10066 learner guide

8/7/2019 10066 Learner Guide

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Table of Content

Table of Content..........................................................1

Introduction................................................................2

1. Introduction .........................................................................................3

2. About this Unit Standard : Apply customer needs and relationships ..3

2.1 Unit Standard Alignment ..........................................................................3

2.2 Learning Units...........................................................................................4

2.3 Learner Support........................................................................................5

3. Assessment .........................................................................................5

3.1 Formative Assessment .............................................................................5

3.2 Summative Assessment ...........................................................................5

4. Navigating the Learner Guide...............................................................7

4.1 Use of Icons ..............................................................................................7

5. Learner Administration ........................................................................8

5.1 Attendance Register..................................................................................8

5.2 Learner Registration Form.........................................................................8

5.3 Programme Evaluation Form ....................................................................8

Module 1: Customer Purchasing Motives and Behaviour 9

Alternative Evaluation: Assessing Value........................................................11

Post-purchase Behavior: Value in Consumption or Use .........................12

Issues in buyer behaviour theory........................................................... 20

The Economic Factors Affecting Buying Decisions.................................20

Customers, Market Segmentation and Targeting...................................24

Who are our Customers?........................................................................26

Requirements for a Usable Segment......................................................30

Geographic Segmentation.............................................................................33

Psychographic and lifestyle segmentation.............................................34

Target Marketing....................................................................................38

Competitive Advantage ........................................................................39

UStd : 10066 : Establish customer needs and relationshipsLevel 5


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Marketing Information............................................................................40

Sources of Information..................................................................................40

The nature of organisational information......................................................41

Marketing Information...................................................................................42

Self Assessment...........................................................................................46

Portfolio Activities..........................................................................................48

Module 2: Assess and respond to customer needs ......49

Building effective relationships that work.....................................................53

Developing a Marketing Strategy...........................................................64

Self Assessment ...........................................................................................68

Portfolio Activities..........................................................................................70

Learner Evaluation Form............................................71

Unit Standard 10066................................................76

Introduction



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1. Introduction

Welcome to the Unit Standard : Apply customer needs and relationships

this is an NQF registered unit standard (SAQA Reg. No 10066).

The purpose of this unit standard is to provide a solid foundation fordelegates working in the marketing environment or specialising in Customer

Management.

The qualifying learner is capable of:

Distinguishing customer purchasing motives and behaviours

Assessing and responding to customer needs

2. About this Unit Standard : Apply customer needs and relationships

2.1 Unit Standard Alignment

This Unit Standard has 2 Specific Outcomes with related assessment criteria that

must be achieved by the learner before credits are awarded.

Specific Outcome Assessment Criteria

Distinguish customer purchasing

motives and behaviours

Personal, social, cultural and

psychological factors are

distinguished in terms of their

relationship to, and impact upon

customer purchasing decision

motives and behaviours

Customer purchasing roles and

decision processes are differentiated

in relation to market type, customer

base and product range

Evaluation of customer purchasing

motives and behaviours examines

trends in relation to the adoption of

selling approaches

Sales and service strategies are

consistent with the information

obtained to distinguish customer



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Specific Outcome Assessment Criteria

buying motives and behaviours

Assess and respond to customer

needs Customer needs and preferences are

defined in relation to products and

services


developed for individual customers

that acknowledge the extent to which

the business can assist customers to

maximise product value and benefits


developed for individual customers

that identify customer needs from acustomer perspective

2.2 Learning Units

This Programme has two (2) Modules to it:

Learner Tip:

The following table illustrates the specific outcome and assessment

criteria alignment in the 2 Modules.

ModuleSpecific

Outcome

Assessment

Criteria

Customer Purchasing Motives and

BehaviourSO 1 AC 1 to 4

Assess and respond to customer needs SO 2 AC 1 to 3


Customer Purchasing Motives and Behaviour

Assess and respond to customer needs


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2.3 Learner Support

Please remember that as the programme is outcomes based this implies the

following:

You are responsible for your own learning make sure you manage your

study, practical, workplace and portfolio time responsibly.

Learning activities are learner driven make sure you use the Learner

Guide and Portfolio Guide in the manner intended, and are familiar with

the Portfolio requirements.

The Facilitator is there to reasonably assist you during contact, practical

and workplace time of this programme make sure that you have his/her

contact details.

3. Assessment

Learning Outcomes:

Please refer to the beginning of each module for the learning

outcomes that will be covered per module.

3.1 Formative Assessment

In each Learner Guide, several activities are spaced within the content to assist

you in understanding the material through application. Please make sure that

you complete ALL activities in the Learner Guide, whether it was done during

the contact session, or not!

3.2 Summative Assessment

You will be required to complete a Portfolio of Evidence for summative

assessment purposes. A portfolio is a collection of different types of evidence

relating to the work being assessed. It can include a variety of work samples.

Learner Tip:

DO NOT WAIT until the end the programme is designed to

assist you in evidence preparation as you go along make use of

the opportunity!



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Remember:

If it is not documented, it did not happen!

In some evidence, the process you followed is more important

than actual outcome / end-product.

Therefore

Please make sure you complete all activities for your Portfolio.



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4. Navigating the Learner Guide

4.1 Use of Icons

Throughout the learning programme icons are used to focus your attention on

important aspects of the learning programme. The following icons are used inthis learning programme to direct your attention in using at as a reference guide.

Group Activity / Pair Activity:

You will be required to complete an activity in your group or in

pairs with fellow colleagues / programme participants, and

provide feedback to the participants in a report back or

presentation session.

Individual Activity:

You will be required to complete an activity on your own that

relates to the outcomes covered in the module.

Self Reflection:

Reflect on the question(s) asked to identify the relevance of

learning outcomes in your own working environment.

Learner Tip:

A useful tip or essential element regarding the concept under

discussion is given as a basis to further discussion.

Resources:

Possible sources for further research and study is listed under this

icon. Resources may include additional reading, handouts, web-

sites, multimedia



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Module 1: Customer Purchasing

Motives and Behaviour

Learning Outcomes:

The following learning outcomes are covered in this module.

The learner will be able to distinguish customer purchasing motives and

behaviours

Personal, social, cultural and psychological factors are

distinguished in terms of their relationship to, and impact

upon customer purchasing decision motives and

behaviours

Customer purchasing roles and decision processes are

differentiated in relation to market type, customer base

and product range

Evaluation of customer purchasing motives and behaviours

examines trends in relation to the adoption of selling

approaches

Sales and service strategies are consistent with the

information obtained to distinguish customer buyingmotives and behaviours

Customer behaviour can be defined as the actions a person takes in purchasing

and using products and services, including the mental and social processes that

precede and follow these actions.

The behavioural sciences help answer questions such as:

Why people choose one product or brand over another,

How they make these choices, and

How companies use this knowledge to provide value to consumers.

