MKT 3401 Tuesday 03/15/2014
MKT 3401
Tuesday 03/15/2014
4 Marketing Management Philosophies Product Orientation Sales Orientation Marketing Orientation Societal Orientation giving the customer what they want and need while keeping our society safe; sustainability; what to be seen as a good “steward” (Ex: CVS eliminating cigarettes creating a company brand that separates themselves) 3 Marketing Concepts Customer Value value is critical; (customer value= benefits – costs) create the benefits, sell the benefits Customer Satisfaction the customer wants to leave happy; you want the customers to talk good about you and rate your company well; you want them to feel like you cared Customer Service 63% of people will change a purchase decision based on the indifference of one person. 77% of people who have a bad experience will tell at least one person. 7% of people who have a bad experience will tell the service provider. What happens when customers switch? 1) Core service failure (AT&T, Cox, Directv) 2) Service encounter failure (Can’t give this if you can’t understand personal brand and truly caring about the customer) Service has to be the ante. You have to seem knowledgeable. 3) Price switch if price is gauging, unfair, tricky, illegal, ridiculous 4) Inconvenience ***Not Location
**** How important is listening according to Kenneth Finebourg? (Successful attorney, he represents victims and families filing suit after 9/11, represents VT victims, represents BP) Gave a lecture at Harvard about the importance of listening 9/11 victims (~3,000….2,000 appealed the settlement)
Two Types of Customer who had bad experiences: Angry customer yells and is upset, lets someone know they are unhappy (embrace them, let them vent, apologize) Remorseful customer upset and angry but when asked about their experience by workers/managers, “everything was good”. They do not let anyone know about their terrible experience when it happened but will most likely tell friends/family later and won’t probably return
Thursday, 03/15/2014 Service Failure Responding and repairing when something bad happens When there is failure, how much recovery is enough? What to do? Recovery Can you make them feel like you really did care? 2 Ways of Looking at Customer Service Antee what is expected in good customer service (bedside manners, everyday good behavior) Moment of Truth when a bad moment happens that’s complete failure, you step in and try to resolve the mess; a lot of value in the moment of truth *Case study from Harvard: United……? *United Airlines broke a guy’s guitar: Customer service was violated Damaged the company’s brand Why is customer service so important? The results of good customer service: Referrals Reduced effort of selling Can lead to premium pricing (Ex: Wood floors) Marketing Concepts Customer Value Customer Service Developing longterm relationships (appreciation, LSU suites for business relationships)
03/15/2014 Two Types of Credibility 1) Resume (physical) speaking resume (speaker introduction) 2) Authencity delivery, carismism, personality, trustworthy, sincere Four Marketing/Management Philosophy 1) Production Orientation they don’t care about the customer, only care about making the best products but the problem is that products die an expensive death because nobody really likes it 2) Sales Orientation different, they don’t care about how the product is made, they just care about skilled sales force (Ex: Mary Kay, Avon, Pharmaceutical Sales Rep) 3) Marketing Orientation satisfying the customers’ needs and wants by providing them with the product or service that they need or want 4) Societal Orientation everything about marketing orientation plus keeping environment safe
03/15/2014 Articles to read out of book for test: Know how they tie into what we have learned Pages 1955, which include: Target Marketing Customer Satisfaction The Marketing Mix
03/15/2014 Marketing Strategy Framework Level One Market Analysis 1) Examine the company (strengths and weaknesses, cash rich or credit rich, resources, etc.) 2) Know your competition (find them, figure them out, learn as much about them as you know about your own company, keep up with them because they are keeping up with you) (Ex: 3 television stations/ google/ postal service) 3) Know your customers (buying habits, 4 Parts of the Marketing Mix: 1. Promotions 4 parts of promotional mix: advertising public relations sales promotions (emails, flyers) personal selling
03/15/2014 How can companies better understand the consumers
03/15/2014 The consumer decisionmaking process: (5 steps) all about persuasion (persuasion a conscious attempt to modify or change the behavior of the consumer and move the consumer towards a _____??) 1.
Need recognition
2.
