Week 11 Notes
Week 11 Notes CONSCI 3910 - 0010
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CONSCI 3910 - 0010
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This 2 page Class Notes was uploaded by Ian Adams on Thursday March 24, 2016. The Class Notes belongs to CONSCI 3910 - 0010 at Ohio State University taught by Jay Kandampully in Fall 2015. Since its upload, it has received 34 views. For similar materials see Consumer Service and Satisfaction in Behavioral Sciences at Ohio State University.
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Date Created: 03/24/16
CONSCI 3910 Week 11 Notes Internal Marketing What is Internal Marketing? o Internal marketing to people within a firm (i.e. marketing to employees who work for your firm) o Employees are parttime marketers because they work directly with customers, and customers form opinions based on these interactions The overall objective of internal marketing is: o To ensure employees are motivated toward customeroriented and serviceminded performance and thus successfully fulfill their duties as parttime marketers o To attract and retain customeroriented and serviceminded employees Happiness outweighs salary o People leave jobs more often for a lack of happiness than a lack of money o For this reason, it is critical to keep employees satisfied Compete for talent o Attracting the best possible people to perform the service is a key factor in services o One of the main causes of poor service quality is attracting the wrong people to perform the service o Marketing is used by most firms to compete for sales market share but not talent market share o The same firms that compete intensely and imaginatively for customers compete meekly and mundanely for staff. This is a huge mistake, as the employees should feel valued and intrigued as well o The service firms that use their marketing abilities to the labor market will fare best in obtaining the most talented employees Offer a vision o A paycheck may keep a person on the job physically, but will not keep a person on the job emotionally o Companies at the top of the list of the most admired companies by employees stand for something worthwhile and they communicate this vision to employees with a passion o Leaders within a firm must work to create dignity for the business CONSCI 3910 Week 11 Notes Relationship Marketing Selecting a Target Market o Marketing is the process where a firm selects its customers. o Service firms must select a target customer market Narrowing their customer base ensures long term relationships between the firm and the customer Enterprise Growth o Firms grow because of their customer base o Growth should be achieved through providing high value to the customer base, and not a focus on cheapest price Focus on cheapest price is difficult because there is a limit to how low you can price an item o For growth to happen: Increase the number of customers Increase the frequency of sale Increase the unit of sale Increase the residual value Share of the Customer o The cost of attracting or developing a new customer is 5 times higher than the cost of keeping the relationship with original customers o The profitability in retention of customers is 16 times higher than that of developing a new customer o On average, US companies lose half of their customers every five years Managing the Relationships o The more a firm gets to know a customer, the more the customer is satisfied and the mutual relationship flourishes o Relationships are built between networks of partners that a firm does business with. The more networks a business has, the greater the long term opportunities are for that firm