Speaker 1: Topic 5 is building customer relationships. Now all of the marketing which we have studied in the first chapter, the overview, all of that is talking about satisfaction, it is talking about the value, it is talking about what customer want and in the end of the day, what exactly do you need? You want to build a relationship with a customer. Now there are different topics, there are different concepts given in the book. I like these two concepts, a customer perceived value and customer satisfaction. A customer perceived value doesn't matter what is written down here, you can read it from a textbook also but in my view, in simple words if I have to explain, it is the value which customer thinks they are going to get from the product which they are buying. So I am buying a laptop, I believe that that laptop is going to give me best performance in terms of graphics but when I bought it, I have installed a new game on it and when I started playing it, I am not satisfied because that game cannot be played in maximum settings, that is why I bought the product. So if my perceived value is not according to my expectations, if it is not meeting the expectation and the cost of course which I have paid, then I am not going to be satisfied. But if my perceived value is or it matches with the performance and my expectations which is also written over here, then I am going to be satisfied. So that is the simplest way to explain these both concepts. So you need to make sure as a marketer that you match the perceived value which customer thinks with their satisfaction level and with their expectation. So how do you come to know what is the customer or what is their perceived value? Of course by doing research and we will talk about this in the upcoming chapters. Now we have talked about marketing management, we have talked about different concepts of marketing but how all of that is going to come together and how marketing is going to be implemented or how marketing is going to be operationalized in simple terms if I have to explain. You have to develop an integrated marketing plan and that is how you operationalize marketing. Now the first concept in that and the most important concept of marketing is marketing mix. It is a set of tools which you use in order to develop and implement your marketing strategy. You have four P's of marketing, product, price, promotion and place. So we will focus on these four P's in different chapters, I will be focusing in too much details on these four P's of marketing. And once you focus on these four P's you develop an integrated marketing program which is a comprehensive plan, a plan that communicates and delivers the intended value to chosen customers. So it is actually a marketing plan based on these four P's and you develop a marketing plan because you want to satisfy consumers and you want to make sure that their perceived value has been met with their expectations and they are satisfied. This is a very important slide and I really like it. Different types of customers require different relationship management strategies of course. So you have to make sure and you have to focus on that you need to build the right relationship with the right customers. You focus on those customers who are profitable for your organizations, remember the target marketing concept which I taught. You need to focus on those customers who are beneficial to your organization, who are repeat customers, who are loyal to your organizations and how are you going to come to know. So I'll leave that question to you that as a marketer how would you know that these customers are more beneficial for me or more beneficial for my organization and I need to be focusing on these customers as compared to the other one. So before I finish off this topic, to build lasting customer relationships organizations should focus on delivering what? High quality products and low prices of course that's what they should focus on or customer value and customer satisfaction, customer satisfaction, customer growth whatever that means or customer value and high profits. What do you think is the right answer? In my view it is customer value and customer satisfaction that organization need to focus on while building long lasting customer relationships.