Creating Customer Satisfaction And Factors Affecting It Marketing Essay
Kotler, Armstrong, Saunders & Wong in their book The Principles of Marketing mentioned that Companies nowadays focusing to be customer oriented as they believe that survival will be through building customers relationship which can not attained unless customers satisfied, also they simplified customer satisfaction definition that when customer meet his or her expectations they will be satisfied if they not meet this expectations this satisfaction will not be achieved while if there experiences with the product is beyond there expectations they will be greatly satisfied, Customer also will be satisfied when they find a value in the product that the customer purchases, this value have to exceed the cost that the customer pay for the product (Kotler, Armstrong, Saunders, Wong 1999 : 472-475).
Creating customer satisfaction and factors affecting it:
As Kotler, Armstrong, Saunders & Wong in their book The Principles of Marketing defined customer satisfaction that customers should find a value in the product they purchase, so controlling the product value chain is an essential issue for reaching customer satisfaction, this mean that all steps that the product engage should be customer oriented, so reaching customer satisfaction is not only the role of marketing but also the other functions in the companies as the production, purchasing, human resources, finance and after sales service (Kotler, Armstrong, Saunders, Wong 1999 : 480).
They mentioned also that relationship created with customers varies, this relationship stages are basic, reactive, accountable, proactive and partnership, the least one is the basic stage and the highest form of relationship is the partnership stage as the customer associate the company in achieving best value to the customer which will lead to the highest customer satisfaction, They also pointed that high profit margins company can reach with partnership relation with customer but in this case number of customers will be little while with basic relationship company may have high number of customers but low profit margins, this show that achieving high customer satisfaction through strong relationship will lead to higher profit margins (Kotler, Armstrong, Saunders, Wong 1999 : 479-480).
Hauser J., Simester D. & Wernerfelt B. (1994) Discussed in their research paper Customer Satisfaction Incentives that customer satisfaction is related to the satisfaction of employees, as employees are satisfied this satisfaction will be reflected to company’s customer satisfaction, employee’s satisfaction that may be reached through incentives and compensations, also they argued that customer satisfaction is the best way for long-term survival and growth.
Customer satisfaction and its affect on business performance:
All companies seek high profits, customer oriented companies seek also customer satisfaction, to reach customer satisfaction company may reduce its prices or pay additional costs to build a strong relationship with its customers, so achieving high customer satisfaction may be versus reaching high profits, successful company that do a balance to achieve high customer satisfaction and also reach high profits (Kotler, Armstrong, Saunders, Wong 1999 : 479-480).
Panizzolo R. & Muffatto M. (1995) in their research paper A process-based view for customer satisfaction they see that customer satisfaction is one of the major factors for long-term position and profits and also they urged that customer satisfaction will lead to deduct in marketing and advertising cost as customers will be one of the greatest tools to advertise for the company’s products and services, Customer satisfaction also will lead to employee’s loyalty and satisfaction among the firms, higher quality for company’s processes and the company’s reputation will be enhanced (Muffatto & Panizzolo 1995).
Anderson E., Fornell C. & Mazvancheryl S. in their research paper Customer Satisfaction and Shareholder Value analyzed the relationship between customer satisfaction and shareholders satisfaction, because when customers are satisfied this will increase customers purchases and also they will promote for the companies, this purchases will lead to higher return on investment and higher profits to the company, this profits will satisfy intensely the companies shareholders (Anderson, Fornell & Mazvancheryl 2004).
Product Positioning Definition:
Kotler, Armstrong, Saunders & Wong in their book The Principles of Marketing differentiated product positioning as the method that the product is differentiated by customers on the significant characteristics of the position the product absorb in the customer's mind compared to the completers products, Also they differentiated the firm's competitive advantage and brand positioning by explaining that the competitive advantage is the power of the firm and the brand's position is the vision's awareness of the brand (Kotler, Armstrong, Saunders & Wong 1999 : 442).
Also they described the product position as it is the multifaceted position of observations, imitations, approach that the consumers classify for the product judged against competitors products, marketers arrange positions that will provide their products the supreme benefits in the elected target markets, while they propose marketing mixes to form the intended positions (Kotler, Armstrong, Saunders & Wong 1999 : 444).
Authors of the Book Strategic Advertising Management mentioned that David Jobber's marketing principles book, identifies positioning as" the choice of: target market, where we want compete;(and) differential advantage, how we wish to compete", it gives the impression to an agreement that positioning leads to categorize and signify the market and who you compete with, while looking for significant benefits (Percy & Elliott 2009).
The author of the Strategic Brand Management brand positioning as the spirit of the marketing strategy, the author paraphrase that it is the proceed of conniving the corporation's tender and image to inhabit a different and respected place in the customer's mind (Percy & Elliott 2009 : 176).
