1. Hit a Home Run with Customers 4.1 The Marketing Concept 4.2 Discover What People Want 4.3 Target Markets 4.4 Customer Service

2. 2 Winning Strategies U.S. teenagers spend $175 billion annually teens are trendsetters and early adopters teens offer a potential lifetime of purchasing for products they start to use when they are young in an effort to obtain teen customers, Frito-Lay initiated a variety of innovative marketing techniques involving music partnerships –this strategy resulted in a huge return on investment Frito-Lay Reaches Teens

3. 3 Lesson 4.1 The Marketing Concept Goals Explain the central focus of the marketing concept. Explain the reasons for increased sports and entertainment options.

4. 4 OPENING ACT Page 92 Determine the popularity of Hershey’s within your group. How many in your group enjoy snacks while enjoying entertainment events? Do snack companies often advertise at or sponsor events you have attended? Should Hershey’s be concerned about the obesity trend among youth and its possible relationship to Hershey products?

5. 5 THE MARKETING CONCEPT About half of every consumer dollar spent pays for marketing costs. Satisfying customer needs is the most important aspect of marketing. marketing concept –keeping the focus on the customer’s needs for a product or service

6. 6 Maintain Relationships Successful customer relationships are critical to the marketing concept. Customer satisfaction is the bottom line for maintaining successful marketing relationships.

7. 7 What is the most important aspect of marketing? –Satisfying consumer needs.

8. 8 INCREASED SPORTS AND ENTERTAINMENT OPTIONS U.S. citizens have more discretionary income than in the past. –drives up demand for sports & entertainment higher prices increased competition –More Competition = More Consumer Choice improved products, events, merchandise

9. 9 Customer Focus productivity –rate at which companies produce goods or services in relation to the amount of materials and number of employees utilized

10. 10 successful marketing strategy –identify customer needs provide products perceived as superior – identify prospective consumers & locations maintain successful customer relationships offer the appropriate marketing mix –BEST product (product) –ACCEPTABLE price (price) –WHERE demanded (place – location) –EDUCATE consumers (promotion)

11. 11 Weekend Entertainment Choices What do you do for entertainment on the weekend? –Movies –Video Games –Mall –Concerts –Sporting Events

12. 12 Weekend Entertainment Choices breakeven point –the minimum sales and attendance required to cover all of the expenses of organizing, planning and promoting the event profit –revenue earned beyond the breakeven point

13. 13 Opportunity Cost How do you decide what to spend your discretionary income on? –Consider the following: –Convenience –Pleasure –Dollar cost –Opportunity cost

14. 14 Opportunity Cost opportunity cost –the value of the next best alternative that you forgo when making a choice –The value is measured in terms of the benefits that you are giving up.

15. 15 Explain the reasons for increased sports and entertainment options. –Increasing population & discretionary income –Increasing demand, more competition –Increasing competition, more consumer choices

16. 16 Lesson 4.2 Discover What People Want Goals Explain the importance of understanding buyer behavior when making marketing decisions. List and describe means of collecting marketing information for use in decision making.

17. 17 OPENING ACT Page 97 Discuss how you would research possible sponsors. What information would you need to ensure a mutually beneficial relationship?

18. 18 UNDERSTAND BUYER BEHAVIOR economic market –all of the consumers who will purchase a product or service –Two major goals: Determine what consumers want How much they are willing to spend

19. 19 Consumer Spending Habits Research spending habits of consumers. The price fans are willing to pay relates to their perception of the benefits derived. benefits derived –the value people believe they receive from a product or service

20. 20 comparative advantage –the capability to produce products or services more efficiently and economically than the competition –Should be able to pass along production cost savings to the consumers in the form of LOWER PRICES.

21. 21 Consumer Wants and Needs hierarchy of needs –Abraham Maslow (American Psychologist) –identifies five human areas of needs –Referenced when studying human behavior –Levels of needs must be met one level at a time.

22. 22

23. 23 1.emotional purchases –spend with little thought during emotional times 2.rational purchases –define wants and needs –assess priorities and budget –conduct research –compare alternatives –make a well thought out purchase Buying Motives

24. 24 3.patronage purchases –based on loyalty to a particular brand or product Buying Motives

25. 25 What is meant by benefits derived? –Value that people believe they receive from buying a product or service.