Consumer purchase decision process

Behind the visible act of making a purchase, lies a decision process that must beinvestigated.



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The purchase motive process is the stages a buyer passes through in makingchoices about which products and services to buy. :

Five stages of

Customer

Behaviour

1. Problem recognition2. Information search3. Alternative evaluation4. Purchase decision5. Post-purchase behavior

Fig. 1: Five stages of customer behaviour

Problem Recognition: Perceiving a Need

Perceiving a difference between a person's ideal and actual situations big

enough to trigger a decision.

Can be as simple as noticing an empty milk carton or it can be activated by

marketing efforts.

Information Search: Seeking Value

The information search stage clarifies the options open to the consumer and may

involve two steps of information search:

Internal search

Scanning ones memory to recall previous experiences with products or brands.

Often sufficient for frequently purchased products

External search

o When past experience or knowledge is insufficient

o The risk of making a wrong purchase decision is high

o The cost of gathering information is low



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The primary sources of external information are:

Personal sources, such as friends and family.

Public sources, including various product-rating organizations such

as Consumer Reports.

Marketer-dominated sources, such as advertising, company

websites, and salespeople

Fig 2: Example of product analysis

Alternative Evaluation: Assessing Value

The information search clarifies the problem for the consumer by:

1) Suggesting criteria to use for the purchase

2) Yielding brand names that might meet the criteria

3) Developing consumer value perception

A consumer's evaluative criteria represent both

the objective attributes of a brand (such as locate speed on a portable CDplayer)



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the subjective factors (such as prestige

These criteria establish a consumer's evoked set.

the group of brands that a consumer would consider acceptable from

among all the brands in the product class of which he or she is aware

Purchase Decision: Buying Value

Three

possibiliti

es

From whom to

buy

Which depends on such

considerations:

Terms of sale

Past experience buying from the

seller

Return policy

When to buy Which can be influenced by:

Store atmosphere

Time pressure

Sale

Pleasantness of the shopping

experience

Do not buy

Post-purchase Behavior: Value in Consumption or Use

After buying a product, the consumer compares it with expectations and is eithersatisfied or dissatisfied.

Satisfaction or dissatisfaction affects

o consumer value perceptions

o consumer communications

o repeat-purchase behavior.

Many firms work to produce positive post-purchase communications amongconsumers and contribute to relationship building between sellers and buyers.

Cognitive Dissonance. The feelings of post-purchase psychological tension or

anxiety a consumer often experiences.



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Firms often use ads or follow-up calls from salespeople in this post-purchasestage to try to convince buyers that they made the right decision.

Fig 3: Involvement and Problem-Solving Variations

Consumers may skip or minimize one or more steps in the purchase decisionprocess depending on

o the level of involvement

o the personal, social, and economic significance of the purchase

Three characteristics of high-involvement purchase

11 is expensive,11 can have serious personal consequences, or11 could reflect on ones social image.

Three general problem-solving variations exist in the consumer purchase

decision process:

Routine Problem Solving

o Virtually a habito involves little effort seeking external information and evaluatingalternatives.o Typically used for low-priced, frequently purchased products

Limited Problem Solving

o Involves the use of moderate information-seeking efforts.o Often used when the buyer has little time or effort to spend.

Extended Problem Solving



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o Each stage of the consumer purchase decision process is used

o Considerable time and effort on:

external information search and in identifying

evaluating alternatives.

o Used in high-involvement purchase situations

Involvement and Marketing Strategy

Low and high consumer involvement has important implications for marketing

strategy, which differs for products that are market leaders from their

challengers.

Five

situational

influences

The purchase task The reason for engaging

in the decision

Social surroundings Including other present

when a purchase decision

is made

Physical surrounding Such as decor, music and

crowding in retail stores

Temporal effects Such as time of day or

the amount of time

available

Antecedent states Which include the

consumers mood or

amount of cash on hand

A. Psychological influences on consumer behaviour

Concepts such as motivation and personality; perception; learning; values,

beliefs and attitudes; and lifestyle are useful for interpreting buying processes

and directing marketing efforts.

Motivation:

o is the energizing force that causes behavior thato satisfies a need.



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Fig 4: Hierarchy of needs

o Needs are hierarchicalo Once basic physiological needs are met,o people seek to satisfy learned needs

Personality:

o A person's consistent behavior or responses to recurring situations.

o Research suggests that key traits affect brand and product-type

preferences

Cross-cultural analysis also suggests that residents of different countries have a

national character, or a distinct set of:

personality characteristics common among people of a country or society

Personality characteristics are often revealed in a persons self-concept,

which is the way people see themselves and the way they believe others

see them

Perception:

The process by which an individual uses information to create ameaningful picture of the world by

selecting,



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organizing interpreting

Perception is important because people selectively perceive what they want andit affects how people see risks in a purchase

1. Selective Perception

Selective Perception Filtering:

Exposure

Comprehension

Retention

In the human brains attempt to

organise and interpret information

Selective Exposure Consumers can pay attention to

messages that are consistent with their

own attitudes and beliefs

Consumers can ignore messages that

are inconsistent

Selective Comprehension Involves interpreting information so

that it is in line with the consumers

attitudes and beliefs (and sometimesdistorting information)

Selective Retention Consumers do not remember all

information which they see, hear or

read

Subliminal Perceptions Consumers see or hear messages

without being aware of them

Research suggests that such messages

have limited effects on behaviour

Perceived Risk:

Anxieties felt

Consumers cannot anticipate the outcomes of the purchase

Believe that there may be negative consequences



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Marketers try to reduce a consumers perceived risk and encourage

purchases by strategies such

as providing:

Free trial of product

Securing endorsements from influential people

Providing warranties ad guarantees

B. Socio-cultural Influences on Consumer Behaviour

Socio-cultural influences evolve from a formal and informal relationship withother people.

Influences Include:

i. Personal influence

ii. Reference groups

iii. The family

iv. Social class

v. Culture

vi. Subculture.

i. Personal Influence

Aspects of personal

influence important to

marketing

Opinion leaders Individuals who exert

direct or indirect social

influence over others

Word of mouth People influencing each

other during face t face

conversationsPower of word of mouth

has been magnified by

email and internet



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ii. Reference Groups

Reference groups are people to whom an individual looks as a basis for self-

appraisal or as a source of personal standards. Reference groups have an

important influence on the purchase of luxury products but not of necessities:

Thee groups have

clear marketing

implications

Membership groups One to which a persona

actually belongs

Aspiration group One with which a person

wishes to be identifiedDissociative group One from which a person

wants to maintain a

distance because of

difference in values or

behaviours

iii. Family influence

Family influences on consumer behaviour result from three sources:

Consumer socialisation

o The process by which people acquire the skills, knowledge and

attitudes necessary to function as consumers

Passage through the family life cycle

o The distinct phase that a family progresses from formation to

retirement

o Each phase brings identifiable purchasing behaviours

Young singles

Young married

Young married with children

Older married

Older unmarried



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Decision making within the family

o Two decision-making styles exist:

Spouse-dominant

Joint decision making

o Increasingly, preteens and teenagers are assuming these roles for

the family, given the prevalence of working parents and single-

parent households

There are five roles of individual family members in the purchase process:

Information gatherer,

Influencer,

Decision maker,

Purchaser, and

User.

iv. Social Class

The relatively permanent, homogeneous divisions in a society into which people

sharing similar values, interest and behaviour are grouped.

