Marketing Dec Making 03012006

7/29/2019 Marketing Dec Making 03012006

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MARKETINGDECISION

MAKING


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Marketing and Customer Service Stories

A distinguished-looking

gentleman in blue jeanswalks into a bank andasks the teller to make a

specific transaction.


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Bringing Marketing intothe court room.

Prosecutors BrandMartha Stewart as a liar,

in the closing argumentsof 2004 trial.


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A telephone call to a typical serviceorganization.

You call the toll-free number and

hear this phrase: We areexperiencing higher than usual callvolumes If they know this, why

dont they staff for it? Why are theywasting my time because they donot know how to staffa basic

customer service function?


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On the Fans Were not reallygoing to worry about what thefans think about us.

They can boo us every day, buttheyre still going to ask for ourautographs if they see us on thestreet.

Thats why theyre fans andwere NBA players.

Bonzi Wells, Portland Trail Blazers.


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If the fans throwsomething, weve got to

protect our honor.

Sam Cassell, Minneapolis Timberwolves

Is image everything and common senseand marketing nothing?


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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 Were not really goingto worry about what the fans think

about us!.


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Top causes of CustomerComplaints:

Auto dealers, Computerdealers, Mail Order andCatalog shopping,

Home Furnishing stores,Auto repair shops.


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Blair Witch Project andCircuit CityThe $500 High-8 video

cameraMost profitable movie of

all time.$60K in costs with a

$248 Million Box Office


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

The 4 Ps

ProductPrice

PromotionPlace


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Marketing Mix.Turn the 4 Ps into 9 P'sThe marketing mix is the set

of controllable, tactical

marketing tools that the firm

blends to produce the

response it wants in themarketplace.


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Marketing Mix.Turn the 4 Ps into 9 P'sConsists of everything

controllable, tactical thefirm can do to influence

demand for the product.


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Turns into 7Ps

1. Planning or Process

2. 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 topay. Retail price/wholesale, discounts,trade-in allowances, credit terms,quantity discounts, credit terms, sales

and payment periods.


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Turns into 7Ps5.Promotion-

The activities thatpromote andcommunicate the merits

of the overall product.


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Marketing Mix.Turn the 4 Ps into 9 P'sPromotion Includes

A. Personal Selling

or Sales ForceB. Advertising

C. Sales Promotion Samples, coupons, premiums, cash refunds,demos, point-of-purchase materials, displayallowances, trade shows, sales rep contests


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Marketing Mix.Turn the 4 Ps into 9 P'sPromotion Includes

D. Public Relations

E. Direct MarketingDirect mail, direct-response,

database management,

catalogs and telemarketing

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


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Marketing Mix.Turn the 4 Ps into 9 P'sPush strategies vs.

Pull strategies.

P > W > R > C > U

P > C


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Turns into 7Ps6. Place/Distribution-The companys activities

that make the product

available to the targetmarket. Includes channelof distribution, geographiccoverage, locations,inventory, transportation

and logistics.


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Turns into 7Ps7. Partners/Alliances-The joint relationships

involving cooperation and

responsibilities. Involvesseveral duties including

products, distribution andpromotion functions.


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Marketings RoleR & D Department:

Interested in making new discoveries. Like Ronco, butcan they sell? Sometimes they expect marketing peopleto find markets for their new concepts and inventions..

Engineering Department:

Looking for design simplicityand economy.

Purchasing Department:Looks for economy in purchasing and not

always quality.

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


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Marketings Role:Inventory Department:

Keep inventory costs low, fewer models. Hold downcarrying costs. Doesnt always look at the costs ofstock-outs.

Finance Department:

Keep companys expenses down. Generate goodratios.

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?


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Integrated Marketing

When all of the companysdepartments work together toserve the customers interests.

Unfortunately, not allemployees are trained or

motivated to work for thecustomer.


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Two levels:The various marketing functions

of marketing research, planning,

sales force, advertising,product/brand management,pricing and promotion worktogether.

Think Customer: Marketingmust be well-coordinated with theother departments.


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It works best when all employees anddepartments appreciate their impact oncustomers and their satisfaction.

Before, during and after sale anddelivery.

David Packard of Hewlett-Packard said:

Marketing is too important to be left tothe marketing department!


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Marketings Role

Marion Harper said To manage abusiness well is to manage itsfuture; and to manage the futureis to manage information.

The organization must learn tothink of itself not as producing

goods and services but as buyingcustomers, as doing things thatwill make people want to do

business with it.


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Marketing Myopia

Theodore Levitt proposed market

definitions of a business are superiorto product or technologicaldefinitions.

Target Markets/Groups andMarketing Needs.

Every major industry was once agrowth industry.

Railroads, Hollywood and others.


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Marketing Myopia

No guarantee againstproduct obsolescence.Companys own product

research will, or anothercompany will produce,product obsolescence.


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Marketings Role

The chief executive has theinescapable responsibilityfor creating thisenvironment, viewpoint,attitude and inspiration.

Sets the companys style,direction and goals.

M k i R l


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Marketings RoleMarketing should try to mobilize the

companys 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.

M k ti R l


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Marketings RoleMarketing should try to mobilize the

companys 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.


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Marketing DecisionMarkeing


Marketing Myopia

& Marketings Role

Documents

Marketing Dec Making 03012006