Information Search (Need hasn’t been fulfilled so you need to fulfill the need by getting as much information as you need)
external= 1) personal (from family and friends 92% Warden Business School says that the most trusted business information is from family and friends) opinion leaders (those people that carry themselves in that way that you may look up to word of mouth very powerful (Chimes after football games, movies are driven by “sneezing” germs spread) (“Passion of the Christ” by Mel Gibson, taking the movie while not changing any true facts and in a foreign language, very predictable movie, marketed the movie by using his status as an actor and went on talk shows as a celebrity endorser and reached out to the opinion leaders [preachers and what preacher doesn’t want to hear Mel Gibson talk, preachers went back and told their congregations] timing was perfect around lent, stir and the excitement existed by everyone spreading the word Why the use of celebrities? It depends if the celebrity is the right celebrity for the job. Two purposes= 1) to sell 2) to change the perception of the product o Warden Business School, “Buzz marketing” actually systematic way to create buzz marketing when a company chooses to put a product in the hands of an opinion leader for the purpose of them using the product for free and hopefully passing a good word of mouth. (EX: mopad not really the hippest thing to ride so they changed the mopad to a new name of Vespa target market is college students; they engaged in buzz marketing; gave a few free Vespa’s to a few football players from Ohio State) o ***What is the ethical concern of buzz marketing? (make sure there is no misrepresentation, give product to people without making them saying what they want you to say) o Are online reviews important? Yes, 70% o 2) commercial completely biased, only cared about their own company, not with the competition, only want themselves to look good o TV o Radio o Newspaper o Magazines
03/15/2014 o Internet o Direct mail more money is spent under direct mail than any other listed above o Billboards (1) placement of billboard 2) advancement and technology of billboard) goal find the pipe!! (positioned there to spin that billboard to capture the audience seeing it) o 3) Public the unbiased sources of information, trying to be as objective as possible. (consumer report, sometimes government) consumer can decide where to get their products, o a) Unique selling proposition a believable, desirable advertising appeal (what will separation your product from others) o Ex: Volvo (one word to separate themselves—their unique selling proposition was SAFE, able to build brand beyond the word “safe”) o Ex: you want to enter the toothpaste industry (lots of choices) so how do you separate yourself from the competition (Rembrandt came out advertising their toothpaste as a whitening product, was their unique selling proposition, so good that it carved out a new area, now all toothpaste wants to do whitening as well) o b) Involvement time and effort spent on searching and evaluating a product o 3 types of buyer decisions in involvement 1) routine 2) moderate (or limited not routine, not as quick, checking a few more magazines or speaking to a few more people) 3) extensive (a big decision) (if it’s extensive then company needs to provide lots of information for the consumer to make a decision) c) Evoked Set whenever you look at all the choices and evaluate them, now it’s time to make a final decision (a smaller subset) o (Ex: you are a senior in high school and need to make a decision on which college to attend, lots of colleges to pick from, look at all universities you thought would be good for you, you embark on an information search (ask friends, check public information, was there something special that stuck out that caught your attention) send application in to GA and then you think about TX or you could stay here and go to LSU, your evoked set is= GA, TX, and LSU, so you go to each and test them each out
3. Evaluate
(you now narrowed all your options down) based on the evoked set, you now you
evaluate the attributes of the alternative (GA= long drive, after flying you have to rent car, very expensive tuition) (TX= 8 hour drive, straight shot on interstate, very liberal and hippie campus, big campus) (LSU= prettier, not as rich as the other two campuses, TOPS so free and could possibly get a car or apartment with money your parents saved for your education, great jobs after graduation, great football team)
4. Purchase
03/15/2014 5. Post purchase behavior
returns don't make it a purchase anymore, cognitive ____
when you self doubt following a purchase (bought it and probably won’t spread a good word, won’t be a loyal customer) EX: sometimes happens when people get engaged (some expensive jewelry stores will get employees to go undercover to say stuff to potential buyers to say “I have a pair of those earrings, and my god, they are beautiful and perfect and my wife absolutely loved them”) make the customers feel good about their purchases **test question if customer is uncomfortable making a purchase, reaffirm the attributes of the product that made them interested in the first place (Ex: Prof. Karam getting expensive concrete for his new house, his wife wanted this and Karam didn’t feel as comfortable with purchase as his wife. Concrete company followed up a few days later to make sure he was happy with their services even though it’s concrete and can’t be returned, just wanted him to feel good about it and to reduce his cognitive _______)
