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Customer Orientation

The purpose of a business is to create and maintain satisfied, profitable


customers. Customers are attracted and retained when their needs are met. Not
only do they return to the same company, but they also talk favorably to others
about their satisfaction

What about profit? tourism managers act as if todays profit are primary
and customers satisfaction secondary. This attitude eventually sinks a firm as it
finds fewer repeat customers and faces increasingly negative word of mouth

Successful managers understand that profits are best seen as a result of


running a business well rather than its sole purpose (What is the sole purpose of
all business?....but that should not be its primary focus)
Customer Loyalty

is both an attitudinal and behavioral tendency to favor one brand over


all others, whether due to satisfaction with the product or service, its
convenience or performance, or simply familiarity and comfort with the
brand. Customer loyalty encourages consumers to shop more
consistently, spend a greater share of wallet, and feel positive about a
shopping experience, helping attract consumers to familiar brands in the
face of a competitive environment.
Customer Loyalty

On a study found, when retaining a loyal customer, it only cost the


company 20% of attracting a new one

Another study found out that there if a firm can increase its repeat
customers to 35 to 40%, they will have a 25% increase in profit

Dont look much at your company assets & your company getting bigger
but look how much happy customers you have & they are getting bigger.
Happy customers are willing to come back & pay for the service again.

When a business satisfies its customers, the customers will pay a fair price for
the product. A fair price includes a profit for the firm

A manager who forever try to maximize short-run profits are short-selling both
the customers and company
Management Philosophy

The decision making process guided by a management position's individual


set of beliefs

Remember to put customers first and reward the employees for serving the
customer well

It is wise to assess the customers long-term value and take appropriate


actions to ensure customers long-term support

HOW DO YOU ASSESS THE CUSTOMERS LONG TERM VALUE?

A manager who forever try to maximize short-run profits are short-selling both
the customers and company

A manager who forever try to maximize short-run profits are short-selling both
the customers and company

Ritz-Carlton: Taking care of those who take care of customers


Customer Relationship Management (CRM)

Involves managing detailed information about individual customers and


carefully managing customer touch point in order to maximize customer loyalty

How would you personalize your service?


Lifetime Value of a Customer

The stream of profits a customer will create over the life of his or her
relationship to a business

This also includes the profit of the people who have learned about your
business from them

Product Orientation

A production orientation is a philosophy that focuses on the internal


capabilities of the establishment rather than on the desires and needs of the
marketplace. A production orientation means that in a hospitality environment,
management assesses its resources and asks these following questions:

What services are most convenient for our establishment to offer?


Where do our talents lie?
Product Concept

The idea that consumer will favor products that offers the most quality ,
performance and features and therefore the organization should devote its energy
to making continuous product improvement

Sales Orientation

based on the ideas that people will buy more goods and services if
aggressive sales techniques are used and that higher sales result in higher profits.
Not only are sales to the final buyer emphasised but intermediaries are also
encouraged to push manufacturers products more aggressively. To sales-oriented
firms, marketing means selling things and collecting money

(Problem may occur if the customer changed their taste or wants)


(Satisfying guest is the key to repeat guest)
Selling Concept

The idea that consumer will not buy enough of an organizations products
unless the organization undertakes a large selling and promotion effort
Marketing Orientation
The idea includes:

Focusing on customer wants and needs so that the organisation can


distinguish its product(s) from competitors offering.

Integrating all the organisations activities, including production, to satisfy


these wants.