Product Positioning Strategies:
Blankson C. & Kalafatis S. in the research paper Issues and challenges in the positioning of service brands: a review stated that there is an agreement in the literature to facilitate even if abstractly, basically and tactically positioning is a primary part of marketing strategy (Blankson & Kalafatis 1999 : 4-5).
Bhat S. & Reddy S. in their research paper Symbolic and functional positioning of brands suggested that marketing managers must first value subjects by setting up positioning tactics for their brands, also researches asserted that the normal suitable form just for goods which customers worth their touchable benefits and does not sufficiently detain their incentive for strong goods that fulfill their expressive wants, for reaching to the keys of positioning (Bhat & Reddy 1998).
Also the research author discussed that there are some products that they were first produced and then the company starts searching for its right positioning, also there are some products that they already exists in the market, in which producers change it to reposition it in the market, also research discussed that market positioning can be affected by some abilities and advantages provided by the service (Shostack 1987 : 2, 10).
Added to that its significant to note down that the need of the logical explanation for positioning and the complexities concerned with the performance of the positioning methods by practitioners has constantly increased to clarify the need of the positive reception of the positioning perception also the authors explained that a lot of authors view the theory of positioning is regularly applicable equally to goods as to services, owing to latter's positioning of service is more complex than tangible goods (Blankson & Kalafatis 1999 : 4-5).
Authors of the book form through opinion is that managers must constantly acquire a new look to the brand's positioning through the expansion of the market communication plan. In which the market change, the competitors positioning change also what the customers are looking for changes from time to time. In a more exact scope nowadays through positioning goods and services for marketing communication, two assessments the directors required to make: how to position the brands while considering the product class; and the positioning of this brand to other brands should be in condition of who will use this product or is it related to the product it self (Percy & Elliott 2009 : 175).
Product Positioning Affects:
Shostack G. in the research paper Service Positioning through Structural Change discussed the positioning affect that it became very important and one of the most effective tasks in marketing the service sector due to the huge amounts of competitors, also positioning can be shown by the distribution channels, the product price and the product quality (Shostack 1987 : 2).
Knox S. (2004) in the article Positioning and branding your organization mentioned that usually, marketers apply the marketing mix strategy which include in the price, promotion, product, place, to position the brand and to build its values through a united set of guiding for every of the 4Ps.
Authors mentioned that positioning strategy is usually sketched in the marketing plan, and consider all characteristics of the marketing mix for developing your marketing plan, must scope where the competitors are positioned and what advantages customers are looking for in the market (Percy & Elliott 2009 : 162-164).
In positioning, one of the cases under the user oriented positioning, its concerning the customer them selves as their position while using the brand and not the product it self as a focal point, it focuses as targeting a precise segment and it agreeable to their needs, another case under the product benefits oriented positioning, is that the product itself or the brand itself is the leading actor of the positioning, positioning will be differentiated by the reimbursement of the brand itself not who will use it (Percy & Elliott 2009 : 176).
Customer satisfaction & its relationship with product positioning:
Knox S. In the research paper Positioning and branding your organization discussed that in the competing environment nowadays, to reach customer satisfaction and great value for the products positioning is a very important strategy for achieving that, because creating brand value will attract the customer for the product and enrich customer’s loyalty and satisfaction (Knox 2004).
The most important concern companies experience nowadays is to create greater value in the companies products, this value companies creating it through innovative and creative ideas for developing their products and growing customer relationship, which will lead at the end to more customer satisfaction as Knox discussed (Knox 2004).
Knox also argued that customers in each deal with the product it considered as testing for the product, product positioning will be one of the factors that customers will test, because this process include testing the product reputation and brand status in the market, and as customers in each experience with this product appreciate their product position in the market they will more satisfied and loyal for the product they are purchasing (Knox 2004).
Knox also conferred that positioning products will reach this products to more competitive level as this products will position their target according to this target nature and needs, and also according to the nature of competition the competitors that serve the same target compete in the market, all this at the end will create more value for the product to this specific customers target, that will make them more satisfied from the product (Knox 2004).
Ibrahim E. & Gill J. in their research paper also suggested that to reach customer satisfaction companies need to have a repositioning strategy especially because customer behavior and attitudes varies from time to another also new technologies and advancements existed, another relationship between product positioning and customer satisfaction they discussed in their research that the relationship with the customer may be affected by many factors that may lead to customer satisfaction or dissatisfaction, this relationship will affect the product image and reputation, if customers are satisfied product image and reputation will be improved but in case of customers dissatisfaction product image and reputation will be declined and it will be necessary for the company to develop its relationship with the customers and may lead the company to reposition its product (Ibrahim & Gill 2005).
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