03/15/2014 Read articles starting with John Camp, talks about all the elements about the class personal branding Al Maranon study talking about the emotional … credibility what makes you marketable concepts of marketing (3), what makes them unique customer service is critical and you must know it marketing strategy framework (3 levels) *** what they are and what they encompass marketing mix (price, place, promotion) consumer decision making process (5)
Tuesday 03/15/2014
4 Marketing Management Philosophies Product Orientation Sales Orientation Marketing Orientation Societal Orientation giving the customer what they want and need while keeping our society safe; sustainability; what to be seen as a good “steward” (Ex: CVS eliminating cigarettes creating a company brand that separates themselves) 3 Marketing Concepts Customer Value value is critical; (customer value= benefits – costs) create the benefits, sell the benefits Customer Satisfaction the customer wants to leave happy; you want the customers to talk good about you and rate your company well; you want them to feel like you cared Customer Service 63% of people will change a purchase decision based on the indifference of one person. 77% of people who have a bad experience will tell at least one person. 7% of people who have a bad experience will tell the service provider. What happens when customers switch? 1) Core service failure (AT&T, Cox, Directv) 2) Service encounter failure (Can’t give this if you can’t understand personal brand and truly caring about the customer) Service has to be the ante. You have to seem knowledgeable. 3) Price switch if price is gauging, unfair, tricky, illegal, ridiculous 4) Inconvenience ***Not Location
**** How important is listening according to Kenneth Finebourg? (Successful attorney, he represents victims and families filing suit after 9/11, represents VT victims, represents BP) Gave a lecture at Harvard about the importance of listening 9/11 victims (~3,000….2,000 appealed the settlement)
Two Types of Customer who had bad experiences: Angry customer yells and is upset, lets someone know they are unhappy (embrace them, let them vent, apologize) Remorseful customer upset and angry but when asked about their experience by workers/managers, “everything was good”. They do not let anyone know about their terrible experience when it happened but will most likely tell friends/family later and won’t probably return
Thursday, 03/15/2014 Service Failure Responding and repairing when something bad happens When there is failure, how much recovery is enough? What to do? Recovery Can you make them feel like you really did care? 2 Ways of Looking at Customer Service Antee what is expected in good customer service (bedside manners, everyday good behavior) Moment of Truth when a bad moment happens that’s complete failure, you step in and try to resolve the mess; a lot of value in the moment of truth *Case study from Harvard: United……? *United Airlines broke a guy’s guitar: Customer service was violated Damaged the company’s brand Why is customer service so important? The results of good customer service: Referrals Reduced effort of selling Can lead to premium pricing (Ex: Wood floors) Marketing Concepts Customer Value Customer Service Developing longterm relationships (appreciation, LSU suites for business relationships)
03/15/2014 Two Types of Credibility 1) Resume (physical) speaking resume (speaker introduction) 2) Authencity delivery, carismism, personality, trustworthy, sincere Four Marketing/Management Philosophy 1) Production Orientation they don’t care about the customer, only care about making the best products but the problem is that products die an expensive death because nobody really likes it 2) Sales Orientation different, they don’t care about how the product is made, they just care about skilled sales force (Ex: Mary Kay, Avon, Pharmaceutical Sales Rep) 3) Marketing Orientation satisfying the customers’ needs and wants by providing them with the product or service that they need or want 4) Societal Orientation everything about marketing orientation plus keeping environment safe
03/15/2014 Articles to read out of book for test: Know how they tie into what we have learned Pages 1955, which include: Target Marketing Customer Satisfaction The Marketing Mix
03/15/2014 Marketing Strategy Framework Level One Market Analysis 1) Examine the company (strengths and weaknesses, cash rich or credit rich, resources, etc.) 2) Know your competition (find them, figure them out, learn as much about them as you know about your own company, keep up with them because they are keeping up with you) (Ex: 3 television stations/ google/ postal service) 3) Know your customers (buying habits, 4 Parts of the Marketing Mix: 1. Promotions 4 parts of promotional mix: advertising public relations sales promotions (emails, flyers) personal selling
03/15/2014 How can companies better understand the consumers
03/15/2014 The consumer decisionmaking process: (5 steps) all about persuasion (persuasion a conscious attempt to modify or change the behavior of the consumer and move the consumer towards a _____??) 1.
Need recognition
2.
