MARKETING IN COMMERCE AND SERVICE
FACULTY OF ENGINEERING MANAGEMENT
Ph.D., Eng. Joanna Majchrzak
Department of Marketing and Economic Engineering
Mail: [email protected]: 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