This website uses cookies to ensure you get the best experience on our website. Learn more

Economics and Management Notes International Marketing Notes

Customer Loyalty And Retention Notes

Updated Customer Loyalty And Retention Notes

International Marketing Notes

International Marketing

Approximately 44 pages

Benefit to buyer - very concise, sourced from a variety of readings, easy to interpret
Note taking style - short, accurate bullet points, topic by topic
Content - Introduction to Marketing, Profiling, Consumer Motivation, The Marketing Mix (4Ps), Loyalty and Retention, Global Marketing...

The following is a more accessible plain text extract of the PDF sample above, taken from our International Marketing Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

* * * * * * * * * * * * * * * * * Lecture 9: Customer Loyalty and Retention o Recap of Lecture and Class Slides Transactional marketing o Customer acquisition o FMCGs, 4 Ps, Philip Kotler, etc o Offensive approach Relational Marketing o Customer retention o Defensive approach Barnes (1994) classifies four advantages of CRM: o Barriers to exit (customer lock-in) o Repeat buying through customer retention o Can market based on detailed customer data o Partnering between buyer and seller Consumer Lifecycle o Can capture consumer in early years (e.g. as graduate) loss-fully, only to profit over his lifecycle (till retirement) A loyal customer is (i) committed, (ii) buys repeatedly and (iii) recommends. Clubcards provide: Customer Data ? Customer Insights ? Customer Marketing ? Customer Loyalty o Kumar and Reinartz: Designing Loyalty Programmes SPC - Satisfaction-Loyalty-Profit chain. o Despite being almost self-evident, empirical evidence provides little support o There is an optimum satisfaction level for any firm, beyond which increasing satisfaction doesn't pay. o Relation between satisfaction and retention is asymmetric: dissatisfaction has a greater impact than satisfaction o Relation between satisfaction and retention is non-linear: non-extreme levels of satisfaction fall under a zone of indifference How the competitive environment affects the satisfaction-loyalty relationship Non-Competitive * Highly Competitive Monopoly/ few substitutes * Commoditization/ low differentiation Dominant brand equity * Consumer indifference High cost of switching * Many substitutes Powerful loyalty program * Low costs of switching Proprietary technology * o * o * * o o o Frederick F. Reichfield Long term customers spend more, cost less, generate word-of-mouth, pay a premium price Versus Reinartz and Kumar No. there is a segment of consumers who are loyal but not profitable (excess resource allocation), and a segment that are very profitable but short-lived. Hence, loyalty might not be the only path to profitability. 2 types of loyalty Behavioural - refers to the observed action consumers have demonstrated Attitudinal - refers to the perceptions the consumers have about the brand Key objectives of loyalty programs

Buy the full version of these notes or essay plans and more in our International Marketing Notes.