HRM

• Long-term Loyalty Relationship


  An ongoing bond between a brand and its customers, where customers consistently choose the brand over its competitors
• Customer Loyalty


  Consumers/customer's willingness to repeatedly return to a brand to conduct business or simply repeatedly avail its goods or services, due to the excellent experiences they have encountered upon patronizing the company's products or services
• Importance of Customer Loyalty


  • Loyal customers contribute to steady earnings, serve as brand ambassadors, spread positive word-of-mouth, spend more, influence more customers, and cost less to serve
• Types of Customer Loyalty


  • Transactional Loyalty (based on price or convenience)
  • Emotional Loyalty (based on positive feelings and respect for a brand)
• Transactional Loyalty


  • A customer who chooses to repeatedly shop at a particular supermarket not because they have an emotional attachment to the brand, but because it's the closest to their home and offers the most competitive prices
• Emotional Loyalty


  • A customer buying a product because it promises something satisfactory for them, such as the product allows consumer to achieve some sort of enjoyment
• Factors Influencing Customer Loyalty


  • Quality of products or services
  • Customer service and experience
  • Brand reputation
  • Price and value for money
• Quality of products or services


  • Apple's commitment to quality and innovation keeps customers loyal
• Customer service and experience


  • SM supermalls is famous for its excellent customer service, with customer lounges to enhance the overall shopping experience
• Brand reputation


  • Jollibee is highly regarded for its commitment to providing quality food and a warm and friendly dining experience
• Price and value for money


  • Shopee vs. Lazada, the loyalty of the customers tends to stay on the platform that has cheaper yet high-quality products
• Strategies for Building Customer Loyalty


  • Providing exceptional customer service
  • Creating a customer loyalty program
  • Regular engagement and communication
• Providing exceptional customer service


  • Globe Telecom's GCash, making it easier, faster, and more convenient for people to manage their finances using their mobile devices
• Creating a customer loyalty program


  • Petron rewards program "Petron Card"
• Regular engagement and communication


  • The chat feature with automated reply in DITO sim or other sim card applications, strengthening engagement and communication between user and the brand
• Stages in Attracting and Retaining Customers to building Loyalty


  1. Awareness

  2. Interest

  3. Consideration

  4. Purchase

  5. Loyalty
• The marketing funnel identifies the percentage of the potential target market at each stage in the decision process, from merely aware to highly loyal
• Satisfied customers are the company's customer relationship capital
• Challenges in Maintaining Long-term Customer Loyalty


  • Changing customer preferences
  • Increased competition
  • Technological advancements
• Changing customer preferences


  As trends and preferences change, it can be challenging to keep customers loyal
• Increased competition


  With so many options available, customers can easily switch to competitors
• Technological advancements


  Keeping up with technology and utilizing it to enhance customer experience is crucial for maintaining loyalty
• Overcoming Challenges in Maintaining Long-term Customer Loyalty


  • Adapting to changes in the market
  • Continuously improving products and services
  • Investing in customer relationship management (CRM) systems
• Adapting to changes in the market


  Continuously researching and understanding market trends can help businesses adapt and maintain customer loyalty
• Continuously improving products and services


  Regularly updating and improving offerings can keep customers interested and loyal
• Investing in customer relationship management (CRM) systems


  A CRM system is a software technology that helps companies stay connected to customers online, streamline processes, and improve profitability
• Creating or building long-term loyalty is a continuous process that requires ongoing effort and commitment, crucial for businesses to retain customers and ensure their continued support
• Global competition is intensifying in more product categories as new firms make their mark on the international stage
• Competition from developing-market firms is also heating up
• Although opportunities to compete in international markets are significant, the risks can be high
• Upon deciding to go abroad, a company needs to define its international marketing objectives and policies
• Why International Market?

  • Some international markets present better profit opportunities than domestic market
  • The company needs a larger customer base to achieve economies of scale
  • The company wants to reduce its dependence on any one market
  • The company decides to counterattack global competitors in their home markets
  • Customers are going abroad and require international service
• Major Decisions in International Marketing

  • International Markets Decision: Whether to go for international markets?
  • Market Selection Decision: To whom of which country to sell?
  • Market Entry Decision: How to enter the international market?
  • Marketing Mix Decision: Which type of marketing mix should a firm prepare?
  • International HR & Organization Decision: What type of organization should be adopted by the firm to manage international business?
• Risks of Internationalization

  • Firm might not understand foreign preferences, failing to offer competitively attractive product
  • Firm might not understand foreign country's culture
  • Firm might underestimate foreign regulations and incur unexpected costs
  • Firm might lack managers with international experience
  • Foreign country might change commercial laws, devalue currency, or expropriate foreign property
• Factors a company reviews before deciding to go abroad

  • Affordability of Products, Standard of living
  • Differences in Language & Customs
  • Social & Cultural factors
  • Attitude of Government
  • Political & Legal
  • Market Attractiveness
  • Evaluate Market Potential
  • Audit resource and capabilities
  • Firm Capabilities
• Internationalization process

  1. No export activities

  2. Export via independent representatives (Agent)

  3. Establishment of sales subsidiaries

  4. Establishment of production facilities abroad
• Typical entry strategies

  • Waterfall approach: Gradually entering countries in sequence
  • Sprinkler approach: high-risk, high-reward approach, price skimming technique
  • Born Global: Especially technology-intensive firms or online ventures increasingly are born global
• How a company chooses which markets to enter

  • Neighboring countries: Better understanding and control of the entry costs
  • Psychic proximity/ Cultural distance: Determines choices, given more familiar language, laws, and culture
  • Fever countries: Countries that have high market attractiveness and low market risk with deep commitment
• Developing countries offer a unique set of opportunities and risks
• Developing markets account for about 82% of the world's population, and 90% of future population growth is projected to occur there