1. CHAPTER 2 DISCUSSION QUESTIONS 1) What does the author mean by, "the customer is in the driver's seat"? 2) In your opinion, what company does a great job at satisfying its customers' needs? Why? 3) What is Medtrnoic? The author states that Medtronic is a company that personifies Drucker's ideal of customer focus. How? 4) What are the 4 Drucker questions that a company should answer when connecting with its customer? 5) Drucker believes that there is never only one customer. What does he mean? How do the Girl Scouts of America fit this? 6) What is the online payment business owned by ebay? What is the Internet phone service owned by ebay? 7) Why is it important/helpful for organizations to identify noncustomers? 8) How did Apple figure out that its customers wanted a car charger for the iPod?

2. COMPANIES THAT EFFECTIVELY SATISFY THEIR CUSTOMERS’ NEEDS?

3. THE CUSTOMER IS IN THE DRIVER’S SEAT WHY? HOW?

4. 1) COMPETITION CONSUMERS HAVE MORE CHOICES TODAY.

5. 2) TECHNOLOGY CONSUMERS HAVE MORE KNOWLEDGE TODAY.

6. 3) DEMAND FOR QUALITY THE CONSUMER KNOWS WHAT THE CONSUMER WANTS.

7. THE RESULTS OF ANY INSTITUTION ONLY EXIST ON THE OUTSIDE -THE RESULT OF A HOSPITAL IS A HEALED PATIENT -THE RESULT OF A SCHOOL IS AN EDUCATED STUDENT -THE RESULT OF A BUSINESS IS A SATISFIED CUSTOMER

8. HOW TO REACH THE CUSTOMER -PRE-SILENT REVOLUTION: PUSH STRATEGY -NOW: PULL STRATEGY -THE CUSTOMER CAN NOW BE REACHED EASIER, & FASTER PUSH MARKETING -COMPANY “PUSHES” PRODUCT ON CONSUMER WHO MAY NOT BE AWARE OF IT -USED TO CREATE CONSUMER DEMAND PULL MARKETING -THE CONSUMER “PULLS” THE PRODUCT TOWARDS THEMSELVES BECAUSE THEY ARE INTERESTED -USED TO BUILD UP CONSUMER DEMAND

9. EXAMPLES OF PUSH MARKETING PRODUCT SAMPLING

10. EXAMPLES OF PULL MARKETING PRODUCT PLACEMENT WORD OF MOUTH

11. HOW DOES MEDTRONIC PERSONIFY DRUCKER’S IDEAL OF CUSTOMER FOCUS? -MISSION: TO ALLEVIATE PAIN, RESTORE HEALTH, & EXTEND LIFE -DOCTORS HELP MEDTRONIC DECIDE WHAT PRODUCTS TO INVENT BY UNDERSTANDING PATIENTS PROBLEMS & THE DEVICES NEEDED TO ADDRESS THEM

13. WHO IS YOUR CUSTOMER IS NOT SUCH AN EASY QUESTION TO ANSWER IN AN EVER-CHANGING LEGO WORLD *CUSTOMERS ARE BETTER INFORMED.

14. SO….WHO SHOULD BE CONSIDERED A CUSTOMER? THE END USER? THE BUYER/DECISION MAKER? CRITICAL INFLUENCERS/INNOVATORS? PRODUCT DIFFUSION CURVE

15. CUSTOMERS ARE GROUPED ACCORDING TO HOW QUICKLY THEY ADOPT A NEW PRODUCT INNOVATORS: WELL-INFORMED RISK TAKERS THAT WILL TAKE A RISK ON AN UNPROVEN PRODUCT EARLY ADOPTERS: BASED ON THE POSITIVE RESPONSE OF INNOVATORS EARLY MAJORITY: CAREFUL CONSUMERS WHO TEND TO AVOID RISK THAT RELY ON OPINIONS OF OTHERS LATE MAJORITY: SKEPTICAL CONSUMERS WHO PURCHASE AFTER PRODUCT HAS BECOME COMMONPLACE LAGGARDS: AVOID CHANGE & WON’T PURCHASE A PRODUCT UNTIL TRADITIONAL ALTERNATIVES NO LONGER EXIST

16. THERE IS NEVER ONLY ONE CUSTOMER 2 WAYS TO GROUP PEOPLE TOGETHER DEMOGRAPHICS -CHARACTERISTICS OF A SELECTED POPULATION BASED ON STATISTICAL DATA (QUANTIFIABLE) -RACE, AGE, GENDER, INCOME PSYCHOGRAPHICS -CHARACTERISTICS OF A SELECTED POPULATION BASED ON PERSONALITY TRAITS (NOT QUANTIFIABLE) -INTERESTS, LIFESTYLES, VALUES

17. THERE IS NEVER ONLY ONE CUSTOMER

18. WHY IS IDENTIFYING NONCUSTOMERS IMPORTANT? -80/20 RULE (PARETO PRINCIPLE) -80% OF YOU SALES COMES FROM 20% OF YOU CORE CUSTOMERS -THINK BIG, ACT SMALL -EASIER TO TARGET DEFINED GROUPS -ALLOWS MANAGEMENT AN OUTSIDE-IN PERSPECTIVE -WHO AMONG OUR EXISTING CUSTOMERS SHOULD NOT HAVE CUSTOMER STATUS, & WHY?

19. WHY SHOULD YOU DO BUSINESS WITH NONCUSTOMERS? -TIME FOR CHANGE -PRODUCT LINE EXTENSION -GAIN MARKET SHARE