Achieving long-term goals for the organisation by satisfying customer wants


and needs legally and responsibly.
Societal Marketing Orientation

holds that the organization should determine the needs, wants and
interests of target markets & deliver the desired satisfaction more & efficiently
that competitors in a way that maintains or improves the consumers & societys
well-being. This concept questions whether the marketing concept is adequate in
an age of environmental problems, resources shortage, rapid population growth,
worldwide inflation & neglected social services (non-smoking floors, foods that
have more nutritional value, buses that use other form of power)
Service Culture

A system of values and beliefs in an organization that reinforces the idea


that providing the customers with quality service is the principal concern of
the business
Service Profit Chain

A model that shows the relationships between employee satisfaction,


customer satisfaction, customer retention, value creation, and profitability
Internal marketing

Marketing by a service firm to train effectively and motivates customercontact employees and all the supporting service people to work as a team
to provide customer satisfaction
Interactive marketing

Marketing by a service firm that recognizes perceived service quality


depends heavily on the quality of the buyer-seller interaction
External Marketing

Marketing by a service firm to the customer by way strategies other


than those of interactive marketing in order to satisfy their needs and
wants

People decisions are related to customer service


The function of people is to present an appearance, attitude and
knowledge of products and services that the company provides. How do you

want your employees to appear to your customers? Word of mouth is the best
marketing tool and not only comes from happy customers that refer your business, but
also employees being informative and proud when spreading the word about your
company.
Employer Branding
The word "branding" conjures up visions of market research reports, company
logos and product positioning meetings. Your products and services aren't the only
part of your company in need of promotion, though, especially if you want to
attract and retain top talent. People want to work with a company that boasts a good
reputation, that has a strong mission and vision. Showing people your company's
personality is important, especially in the current economic climate.
Attracting the Right Talent
Since small businesses almost always have tight budgets, even when times are
good, it's even more critical for you to get your staffing decisions right the first time. The
secret to attracting the people you want and need: align your HR strategy with
your business plan.
Keeping People Happy
One rule of marketing is that you should only promise what you can deliver. If
your product fails to live up to customer standards, loyalty and trust wane and your
brand collapses. Similarly, if you promise a work environment that you can't offer,
you'll hurt employee morale. While creating an image to attract top talent is
important, you also need to sustain it.
Keeping Up With Change
Markets change, and so do employee expectations. Just like brands have to
evolve to stay competitive, your employer brand has to change with employee
expectations. You need to stay on top of basic trends, like salary data, but you also
need to know what benefits your competitors are providing. Keep on top of news about
the top places to work in your field. You may be too small to provide a gym in-house like
a major corporate competitor, but maybe you could afford to offer fitness allowances.
Hiring
its not just about finding the right people to do the work, as companies are becoming
increasingly focused on reducing turnover
play an active role in hiring even you are already at the top position
consider your companys culture and management philosophy when looking for an
employee
Service Training
let the employees know what they're doing
save time
make the employees have a good feeling about the company
creates opportunities for career development and personal growth (an important factor
in retaining workers)
improve productivity and profitability
assures continuous competency

Empowerment

it give quicker responses to customers


employees feel more responsible
employees tend to interact with warmth and enthusiasm
empowered employees are a great source of ideas
positive word-of-mouth from customers

Rewarding
it acknowledges their importance
the reward available must be sufficient to satisfy basic needs
the reward should be equitable when compared with those of others
the process by which the rewards are distributed should be fair
managers distributing rewards should recognize individual differences, thus awards
should be individually orientated.
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Consideration in Marketing Process


The marketing process begins with customers. Specifically, the process starts with
a particular group of customers, often called the target market.
It is the needs of this market that define the products and services that can be
successfully developed and brought to the market.
In hospitality firms, although there are marketing departments, everyone in the
firm is involved in marketing because good performance by everyone is needed to secure
repeat sales
If the business understands customer needs; develops products that provide
superior customer value; prices, distributes, and promotes them effectively, these
products will be sought after by customer
Steps in the Marketing Process
Understand the marketplace and customer needs;
Design a customer-driven marketing strategy;
Prepare an integrated marketing plan; and
This will lead to the fourth and most important step: Building profitable customer
relationship
Marketing Strategy

Based on the Business Dictionary, a marketing strategy is an


organization's strategy that combines all of its marketing goals into one
comprehensive plan.
A good marketing strategy should be drawn from market research and
focus on the right product mix in order to achieve the maximum profit
potential and sustain the business. The marketing strategy is the
foundation of a marketing plan