired satisfactions better than competitors do.

Feature of marketing concept The marketing concept is a customer centered “sense and respond” philosophy.

The job is not to find the right customer for the product , but the right product for the customers.

It is marketing not as “hunting” but as gardening.

It focuses on customers needs and wants The company earns profit through customer satisfaction The marketing concept starts with a well defined market, focused on consumers need and integrates all the marketing activities that affect customers. In turn, it yields profit by creating long term customer relationships based on customer value and satisfaction.

In our country many well-known company have addopted marketing concept . Liver Brothers, ACI. Square Aarong Nipun , Banglalink Grameen Phone and so many company uses this concept.

Arong designs its dress by keeping the choice of customer in their mind. In different season they change their design to make the dress suitable for the customer. In winter, they identify, people wear shawl and they produce fashionable shawl not only to meet the customer need but also make them satisfied. Thus they focus on customer needs.

Starting point

Factory

Focus

Existing Products

Means

Ends

Selling and Promoting

Profit trough volume

The Selling Concept

Market

Customers needs

Integrated Marketing

Profit through satisfaction

The marketing Concept

Fig-7 : Selling and Marketing concept The societal marketing concept The societal marketing concept is the latest concept of marketing concept. this concept holds the idea that the organizations should determine the needs , wants and interests of target markets and deliver the desired the desired satisfaction more effectively and efficiently than do competitors in a way that maintains or improves the consumer’s and society’s well-being.

A firm may totally satisfy its customers (in the process achieve a healthy profit ) , while adversely affecting society. To illustrate, and Indiana still producer might be supplying its customer in Texas with the right product at a reasonable price. But to do might be polluting the air and water in Indiana .

However this need not be the case a fronts social responsibility can be quite compatible with the marketing concept. Compatibility depends on two things – -how broadly a firm perceives its marketing goals -how long it is willing to wait to achieve those goals

A firm that sufficiently extends the ‘breadth’ and ‘time’ dimensions of its marketing goals to fulfill its social responsibilities is practicing what has become known as the social marketing concept. for instance we can say (in our example ) –The Indiana still mill has several “customer” groups to satisfy – the Texas buyers of the still the consumers of the air that contains impurities given off buy the mill and the recreational users of the local river where mill releases its waste matter.

Time: or a company to prosper in the long run it must satisfy its customer’s social needs as well as their economic needs.

Thus the marketing concept and a company social responsibility are compatible if management strives over the long run to satisfy the wants of its products – buying customers Meet the social needs of others affected by the firm’s activities.

Achieve the company’s performance objectives.

The societal marketing concept marketers have to consideration in setting their marketing policies; company profits, consumer wants, and society’s interests.

Society (Human Welfare)

Socital Marketing Concept Consumers (Want Satisfaction)

Company Profit

Fig-8 : Three consideration under the societal marketing concept

Pepsodent , a product of Uniliver, is a familiar toothpaste. Sometimes it lunch a program for free dental care. Pepsodent’s this free service programe is for the social well being and such a program give them a different and strong place in comparing to their competitors. They are following the social marketing concept.

Customer Relationship Management Customer Relationship Management (CRM): The overall process of building and maintaining profitable customer relationship by delivering superior customer value and satisfaction.

Today’s companies are going beyond designing strategies to attract new customer and create transaction with them. They are using CRM to retain current customer and build profitable, long-term relationship with them. The new view is that marketing is the science and art of finding, retaining, growing profitable customer.

CRM Designing CRM Designing Strategies Strategies

Attracting Attracting competitors competitors customers customers

Attracting Attracting new new customer customer

Retaining Retaining existing existing customer customer

D Different CRM Strategies Figure-09: D

Banglalink Ladies first Package price-150 to 200 Call ratepeak hour: 2.50+vat off – peak hour: 2+vat FnF-2 Free BTTB incoming and outgoing

Banglaling Desh Package priceCall ratepeak hour: 1.75+vat off – peak hour: 1.15+vat FnF-3 Free BTTB incoming and outgoing

Warid Package priceCall ratepeak hour: 1.20+vat off – peak hour: .99+vat FnF-20 Free BTTB incoming and outgoing

How to attract repeat customer

According to the following chart we can say that Banglalik Desh offer much more benefits rather than Ladies Fast. For attracting and growing repeat customer shares. They also offer free migration opportunities to the customers. So customer can adopt Desh instead of Ladies fast with free migration also more opportunities.