26. 26 Consumer decision-making process involves the following steps. –recognize a need or a want –conduct product research –evaluate choices –decide what to purchase –evaluate the product after the purchase GATHER INFORMATION

27. 27 GATHER INFORMATION Marketers must be aware of the decision making process. Marketers are often involved in every step of the decision-making process. –Recognize the need –Provide information –Assist with purchase –Follow-up (ensure satisfaction)

28. 28 Information Needed for Marketing Decisions Information about consumers that is important to consider include: –demographics –shopping behaviors –how consumers spend money –product and brand preferences –frequency of purchases

29. 29 –economic uncertainty reduces consumer spending (postpone large purchases) –marketplace competition & product quality provides consumers with choices –Government regulations, laws, ethics –technological advances have impacted how consumers research and buy products The business environment impacts consumer spending as follows:

30. 30 Sources of Information for Businesses internal sources –a business’s own customer records, sales records, production records, and operation records external sources –government reports, trade and professional organizations, business publications, commercial data, and information services

31. 31 primary data –obtained for the first time and specifically for the particular problem or issue being studied secondary data –information previously collected for another purpose but is now found useful in the current study

32. 32 Explain the difference between primary and secondary data. –Primary: obtained 1 st time for specific problem –Secondary: previously collected, other purpose

33. 33 Lesson 4.3 Target Markets Goals Define target market and market segment. Describe how businesses use market segmentation.

34. 34 OPENING ACT Page 103 What has contributed to their sales success? How can these brands maintain high sales during periods when the teams are not winning games?

35. 35 DETERMINE THE TARGET MARKET STEP ONE: Determine who specifically “the customer” is for your product. target market –specific group of consumers you want to reach

36. 36 Focus Marketing Efforts market segment –a group of consumers within a larger market who share one or more characteristics Consumers belong to multiple market segments. Marketers must identify the market segment to which they want to sell.

37. 37 Meet Target Market Needs Market segmentation data can improve business decision making. –number of potential customers –customer income level –level of interest in product or service

38. 38 What is a market segment? –a group of consumers within a larger market who share one or more characteristics What is a target market? –The specific group of consumers you want to reach. (specific market segment you target)

39. 39 MARKET SEGMENTATION Markets may be segmented in many ways. – geographic location – demographics – psychographics – behavior (breakdown over next 4 slides)

40. 40 Geographic Segmentation divides markets into physical locations: –Eastern, Northern, Southern, Western –Rural vs. Urban

41. 41 Demographic Segmentation information that can be measured: – age – income – profession – gender – education – marital status – household size

42. 42 Psychographics Segmentation characteristics that cannot be physically measured: –values –interests –lifestyle choices

43. 43 Behavioral-Based Segmentation focuses on a customer’s attitude toward products and services –product usage what products you use and how often –product benefits the positive experiences or associations people derive from using a product or service

44. 44 Capture a Market Share market share –percentage of total sales of a product or service that a company expects to capture in relation to its competitors

45. 45 List and describe four types of market segmentation. –Geographic –Demographic –Psychographic –Behavior-Based

46. 46 Lesson 4.4 Customer Service Goals Explain the importance of outstanding customer service. Explain what it means to establish a service culture.

47. 47 OPENING ACT Page 108 Discuss the last time you received bad customer service. Describe the event and the end results.

48. 48 OUTSTANDING SERVICE EQUALS SUCCESS Business success depends on excellent customer service. Customer Expectations include: –Safe, comfortable environment –Value for money spent Customer relationships should continue after the sale of goods and services.

49. 49 A Track Record for Great Customer Service customer service gap –the difference between customer expectations and the services actually received Customers are likely to tell at least 10 people about their poor customer service experiences.

50. 50 Examples of Bad Customer Service? Chatting on the phone or with others while customers are waiting to be served. Dismissing a customer by whining, “that’s not my department” Placing a calling customer on hold for long periods of time and transferring them from department to department. Yelling at customers who fail to understand company policies. Failing to follow up with customers in a timely manner.

51. 51 Training Programs That Make an Impact Individuals hired for customer service positions should have a positive attitude and look forward to meeting the public. Proper employee training in proactive, efficient and courteous customer service is critical to providing a pleasant experience for customers.

52. 52 Why is outstanding customer service critical to a business in a highly competitive marketplace? –Sets the business apart from the competition –Repeat business comes from good C.S.

53. 53 CREATING A SERVICE CULTURE Gallery Furniture: –Biggest single retail store in America –Jim McIngvale “Mattress Mack” (Houston Icon) –Hosts professional Tennis Matches –Hosts college bowl game –Success attributed to strong work ethic, outstanding customer service & principles that guide the business.

54. 54 1.Demonstrate a values-based culture that is rooted in high performance and excellent customer service. 2.Follow the “FAST” strategy. (F ocus, A ction, S earch, T enacity) 3.Passion results in energy. 4.Demonstrate pride in every sale. 5.Remember the value of long-term positive relationships. Effective Customer Service Principles

55. 55 How May I Help You? “It’s not my department” should be replaced with “How may I help you?” mystery guest –hired by an outside firm to have an individual assess the performance of a business feedback on the individual’s experience as a customer is provided to the hiring business

56. 56 Explain what it means to have a values- based culture. –Rooted in high performance and excellent customer service. –Employees will do whatever is necessary to keep commitments made to customers.