1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

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

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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. $ 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

24. 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

25. 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

26. ‘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

27. 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

28. 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

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