X100 Introduction to Business Marketing Strategy X100 Introduction to Business Marketing Strategy Strategy Implementation Customer Satisfaction Professor Kenneth EA Wendeln X100 X100 Introduction to Business

Marketing Concept » Strategy Marketing Strategy Marketing Concept » Strategy A plan that will enable an organization to make the best use of its advantages and resources to meet its marketing objectives. “Measure Twice – Cut Once” X100 Marketing Strategy X100 Introduction to Business

Marketing Strategy Implementation Steps Marketing Information - obtain information about present and potential markets, customers, their needs, and how well those needs are being satisfied. Market Segmentation & Target Markets - pinpoint specific needs and potential customers toward which to direct marketing activities & resources. Market Mix - mobilize marketing resources to: Product - provide a product that will satisfy customers. Price - the product at acceptable and profitable levels. Place – to ensure distribution for product availability when and where wanted. Promotion – of the product to potential customers. Market Share & Feedback - obtain information on the effectiveness of the marketing effort and modify efforts as necessary. X100 Marketing Strategy X100 Introduction to Business

Marketing Information Marketing Strategy Marketing Information Marketing information system: for managing marketing information that is gathered from internal and external sources. Steps in marketing research: Define the issue or opportunity Make a preliminary investigation Plan the research Gather factual information Interpret the information Reach a conclusion . . . action X100 Marketing Strategy X100 Introduction to Business

Marketing Information Flows Into & Out of an Organization Marketing Strategy Marketing Information Flows Into & Out of an Organization A marketing activity’s effectiveness depends on the information available to marketers. Information the marketing environment potential customers Organization analyses strategy Marketing Activities Feedback about marketing activities’ effectiveness 1. Brand Awareness 2. Brand Recognition 3. Brand Preference 4. Brand Loyalty Customer Perceptions ► Market Share X100 Marketing Strategy X100 Introduction to Business

What is Marketing Research? Marketing Strategy What is Marketing Research? Marketing research links the consumer, the customer, and the public through information used to: Identify and define marketing opportunities Generate, refine, and evaluate marketing actions Monitor marketing performance Improve understanding of marketing as a process X100 Marketing Strategy X100 Introduction to Business

Stages of the Marketing Research Process Marketing Strategy Stages of the Marketing Research Process The sequence begins with the problem definition - an understanding of the problem Process ends with analysis & interpretation The overall objective should be to generate useful, timely, and cost-effective information  that result in good decisions & action X100 Marketing Strategy X100 Introduction to Business

The Customer Experience Revolution Marketing Strategy The Customer Experience Revolution Success is no longer created by just strategy, product innovation, advertising, or sizzle Now defined by experience of dealing with a company Now defined by feelings about the way we are treated Decreased human connection drives demand for it 2 out of 3 customers say they will NEVER shop at a company again if they have a bad experience. They will tell “everyone.” 87% follow what friends and family recommend. “The only differentiator is the Customer Experience.” Dr. Gerald Zaltman X100 Marketing Strategy X100 Introduction to Business

Service Impacts Loyalty Marketing Strategy Service Impacts Loyalty 1Top box 2Second box 3Bottom three boxes Neutral to Very Dissatisfied3 (7%) SERVICE satisfaction level (% of customers) Customers Very Satisfied1 (81%) Somewhat Satisfied2 (12%) Call Center Service Impact % Who will definitely continue to use products 86% 34% 33% 52 point drop Source: Tarp Worldwide X100 Marketing Strategy X100 Introduction to Business

IT Customer Loyalty National Benchmarks Marketing Strategy IT Customer Loyalty National Benchmarks X100 Marketing Strategy X100 Introduction to Business

Customer Relationships Marketing Strategy Customer Relationships X100 Marketing Strategy X100 Introduction to Business

Relationship Marketing Marketing Strategy Relationship Marketing Relationship marketing is developing mutually beneficial long-term ‘partnerships’ with customers to enhance customer satisfaction and to stimulate long-term customer loyalty. $$$$$$$$$ Awareness Recognition Preference Loyalty X100 Marketing Strategy X100 Introduction to Business

Customer Satisfaction Marketing Strategy Customer Satisfaction Customer satisfaction refers to whether customer expectations about a product or service have been met ….. or EXCEEDED !!! To retain a customer, customers must be satisfied with the service received. Over time, satisfied customers ► become loyal customers. LOYAL CUSTOMERS: buy more goods and services tend to buy higher priced goods and services cost less to service are very profitable $$$$$ X100 Marketing Strategy X100 Introduction to Business

Customer Service Key aspects involved in customer service: Marketing Strategy Customer Service Customer Service refers to - HOW organizations allow potential customers to transact business – and HOW customers are treated after a purchase. Key aspects involved in customer service: Service Delivery Service Encounter Service Guarantees and Warranties ‘SERVICE CLIMATE’ X100 Marketing Strategy X100 Introduction to Business

