How to Increase Customer Equity - Essay Example

equity and how to increase it equity refers to the total combined lifetime values that s of a particular company hold in regard to the products that the company offers. It is presumed that a company with high customer equity is more valuable as compared to one that does not have (Ryan and Jones 78). Therefore a company may use the following strategies to increase customer equity. First it can improve desirability of its products such that customers will always remain loyal to it even in the event of stiff competition from substitutes. This can be achieved by ensuring that the products are of high quality and they are being offered at an affordable price (Ryan and Jones 82). Secondly a company can improve the popularity of the products that they are offering through constant advertisement .This will serve to create awareness of the existence of the products and thus attract customers. Lastly the company can improve its good will (Ryan and Jones 85). Types of customers and how they should be treated Customers may be categorized according to their behavior. According to this criteria, they are broadly categorized into five groups; loyal customers, discount customers, impulsive customers, need based customers and lastly wandering customers (Ryan and Jones 65). Loyal customers are usually low in number but they generally contribute more to the sales and profit that the company makes as compared to the other customers. They normally revisit the organization frequently thus there is need for the management to have constant contact with these customers so as to ensure that their customers are well satisfied to be able to maintain them (Ryan and Jones 67). Discount customers similarly visit the organization frequently but when offered with discounts. They tend to focus on products that costs low (Ryan and Jones 70). The management also needs to focus on these customers as they promote distinguished part of profit in their business. Impulsive customers on the other hand buy what is good and convenient for them at that particular moment they have gone shopping. They should be treated the way that they want since they can be able to contribute to a high profit that may result from selling of many products at once (Ryan and Jones 82). Need based customers are product specific and tend to go for particular products in the market that they require at that time. The management should inform these customers the need of switching products so as to maintain them in cases when their favored products are out of stock (Ryan and Jones 77). Lastly, wandering products are considered as least profitable since they are not even aware of the products to settle for. These customers need to be informed on the advantages and features of the products so as to arouse their interest in the products that the company produces (Ryan and Jones 74). How to avoid marketing myopia Sellers should consider diversifying their services in order to avoid marketing myopia. To do this, industries should try as much as possible to improve on their technology mechanisms (Ryan and Jones 88). This is because improved technology is an important factor that can change the fate of the products that a company is producing. This is because improved technology provides customers with better products that effectively serve their needs thus tends to attract customers (Ryan and Jones 90). How to create brand experiences for customers As a business person I would ensure that the brand experience is compelling enough so as to be able to nurture brand loyalty to customers. To achieve this, I would ensure totality of the experience that I offer to my customers. By this I would make sure that the marketing elements are complete and are consistent and provide customers with information concerning what their products offer. I would also ensure that customers get the experience that I marketed. This is to ensure that I connect emotionally with them so as to determine their felt needs and be able to serve them effectively. How Walmart can rely on its marketing Partners to offer low prices Walmart may carry out a survey on the prices that its competitors are offering their products. This will then help them in pricing so as to counter the move by its competitors (Ryan and Jones 71). It can then cut down the costs of products so as to attract customers as compared to their competitors. Since it is a large store, the effects will not be felt that much as they will be able to make profits as a result of bulk sales (Ryan and Jones 73). Production Concept The actions of the manufacturers of Beanie Babies was contrary to the production concept. This is so because the concept is based on the ideology that customers will prefer products that are widely available and are affordable (Ryan and Jones 86). This then calls for the managers to concentrate on maintaining a mass regular supply, low prices and ensuring production efficiency. Beanie Babies manufacturers instead limited the supply of their product in the market to increase demand (Ryan and Jones 99). The exercise that had the greatest impact on me The exercise that had a great impact on me is that of the types of customers. I realized that I am a need based customer basing on the categories that were given. I usually go to buy what I need at that particular time and I do not engage in impulse buying. Successful Marketing Company Coca Cola Company is known for its successful marketing strategies. They constantly engage in marketing activities since this is essential in order to keep the business healthy (Ryan and Jones 87). This is because marketing enables the company to