Determinants of social class include:

Occupation

Source of income (not the level of income)

Education

Social class is a basis for identifying and reaching particularly good prospects for

products and services. Upper classes are targeted by companies for items such

as financial investments, expensive cars, evening wear, etc.

Middle class represents a target market of home improvements centres and

automobile parts stores.

Lower classes are targeted for products such as sports and scandal magazines.

v. Culture and subculture



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Culture refers to the set of values, ideas and attitudes that are accepted by a

homogenous group of people and transmitted to the next generation.

Sub-cultures groups within the larger or national, culture with unique values,

ideas and attitudes.

Issues in buyer behaviour theory

Much of the research concerning buyer behaviour has come from the

development of marketing itself. This is a multidiscipline and quite complex and

is based on researched done over a period of time.

By way of illustration, within the study of consumer behaviour marketers are

interested in questions such as:

How can models of buyer behaviour be of use to marketing practitioners?

What are the major influences on purchase decisions?

Do consumers pass through a sequence of decision stages?

If so, do such stages apply equally to all purchase types, or all consumers?

What is the relationship between needs, motivation and buying behaviour?

How do the attitudes affect buying behaviour, and is it necessary to

achieve favourable attitude changes before buying takes place?

Is the purchase of a new product or brand approached as a differentbuying proposition?

How do buyers evaluate the various alternatives facing them in the buying

decisions?

What is the nature and extent of loyalty among buyers, and how

differently do loyal buyers approach their purchase decisions?

What is the extent of individual versus group-influenced decision making

among consumers?

The Economic Factors Affecting Buying Decisions

From elementary economics it might be expected that buying decisions would be

made by logically comparing the available choices in terms of cost and value

using criteria such ase:

Economy of purchase or use



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Convenience

Efficiency in operation or use

Dependability in use

Improvement in earnings

A review of our own personal buying habits will show that in practice these

factors are seldom considered and rarely of paramount importance when we

make buying decisions.

Individual Activity 1: Personal, social, cultural and psychological

factors are distinguished in terms of their relationship to, and impact

upon customer purchasing decision motives and behaviours. (SO1

AC1)

Prepare to deliver a 2 minute presentation on the factors that have

an impact on customer decision motives and behaviours for the

products/ services sold at your company.



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Individual Activity 2: Customer purchasing roles and decision

processes are differentiated in relation to market type, customer

base and product range. (SO1 AC2)

Resource 1: Use the template in your Resource Guide to complete

this activity.

Select a product range (within your organisation) and elaborate on

possible purchasing roles and decision process of a customer.

Market segmentation

Market segmentation is a strategy that involves dividing a larger market into

subsets of consumers who have common needs and applications for the goods

and services offered in the market. These subgroups of consumers can be

identified by a number of different demographics, depending on the purposes

behind identifying the groups. Marketing campaigns are often designed and

implemented based on this type ofcustomer segmentation.

One of the main reasons for engaging in market segmentation is to help the

company understand the needs of the customer base. Often the task of

segregating consumers by specific criteria will help the company identify other

applications for their products that may or may not have been self evident

before. Uncovering these other ideas for use of goods and services may help the

company target a larger audience in that same demographic classification and

thus increase market share among a specific sub market base.

A true market segment meets all of the following criteria: it is distinct from other

segments (different segments have different needs), it is homogeneous within

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the segment (exhibits common needs); it responds similarly to a market

stimulus, and it can be reached by a market intervention. The term is also used

when consumers with identical product and/or service needs are divided up into

groups so they can be charged different amounts. These can broadly be viewed

as 'positive' and 'negative' applications of the same idea, splitting up the market

into smaller groups.

Examples:

Gender

Price

Interests

While there may be theoretically 'ideal' market segments, in reality every

organization engaged in a market will develop different ways of imagining

market segments, and create product differentiation strategies to exploit these

segments. The market segmentation and corresponding product differentiation

strategy can give a firm a temporary commercial advantage.

Market segmentation strategies can be developed over a wide range of

characteristics found among consumers. One group within the market may beidentified by gender, while another group may be composed of consumers within

a given age group. Location is another common component in market

segmentation, as is income level and education level. Generally, there will be at

least a few established customers who fall into more than one category, but

marketing strategists normally allow for this phenomenon.

Along with playing a role in the development of new marketing approaches to

attract a certain demographic within the market base, market segmentation canalso help a company understand ways to enhance customer loyalty with existing

customers. As part of the process of identifying specific groups within the larger

client base, the company will often ask questions that lead to practical

suggestions on how to make the products more desirable to customers. This

activity may lead to changes in packaging or other similar changes that do not

impact the core product. However, making a few simple changes in the

appearance of the product sends a clear message to consumers that the

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company does listen to customers. This demonstration of good will can go a long

way to strengthen the ties between consumer and vendor.

Customers, Market Segmentation and Targeting

While marketing as a business philosophy makes the customer central to the

objectives or an organisation, it is the concepts of marketing which have been

developed from this philosophy which have made marketing so relevant to

business and other organisations. The marketing concepts provide the basic

principles and framework within which appropriate decisions can be made by any

supplier who whish to ensure that exchanges made with consumers or

customers are mutual beneficial. It is a basic precept of marketing that this

must be the principle objective of any supplier who wishes to thrive in a dynamic

competitive environment such as is usual today.

It is said that a product is not sold until it has reached the ultimate consumer, in

fact we could go further and say it is not sold until it is paid for and used by the

final consumer.

In the 1950s the pioneers of mass-marketing, multinational firms such as

Procter & Gamble and Coca-Cola, had the power to sell large quantities of

standardised goods to a homogeneous; mass market, using the promotionalattraction of mass media (national press, and especially television). Even earlier,

Henry Ford made his fortune by mass marketing, offering his Model T car in

any colour as long as it is black. Now things have changed in the marketplace.

Coca-Cola now offer caffeine-free, diet, cherry and other variants which combine

some of all of these attributes. Ford make cars from the Fiesta to the Ford

Focus in a host of finishes, colours and specifications.

At a basic level this could be seen just as an increase in the variety of productsoffered, but of course the cause of this proliferation is to attempt to meet

customer needs more precisely.