Simply we can say that when company creates more value and satisfaction than customer’s expectation then customers can repeat purchase product from that company.

How to attract competitor’s customers and new customers

According to the following chart Bangllink Desh package price, call rate FnF facility etc. more than Warid. Customers consideration not only on a single factor but also on call rate package price etc. We can see that Warid givrs more cheap and attractive offers than Banglalink. So competitor’s customers and new customers feel attraction to Warid’s offer and adopt Warid package.

Customer Lifetime Value: Companies are also realizing that losing a customer means losing more than a single scale. It means losing the entire stream of purchase that the customer would make over a lifetime of patronage that is called customer lifetime value.

Fantasy Kingdom is one of the best entertainment parks in Bangladesh. To keep customer coming back this park created two main characteristics such as Ashu & Lia. They are the king &queen of the kingdom. They also arrange different types of concert &cultural programme. The rides they have in their park most of them are very interesting and the idea of the rides comes from the famous theme parks of the world such as Disney land.

Nandon Park is also one of the beautiful & entertaining parks of our country. It is the

best picnic spot for the group of people who want to pass their times with great pleasure. The water rides of Nondon Park are so charming. For attracting people of different ages they offers various types of facilities such as in summer their picnic spots are paid less for school group, in winter office groups are allowed to pay less.

CRM

Building customer Relationship and equity

Attracting, retaining and growing customer

Customer value

Customer satisfaction

Growing share of customer

Customer loyalty and retention

Customer equity

Customer relationship levels and tools

Figure-10: Customer Relationship Management Attracting, Retaining and Growing customers: Customer relationship creates superior customer value and satisfaction. Satisfied customers are more likely to be loyal and loyal customers are more likely to give the company a larger share of their business. Now we are trying to visualize more closely at the concepts of – 1) Customer Value 2) Customer satisfaction

3) Growing Customer share 4) Customer loyalty and Retention Customer Value: The Customers evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offer.

Dhaka Bank added new service for its customers as they introduce money- sending service from abroad. It is so fast and speedy service that sends money from abroad to our country within only 24 hours. It helps their customer to get more benefited in exchange of little of money. Dhaka Bank also gives loans such as car loan housing loan business loan for their existing customers with a very simple installment.

2) Customer satisfaction: The extent to which a product’s perceived performances relative to a buyer’s expectations.

The key is that a company can always increase customer satisfaction by lowering its price or increasing its services.

The key is that to match customer’s expectations with company’s performance. Satisfactions are classified asHighly satisfaction or Delight : The extent to which Product’s perceived performance is more than buyer’s expectation.

Smarts companies aim to delight customers by promising only what they can deliver, then delivering more than they promise.

Satisfaction : Product Performance Customer Expectation

The extent to which Product’s perceived performance matches buyer’s expectations.

More

More Highly

Same

Satisfactio n Same

Satisfactio n

Less Dissatisfaction

Satisfied customers make repeat purchases and tell others about their good experiences with the product.

Dissatisfaction : If the product’s performance falls short to expectations, the customer’s is dissatisfied.

Satisfaction figure:

In perspective of Shampoo-

If the shampoo makes the customers hair more soft smooth silky strong and healthy, which is beyond his or her satisfaction then the customer, shall be more satisfied. This type of user may be called highly satisfied user.

If the Shampoo does only what actually customer want that would be just like make customers hair soft, smooth, &silky then we can say the customer will be satisfied.

If the Shampoo fails to give the customer what he or she want then the customer will be dissatisfied. Just like if hair falls and the hair will more harsh after using the shampoo then the dissatisfied customer does not use this shampoo & he always avoid it 3) Growing Customer share: Marketers want to constantly increase their shares of customers – the share they get of the customers purchasing in their product categories. They may do this becoming the sole suppliers of products the customers are currently buying. Or they may persuade the customer to purchase additional company products. Thus, banks wants to greater “Share of Wallet”, Supermarkets want to increase their “Share of stomach”, car companies want a greater “ Share of garage ” and airlines want a greater “ Share of travel”.

