MARKETING IN COMMERCE AND SERVICE

FACULTY OF ENGINEERING MANAGEMENT

Ph.D., Eng. Joanna Majchrzak

Department of Marketing and Economic Engineering

Mail: joanna.majchrzak@put.poznan.plMeetings: Monday 13:00 – 14:30

Wednesday 11:30 – 13:00

Room 316, Strzelecka Street

Schedule1. Introduction (Some Common Characteristics of Service, Services

Marketing Mix) 25.02.2019 (Ex. 04.03.2019)

2. Market Segmentation and Customer Behaviour in a Service Context 11.03.2019 (Ex. 18.03.2019)

3. Quality Management in Service 25.03.2019 (Ex. 01.04.2019)

4. Marketing Research (Custommer Satisfaction Index, SERVQUAL) 08.04.2019 (Ex. 15.04.2019, Ex. 29.04.2019)

5. Pricing and Return on Service and Relationship 06.05.2019 (Ex. 13.05.2019)

6. Integrated Marketing Communication 20.05.2019 (Ex. 27.05.2019)

Final Test Lecture (50 points): 03.06.2019

Exercises Summary: 10.06.2019

CONSUMER PSYCHOLOGY

EXCERCISES during the lectures (20 points)

Mark

5 63 70

4,5 56 62

4 49 55

3,5 42 48

3 35 41

Points

Market segmentation

Market segment

Customer Behaviour

Market SegmentationMARKET SEGMENTATION

The process of dividing a market into groups of buyers with different needs, characteristics or behavior, who might require separateproducts or marketing mixes.

MARKET SEGMENT

A group of consumers who respond in a similar way to a given set of marketing stimuli.

Market Segmentation

MARKETING MIX CRITERIA

MARKET

PRODUCT

PROMOTION

PLACEPRICE

BLACK BOX

Market Segment A

Market Segment B

Market Segment C

Market Segment D?

PARTICIPANTS

PHYSICAL EVIDENCE

PROCESS

CUSTOMER BEHAVIOUR

How to classify target market?

Target market• Defining target market:

I GROUP: NONUSERS

II group: PROSPECTS

III group: USERS: a. our brand, b. other brands

• Growth in sales for a firm can come from:

1. Increasing the size of the prospect pool

2. Persuading prospects to become users of our brand

3. Persuading users of other brands to switch to ours

4. Persuading our users to use more of our product

Source: Persuasive Communication In Marketing, R. Tillman, and C.A. Kirkpatrick, 1972, Richard d.Irwing INC. Homewood7

Target market• Defining target market:

airl

ines NONUSERS

airl

ines PROSPECTS

airl

ines USERS

OUR BRAND

OTHER BRAND

1. Increasing the size of the prospect pool2. Persuading prospects to become users of our brand3. Persuading users of other brands to switch to ours 4. Persuading our users to use more of our product

Promotion & Negotiation and Sales Technique 8

Target market

TARGET MARKET

I GROUP: NONUSERSII group: PROSPECTSIII group: USERS: a. our brand, b. other brands

?

Customer Behaviour

Customer Behaviour • Firms vary widely in ability to serve different types of customers

• Adopt strategy of market segmentation, identifying those parts of market can serve best

• A market segment is composed of a group of buyers sharing common:

NEEDS

CHARACTERISTICS

CONSUMPTION PATTERNS

PURCHASING BEHAVIOR

• Within segments, they are as similar as possible.

• Between segments, they are as dissimilar as possible.

Source: Slide by Lovelock, Wirtz and Chew, 2009, Services marketing.

Customer Behaviour • Firms vary widely in ability to serve different types of customers

• Adopt strategy of market segmentation, identifying those parts of market can serve best

• A market segment is composed of a group of buyers sharing common:

NEEDS

CHARACTERISTICS

CONSUMPTION PATTERNS

PURCHASING BEHAVIOR

• Within segments, they are as similar as possible.

• Between segments, they are as dissimilar as possible.

Source: Slide by Lovelock, Wirtz and Chew, 2009, Services marketing.

Three levels of mental Programing

Promotion & Negotiation and Sales Technique 13G.Hofstede, Culture’s Consequences…, p.40

Customer Behaviour • Firms vary widely in ability to serve different types of customers

• Adopt strategy of market segmentation, identifying those parts of market can serve best

• A market segment is composed of a group of buyers sharing common:

NEEDS

CHARACTERISTICS

CONSUMPTION PATTERNS

PURCHASING BEHAVIOR

• Within segments, they are as similar as possible.

• Between segments, they are as dissimilar as possible.

Source: Slide by Lovelock, Wirtz and Chew, 2009, Services marketing.