If marketing is the satisfying of the needs and wants of customers, then those

wants must at least be established, even if they are found to be different for

every single consumer. This fact recognises that customers do not always form

a homogeneous group, nor are the demands of two, outwardly similar, people



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necessarily the same. However, you will remember that marketing really

involves profitable or beneficial exchanges so, as part of the marketing decision

process, there must be a view on which customer groups are to be supplied. If

different customers have different needs then why not offer them different

products to meet those needs? And why not market those products in a way

that appeals best to each particular group?

Segmentation is the process of breaking down the intended product market

into manageable groups; it can be broken down by:

Relationship

Customer Type

Product Use

Buying Situation

Purchasing Method

Behavior

Geographic Location

Demographics

Psychographics



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This could well be a good initial approach, but it is unlikely to provide an answer

which would be useful as the basis for making marketing decisions.

Another approach would be to use the behavioural criteria identified as being

relevant to buyer decisions. The identifying of the different groups, and so

subdividing the market into those groups which can be attacked by a specificmarketing strategy, is termed segmentation.

Its objective is to select from all possible potential customers those groups which

are most likely to need and want to buy a product. The use of the different

marketing strategies for each distinct segment is know as target marketing, or

differentiated marketing (as per the following illustration

Each of these different strategies is likely to appeal to very different groups of

customers. Consider the type of people who buy food in a delicatessen shop

compared with those who regularly shop at a discount food store. Even if some

people use both outlets, the motivations for the visiting of such very differentstores will enable those shoppers to be distinguished from those who visit only

one of the outlet types mentioned.

Useful Segmentation

The basic principle of segmentation is very simple. It involves selecting the

classification most appropriate to the groups of customers identified. The work

involved in doing this is justified only if it can be used to improve marketing

effectiveness. To meet this objective the resulting segments must be relevant to

the purchase decision, and also capable of being reached by both distribution

and communications with some measure of precision. The traditional approach

uses variables which can be described as geographic and / or demographic.Much of the data collected by the various UK media owners is quoted in terms of

the socio-economic groupings shown here below.


Product Offer Mix

A common

marketing mix

The Market

A specific

focussed

marketing mix

Promotion

almixA

Promotion

almixB

Promotion

almixC

Offerand

Promotion

almixA

Offerand

Promotion

almixB

Offerand

Promotion

almixC

Segment

A SegmentB

SegmentC

SegmentA

SegmentB

SegmentA

SegmentA

Un-differentiation Differentiated Differentiated

Concentrated

Marketing marketing targeted marketing

marketing


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Market Segmentation by Socio-Economic Groupings

A Upper Middle Class High managerial/administrative/professional, e.g

company

B Middle Class Intermediate managerial/administrative/or

professional

C1 Lower Middle Class Supervisory/clerical/junior managerial

C2 Skilled Working Class Skilled manual workers

D Working Class Semi-skilled or unskilled workers

E Pensioners, casual workers and others

There are many potential problems when using a scale derived from the

occupation of the head of the household to determine how people behave.

Anyway, the descriptions above are already outdated, using terms such as

working class.

A longitudinal study by Krik McNulty looked at the changing face of UK society.

He based his categories on the Maslow hierarchy. The study shows that his

inner directed groups are expanding as a percentage of the population, while

other groups decrease.

Inner Direction Covers

1. Social resisters Caring people; altruistic, green, and likely to join

pressure groups

2. Experimentalists Fun seekers, materialistic, pro-technology and

individualistic



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3. Self-explorers Share social concern, not materialist, motivated

by self-expression

All these groups are defined in terms of Maslows self-actualisation category.

The problems in finding a usable way of describing a segment do not mean that

the concept of marketing segmentation is not useful. There are to many

examples of successful target marketing which can be found. In fact the

industrial product is a good example where the organisational characteristics

(demographic end geographic, such as a type of company, size, industry, etc.)

can be successfully linked with personal characteristics of personnel who might

be: users; influencers; buyers; deciders; or gatekeepers. By identifying how to

reach a group of deciders a positive marketing result can be achieved, as in the

example below.

Example

A campaign to communicate with the financial controllers of companies with

large transport fleets was under taken by a major tyre company. The company

realised financial controllers were a key advisor group and in some cases held

the decider role. They were primarily interested in the lowest total cost ofoperation, not just the cheapest tyre. They could be reached directly, and a

campaign was directed at them, emphasising areas they considered important

rather than issues important to the transport manager. It proved successful in

boosting sales levels.

Returning to the consumer market, another useful set of segments is the ACORN

grouping (A Classification Of Residential Neighbourhoods). This is a

variation on traditional demographic descriptors, developed in a way that makes

communication with this segment easy. It is sometimes termed geo-

demographics, as it links postcodes (in Britain or other host countries) to the

prime characteristics of the occupants of the households. In the UK a total of 38

groupings has been produced, so that a marketing organisation or other user can

buy a list of all addresses in a particular category say, all postcodes which have

a majority of private flats with single pensioners (category K38).



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A mail shot to this segment offering them a relevant product will have greater

success rate than a more random method of contacting this group.

Alternatively, a company could collect all the addresses and postcodes of its

customers. By analysing these against the ACORN database the predominant

categories can be establish and plans laid to communicate with other potential

customers in the same categories. Such an exercise can prove very rewarding,

but it does not assume that all people in the same postcodes groupings behave

in the same way. Compare your family with your own neighbours. The use of

ACORN does assume, and can demonstrate, that the probability of similarities

exist.

This is enough to make the database valuable to marketing managers. There are

other rival databases such as MOSAIC, PINPOINT and PROFILES, offering similar

services.

Requirements for a Usable Segment

There is no limit to the numbers of ways a market may be segmented in

particular circumstances, but to be useful a segment must be:

Definable

Sizeable

Reachable

Relevant.

Definable

This means we must be able to describe the market segment, and for this the

key characteristics of the segment should show a degree of homogeneity. The


Principle orientated Status Orientated Action Orientated

Resources

Actualisers Abundant

Fulfililleds Achievers Experiencers

Believers Strivers Makers

Strugglers Minimal


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segment is of course a subset of a heterogeneous total market, because if the

total market were homogeneous there would be no need for segmentation. It is

also useful to be able to measure the market size and define the boundaries of

the segment

Sizeable

Is the segment large enough and can it produce the required turnover and profit

for your organisation? This criterion depends on the particular organisation, as a

minimum revenue of R10m for a brand sold by a large multinational might be

required, while another company might find R0.5m an acceptable contribution to

turnover. So size is relative, but organisations also need to make profits. Toffler

suggests that markets are de-massifying into ever-multiplying, ever-changing

sets of mini-markets that demand a continually expanding range of options,

models, types, sizes, colours, and customisations. That is the challenge of

marketing, but useful segments must be assessed in terms of organisational

resources and objectives.