At first Amazon. Com only sales books but recently it has blossomed from an obscure .com upstart into one of the best-known names on the Internet. In the process it has forever changed the practice of marketing. They increase their sell such kind of products like Videos, CDs, toys, Consumers electronics, hardware and so on. Their say about their marketing process is: We make the internet buying experience fast, easy and enjoyable – we are the place where you can find and discover anything you want to buy online. Amazon. Com increases the customer by increasing their product line. As their product increase their users also increase.

4) Customer loyalty and Retention: Highly satisfy customers produces several benefits for the company. Satisfied customers are less price sensitive. They talk favorably to others about the company and its products and remain loyal for a longer period. However, the relationship between customer satisfaction and loyalty varieties greatly across industries and competitive situations.

Positive Relationship Customer Satisfaction

Customer Loyalty

The relationship between customers satisfaction and loyalty in five different markets. In all cases, as satisfaction increase , so does loyalty. Highly competitive markets, such as those for automobiles and personal computers, show surprisingly little difference between the loyalty of less satisfied customers and those who are somewhat satisfied . However they show a tremendous difference between the loyalty of satisfied customers and completely satisfied customers.

This means that companies must aim high if they want hold on to their customers. Customer delight creates and emotional relationship with a product or service, not just a rational preference. This , in turns , creates high customer loyalty.

Customers who are highly satisfied are much more loyal. For example: We can say the user of Sony TV are full satisfied and loyal with their TV set. If any offer has given to the customers which price is high, the customers will not be so anxious because loyal customers are fewer prices sensitive. So it can be said that loyal customers are great assets for the certain company.

Building customer relationships and customer equity: Customer relationship management is oriented towards the long-term. Today’s smart companies not only want to create customers, they want to “own” them for life, capture their customer lifetime value and build overall customer equity.

Customer Equity:

The total combined customer lifetime values of all of the company’s customers. The aim of CRM is to produce high customer equity. The more loyal the firms customer the higher the firms customer equity. Customer equity may be a better measure of a firm’s performance than current sales or market share. Where as sales and market share reflect the past, customer equity suggests the future. Moreover, customer lifetime value and customer equity are the name of the game.

In the 1970s 1980s Cadillac had some of the most loyal customer in the industry. Cadillac customers were getting older (average age 60) and an average customer lifetime value was falling. Many Cadillac buyers were on their last car. Thus although Cadillac’s markets shares was good. Its customer’s equity was not.

BMWs customer equity became remains much higher. It has more customers with a higher average customer lifetime value.

IBM computer users and their software users are as loyal if there is easier and cheap price of Linux and Machine tools they are not interested about those because the users as loyal that they are dependent on it such like as GP users also of that kind. They are dependent on GP networking system. They will not interest about the offer of other mobile operators how attractive as they are!

Customer Relationship Level and Tools: Companies can build customers relationship at many levels depending on the nature of target market. At one extreme a company with many law margin customers may seek to develop basic relationship with them. For example, Proctor & Gamble does not phone all of its tide customers to get to know them personally. Instead of P & G creates relationship through brand building advertising sales promotion 1-800 customers response number and its Tide fabrics care network website (WWW. Tide.com) At the other extreme in markets with full customers and high margins, sellers want to create full partnerships with key customers. For example, P & G Customers teams work closely with Wal-Mart, Safeway and other large retailers.

And boeing partners with American Airlines Delta and other Airlines in designing its airplanes that fully satisfy their requirement. In between these two extreme situations, other levels of customer’s relationships are appropriate.

Most leading companies are developing customer loyal and retention programs. Beyond offering consistently high value and satisfaction, marketers can use specific marketing tools develop stronger bonds with customers. Such as1) Financial benefits 2) Social benefits 3) Structural ties

to

Tools: Financial benefits:

A company might build value and satisfaction by adding financial benefits to the customer relationships. For example many companies now offer frequency marketing programs that reward customers who buy frequently or in large amount such as cellular phone service – Aktel given phone golden coin offer, more over they give such an offer pay for two minutes & get three minutes free. They also give their old customers surprised gift hampers for connecting with them.

