Needs,wants and demands

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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
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