Reachable

There must be a way of reaching the segment both effectively and efficiently.

This includes the obvious physical distribution of a product, as well as

communicating with customers via media or in a direct way. ACORN meets the

communication test, but it is less easy to find a way of communicating with

categories such as the experimentalists or self-explorers described by

McNulty.

Relevant

This has already been mentioned as the most important test for any described

segment. It cannot be considered in isolation from the other criteria as there is

no point in describing a relevant segment which cannot be reached.

The message of this section is that, although segmentation can be an effective

marketing technique, it should be treated carefully. In the era of de-

massification, organisations can easily appeal to segments which are too small

to be viable or perhaps to costly to reach. While segmentation can help in the

process of understanding customer similarities and differences, careless usecould lead to the development of too many product variants, confusion of

customers, and the failure to capitalise on the real opportunities that such a

study of markets and their subsets offers.

Segmentation Variables



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In order to describe segments there are two different approaches which can be

used. The first concentrates on the characteristics of the buyer. Generally these

are classified under one or combination of the three categories:

Demographic

Geographic

Psychographic

However, an alternative, but equally powerful, set of variables can be derived,

offering a focus on how customers behave, and the benefits sought by those

customers from a product or service. While benefits link closely with lifestyles

and psychographics, they do warrant attention as a separate category for

classification. So the other two categories are:

Benefit and

Behavioural segmentation.

Demographic

Demographic segmentation

Demographics is the most widely used method of classification of marketing

segments. It is the basis for the collection of many government statistics and the

standard system used by the media industry. Pym Cornish of RSL, who is a

acknowledge authority on demographics, wrote:

Demographics are often thought of as consisting of no more then the

dimensions of sex, age, social grade, region, and a few others that have

traditionally been used as a standard market research variable in Britain. But

society does not stand still. It has evolved; old generalisations about the family,

such as the women look after the house and children while men earn the money,

have become less and less true. Yet this does not mean that demographics have

become less useful, only that the traditional classifications should be superseded

by others that reflect the current structure of society more accurately.

So, based on Cornishs article, the traditional demographic bases are: gender,age, marital status, socio-economic classification and occupation. To these we

must add descriptors such as family type and size, income levels, ethnic origin,

education levels and stage in life cycle. The last factor was described in more

detail in Cornishs article.

For industrial products there are equivalent demographic categories which can

be used, such as industry type (SIC Standard Industrial Codes), turnover and/or

profit, numbers of employees, and numbers and types of customers. Such

demographic data are relatively easy to obtain. Every ten years in the UK there



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is a full census of the population, so that the government statistics can be

updated. This does not cover issues like lifestyle in great dept, but it does

provide a good basis for which to start. Many organisations use census data as a

basis for decisions on market potential. The type of information provided is

called secondary data, in that it is collected for one purpose but its is then used

for a secondary one. It cannot be stressed too often that the informationcollected must be relevant to the purchase decision. The categories which are

actually relevant to the purchase decision. The categories which are actually

relevant can change, as in the example of Red stripe lager. This Jamaican larger

was originally imported into Britain from the Caribbean. Its price reflected the

cost of importing, and it was primarily sold to areas with a high population of

Jamaican origin. The brewers, Desnoes and Geddes, then arranged for the

product to be brewed under license in the UK. While they were very careful to

maintain the distinctive quality for the lager, it was decided that the price could

be modified, and there where opportunities for appealing to a wider number of

drinkers. Hence ethnic origin is no longer such relevant demographic variable forthis product. However, stage in the life cycle does effect consumption of beers

and lagers. As people move through the stages of pre-family, family and post-

family they change their drinking habits.

Also, some people remain single, or form a relationship but do not marry or have

any children. They, too, show changes in drinking according to life cycle. Life

cycle is more powerful than age alone in this analysis, as it is able to include

relative levels of disposal income and, equally important, leisure time, which a

family with children finds is in short supply. Of course the traditional variables do

help in describing segments as, for instance, men drink more beer than women,and there are differences identified by socio-economic groups in order to

describe their customers the major brewers use a combination of demographic

data with other bases such as lifestyle (as distinct from life cycle, which is not

the same).

One very full database which covers demographic profiles and also other bases

is the TGI (Target Group Index), produced by the British Market Research Bureau.

BMRB is a commercial organisation which carries out 3000 interviews every

month and continually updates information on the several thousand brands and

product categories covered. It offers purchasers of the index detailed

demographic and lifestyle profiles of consumers. It also covers the media which

reach the various segments, and is an invaluable source of information linking

consumer product segments to the media usage.

Geographic Segmentation

This type of classification is often considered as another type of demographic

variable. In some ways it is, and the development of geo-demographic bases

such as ACORN prove this. Nevertheless it is an obvious grouping, and

geographic variables can be considered separately. Issues, such as rural versus



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urban, warm versus cold, north versus south, all can be considered where

appropriate. The consumption of sweet (sugar-based) products is greater in

Scotland than in the rest of the UK. Is this perhaps useful information when

planning a new confectionary product. There are also opportunities for the

commercial market, such as planning new retail outlets. One company might

look for a location in the key area bounded by outlets such as Mark & Spencer,Boots and W H Smith, which provides the greatest density of shoppers in many

town centres. Another trader might base decisions on the number of suitable

customers living within a specific radius or travelling a distance from the centre

of a city. Both are dependent on geographic segmentation studies. It might be

appropriate to add a warning regarding large, apparently attractive segments.

These naturally attract competitors and may not provide the anticipated level of

business. There are many small shops serving a limited geographic area without

direct competition and making a reasonable profit. If the business were located

in the High Street of a major town, the competition would change the situation,

such that although the numbers of potential customers is far greater, the actualcustom may not be, and the increased cost involved would decrease profitability.

Psychographic and lifestyle segmentation

Psychographics seeks to classify people according to their personality traits.

They are used more in relation to consumer products, but there is no reason why

corporate interests, such as a measure of levels of social responsibility, could not

be used when considering issues relevant to the segmenting of organisations.

There is some debate over whether psychographics should be restricted to

issues of sociability, self-reliance, assertiveness and other personality traits, or

whether it should be widened to include other lifestyles, which cover attitudes,

interests and opinions.

The use of lifestyle characteristics is attractive to the marketer for two reasons.

First, it provides a simple link to the variables used in behavioural theory, e.g.

attitudes, perception and social influences. Second, although lifestyles can

change over time and over the life cycle of a person, there tends to be a

consistency of action in selecting products and services which matches the

persona of a consumer at a particular period.

To establish psychographic characteristics, a series of questions are developedand respondents are asked to agree or disagree with statements such as: I like

to do all my car maintenance, Traditional home cooking is best, or I worry

about environmental issues. Thus scales are developed from a battery of

questions, enabling a detailed picture of attitudes and lifestyle to be constructed.