Social benefits:

A second approach is to add social benefits as well as financial benefits. For example, many companies sponsor club marketing programs that offer members special discount and create member communities. And also many companies play vital role such as new arrival of telecommunication sector Warid telecom send relief for the flood-affected people. In cultural field companies also help many ways such as singing competition: close up- 1, best band competitions d Rock stars, Model and actress competition Lux channel I superstar & so on.

Pratham Alo , the best selling news paper in Bangladesh. In the sense of social responsibility they always try to be with disaster affected people. In north Bengal “Monga” is a common scenery suffering people. Pratham Alo run there with food for the “Monga” suffering people.

Structural ties:

A third approach is to build customers relationship to add structural ties as well as financial and social benefits. For example, a business market might supply customers with special equipment or computer linkages that help them manage theirs orders, payrolls or inventories.

And also companies help their customers as they give their customers the facility to buy their product from net. As a result the customers will be more benefited and more interested to buy their product.

Customer Customer relation level and relation level and tools tools

Margin Margin

High margin High margin

Tools Tools

Low Low margin margin

Financial Financial benifit benifit

Social Social benifit benifit Structural Structural ties ties

Figure-11:Customer relationship levels and tools

Marketing Challenges in the new “Connected� Millennium

As the twenty-first the world spins into the first decade of century, dramatic changes are occurring in the marketing arena. Technological advances, rapid globalization & continuing social & economic shifts- all are causing profound changes in the market place. As the market place changes, so must those who serve it.

The major marketing development as we enter the new millennium can be summed up in a single theme: Connecting Now more than ever before, we are all connected to each other & to thing near & far in the world around us. Moreover, we are connecting in new & differences ways. Where it once took weeks or month to travel across the United States, we can now to travel around the globe in only hours or days.

Where it once took days or weeks to receive news about important world events, we now see them as they are now only moments away by phone or the internet.

Technologies for connecting

The major force behind the new connectedness is explosive advance in computer, telecommunication, information transportation & other connecting technologies. The technology boom has created exciting new ways to learn about & track customers & create product & services to modified individual customer needs. Technology is helping companies to distribute products more efficiently & effectively & to communicate with customers in large groups or one to one.

For example, through videoconferencing marketing researches at a company’s headquarters in New York can look in one focus groups in Chicago or Paris without ever stepping onto a plane. With only a few clicks of a mouse button, a direct marketer can tap into online data services to learn anything about consumer’s choice needs & demands. One of the memorable examples of E-commerce in Bangladesh is The Sale of Shares of Beximco Pharmaceutical limited in London Stock Exchange. Through using E-commerce the marketers of Beximco can provide information about their company profit margin, company growth etc.

Using today’s vastly more powerful computers, marketers create detailed database (CRM) & use them to target individual customers with offers designed to meet their specific needs & buying patterns. With a new wave of communication & advertising tools- ranging from cell phones, fax machines, CD-ROM, & interactive TV to video kiosks at airports & shopping malls- marketers can zero in on selected customers with carefully targeted message. Through electronic commerce customers can design, order & pay for products & services-without ever leaving home then through the marvels of express delivery, they can receive their purchase in less than 24 hours. Here we can use the example of TVC Sky Shop service.

From virtual stores that sell them, the technology boom is affecting every aspect of marketing.

Marketing Challenges in the new connecting millennium The most profound new developments in the ways in which today’s companies are relating to their customers. Today’s companies are building more direct & lasting relationships with more carefully selected customers.

TECHNOLOGY

_______________→Connecting with customers _______________→Connecting with Partners 1. Inside Organization.

2. Outside Organization.

3. Strategic Alliances. _______________→Connecting with the Globe.

Figure-12: Marketing’s Conection

Fig-12: Marketing Connection Connecting with the more Carefully Selected Customers Today most marketers realize that they don't want to connect with just any customers. Instead most are targeting fewer, more profitable customers. The greater diversity has meant greater market fragmentation. In response most firms have move from mass marketing to segmented marketing, in which they target carefully chosen submarkets or even individual buyers. They build huge customer database (CRM) to gain insights by which they can offer to deliver greater value to individual buyers.

At the same time that companies are finding new ways to deliver more value to customers, they are also beginning to assess carefully the value of customers to the firm. They want to connect only with customers that they can serve profitably. In a process called Selective Relationship Management. Once they find profitable customers, firms can create attractive offers & special handling to capture these customers & earn their loyalty. But with unprofitable customers, firms try to turn into them as profitable customers. Otherwise it demarkets them.

