Marketing decision making

MARKETING DECISIONMAKING

Marketing and Customer Service Stories

A distinguished-looking gentleman in blue jeans walks into a bank and asks the teller to make a specific transaction.


Bringing “Marketing” into the court room.

Prosecutors “Brand Martha Stewart as a liar”, in the closing arguments of 2004 trial.

Marketing and Customer Service Stories A telephone call to a typical service

organization. You call the toll-free number and

hear this phrase: “We are experiencing higher than usual call volumes…” If they know this, why don’t they staff for it? Why are they wasting my time because they do not know how to staff—a basic customer service function?

Marketing and Customer Service Stories On the Fans… “We’re not really

going to worry about what the fans think about us.

They can boo us every day, but they’re still going to ask for our autographs if they see us on the street.

That’s why they’re fans and we’re NBA players.”

Bonzi Wells, Portland Trail Blazers.


“If the fans throw something, we’ve got to protect our honor.”

Sam Cassell, Minneapolis Timberwolves

Is image everything and common sense and marketing nothing?

Marketing and Customer Service Stories Update 2003-4 NBA season: Bonzi Wells made an obscene

gesture to fans. Cursed his coach. Lost his captain status on team. Was unloaded for less than what a

journeyman NBA player makes. Attendance in Portland is down 17%,

after four drug arrests in 13 months. On the Fans… “We’re not really going

to worry about what the fans think about us!…”.


Top causes of Customer Complaints:

Auto dealers, Computer dealers, Mail Order and Catalog shopping,Home Furnishing stores, Auto repair shops.


Blair Witch Project and Circuit City

The $500 High-8 video camera

Most profitable movie of all time.

$60K in costs with a $248 Million Box Office

Marketing Mix. Turn the 4 P’s into 9 P's

The 4 P’s ProductPricePromotionPlace


The marketing mix is the set

of controllable, tactical

marketing tools that the firm

blends to produce the

response it wants in the

marketplace.


Consists of everything

controllable, tactical the

firm can do to influence

demand for the product.

Turns into 7P’s1. Planning or Process2. People (Target Market)3. Product- The goods and service

combination the firm offers to the target market. Includes variety of product mix, features, designs, packaging, sizes, services, warrantees and return policies.

4. Price- The price consumers are willing to pay. Retail price/wholesale, discounts, trade-in allowances, credit terms, quantity discounts, credit terms, sales and payment periods.

Turns into 7P’s

5.Promotion- The activities that promote and communicate the merits of the overall product.


Promotion Includes A. Personal Selling

or Sales ForceB. AdvertisingC. Sales Promotion –

Samples, coupons, premiums, cash refunds,

demos, point-of-purchase materials, display allowances, trade shows, sales rep contests

public relations direct marketing --

direct mail, database management, Internet, telemarketing, and direct-response.


Promotion Includes D. Public RelationsE. Direct Marketing Direct

mail, direct-response, database management,

catalogs and telemarketing

F. Internet and Interactive CD-ROMS, kiosks, Interactive TV


Push strategies vs. Pull strategies.

P > W > R > C > UP > C

Turns into 7P’s

6. Place/Distribution- The company’s activities that make the product available to the target market. Includes channel of distribution, geographic coverage, locations, inventory, transportation and logistics.

Turns into 7P’s

7. Partners/Alliances- The joint relationships involving cooperation and responsibilities. Involves several duties including products, distribution and promotion functions.

Marketing’s Role

R & D Department: Interested in making new discoveries. Like Ronco, but can they sell? Sometimes they expect marketing people to find markets for their new concepts and inventions..

Engineering Department:Looking for design simplicity and economy.

Purchasing Department: Looks for economy in purchasing and not always quality.

Manufacturing Department:Wants to keep costs low, fewer models and keep the assembly line moving.

Marketing’s Role:

Inventory Department: Keep inventory costs low, fewer models. Hold down carrying costs. Doesn’t always look at the costs of stock-outs.

Finance Department: Keep company’s expenses down. Generate good ratios.

Credit Department: Look at keeping costs down. Bad debt.

Accounting Department:Not always willing to analyze sales and costs. What about marketing territory info? Pricing?

Integrated Marketing

When all of the company’s departments work together to serve the customer’s interests.

Unfortunately, not all employees are trained or motivated to work for the customer.


Two levels: The various marketing functions

of marketing research, planning, sales force, advertising, product/brand management, pricing and promotion work together.

“Think Customer”: Marketing must be well-coordinated with the other departments.


It works best when all employees and departments appreciate their impact on customers and their satisfaction.

Before, during and after sale and delivery.

David Packard of Hewlett-Packard said: “Marketing is too important to be left to

the marketing department!”

Marketing’s Role

Marion Harper said “To manage a business well is to manage its future; and to manage the future is to manage information.”

The organization must learn to think of itself not as producing goods and services but as buying customers, as doing things that will make people want to do business with it.

Marketing Myopia Theodore Levitt proposed market

definitions of a business are superior to product or technological definitions.

Target Markets/Groups and Marketing Needs.

Every major industry was once a growth industry.

Railroads, Hollywood and others.

Marketing Myopia

No guarantee against product obsolescence. Company’s own product research will, or another company will produce, product obsolescence.

Marketing’s Role

The chief executive has the inescapable responsibility for creating this environment, viewpoint, attitude and inspiration. Sets the company’s style, direction and goals.

Marketing’s Role

Marketing should try to mobilize the company’s resources to develop customer satisfaction. Requests from the marketing department sometime increase product design, material costs, disrupt production schedules, increase finance and accounting costs and create budget headaches.

Marketing’s Role

Marketing should try to mobilize the company’s resources to develop customer satisfaction. Requests from the marketing department sometime increase product design, material costs, disrupt production schedules, increase finance and accounting costs and create budget headaches.

Marketing Decision Markeing

Integrated MarketingMarketing Myopia& Marketing’s Role

Business

Marketing decision making