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Project Report on Internal Customer Satisfaction
INTRODUCTION
Customer is the king, this is all the more apt for today's
business environment where, all other factors remaining more or less
constant, it is the value addition to the customer that is making all
the difference.
Customer satisfaction depends on the performance relative to a
expectations.
A key premise in customer satisfaction is understanding the needs
and meeting or exceeding the expectations of customers. Further
more, this is done while optimally using resources. While most
companies have developed strategies to improve quality and externalcustomer service, internal customer satisfaction is a much neglectedcomponent of quality improvement. To this end, it is important to
emphasize that total customer satisfaction can be attained only if all
employees devoted to external customer satisfaction can work
together and assist each other to achieve the common objective,
when the internal customer isn't satisfied, Relationships with the
external customer suffer. So, it is suggested to adopt customeroriented approach to keep the internal customer satisfied and
motivated, who in turn will focus their attention and energy upon
meeting the requirements of their customers, thereby maximizing the
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It decreases the turnover.
Reduced overheads, and increase customer satisfaction level's
inter departmental.
It enhance communication and hence helped in team building,
hence there is less wasted effort caused by lack of common
purpose and poor communication.
A good employee feedback survey improves employee attitude
and boosts morals.
INTERNAL CUSTOMER-SUPPLIER RELATIONSHIP
In an organization, from procuring an order to delivering the
final product, a series of activities takes place. There are different
deptts. To which these activities are assigned eg. Raw material for
production is purchased by one deptt. And supplied to other deptt.
Where the production initiates. Thus every deptt. play an important
role of a customer and supplier as well.
The importance of a customer is well known from the maxim,
Customer is the king. Earlier, organizational administrators
concentrated only on the satisfaction of external customers i.e. the
target market. But now it is being realized that if the internal
customer is satisfied the quality as well as the quantity is also
appreciable. Higher the customer satisfaction index, higher will be
the quality of the production. This results in the satisfaction of
external customers and ultimately brings profits & prosperity to the
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organization. It can benefit the organization in following ways:-
1) There will be less employee turnover.
2) Optimum utilization of available resources will take place.
3) High job satisfaction and feeling of belongingness in
employees.
4) Qualitative product.
5) Least conflicts in the departments.
6) Good reputation in the market and many more benefits can
be accrued.
Thus, every deptt. should ensure that the customer deptt. is satisfied
with the product and services provided by it as it will result into anoverall improvement of the organization.
To serve a final customer first of all a company has to satisfy
his employees. If employees are satisfied then they will ultimately
satisfy the final customer. Three types of marketing arises. These are
a follows:-
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1) Internal marketing:
It is defined as when company communicates its policies
to the employees. In this understands their employees &
provides good working condition, compensation and
incentives so as to satisfy their employees. Company satisfy
their employees because they are the person in touch with the
final users.
2) External marketing:
When company communicates with its final end user
regarding the product complaints & suggestions so as to
satisfy them.
3) Interactive marketing:
In this employees communicate company product to its
final end users.
INTRODUCTION TO CUSTOMER SATISFACTION
Todays companies are facing their toughest competition ever.
These companies can outdo their competition if they can move from
product and sales philosophy to a marketing philosophy. We spell
out in detail how companies can go about winning customers and
outperforming competitors. The answer lies in doing a better job of
meeting and satisfying customers needs. Only customer-centered
companies are adept at building customers, not just building product.
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They are skilled in market engineering, not just product engineering.
Too many companies think that it is the marketing/sales
departments job to procure customers. If that department cannot, the
company draws the conclusion that its marketing people arent very
good . but in fact, marketing is only one factor in attracting and
keeping customers. The best marketing department in the world
cannot spell products that are poorly made or fail to meet anyones
need. The marketing department can be effective only in companies
whose various departments and employees have designed and
implemented a competitively superior customer value-delivery
system.
Although the customer oriented firms seek to create high
customer satisfaction, its main goal is to maximize customer
satisfaction ,first the company can increase customer satisfaction by
lowering its prices, but results may be lower profits second the
company might be able to increase prices. Third the company has
many stake-holders including employees, dealers, suppliers and
stock holders spending more to increase customer satisfaction might
divert funds from increasing the satisfaction of other partner.