Customer Behaviour: CHARACTERISTICS

PSYCHOGRAPHIC FACTORS(social classes, lifestyles);

GEOGRAPHIC FACTORS (countries, regions, cities);

DEMOGRAPHIC FACTORS (sex, age, income, education);

BEHAVIOURAL FACTORS (purchase occasions, benefits sought, usage rates).

Customer Behaviour • Firms vary widely in ability to serve different types of customers

• Adopt strategy of market segmentation, identifying those parts of market can serve best

• A market segment is composed of a group of buyers sharing common:

NEEDS

CHARACTERISTICS

CONSUMPTION PATTERNS

PURCHASING BEHAVIOR

• Within segments, they are as similar as possible.

• Between segments, they are as dissimilar as possible.

Source: Slide by Lovelock, Wirtz and Chew, 2009, Services marketing.

The Three-Stage Model of Service Consumption

Pre-purchase Stage

Service Encounter Stage

Post-purchase Stage

• Customers seek solutions to aroused needs

• Evaluating a service may be difficult

• Uncertainty about outcomes Increases perceived risk

• What risk reduction strategies can service suppliers develop?

• Understanding customers’ service expectations

• Components of customer expectations

• Making a service purchase decision

Source: Slide by Lovelock, Wirtz and Chew, 2009, Services marketing.

The Three-Stage Model of Service Consumption

Pre-purchase Stage

Service Encounter Stage

Post-purchase Stage

● Service encounters range from high-

to low-contact

● Understanding the servuction

system

● Theater as a metaphor for service

delivery: An integrative perspective

➔Service facilities

➔Personnel

➔Role and script theories

Source: Slide by Lovelock, Wirtz and Chew, 2009, Services marketing.

Service Encounters Range from High-contact to Low-contact

Source: Slide by Lovelock, Wirtz and Chew, 2009, Services marketing.

Pre-purchase Stage

Service Encounter Stage

Post-purchase Stage

▪ Evaluation of service performance

▪ Future intentions

Source: Slide by Lovelock, Wirtz and Chew, 2009, Services marketing.

Customer Behaviour • Firms vary widely in ability to serve different types of customers

• Adopt strategy of market segmentation, identifying those parts of market can serve best

• A market segment is composed of a group of buyers sharing common:

NEEDS

CHARACTERISTICS

CONSUMPTION PATTERNS

PURCHASING BEHAVIOR

• Within segments, they are as similar as possible.

• Between segments, they are as dissimilar as possible.

Source: Slide by Lovelock, Wirtz and Chew, 2009, Services marketing.

PURCHASING BEHAVIOR

Perceived Risks

• Functional – unsatisfactory performance outcomes

• Financial – monetary loss, unexpected extra costs

• Temporal – wasted time, delays leading to problems

• Physical – personal injury, damage to possessions

• Psychological – fears and negative emotions

• Social – how others may think and react

• Sensory – unwanted impact on any of five senses

Excercise• Company:

• Service (eg. Banking, Insurence, Management Consulting, …):

• Define market segments for the selected service, based on:

a. Customers characteristics,

b. Selected marketing mix element

• Name and describe the distinguished segments

• Point out the segment of your company and propose how to persuade customers to use more of product of your company.

Market Segmentation

MARKETING MIX CRITERIA

MARKET

PROMOTION

PLACEPRICE

BLACK BOX

Market Segment A

Market Segment B

Market Segment C

Market Segment D?

PARTICIPANTS

PHYSICAL EVIDENCE

PROCESS

CUSTOMER BEHAVIOUR

III group: USERS: a. our brand, b. b. other brands

v

PRODUCT

Customer Behaviour

PSYCHOGRAPHIC FACTORS(social classes, lifestyles);

GEOGRAPHIC FACTORS (countries, regions, cities);

DEMOGRAPHIC FACTORS (sex, age, income, education);

BEHAVIOURAL FACTORS (purchase occasions, benefits sought, usage rates).

Market Segment A

Market Segment B

Market Segment C

Market Segment D

Customer Behaviour

PSYCHOGRAPHIC FACTORS(social classes, lifestyles);

BLACK BOX

?

Market Segmentation

MARKETING MIX CRITERIA

MARKET

PROMOTION

PLACEPRICE

BLACK BOX

Market Segment A

Market Segment B

Market Segment C

Market Segment D?

PARTICIPANTS

PHYSICAL EVIDENCE

PROCESS

CUSTOMER BEHAVIOUR

III group: USERS: a. our brand, b. b. other brands

v

PRODUCT v

Super Premium A

Premium B

Mainstream C

Economy D

Marketing MIX

BLACK BOX

?

PRICEv