v Servicing service after the sale b Support activities i Procurement ii

V servicing service after the sale b support

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(v) Servicing (service after the sale). (b) Support activities: (i) Procurement. (ii) Technology development. (iii) Human resource management. (iv) Firm infrastructure. Holistic marketers address three key management questions: (a) Value exploration – Identify new value opportunities. (b) Value creation – Efficiently create more promising new value offerings. (c) Value delivery – Deliver new value offerings more efficiently. Developing strategy requires understanding of the relationships and interactions among these three spaces. (a) In value exploration, marketers need to consider: Customer’s cognitive space (reflects existing and latent needs and includes participation, stability, freedom and change). Company’s competence space (broad versus focused scope of business and depth physical versus knowledge-based capabilities). The collaborator resource space (horizontal and vertical partnerships). (b) In value creation marketer’s need to: Identify new customer benefits from the customer’s view. Utilise core competencies. Select and manage business partners from its collaborative networks. (c) In value delivery, marketers need: Proficiency in customer relationship management (Identify who the customers are and respond to different customer opportunities).
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STUDY GUIDE BMMK5103 Marketing Management 18 Internal resource management (integrate major business processes within a single family of software modules). Business partnership management (allow the company to handle complex relationships with its trading partners). 1.5 Customer Retention Buyer’s satisfaction is a function of the product’s perceived performance and the buyer’s expectations. Recognising that high satisfaction leads to high customer loyalty, companies must ensure that they meet and exceed customer expectations. Losing profitable customers can dramatically affect a firm’s profits. The cost of attracting a new customer is estimated to be five times the cost of keeping a current customer happy. The key to retaining customers is relationship marketing. There are several important activities in customer retention. They are: (a) Customer relationship management (CRM); (b) Personalising marketing; (c) Customer empowerment; (d) Customer reviews and recommendations; (e) Attracting and retaining customers; (f) Reducing defection; (g) Managing the customer base; and (h) Building loyalty. 1.6 Marketing Management Tasks Marketing management is important because it: (a) Helps marketers to determine how the organisation will deploy (find, organise, arrange, allocate, distribute and use) resources within its environment and satisfy its long-term goals. (b) Provide insight on how the company will organise itself to implement the marketing plan and marketing strategies. (c) Help the company to properly make correct and suitable series of decisions on the markets in which the organisation will operate, the
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STUDY GUIDE BMMK5103 Marketing Management 19 type of products/services it will offer and the basis of the competitive position.
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