Marketing Accountability and Strategic Marketing Process

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EXECUTIVE MM PROGRAM
MAJOR IN STRATEGIC MANAGEMENT
MMKT-723 – STRATEGIC MARKETING

Faculty Member : Prof.DR.Ignas G.Sidik
Student : Anton Latief
ID : MME 153082025
Class Summary

Topic 1

MARKETING ACCOUNTABILITY AND STRATEGIC MARKETING PROCESS

CUSTOMER FOCUS AND PROFITABILITY

Business that have a strong market orientation are constantly in tune with customer’s needs, competitors’ strategies, changes in the business climate, and emerging technologies, and they seek ways to continuously improve the solutions they bring to target customers. This process enables them to move with, and often lead, change.

The major benefit of a strong customer focus is long-run survival. Business with a strong customer focus
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The job of a market-based management team includes not only tracking customer satisfaction but also encouraging dissatisfied customers to complain. Only by learning the details of a customer complaint can a business take corrective action.

The relationship between customer satisfaction and customer retention is intuitively easy to discern. Different competitive conditions, however, modify this relationship. Business with no or limited competition have high levels of customer retention despite any low level of customer satisfaction. In highly competitive markets, even high levels of customer satisfaction may not ensure against customer defection.

Customer satisfaction and customer retention are important linkages to market-based strategy and to profitability. The ultimate decision of any marketing strategy should be to attract, satisfy, and retain target customers. The customer as a critical component in the profitability equation is completely over-looked in financial analysis and annual reports. It is an asset that businesses have yet to quantify in their accounting systems.

A market based management business sees customer as their lifetime partner. Customer life expectancy increases exponentially with customer retention.

Another key determinant of customer loyalty is customer conviction. When customers recommend a service or product, they undoubtedly have the utmost
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