Estimate the company must operate on the philosophy that it is
trying to deliver a high level of satisfaction to the other stake-holder
within the constrains of its resources. From the past studies of last
three decades we observed that the companys first task is to create
and satisfy customers. But todays customers face a vast array of
product and brand choice prices and suppliers.
It is generally believed that customers estimate which offer
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will deliver the most value customers are like value maximizes,
within the bounds of search costs and limited knowledge, mobility
income, they form an expectation of value and act on it, whether or
not the offer lives up to the value expectations affects customers
satisfaction and their repurchase probability.
CUSTOMER VALUE
Customer delivered value is the difference between the total
customer value and total consumer cost. Consumer value is thebundle of benefits customers expect from a given product or service.
Total consumer cost it the bundle of costs consumer expect to incur
in evaluating, obtaining and using the product.
That two customers can report being highly satisfied for
different reasons. one may be easily satisfied most of the time and
other might be hard to please but was pleased on this occasion.
Companies should also note that managers and salespeople can
manipulate their ratings on customer satisfaction. They can be
especially nice just before the survey. They can also try to exclude
unhappy customers from the survey. Another danger is that if
customers will know that the company will go out of its way to
please customers, some customers may express high dissatisfaction
(even if satisfied) in order to receive more concession.
DELIVERING CUSTOMER VALUE AND SATISFACTION:
The value chain is a tool for identifying ways to create more
customer value. every firm is a collection of activities that are
performed to design, produce, market, deliver and support its
product. The value chain identifies nine strategically relevant
activities that create value and cost in a specific business. These nine
value-creating activities consist of five primary activities and four
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support activities.
INTERNAL RECORD SYSTEM
Marketing managers rely on internal reports on orders, sales,
prices, cost, inventory levels, receivables, payables, and so on. By
analyzing this information, they can spot important opportunities and
problems.
THE MARKETING INTELLIGENCE SYSTEM
A marketing intelligence system is a set of procedures and
sources used by managers to obtain everyday information about
developments in the marketing environment. Marketing managers
collect marketing intelligence by reading books, newspapers and
trade publications; talking to customers, suppliers and distributors;
meeting with other company mangers.
First, it can train and motivate the sales force to spot and
report new developments. Sales representatives are positioned to
pick up information missed by other means.
Second, the company can motivate the distributors, retailers,
and other intermediaries to pass along important intelligence.
Third, companies can collect competitive intelligence by
purchasing competitors products; attending open houses and trade
shows; reading competitors publishing reports; attending
stockholders meeting; talking to employees, dealers, distributors,
suppliers, and freight agents; collecting competitors ads; and
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looking up news stories about competitors on the internet.
SOURCES OF INTERNAL DATA
Sources of internal data are of two types:
1. Internal or primary data
2. External or secondary data.
Internal Sources
Company profit-loss statements, balance sheets, sales figures,
sales call reports, invoices, inventory reports and prior research
reports.
External Sources
A) Government publications
B) Periodicals and books
C) Commercial data
Find the Next Chapter -Objectives, research, limitations,
suggestions, bibliography, questionnaire ...........
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CONSUMER BUYING BEHAVIOUR - INTRODUCTION
The job of marketer is to meet and satisfy target customers needs and
wants but knowing customer" is not a simple task. Understanding the
buying behavior of the target market for its company products is the
essential task for the marketing dept. The job of the marketers is to
think customer and to guide the company into developing offers,
which are meaningful and attractive to target customers and creating
solutions that deliver satisfaction to the customers, profits to customer
and benefits to the stakeholders.
Marketers must study the customer taste, preferences, wants, shopping
and buying behavior because such study provides the clues for
developing the new products, price, product changes, messages and
other marketing mix elements. In understand the concept of buying we
have the some of the key questions. They are: -
Why does the market buying? Objective
Who does the market buying? Organization
What does the market buying? Objects
When does the market buying? Occasions
Where does the market buying? Outlets
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How does the market buying? Operations
Along with that there are two more questions that are also related with
above. They are: -
How do the buyers characteristics influence the buying
behavior?
