Presented by A.I.Kalaiarasan SM(Mat) Quote “Perhaps the reason millions of people are satisfied with our automobiles because we aren’t …….. Our purpose is to make products with pleasure and that our customers use with pleasure” HONDA “Our goal as a company (Wal-Mart) is to have customer service that is not just the best,but legendary” SAM WALTON Internal Customer Focus CORE CONCEPT OF SERVICE Needs,wan ts and demands Servicing / Marketing Services / Products Service / Market Value , cost and satisfaction Exchange , Transaction and Relationships Needs,wants and demands Needs -Needs is a state of felt deprivation of some basic satisfation Wants -Wants are desires for specific satisfiers of these deeper needs. Demand -Demands are wants for specific products /services that are backed by an ability and willingness to buy / serve them. Services -Anything that can be offered to satisfy a need or want Value,Cost and satisfaction • Value: -Customer’s estimate of the product’s /service’s overall capacity to satisfy his or her needs. • Cost -Any ideal product /service would get him / her place of work in a split second with obsolute safety ,no effort and zero cost. • Satisfaction -Product / service that will produce / serve the most value per rupees Exchange map showing want lists of both parties 1.High quality 2.Fair price 3.on-time delivery 4.Good financing terms 5.Good parts and service Construction coy (Prospect) Caterpillar (Marketer) 1.Good Price 2.On-time payment 3.Good words of mouthe Exchange,Transactions and Relationships Exchange -Marketing /servicing emerges when people decide to satisfy their needs and wants through exchange. -Exchange is one of four ways people can obtain products or service. 1. Self production / service • People can relieve hunger through hunting ,fishing or fruit gathering. Here no one interact with anyone else. Exchange,Transactions and Relationships 2. Coercion • Hungry people may / can wrest or steal food from others. No benefit offered to the others except that of not being harmed. 3. Begging • Hungry people can approach others and beg for food. They have nothing tangible to offer except gratitude. 4. Exchange • Hungry people can approach others and offer a resource in exchange such as money , any other good or a service. EXCHANGE -is the act of obtaining a desired product / service from someone by offering something in return -for exchange to take place, following five conditions must be satisfied 1. At-least two parties 2. Each party has something that might be of value to the other party 3. Each party is capable of communication and delivery 4. Each party is free to accept or reject the offer 5. Each party believes it is appropriate or desirable to deal with the other party. Transaction -two parties are to be engaged in exchange if they are negotiating and moving towards an agreement. -If two parties reached an agreement, the transaction takes place. -Transaction is basic unit of exchange -Transaction consists of a trade of values between two parties Transaction Types: 1. Monetary transaction 2. Barter transaction -involves several dimensions: 1. At-least two things of value 2. Agreed-upon conditions 3. A time of agreement 4. A place of agreement. Transaction -usually a legal system arises to support and enforce compliance on the part of the transaction. -Transaction differs from transfer Customer --is not someone to argue or make wits with.No body ever won an argument with a customer -- is a person who brings us his wants.It is our job to handle them profitably to him and to ourselves. Customer -Is the most important person for-ever --not dependent on us ….. We are dependence on them --is not an interruption of our work… he is the purpose of it. We are not doing a favour by serving him…he is doing us a favour by giving us the opportunity to do so. Customer needs Five Needs 1. Stated Needs -wants inexpensive car 2.Real Needs -want low operating cost and not initial price 3.Unstated Needs -expects good after sale service from dealer nearby 4. Delight Needs -car with complimentary gifts 5.Secret Needs -friendly treatment Satisfied Customer 1. Buy more and stays “loyal” longer 2. Buy additional products / services if introduced 3. Talks favourably about the product /service 4. Pays less attention to competing brands and advertisements and is less price sensitive 5. Offers product / service ideas to the party / company 6. Costs less to serve than new customers because transactions are routinized. Customer delivered value : = Total customer value (-) Total customer cost - Total customer value is the bundle of benefits customer expects from a given product / service Determination of customer added value Product value Service Value Personal value Image value Total customer value Customer delivery value Monetory value Time cost Energy cost Psychic cost Total customer cost Customer Satisfaction Satisfaction is the level of a person’s felt state resulting from comparing a product’s / service’s perceived performance (or out-come) in relation to the person’s expectations. ie.- perceived performance (-) expectations Method of tracking and measuring customer satisfaction Complaint and suggestion system Customer Survey Ghospt shopping Lost customer analysis Observation on customer satisfaction Customer satisfaction will be lower in industries where the industry offers a homogeneous product to a heterogeneous market.On the other hand, industries that supply a high quality homogeneous products to a homogeneous market will register high satisfaction Customer satisfaction is lower in industries where repeat buyers face high switching costs.Thay have to buy from the supplier even though their satisfaction is low Observation on customer satisfaction Industries which depend upon repeat business generally create a higher level of customer satisfaction As a company increases its market share,customer satisfaction can fall. This is because more customers with heterogeneous demands are drawn into buying a fairly homogeneous product. homogeneous of the same kind Heterogeneous - diverse in character (other kind) Hetero - other Genos – a kind Simple Serving System Communication Goods / service Industry (a collection of seller) Money Information / Feedback Market (a collection of buyers) Being internal customer to our stores , Are you a satisfied ? Then level of satisfaction is, 1. Highly satisfied 2. Somewhat satisfied 3. Indifferent 4. Somewhat dissatisfied 5. Highly dissatisfied • Thank You