Building a ‘Service Climate’ Marketing Strategy Building a ‘Service Climate’ Employees – How to hire, train, develop and motivate employees who will provide high quality service to customers. Information access - How to develop a process that allows customers and potential customers to obtain information, goods and services from a company. ‘Service Encounters’ - How to manage the process of “service encounters” between employees and potential customers. X100 Marketing Strategy X100 Introduction to Business

A Model of Consumer Satisfaction Marketing Strategy A Model of Consumer Satisfaction Judgments of satisfaction & dissatisfaction result from comparisons between a person’s expectations about and actual performance.   X100 Marketing Strategy X100 Introduction to Business

Marketing Strategy 2. Marketing Segments Identify customer groups that share important characteristics that are thought to influence a decision to purchase. Types of Segments in Consumer Markets Demographic Age Gender Family Life cycle Income and Social Class Race and Ethnicity Geography Lifestyle Behavior X100 Marketing Strategy X100 Introduction to Business

Differentiated Market Segment Approach Marketing Strategy Differentiated Market Segment Approach MULTIPLE market mixes focused on MULTIPLE target market segments Place Price Promotion Product Marketing mix A Place Price Promotion Product Place Price Promotion Product Marketing mix B Organization Marketing mix C Multiple target markets X100 Marketing Strategy X100 Introduction to Business

Criteria for Effective Segmentation Marketing Strategy Criteria for Effective Segmentation Measurability Measurability reflects the degree to which the size and purchasing power of segments can be assessed. Accessibility Accessibility describes the degree to which a firm can reach intended target segments efficiently. Substantial- ness Substantialness refers to the degree to which identified target segments are large enough or have sufficient sales & profit potential to warrant unique or separate marketing programs. more X100 Marketing Strategy X100 Introduction to Business

Criteria for Effective Segmentation Marketing Strategy Criteria for Effective Segmentation Durability Durability has to do with stability of segments — whether distinctions between segments will diminish or disappear as the product category or the markets themselves mature. Differential Responsiveness Differential responsiveness refers to the extent to which market segments exhibit different responses to different marketing mixes. X100 Marketing Strategy X100 Introduction to Business

Perceptual Map Examples of Segmentation Marketing Strategy Perceptual Map Examples of Segmentation Helps to distinguish products based on different characteristics. X100 Marketing Strategy X100 Introduction to Business

Developing a Segmentation Strategy Marketing Strategy Developing a Segmentation Strategy The organization’s core business determines the product or service market in which it operates. $ X100 Marketing Strategy X100 Introduction to Business

$ The ‘Marketing Mix’ 3. The ‘Marketing Mix’ Product Price Place Marketing Strategy 3. The ‘Marketing Mix’ Product Price $ Place Promotion The ‘Marketing Mix’ X100 Marketing Strategy X100 Introduction to Business

Marketing Plan Elements of a marketing plan: Marketing Strategy Marketing Plan A written document that specifies an organization’s STRATEGY, OBJECTIVES, RESOURCES, IMPLEMENTATION & CONTROL efforts to be used in marketing a specific product or product group. Elements of a marketing plan: Executive summary Environmental analysis Strengths and weaknesses Opportunities and threats Marketing objectives Marketing strategies Marketing implementation Evaluation and control X100 Marketing Strategy X100 Introduction to Business

Services & Direct Sales View to the Market Marketing Strategy Market View to the market ◊ How much of the market can we actually see? ◊ Do we have the right ‘Market Mix’ of Product, Price, Place & Promotion? Producer Consumer Services & Direct Sales 18 Indianapolis Area Locations X100 Marketing Strategy X100 Introduction to Business

‘Restricted’ View to the Market Marketing Strategy ‘Restricted’ View to the Market Market View to the market     Producer Wholesaler Retailer Consumer  X100 Marketing Strategy X100 Introduction to Business

4. Measuring Market Share Marketing Strategy Market View to the market 1. Product 2. Presence 3. Hit Rate Market Share ≈ Product X Presence X Hit Rate Right Price Right Place Right Time Close the Sale Target Market Served Market Available Market Total Market Right Products Right Brand Right Support Promotion Awareness Channels of Distribution Improving Product or Presence or Hit Rate – will improve market share - X100 Marketing Strategy X100 Introduction to Business

Marketing Implementation Summary Marketing Strategy Marketing Implementation Summary Marketing Information Market Segmentation & Target Markets Marketing Mix Product Price Place Promotion Market Share & Feedback Economic forces Technological Competitive Political cultural Legal and regulatory Price Place Product Promotion Global Customer Socio- forces X100 Marketing Strategy X100 Introduction to Business

" Find a Need . . . . . . and Fill It " Marketing Marketing Strategy X100 Marketing Strategy X100 Introduction to Business