How does the buyer make purchasing decisions?
These are some of questions that solutions help to predict the buying
behavior.
WAYS OF BUYING BEHAVIOR
According to the concept of marketing the buying behavior can be
divided in two ways :-
1. Consumer Behavior: - It includes that user who buys the product for
the direct consumption, not to use for further sale purpose. Like as home
users.
2. Business Behavior: - It includes those users who buy the product for
the further sale purpose. Like as shopkeepers, dealers, and retailers.
BUYING ROLES IN BUYING BEHAVIOR
In the buying behavior there are different roles played in each of
consumer and business. Those are involved in the buying decisions.
CONSUMER BUYING ROLES
In the consumer buying there are different buying roles; i.e.
Initiator: -- A Person who first suggest the idea of buying.
Influencer: - A Person who influence the buying decision.
Decider: - A Person who takes decisions regarding buying
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Buyer: - A Person who actually buys the products.
User: - A Person who is the user of the product.
BUSINESS BUYING ROLES
In the business buying there are different buying roles; i.e.
Approver: -- A Person who approves the idea of buying.
influencer: -- A Person who influence the buying decision.
Decider: -- A Person who takes decisions regarding buying
Buyer: -- A Person who actually buys the products.
User: -- A Person who is the user of the product.
TYPES OF BUYING BEHAVIOR
There is a great difference between the purchasing of a computer and a
car. Buying decisions making varies with the type of buying decision.
The types of buying behavior divided are separately divided as per of
consumer and business buying.
TYPES OF CONSUMER BUYING BEHAVIOR
This is to be extensively divided in four types: -
1. Complex Buying Behavior: -- when the consumer are highly involved
in the purchase and aware of significant differences among brands.
2. Dissonance Reducing Buying Behavior: -- when the consumer are
highly involved in the purchase but sees little differences among brands.
3. Habitual Buying Behavior: -- when the consumer are low involved in
the purchase but sees absence of aware of differences among brands.
4. Variety Seeking Buying Behavior: -- when the consumer are low
involved in the purchase but sees significant of differences among
brands.
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TYPES OF BUSINESS BUYING BEHAVIOR
This is to be extensively divided in four types: -
1. Straight Rebuy: -- In this buyer approves the purchasing on the basis
of the past buying records and satisfaction with suppliers.
2. Modified Rebuy: -- where the buyer wants to modify product
specifications. Prices, delivery requirements.
3. New Task: -- when the buyer approves the purchasing of product for
the first time by consisting of the good and efficient salesperson.
So, that its the types of the buying behavior of consumer as well as
business buyer.
FACTOR AFFECTING THE BUYING BEHAVIOR
There are various factors that affect the buying behavior on both
consumer as well as business buying.
FACTOR AFFECTING CONSUMER BUYING BEHAVIOR
Cultural Factors
Culture
Sub Culture
Social Class
Personal factors
Age
Occupation
Life Styles
Personality
Social Factors
References Group
Family
Roles and Statues
Psychological
Motivation
Perception
Learning
BUYER
FACTOR AFFECTING BUSINESS BUYING BEHAVIOR
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Environmental
Economic
Political
Cost of Money
Competition
Technological
Organizational
Objective
Policies
Procedures
Structure
Inter Personal
Authority
Status
Empathy
Individual
Age
Education
Income
BUSINESS
BUYER
So, these are the factors that affect the consumer as well as business
buying behavior.
BUYING DECISION MAKING
Consumers make the decision on the different brands available in the
market. They will give the choice over the different brands. So there is a
model that describes how the consumers make the choice and
preferences over the different brands.
The Following is the model of buying decision-making: -
1. Total Set: - In this they used to maintain the list of the all-leading
brand to those particular products, that are available in the market.
2. Awareness Set: - After that they used to make the list of those
selected brands with that they are something knows and aware about
their products.