A fuller exposition of the market research procedures required to construct these

segments can be found in Margaret Crimps excellent book the Marketing

Research process.



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The results of a demographic analysis of whisky drinkers might show they are

primarily: class AB, sex male, age 45 plus. A lifestyle study of this category

shows it is not homogeneous, and there are many other spirits consumed by the

segment, but it could identify key attitudes of those who drink whisky rather

than gin. This can then be applied to the product promotion.

In 1974, an early article on The concept and application of lifestyle

segmentation by Plummer indentified the following list of subjects on which

questions could be posed in lifestyle studies. This list shows the scope of such

studies.

Activities Interests OpinionsWork Family ThemselvesHobbies Home Social IssuesSocial Events Job PoliticsVacation Community Business

Entertainment Recreation EconomicsClub membership Fashion EducationCommunity Food ProductsShopping Media FutureSports Achievements Culture

Benefit Segmentation

The idea of segmentation on the basis of the benefit received is wholly

consistent with the marketing concept. A motor car purchased as the main or

only one for a family will provide a very different benefit from a company carsupplied to a single employee, or a car purchased as a second car for a spouse.

The benefits received are different and thus the actual car bought will be

assessed by very different criteria. Using benefit segmentation these factors can

be isolated and this information used to design appropriate products for each

group.

In the USA there is a good example of a successful costs/focus strategy based on

benefit segmentation, the US hotel chain, La Quinta, which offers a specific

product for business ensure minimum external noise in any room. They provide a

fast, efficient check-in/out system and certain business facilities required by

travelling business people. They are conveniently located on major roads but do

not offer restaurants or food service. They are always a 24-hour restaurant

nearby if required, but not run by the hotel. La Quinta concentrate on providing

a value package for a particular segment, mainly commercial travellers, who

require facilities to do an evenings work after a day of meetings, but do not

require on-site eating. A restaurant is expensive to run and so why provide it if

the benefit it provides is not required? A similarly focused development in the

UK is exemplified by the no frills, inexpensive tariff, overnight hotels being built

by the Trust House group on sites close to their Little Chef restaurants.



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Benefit segmentation depends on casual relationships rather than descriptive

criteria of segment members. It is applicable to industrial products or services

as to consumer goods and services. In fact some products span these

categories. For instance, a portable calculator could be a consumer item for use

by a student, or an industrial product if used in an accounts office. An electrical

maintenance service can be offered to a commercial organisation for a privatehome. A service situation such as this provides the maximum flexibility in target

marketing, since each contact between supplier (electrician in this case) and

customer is distinct, and the delivery of the service is inseparable from the

production. Hence the supplier can provide a precise service to match the

benefit required. In other situations the product is not offered to a discrete

segment. An aeroplane could contain passengers who have:

Bought tickets at full price

Bought discount tickets in advance

Bought even cheaper tickets

All groups receive the same prime benefit air travel to their destination. But

the problem regarding full-fare business travellers has been tackled by providing

club or business class as distinct from economy class. Nevertheless, some

passengers buy full economy fares, others are discounted. The difference in

benefits, such as ability to change times of travel if you hold a full=fare ticket,

compared to the possibility of not travelling at all with a standby, illustrate the

wider range of benefits which must be explored for the same product offering.

Benefit segmentation was popularised 30 years ago by Russell Haley, who

studied the toothpaste market in the USA. He identified four groups. From such

an analysis, it can be seen how different brands can be designed to meet each of

the benefit segments identified above.

Benefit Required Other characteristicsSensory Segment Flavour + Product

appearanceUsually children

Social segment Sound bright teeth Outgoing and activeYoungWorrier segment Decay prevention Heavy users familyIndependent segment Low prices Predominantly male

Little loyaltyBought Brand on offer

Behavioural Segmentation



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A development of psychographic segmentation which concentrates on lifestyle

and attitude is to study how people behave with respect to purchasing a

particular product. Questions that can be answered include ones such as, How

do heavy users differ from light users?, Can we isolate brand-loyal consumers?

If we can identify usage levels and link this to other segment criteria, then

differentiated marketing strategies can be adopted for each group. Such groupscould be:

Heavy users

Medium users

Light users

Occasional users

Non-users

Inevitably a version of the Pareto effect will apply. Perhaps 80 per cent of a

companys sales will go to 20 per cent of its customers (heavy users). The

temptation is to concentrate on these people, as they provide the bulk of the

profitable sales. In fact, they need a marketing mix that retains and reinforces

their custom. This will probably be very different from the message to occasional

or light users, who may either purchase competitors products or perhaps not

use the product category very often.

Other behaviouristic criteria include:

Loyalty levels

Purchase occasion

User status

Readiness status

Purchase occasion is an obvious discriminator with buying behaviour, and

therefore should be considered when carrying out a segmentation study.

The behaviour of purchases buying, say, beer or lager will vary between orders

in a public house, occasional purchasing from an off-licence, or regular

purchasing as part of a shopping trip. Dickson went further, linking purchase

situation with benefits to fill what he termed person-situation: segmentations

missing link. This work is just one example of linking criteria together to provide

usable segmentation to assist marketing decisions.

A direct marketing organisation subdivides its mailing list by what they term the

customer pyramid. The customer pyramid is one form of measure of readiness



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to buy, where each requires a different approach from the supplier. Customers

need to progress from awareness through interest and desire to action. This

progression could take time, and behaviour will be different for potential

customers in different stages of this continuum.

Target Marketing

The five principles of good marketing practice identified are

Targeting

Positioning

Interacting

Controlling

Monitoring relationships with customers

Target marketing is the process of selecting one or more market segments and

then developing a product and offer which is aimed specifically at those

segments.

Once the target market segments have been identified, the key attitudes of

those customers towards the product category should be determined. It is thus

clearly essential to define market segments using appropriate criteria.

The Chairman of a UK advertising agency said Demographics tell me nothing I

want to know.. He argues that the world has changed fundamentally and it is no

longer true that you can lump together all manual workers and consider their

common wants. He gets very close to a product orientation when he says,



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Brands and business must be themselves, and let consumers come to them by

self-selection.

Target marketing is the link between segment selection and product positioning.

Target marketing is the opposite to undifferentiated marketing. This is where

the same product is offered to the entire market.

Undifferentiated offerings can succeed, but it is usually more effective to offer a

variation of the product to suit each relevant market segment. This is especially

true in global markets, where major differences of culture and history can also

divide potential customers. Target marketing develops the total marketing mix

with variations to the total product offered.

Companies providing services have always been able to offer personalised

products, since the provision of the service is inseparable from the production.

Because of this, service products are inherently liable to variations depending

upon the individual who actually provides the service. This is why service

organsiations such as banks, or the fast foods chains, pay so much attention tosupplying a standardised range of products. This approach helps to maintain

consistency in the quality of service given, and to reduce the risk of the

organisations reputation being destroyed by a single incidence of poor service,

as may happen if this attracts the attention of the media.

Competitive Advantage

We have learned how customers needs and wants can change, making existing

products obsolete. For example, a competitor may launch a new product which

a particular group of customers find more attractive. Because of this,

organisations must continuously revise their products or services to keep themrelevant to the changing needs of customers.

This involves to the fundamental marketing questions:

Who are our existing and potential customers?

What are their current and future needs?

How do they judge value?



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When and where can these customers be reached?

Those responsible for products already on the market need to continually as

these basic questions.

Marketing Information

Sources of Information

The information an organisation has about its market comes to it in a variety of

ways, both formally and informally. All organisations have a fund of knowledge

available both from the people who work for it and in the records accumulated

over many years. For example, when reading through a technical magazine

someone could notice an article about developments at a competitors plant.

Maybe this expansion is to allow for a new product or to improve efficiency. If

this information is fed through to the right area it could be very useful. The most

important issue, for employees to know where to send such informal facts andleave it to a central department, usually marketing, to decide what to keep, what

to check out promptly, and what to ignore.

Unfortunately organisations rarely have complete knowledge about their

markets, customers or competitors. At best it is like a mosaic or jigsaw, where

the picture can still be clear, even though a large number of pieces may be

missing. Sometimes it would be helpful to make efforts to acquire more

information to make the picture even clearer.

However, it must be realised that information can cost money. It is only worth

acquiring if the additional information would increase the chances of making abetter marketing decision in the future.

It must be remembered that marketing information doe snot replace decision

making. Therefore the purpose and value of information gathering must be set

against the cost of obtaining and processing that information.

Generally, the knowledge provided by marketing information changes over time.

Thus, returning to our analogy of a mosaic, the colours of some pieces will fade

over time. To revive the pattern, pieces must then be removed and replaced as

new ones become available. When information is used for marketing it must not

be out of date as this could easily lead to bad decisions. Again, like the pieces

used to make a mosaic, marketing information has to be obtained from many

different sources and sometimes alternative sources can be used. These sources

of data could be divided as:

Undirected observation Informal, unstructured collection of

information from any source. It includes casual reading of magazines

and newspapers, meetings with contacts etc



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Conditioned viewing Formal searching but sometimes unstructured

collection whereby a comprehensive search is made covering a

specified range of publications. This is done using on-line databases.

Informal searching A structured way of capturing vital information

such as a system of receiving sales force reports. The informationmight present itself in an informal way but the system to ensure it

reaches the relevant managers must be structured.

Formal searching This is where formulised marketing research comes

in. It is a specific study undertaken to fill in some of the gaps in the

mosaic of information available. It involves the collation, analysis and

presentation of appropriate, available and required data.

Research can be defined as the use of investigative techniques to discover non-

trivial facts and insights which lead to an extension of knowledge.

The nature of organisational information

Before the essential characteristics of marketing information can be considered

it is necessary to describe organisational information generally and to see how

marketing information is a part of it. In most organisations there is ample

evidence of information which is needed simply to help the business to exist. In

the business context it can be seen everywhere stored in desk drawers, filing

cabinets, cardboard boxes in archives and on computer files. Most of this

information can be classified in terms of the different business functions. Hence

there will be files containing accounting information, personnel information,production/operational information, design information and so on. It can also be

seen, moved and referred to and can, for this reason, also be referred to as

tangible information. The production information for a manufacturing business

could be contained in sets of detailed drawings, standard specifications, lists of

suppliers, work schedules and operations sheets.

Such information specifically details what has to be done and, usually in less

detail, how it should be done. This is because it would not be assumed that the

information would be used only by someone with the necessary skill and training.

Although impressive in terms of quantity of information contained in these files,the tangible information represents only a part of the information which is

actually needed for an organisation to function. It is unusual for much of this

tangible information to be required for the regular day-to-day activities of the

organisation. Most of it is the stored record of past activities. In fact al lot of this

information is kept t comply with the legal and other regulations which apply to

all organisations.

In addition, most organisations and individual employees maintain records in

order that past successes can be repeated and past errors avoided. Such



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information is often used to establish a procedure within an organisation which

reduces reliance on individual members of staff and the likelihood of mistakes.

The procedures used within an organisation, and the routines which are used to

implement theses, are an essential part of organisational information. In

addition to the files contained in office cabinets or held on computer disks thereis another type of information where no physical evidence exists, hence it could

be described as intangible information. This is the personal skill and knowledge

of the individuals in the organisation who carry out these procedures and

routines. Of course, much, if not most, of the information being described as

intangible can be made tangible simply by setting out in writing, but the

important issue is that it should be available to those employees who require it

when they want it.

The combination of tangible and intangible information is a fundamental

characteristic of organisational information.

Marketing Information

Marketing as a business activity is developed as a result of recognising that the

success of an organisation depends upon creating and retaining customers. In

short term these decisions are likely to be concerned with meeting the needs of

customers efficiently. In the longer term they are likely to focus more on the

organisations need to respond to the ever-changing expectations of the users of

its products and/or services, and what has already been introduced as the

marketing environment. Included within the category of marketing information

are:

Market and environmental information

Customer and potential customer information

Competitor information

Product, price, and other information about the offering

Distributor, and advertising and promotional information

All of these are drawn from the different levels of the marketing environment.

We could define marketing information as any information which is relevant to,

or affects, the profitable exchange of a product/service between an organisation

and its customers.

Although marketing information can be either tangible or intangible there is

often little evidence of tangible marketing information in many organisations.

There might be some files containing, for instance catalogues showing the

products offered by the competitors, but they are usually limited in comparison



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Group Activity / Pair Activity 2: Sales and service strategies are

consistent with the information obtained to distinguish customer

buying motives and behaviours (SO1 AC4)

Customer needs and preferences are defined in relation to products

and services (SO2 AC1)

Your facilitator will divide you into groups of 3 or 4.

Resource 3 : Brainstorm.

Use the template provided in your Resource Guide:

Discuss the following:

The organisations current sales and services strategies, and

The customer buying motives and behaviours (relating to yourorganisations products/services)

Brainstorm ideas on how you can ensure that the sales and service

strategies are consistent with the customer buying motives and

behaviours.



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Conclusion

Congratulations! You have now completed the first module of the initial learning

for Standard : Establish Customer Needs and Relationships this is an NQF

registered unit standard (SAQA Reg. No 10066).

You now need to complete the following assessments in your own time.

Self Assessment

Self Assessment 1: Distinguish customer purchasing motives and behaviours

(SO 1)

You have come to the end of this module please take the time to

review what you have learnt to date, and conduct a self

assessment against the learning outcomes of this module by

following the instructions below:Rate your understanding of each of the outcomes listed below :

Keys : - no understanding

- some idea

- completely comfortable

NO OUTCOME

SELF

RATING

SO1

AC1

I am able to distinguish personal, social, cultural and

psychological factors in terms of their relationship to, and

impact upon customer purchasing decision motives and

behaviours

SO1

AC2

I am able to differentiate customer purchasing roles and

decision processes in relation to market type, customer

base and product range

SO1

AC3

I am able to examine trends in evaluation of customer

purchasing motives and behaviours in relation to the

adoption of selling approaches

SO1

AC4

I am able to obtain information on sales and service

strategies which are consistent with the information

obtained to distinguish customer buying motives and

behaviours



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Complete the mind map below by listing the main point you remember from the

module you have just completed.


__________________________

__________________________

____________________________________________________

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__________________________

__________________________

__

__________________________

__________________________

__

______________________

______________________

______________________

______________________

______________________

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______________________

______________________

__

______________________

______________________

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Module 2: Assess and respond to

customer needs

Learning Outcomes:

The following learning outcomes are covered in this module.

The Learner is able assess and respond to customer needs

Customer needs and preferences are defined in relation to

products and services

Sales and service strategies are developed for individual

customers that acknowledge the extent to which thebusiness can assist customers to maximise product value

and benefits

Sales and service strategies are developed for individualcustomers that identify customer needs from a customerperspective

If an organization cannot at least meet its customers' expectations it willstruggle.

Ideally a business organization should exceed its customers' expectations,thereby maximising the satisfaction of its customers, and also the credibility ofits goods and services in the eyes of its customers.

Customers normally become delighted when a supplier under-promises and over-delivers. To over-promise and under-deliver is a recipe for customers to becomevery dissatisfied.

Rule No 1 - You cannot assume that you know what a customer's expectationsare ... You must ask.

Rule No 2 - Customer expectations will constantly change so they must be

determined on an on-going basis.

The expectations of different customers for the same product or service will varyaccording to:

social and demographic factors

economic situation

educational standards

competitor products

experience



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impression that a large sale is on the horizon, but it does not materialize. In

these cases it is necessary to slowly establish a boundary between you and the

customer to let them know that your free advice has its limits.

Hard Sell

A very confident sales professional will sometimes employ a sales approach

known as the hard sell. The hard sell is basically telling the customer that she

needs the product you sell, you offer the best support and service in the

business, you can meet her needs and her budget, so she needs to buy right

now. The hard sell is usually prefaced by some relationship building in which the

sales representative establishes himself as an expert, and makes it very clear

that he can help the customer and expects the customer to buy. This approach is

sometimes effective and sometimes not. Normally the hard sell approach is used

only on customers who have a difficult time making a decision, but it is also not

the only approach the sales representative knows how to use.

Technical Sale

This is another limited sales approach that can be effective when used on the

right kind of customer. A good sales professional will spend time trying to figure

out what kind of approach their customer will respond to, and then she will

implement the correct approach to get the sale. If your customer needs to be on

the cutting edge of technology, use the technical sale approach. In most cases

the technical sale customer is not worried about price, but he does want to be

certain that the product will enhance his business in some way. Talk technical--

and how this technology can make profits for the customer and he will buy.

You can have every product that your customers could possibly want, but if you don't treat your

customers well, you can kiss your business goodbye. Numerous studies have shown that it costs

more to acquire new customers than it takes to retain existing ones. Use these six service strategies

to keep your customers coming back for more:

Strategy #1: Stay in Touch

Let your customers know you value their business by reaching out to them. Use newsletters,

postcards, individual letters, or e-mails to deliver news about products, special promotions, and store

http://www.ehow.com/business/http://www.ehow.com/relationships-and-family/http://www.ehow.com/business/http://www.ehow.com/relationships-and-family/


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events. (Allow customers to sign up for these missives in the store, and never send an e-mail without

their express permission.) Send a thank-you note after a major purchase, inviting the customer to

contact you with questions, feedback, or to discuss additional requests. Focus all these

communications on letting customers know that you can solve their problems and meet their needs.

Strategy #2: Make Great Service a Priority

Excellent customer service requires training your staff and constantly reinforcing the message that

customers come first. Start with the little things, such as a standard way of politely greeting people on

the phone or asking that sales staff courteously greet anyone who enters the store.

Strategy #3: Store Collective Wisdom

One of the most important customer strategies is to set up a system for responding to customer

inquiries or complaints. The last thing you want is for your employees to provide inaccurate

information to your customers. Neither should they fail to provide a solution to a problem or quote

policies that may not accurately address the situation.

Your goal should be to resolve issues during the initial customer contact, or, when that's not possible,

within one business day. Whenever necessary, make sure employees let customers know that they

may need some time to locate the information. Do not leave customers hanging.

With that in mind, staffers need to know exactly where to look for answers. While it's natural for new

employees to rely on the wisdom of more experienced ones, you don't want all that wisdom to walk

out the door when someone quits. Develop a "knowledge base"; that is, a store of information with

answers to common questions, methods for solving problems, and standards for resolving disputes.

Your knowledge base can be as simple as a notebook where staffers or the store manager jots notes;

a searchable text file on a computer; or a database

Strategy #4: Empower Your Staff

In some cases, where there is no policy -- and occasionally in cases where the policy needs to be

flexed -- you need to empower certain people to make decisions, use good judgment, and bend the

rules. Ask them to document these special cases; you can provide a pad of paper forms, let them

enter information into the computer, or simply leave you a voice mail. Depending on the size of your

operation, you may want to designate one person per shift as chief problem-solver.



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Learner Guide

In society we need to build effective relationships for a number of reasons. For

instance, the health of people depends on what happens in organisations and

what they do.

Alongside that, organisations only function with the co-operation of theirmembers. We all know that ineffective organisations can be very frustrating. We

also know that effective organisations can demand so much from their

employees that those people have nothing of themselves left for life beyond

their work environment. Either of these scenarios can result in personal and

relationship stress or breakdown.

Additionally, organisations can have a profound effect on people that do not

work for them but who depend on them for the necessities of life for example,

food, housing and clean water.

Society is a web of relationships, requiring all parties to work together in order to

create something that is good. But what makes society work even better are

relationships that are positive, co-operative and respectful. In this way everyone

works for the good of the whole and towards a common purpose. This demands

effective relationships based on mutual understanding.

If you understand what people want and why they want it, you can usually find away to make progress together. The best way to understand is to listen and

observe without making premature judgements. In my experience, active

listening can help you discover, remarkably, that we want the same things.

High-quality relationships make you happy. Its often the case that some of the

happiest people in the world live in the poorest communities. I have met people

in Nepal who had almost nothing material but who radiated contentment

because they shared a life together. If your key relationships are working,happiness is possible in most circumstances.

What is an effectiv

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