For instance, telecom companies such as Banglalink maintain strong CRM for their end users. To retain their loyal customers they provide diversified opportunities –comparative low call rate, FNF, strong & full network coverage etc.

Connecting with Marketing Partners In addition to customer relationship management marketers must also be proficient at partner relationship management. In this new technology based era major changes are occurring in how marketers partner with others inside & outside the company to jointly bring greater value to customers.

Connecting inside the company Traditionally, marketers have been charged with understanding customers & representing customers’ needs to different company departments. The old thinking was that marketing is done only by marketing, sales & Customer support people. However, in today’s connected world, marketing no longer has sole ownership of customer interactions. Even functional area can interact with customers, especially electronically. The new thinking is that every employee must be customer focused.

Say, David Packard, co-founder of Hewlett-Packard, wisely said, "Marketing is far too important to be left only to the marketing department."

Today, rather than letting each department go it own way, firms are linking all departments in the cause of creating customer value. Rather than assigning only sales & marketing people to customers, they are focusing cross-functional customer team. For example-Proctor & Gamble assigns "customer development teams" to each of it major retailer accounts. These team

consisting of sales & marketing people, operation & logistic specialists, market & financial analysts & others-coordinate the effort of many P&G departments toward helping the retailer more successful.

Connecting with outside partner It is also significant in how marketers connect with their suppliers, channel partners, relying heavily with other firms. #Supply Chain Management Marketing channel consists of distributors, retailers & others who connect the company to its buyers. The supply chain refers a longer channel, stretching from raw materials to components to final products that are carried out to final buyers. Say, the supply chain for personal computers consists of suppliers of computer chips & others who sell the computers to business & final consumers. Each member of the supply chain creates & captures only a portion of the total value generated.

Through supply chain management, many companies today are strengthening their connections with partners all along the supply chain. Its important that firms' fortunes rest not only on how well they perform. Success also rest on hoe well their entire supply chain perform.

For instance, Proctor & Gamble, Rubbermaid & Black & Decker to streamline logistics & joint distribution costs, resulting in lower prices to consumers. #Strategic Alliances It is important for todays companies to have the strategic partner. In the new more competitive global environment its irrelevant to go out alone. Therefore, companies nee to give careful thought to find partners who might complement their strengths & offset their weakness.

Connecting with world around us Companies must pay attention & to be connected with the broader world around them.

Global Connection In todays Globalization trend many marketers are now connected globally with their customers & marketing partners. The world economy has undergone radical changes during the past two decades. Geographical & cultural distances have shrunk with the advent of jet plane, fax machine, world satellite television broadcasts, global Internet hookups & other technical advances. This has allowed companies to greatly expand their geographical market

coverage, purchasing & manufacturing. The result is a vastly more complex marketing environment for both companies & customer.

Today almost every company, large or small is touched in some way by global competition.

Companies are not only trying to sell more of their locally product in international market, they are also buying more supplies & components abroad.

As the worldwide consumerism & environmentalism movements mature, todays marketers are being called upon to take greater responsibility for the social & environmental impact of their actions. Corporate ethics & social responsibility have become hot topics for almost every business. And few companies ignore the renewed & very demanding environmental movement.

Recommendation Key concepts of marketing are need, want and demand. To segment the market well company should understand customer needs, wants and demands through market research.

In offering marketers may face the problem of ‘Marketing Myopia’ - they may focus on customers existing need and wants. To overcome these problem marketers should look beyond the product attributes and create the brand experiences for the customers.

A company should add value in every step to serve the product to the final consumer to make them satisfied and delighted.

A company can make, grow customer by promising and delivering superior value.

To retain the customer or get the loyal customer, companies have to identify needs and wants and over deliver them.

Now days, market is very competitive and to get the competitive advantage a company has to follow the latest technological support to provide the customer well.

Finally, to delight the customer in achieving competitive advantage marketers should keep it in mind that they have a social responsibility.

Bibliography Principles of marketing – Philip Kotler Gary Armstrong Fundamentals of Marketing – William J. Stanton Michael J. Etzel Bruce J. walker Principles of marketing – Philip Kotler www.google . com