retailers | businesses that sell directly to final consumers |
wholesalers | businesses that buy products from businesses and sell them to other businesses |
buying | obtaining a product to be resold: involves finding suppliers that can provide the right products in the right quality and quantity at a fair price |
selling | providing personalised and persuasive information to customers to help them buy the products and services they need |
transporting | moving products from where they were made to where consumers can buy them |
storing | holding products until customers need them, such as on shelves in storage rooms or in warehouses |
financing | providing money to pay for the various marketing activities, such as by obtaining credit when buying and extending credit when selling |
researching | studying buyer interests and needs, testing products, and gathering facts needed to make good marketing decisions |
risk taking | assuming the risk of losses that may occur from fire, theft, damage, or other circumstances |
grading and valuing | grouping goods according to size, quality, or other characteristics, and determining an appropriate price for products and services |
production oriented | decisions about what and how to produce to receive the most attention |
sales oriented | they emphasise widespread distribution amd promotion to sell their products |
customer oriented | they direct the activities of the company toward satisfying customers |
marketing concept | needs of the consumer kept in mind during the design, production, and distribution of a product |
market | refers to the types of buyers a business wishes to attract and where those buyers are located |
market research | the study of a company's current and prospective customers |
target markets | groups of customers with very similar needs to whom the company plans to sell the product |
marketing mix | all decisions related to the four elements of marketing, product, price, distribution, and promotion |
product | all attributes, both tangible and intangible, that customers receive in exchange for the purchase price |
price | the amount of money given to acquire a product |
place utility | where the product must be in a place where customers need or want it |
distribution [or place] | the set of activities required to transport and store products and make them available to customers |
promotion | means providing information to consumers that will assist them in making a decision and persuade them to purchase a product or service |
marketing plan | a detailed written description of all marketing activities that a business must accomplish in order to sell its products |
product life cycle | consists of of four stages of sales and profit performance through which all brands of a product progress |
introduction stage | a brand-new product enters the market |
growth stage | when several brands of the new product are available |
maturity stage | the product is competing with many other brands with very similar features |
decline stage | occurs when a new product is introduced that is much better or easier to use and customers begin to switch from the old product to the new |
industrial goods | products designed for use by another business |
consumer goods | products designed for personal or home use |
convenience goods | inexpensive items consumers purchase regularly without a great deal of thought |
shopping goods | products less frequently bought than convenience goods, that are higher priced, and require thought before buying |
specialty goods | products that customers insist on having and are willing to search for until they find them |
unsought goods | products customers don't shop for because they don't have a strong need for them |
By definition, customer expectations are any set of behaviors or actions that individuals anticipate when interacting with a company. Historically, customers have expected basics like quality service and fair pricing — but modern customers have much higher expectations, such as proactive service, personalized interactions, and connected experiences across digital channels.
To better understand how customer expectations are changing, Salesforce Research surveyed 15,600 consumers and business buyers globally. In this research, “customers” is an aggregate of both consumer and business buyer responses. These findings, published in the fourth edition of the “State of the Connected Customer” report, give an in-depth look at:
- The factors influencing customers’ expectations
- The emerging technologies influencing the future of customer experience
- The reasons brand trust is increasingly important and how companies can foster it
For starters, the research found that 80% of customers now consider the experience a company provides to be as important as its products and services.
As disruptive companies leverage breakthroughs in cloud, mobile, social, and artificial intelligence technology to deliver personalized, valuable, and immediate experiences, customers have more choices than ever. As a result, they grow to expect this superior experience from any business they engage with.
66%
of customers expect companies to understand their needs and expectations
Source: "State of the Connected Customer," October 2020.
The research shows that understanding customers’ needs — and exceeding their expectations — are becoming table stakes for businesses to compete. Here are four expectations that are changing the game for companies.
- 76% of customers expect consistent interactions across departments, yet 54% say it generally feels like sales, service, and marketing teams don’t share information
- 74% of customers have used multiple channels to start and complete a transaction
- 52% of customers expect offers to always be personalized — up from 49% in 2019
- 66% of customers expect companies to understand their unique needs and expectations, yet 66% say they’re generally treated like numbers
- 88% of customers expect companies to accelerate digital initiatives due to COVID-19
- 69% of customers believe companies should offer new ways to get existing products and services in the wake of the pandemic, and 54% believe they should offer entirely new products and services
- Only 48% of customers say they generally trust companies
- Only 27% of consumers completely understand how companies use their personal information, and 86% want more transparency
- 61% of consumers feel like they’ve lost control over how their personal information is used — up from 46% in 2019
Read more about customer trust.
In this era of exponentially disruptive technological change, products and services that are cutting edge one day are outdated the next. In this context, the experience a company offers is increasingly its differentiator. But the scope of customer experience is changing, too. To win hearts and wallets, companies must not only deliver amazing marketing, sales, ecommerce, and service interactions, but also prove that they have the customers’ best interests in mind.
Customers expect a lot from companies, and their standards are being elevated as they interact with various sectors. The result is that businesses must look beyond their own industry to understand the benchmarks they are being evaluated against.
62%
of customers say their experiences with one industry influence their expectations of others
Source: "State of the Connected Customer," October 2020.
Customers’ expectations for empathetic, personalized, and digital-first engagement don’t stop when they go to work. Much like consumers, business buyers see a gap between the standards that have been set and the reality they experience.
Put simply, it pays to provide great customer experiences. In fact, 91% of those polled say they're more likely to make a repeat purchase after a positive experience, and 71% say they’ve made a purchase decision based on experience quality.