Information Search (Need hasn’t been fulfilled so you need to fulfill the need by getting as much information as you need)
external= 1) personal (from family and friends 92% Warden Business School says that the most trusted business information is from family and friends) opinion leaders (those people that carry themselves in that way that you may look up to word of mouth very powerful (Chimes after football games, movies are driven by “sneezing” germs spread) (“Passion of the Christ” by Mel Gibson, taking the movie while not changing any true facts and in a foreign language, very predictable movie, marketed the movie by using his status as an actor and went on talk shows as a celebrity endorser and reached out to the opinion leaders [preachers and what preacher doesn’t want to hear Mel Gibson talk, preachers went back and told their congregations] timing was perfect around lent, stir and the excitement existed by everyone spreading the word Why the use of celebrities? It depends if the celebrity is the right celebrity for the job. Two purposes= 1) to sell 2) to change the perception of the product o Warden Business School, “Buzz marketing” actually systematic way to create buzz marketing when a company chooses to put a product in the hands of an opinion leader for the purpose of them using the product for free and hopefully passing a good word of mouth. (EX: mopad not really the hippest thing to ride so they changed the mopad to a new name of Vespa target market is college students; they engaged in buzz marketing; gave a few free Vespa’s to a few football players from Ohio State) o ***What is the ethical concern of buzz marketing? (make sure there is no misrepresentation, give product to people without making them saying what they want you to say) o Are online reviews important? Yes, 70% o 2) commercial completely biased, only cared about their own company, not with the competition, only want themselves to look good o TV o Radio o Newspaper o Magazines
03/15/2014 o Internet o Direct mail more money is spent under direct mail than any other listed above o Billboards (1) placement of billboard 2) advancement and technology of billboard) goal find the pipe!! (positioned there to spin that billboard to capture the audience seeing it) o 3) Public the unbiased sources of information, trying to be as objective as possible. (consumer report, sometimes government) consumer can decide where to get their products, o a) Unique selling proposition a believable, desirable advertising appeal (what will separation your product from others) o Ex: Volvo (one word to separate themselves—their unique selling proposition was SAFE, able to build brand beyond the word “safe”) o Ex: you want to enter the toothpaste industry (lots of choices) so how do you separate yourself from the competition (Rembrandt came out advertising their toothpaste as a whitening product, was their unique selling proposition, so good that it carved out a new area, now all toothpaste wants to do whitening as well) o b) Involvement time and effort spent on searching and evaluating a product o 3 types of buyer decisions in involvement 1) routine 2) moderate (or limited not routine, not as quick, checking a few more magazines or speaking to a few more people) 3) extensive (a big decision) (if it’s extensive then company needs to provide lots of information for the consumer to make a decision) c) Evoked Set whenever you look at all the choices and evaluate them, now it’s time to make a final decision (a smaller subset) o (Ex: you are a senior in high school and need to make a decision on which college to attend, lots of colleges to pick from, look at all universities you thought would be good for you, you embark on an information search (ask friends, check public information, was there something special that stuck out that caught your attention) send application in to GA and then you think about TX or you could stay here and go to LSU, your evoked set is= GA, TX, and LSU, so you go to each and test them each out
3. Evaluate
(you now narrowed all your options down) based on the evoked set, you now you
evaluate the attributes of the alternative (GA= long drive, after flying you have to rent car, very expensive tuition) (TX= 8 hour drive, straight shot on interstate, very liberal and hippie campus, big campus) (LSU= prettier, not as rich as the other two campuses, TOPS so free and could possibly get a car or apartment with money your parents saved for your education, great jobs after graduation, great football team)
4. Purchase
03/15/2014 5. Post purchase behavior
returns don't make it a purchase anymore, cognitive ____
when you self doubt following a purchase (bought it and probably won’t spread a good word, won’t be a loyal customer) EX: sometimes happens when people get engaged (some expensive jewelry stores will get employees to go undercover to say stuff to potential buyers to say “I have a pair of those earrings, and my god, they are beautiful and perfect and my wife absolutely loved them”) make the customers feel good about their purchases **test question if customer is uncomfortable making a purchase, reaffirm the attributes of the product that made them interested in the first place (Ex: Prof. Karam getting expensive concrete for his new house, his wife wanted this and Karam didn’t feel as comfortable with purchase as his wife. Concrete company followed up a few days later to make sure he was happy with their services even though it’s concrete and can’t be returned, just wanted him to feel good about it and to reduce his cognitive _______)
03/15/2014 Read articles starting with John Camp, talks about all the elements about the class personal branding Al Maranon study talking about the emotional … credibility what makes you marketable concepts of marketing (3), what makes them unique customer service is critical and you must know it marketing strategy framework (3 levels) *** what they are and what they encompass marketing mix (price, place, promotion) consumer decision making process (5)
