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Marketing Services

Marketing Services Chapter 7 part 2

QuestionAnswer
customer pyramid - Gold Tier Profitability levels are not as high, perhaps because customers want price discounts that limit margins or are simply not as loyal. May be heavy users who minimize risk by working with multiple vendors.
customer pyramid - Iron Tier Essential customers that provide the volume needed to utilize the firm'’ capacity but their spending levels, loyalty, and profitability are not substantial enough for special treatment
customer pyramid - Lead Tier Customers who are costing the firm money. They demand more attention than they are due given their spending and profitability and are sometimes problem customers—complaining about the firm to others and tying up firm resources.
commitment and profitability - BUTTERFLIES Good fit of company offering and customer needs High profit potential Action: Aim to achieve transactional satisfaction, not attitudinal loyalty Milk the accounts as long as they are active Key challenge: ceaseinvestment once inflection point is reached high behavior & low attiude loyalty
commitment and profitability - TRUE FRIENDS Good fit of company offering and customer needs Highest profit potential Actions: Consistent intermittently spaced communication Achieve attitudinal and behavioural loyalty Invest to nurture/defend/retain high behavior & high attitude loyalty
commitment and profitability - STRANGERS Little fit of company offering and customer needs Lowest profit potential Action: No relationship investment Profitize every transaction low behavior and attitude loyalty
customer pyramid - Platinum Tier Company’s most profitable customers, typically heavy users of the product, not overly price sensitive, willing to invest in and try new offerings, and committed customers of the firm  
Created by: 619143133
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