thrive throughout the year. They also engage in marketing to keep customers updated on the improvements they make since a business is all about marketing so as to increase sales (Ryan and Jones 89). Marketing also helps in securing the future of a company. Constant marketing creates a sense of liking on the part of the customers that is slowly nurtured to loyalty (Ryan and Jones 91). This will then make the customers to choose these products always even in cases of competition. This then makes the product to be resilient to completion ensuring its long term survival (Ryan and Jones 91). My personal attributes that can be of help in sales and marketing career I have good public relation skills. This can help me a great deal in the career of sales and marketing. This is so because in order to acquire customers, one must be able to interact well with the customers and convince them to buy the product they are selling. There is need therefore for one to create a rapport with the customers so as to give them the details of the product they are selling. My prowess will enable me to convince customers into buying the products thus making me successful in this field. POLDSCCRIM POLDSCCRIM is an acronym that stands for the ten functions of management. These are planning, organizing, leading/directing, staffing, controlling, communicating, innovating and motivating their employees (Ryan and Jones 94). Part 2 Reasons why companies create brand experiences Creating brand experience is necessary so as to build customer loyalty. This is because there is need to study the constant changes in customer expectations so as to make products that are specifically designed to cater for the specific needs of the customers (Ryan and Jones 54). In order to achieve this a company will need to create a brand that suits the customers’ physical and emotional experiences. Brand experience serves to enhance the relationship between the company and consumer (Ryan and Jones 60). This is because brand experiences create emotional attachment that is very hard to break hence the company maintains its customers. Selling and Marketing Concepts Selling concepts focuses on the needs of the seller and the products that they are offering in the market. This strategy believes in the forceful selling of products without considering the needs of the customers they are handling (Ryan and Jones 44). This strategy as seen is not favorable in a competitive environment as customers will definitely choose their competitors over them. Marketing concept on the contrary lays more emphasis on the needs of their customers rather than their own interest (Ryan and Jones 47). The company is obligated to find out the needs of their customers and ensure that they satisfy them accordingly. Business ideologies are then geared towards satisfying the needs of the customers (Ryan and Jones 48). This concept therefore puts the companies that adopt it at an advantaged position in a competitive environment since it makes them outdo their competitors especially those that have adopted the selling concept in their strategy. Societal Marketing Concept Societal marketing concept is whereby a company targets a market while keeping into consideration the needs of the customers, the company requirements and also maintaining the societies’ long term interests. An organization that fully embraces this ideology is the cigarette manufacturing companies (Ryan and Jones 52). This companies have been marketing their products over the years but they usually insist on the fact that smoking cigarettes is harmful to the health of individuals and that it should not be sold to people below the age of eighteen years. This shows that they are not only interested on the profits that they will accumulate but they also have interest on the wellbeing of the society (Ryan and Jones 54). Customer Relationship Management Customer relationship management is the use of technological tools that will help a company to enhance good relationship between the company and the current and future customers. Customer relation mapping tools enables companies to make a reason map that effectively represents the state of the customer and that of the company (Ryan and Jones 70). Hence it serves to bridge the gap .This is because it helps an organization to effectively determine the relationship of the customer and company due to the ability of them interacting daily (Ryan and Jones 73). The use of technology tool enables the company to follow up with the change in technology to authenticate customer data that is available. Advantages and Challenges of new technology to marketers In this era of improved technology that encompasses the internet and other social sites, it has become a challenge to marketers who place their advertisements on newspapers since the information that the paper contains is readily available on this sites thus people do not see the need of going through newspapers (Ryan and Jones 73). More over the newspapers have flooded in the market making people to skim through giving little attention to advertisements posted there. On the other hand, new technology comes in handy for marketers especially those who embrace it (Ryan and Jones 74). This is because it can be an effective way of relaying information about products since mediums such as the internet are fast, easily accessible and information can reach a larger audience as compared to the use of newspapers that is targeted for a smaller audience (Ryan and Jones 81). Work Cited Ryan, Damian and Calvin Jones. Understanding Digital Marketing:Marketing Strategies for Engaging the Digital Generation. Philadelphia: Kogan Page, 2009. Read More