+

MBA/570

Sustainable Customer Relationships

November / December 2008

+Agenda

Housekeeping

Marketing in the news

Review: major concepts

Marketing Strategy

Service Marketing

Next time…

NOV / DEC 2008MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Housekeeping Z-Wing Papers, Classic Airlines Problem Def.

Final assignment

Classic airlines paper & defense

NOV / DEC 2008MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

Two page executive summary

5 presentation slides (individual)

Group presentation (15 minutes max)

- or -

+Week 5 Concepts

Identify best practices in customer relationship management

Propose customer acquisition and retention initiatives

Evaluate customer risk

Align customer relationship initiatives and organizational goals

NOV / DEC 2008MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

Marketing in the news

Ads on tests add up for teacherBy Greg Toppo and Janet Kornblum, USA TODAY

Tom Farber gives a lot of tests. He's a calculus teacher, after all. So when administrators at Rancho Bernardo, his suburban San Diego high school, announced the district was cutting spending on supplies by nearly a third, Farber had a problem. At 3 cents a page, his tests would cost more than $500 a year

This slide brought to you by….

No Lamp For You!

+Cyber Monday!

26% Shopped online Monday

+Cyber Monday!

26% Shopped online Monday

Case Study: General Motors

+Case Study: General Motors

“A Car for Every Purse & Purpose”

Case Study: General Motors

2005 Restructuring

Workshop IV Review

Market Segmentation

Apple Computer

iBookiMac

PowerBookPower Mac G5

+Perceptual Mapping

NOV / DEC 2008MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

Positioning Map

NOV / DEC 2008MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

Marketing Strategy

Exercise: What business are you

in?

Exercise: What business are you in?

Put on my blue suede shoes

And I boarded the plane

Touched down in the land of the Delta Blues

In the middle of the pouring rain

W.C. Handy -- won't you look down over me

Yeah I got a first class ticket

But I'm as blue as a boy can be

Then I'm walking in Memphis

Walking with my feet ten feet off of Beale

Walking in Memphis

But do I really feel the way I feel

Saw the ghost of Elvis

On Union Avenue

Followed him up to the gates of Graceland

Then I watched him walk right through

Now security they did not see him

They just hovered 'round his tomb

But there's a pretty little thing

Waiting for the King

Down in the Jungle Room

You have until the end of the song….go!

+Marketing Myopia

Well known HBR Article

Define your business by customer needs, not products

What business are you really in? Railroads, Hollywood, Dupont Nylon

+Why on earth are you playing songs?

Why on earth are you playing songs?

+Levels of Corporate Strategy

+Land’s End: Strategic Focus

Why the guarantee?

NOV / DEC 2008MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Land’s End: Competitive Analysis

Good competitive analysis template

NOV / DEC 2008MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

+Hyundai: Strategic Focus

Why the long warranty?

NOV / DEC 2008MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

The BCG Matrix

NOV / DEC 2008MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

Kodak self-service kiosk

Kodak film sales: US,Canada, & W. Europe

Kodak digitalphoto printer

Kodak digitalcamera

Four market-product strategies: alternative ways to expand sales revenues for Ben & Jerry’s

Case Study: “Song” Airlines

Part 1

+Song Airlines Part 1

NOV / DEC 2008MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

What do you think of their strategy?

What would Levitt think?

+Song Airlines Part 2

NOV / DEC 2008MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

What are they doing right?

What are they doing wrong?

+Song Airlines Part 3

NOV / DEC 2008MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

What was Song’s biggest mistake?

What happens when you give marketers $20M to start an airline? great branding, no product! you get and airline about nothing!

Case Study: Specialized

Bicycles

+Case Study: Specialized Bicycles

NOV / DEC 2008MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS

What is their corporate strategy?

How does their culture reinforce that strategy?

Service Marketing

Slide 12-7

FIGURE 12-1 Importance of services in the U.S. gross domestic product (GDP)

Slide 12-8

FIGURE 12-A The 4 I’s of services

Slide 12-9

Lufthansa and ANA Airlines What four I’s of services element?

Slide 12-10

American Express and Allstate What four I’s of services element?

FIGURE 12-3 Service continuum

Slide 12-13

Slide 12-11

FIGURE 12-2 Inventory carrying costs of services

Slide 12-24

FIGURE 12-5 How consumers evaluate goods and services

Case Study: Philadelphia

Phillies

+Phillies Key points

Why reduce the number of seats? advantages? drawbacks?

How do the Phillies target different demographics? Hispanic? African American? Asians? “Ask for the sale”

Promotions?

Results?

+Next Week

Papers – or – presentations due

Select value added customer initiatives

Implement a comprehensive customer relationship management program

Recommend measures to evaluate customer profitability and retention

Recommend measures to evaluate customer relationship management effectiveness

NOV / DEC 2008MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS