Evolution & Change

Customer Relationship Groups

Companies can classify customers into 4 groups according to their potential profitability and manage their relationships with them accordingly: strangers, butterflies, barnacles and true friends. Each group requires a different relationship management strategy. "Strangers" show low potential profitability and little projected loyalty. There is little fit between the company's offerings and their needs. The relationship management for these customers is simple: Do not invest anything in them. Butterflies: Are potentially profitable but not loyal. There is a good fit between the company's offerings and their needs. However, like real butterflies, we can enjoy them for only a short while and then they are gone. An example is stock market investors who trade shares often and in large amounts but who enjoy hunting out the best deals without building a regular relationship with any single brokerage company. The strategy to deal with butterflies is to ...

Abraham Maslow's Hierarchy of Needs

What motivates behavior? According to humanist psychologist Abraham Maslow, our actions are motivated in order achieve certain needs. Maslow first introduced his concept of a hierarchy of needs in his 1943 paper "A Theory of Human Motivation" and his subsequent book Motivation and Personality. This hierarchy suggests that people are motivated to fulfill basic needs before moving on to other, more advanced needs. While some of the existing schools of thought at the time (such as psychoanalysis and behaviorism) tended to focus on problematic behaviors, Maslow was much more interested in learning more about what makes people happy and the things that they do to achieve that aim. As a humanist, Maslow believed that people have an inborn desire to be self-actualized, to be all they can be. In order to achieve this ultimate goals, however, a number of more basic needs must be met first such as the need for food, safety, love, and self-esteem. ...

4 p’s of Marketing Mix

The marketing mix is a business tool used in marketing and by marketers. The marketing mix is often crucial when determining a product or brand's offer, and is often associated with the four P's: price, product, promotion, and place. The marketing mix and the 4Ps of marketing are often used as synonyms for each other. In fact, they are not necessarily the same thing. "Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The 4Ps is one way – probably the best-known way – of defining the marketing mix, and was first expressed in 1960 by E J McCarthy. The 4Ps are: Product (or Service). Place. Price. Promotion. A good way to understand the 4Ps is by the questions that you need to ask to define your marketing mix. Here are some questions that will help you understand and define each of the four elements: Product/Serv...

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