3. Consideration Set: - After that they used to make the list from the list
of known brands, about those they know something better than other
brands.
4. Choice Set: - After the consideration of some brands, a list of choice
brands those having the greater chances of acceptance over others.
5. Decision Set: - After the all of the process in last most preferred, mostacceptable during the buying decision process.
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So that its a process, which defines that, how a buying decisions are
made among the number of brands available In the market.
So that its all about the general buying behavior of cons, and business buying according to marketing concept, because to understand and
making study over buying behavior first its necessary to aware with
concept of buying behavior.
BUYING BEHAVIOR - INTRODUCTION OF STUDY
INTRODUCTION
Understanding the buying behavior of the target market for its company
products is the essential task for the marketing dept. The job of the
marketers is to think customer and to guide the company into
developing offers, which are meaningful and attractive to target
customers and creating solutions that deliver satisfaction to the
customers, profits to customer and benefits to the stakeholders.
The computer processor company divides its buying behavior in both
way i.e. Consumer and Business. The both of term have same meaning
as to define in the chapter of buying behavior. The both consumer and
business are divided further as SMB Small Medium Big - to identify
the type of client according to their sales and SMB have their own group
of clients.
CONSUMER BUYING BEHAVIOR:-
It includes all those person who are the direct user of the computers and
their processors or for their employees and family member use. They
are not indulging in the sale activity of the computer and other Products.
i.e. home users, companies for their employees.
BUSINESS BUYING BEHAVIOR: -
It includes all those person who are not the direct user of the computers
and their processors or for their employees and family member use.They are indulging in the sale activity of the computer and other
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Products. They can also be authorized from companies i.e. Intel. i.e. hp,
HCL, Assemblers.
There is model of the both of behavior as suggested by companies with
the dividing in the SMB, the both of the buying behavior. The models
are below for both behaviors: -
CONSUMER BUYING
S M B
SMALL MEDIUM BIG
Home PC users
Doctors
Chemists
Shop Keepers
And Self-Employed
Departmental Stores
Small Industries
Small Software Companies
Banks, Insurance
Laptop Users
Big Industries
Software Comp.
Scientists
MODEL OF CONSUMER BUYING BEHAVIOR
BUSINESS BUYING
S M B
SMALL MEDIUM BIG
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Retailers
Small Traders
Small Assemblers
Whole Sellers
Big Assemblers
Intel Agents
Auth. Assemblers
e.g. HP, HCL, ACER
Super Store Retailers
MODEL OF BUSINESS BUYING BEHAVIOR
So thats all about the category of computer processors buying behavior
as to each divided in SMB as to their use and sales point. Now we will
be discuss with the concept of the from the point our study and discuss
how these companies make it possible.
PROBLEM FORMULATION
In this report we are making a study report for the buying behavior of
Processors in order to know the position of different sets Processors
brands of different companies in the market. So that we divide the
problem in sub parts to make the good and result oriented study report.
Problem defined as: -
What is the Position of the computer processors all
companies in the Indian market?
Different players in the processor market.
Perception of dealers and consumer about these
companies.
Physical distribution of these companies competing with
others.
Taste and preferences of dealer and consumer towards
computer.
Price effect over consumer and dealer between
competitions. Marketing and sales promotion activity of
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these companies.
Competition in terms of price, technology and after sale
service.
Find out the consumer and business target groups.
So as to study the buying behavior we divide the problem overstated
parts, so that it can be easily formulate and solved.
SIGNIFICANCE OF PROBLEM
Every one knows the time of manual working and now we have
different set of machines for the different work, it makes our work very
easy and fast. In these machines computer is one and buying of a
computes is not a simple task. In that buying behavior for the computer
processors has Its own significance. For that we divide the problem as
stated in above sect and each problem has its own significance to
answer the following questions: -
Why, When, How, What, where and who is buying the
Computer?
Why, When, How, What, where and who is buying
processors and which one?
Why, When, How, What, where and who is buying only
INTEL processors?
Why, When, How, What, where and who is buying other
than INTEL processors?
In the, context of the solving these questions, problem has significance
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in the form of the over stated questions?