1. Customer Know-How
Strategy & Satisfaction
Competitive Advantage
By
P.Soma Giri
DM-o6-035

2. Those activities directly involved in obtaining , consuming and
disposing of products and services, including the decision processes
that precede and follow these actions
‘You cannot take the consumer for granted any more’
Therefore a sound understanding of consumer behavior is essential for
the long run success of any marketing program
Out of 11000 products launched by 77 companies, only 56% are
present five years later – Kuczmaski & Associates
Only 8% of new product concepts offered by 112 leading companies
reached the market. Out of this 83% failed to reach marketing objectives

3. Quality Services Cost
Comfort levels
Safety Reliability
Customer
Preferences
Maintenance Spare Parts
Cost
Look & Feel
Fuel Efficiency Brand Image

4. Modern Customer-Oriented Organization Chart
Top Management
Middle Management
Frontline People
Customers

5. Customer
Perceived
Value
A new product must satisfy consumer
needs,
not the needs and expectations of
management

6. Measuring Customer Lifetime
C1 C2 C3
Highly
P1 profitable
+ + +
Profitable
P2
+
Unprofitable
P3
- -
Highly
P4 Unprofitable
-
High profit Mixed-Bag Losing
customer customer Customer

7. Marketing Stimuli Other Stimuli
Product & Services Model of
Economic
Price Consumer Behavior
Technological
Distribution
Political
Communications
Cultural
Consumer Consumer
Psychology Characteristics
Motivation Cultural
Perception Social
Learning Personal
Memory
Buying Decision
Purchase Decision
Process
Stimulus – ads, products, hunger pangs
Problem recognition Product Choice
Information Search Brand Choice
Response – physical/mental reaction to
Evaluate alternatives Dealer Choice
the stimulus
Purchase Decision Purchase amount
Post purchase Purchase timing
Intervening variables – mood,
behavior Payment method
knowledge, attitude, values, situations…

8. Problem
Recognition
Self actualization Needs
(Self development)
Information
Search
Esteem Needs
(Self Esteem, recognition, status)
Evaluation of
Alternatives Social Needs
(sense of belonging, love)
Purchase
Decision Safety Needs
(security, protection)
Post purchase Physiological Needs
Behavior
(Food, water, shelter)

9. Total Set Awareness Set Consideration Set Choice Set Decision
Apple
Apple
Dell
Dell Apple
HP
Toshiba
Compaq
HP
Toshiba
Dell
Toshiba
Apple
Dell ?
Compaq
NEC

10. Customer Centered Companies
&
Competitor Centered Companies