Unit 4

Working With Customers

Unit 4

The Marketing Concept

1. How does the marketing concept change the focus of the marketing campaign?

2. Why are marketers concerned with the productivity rate and break even point for a business?

3. Why are marketers trying to provide a variety of different options to customer’s as part of their marketing campaign?

Quick FactsAbout half of every dollar you spend pays for marketing costs. Marketing costs include product development, packaging, advertising, and sales expenses. Most important aspect of marketing includes satisfying customer needs.

Marketing ConceptA business that keeps the focus of satisfying customer needs. Customers’ needs should be the primary focus during the planning, production, distribution, and promotion of a product or service.

Maintain RelationshipsMaintaining a successful customer relationship is key.

A customer that receives special attention will not stray.Price, quality, service, and the amount of pleasure gained are factors that influence customer satisfaction.

Satisfying customer needs is the most important aspect of marketing.

CompetitionConsumers have more money to spend on sports and entertainment (discretionary income)

Result:Higher demandMore competitionImproved events and merchandise

Customer FocusProductivity

The rate at which companies produce goods or services in relation to the amount of materials and number of employees utilized. Successful marketing strategies identify customer needs and then develop and market products viewed as superior by customers.

Breakeven PointThe minimum attendance and sales required to cover all of the expenses of organizing, promoting, and running the event.

Remember ThisFamilies are spending money to attend their children’s sporting events. Restaurants, motels, hotels, and service stations all have vested interest in these events.

Different Type of Competition

Movie Theaters Not just Regal 10 v. Carmike Cinemas Movie Theaters v. Video/DVD Rentals v. Pay- Per- View v. Drive- In Theaters

Opportunity CostThe value of the next best alternative that you forgo when making a choice.Measured as the benefits that you are giving up. Example:

You wish to attend two different concerts, but can only afford one. When you attend concert 1, the opportunity cost is concert 2.

What are some examples you have experienced?

Quick Review1. Businesses that follow the

marketing conceptA. Will face little competitionB. Will always be profitableC. Will focus on satisfying customer

needsD. Will experience high productivity

Another QuestionWhich of the following has led to growth in

the sports and entertainment industry?A. A higher standard of living and increased

discretionary income among average consumers

B. Rising gasoline prices combined with period of decreasing productivity in the U.S. Economy

C. Less competition among sports and entertainment businesses

D. None of the above

Identifying Customer’s Needs

1. How do marketers identify consumers within the economic market?

2. How do different types of purchases affect how marketers create a marketing campaign?

3. How do marketers gather information regarding their customers that is needed to make marketing decisions?

Economic Market– All consumers who will purchase a

product or service

What Must Marketing Do?– Determine what consumers want– Determine how much consumers

are willing to pay

– How to achieve these goals– Understand the actions of consumers

including spending habits and buying motives

Benefits Derived– Refers to the value people believe

they receive from a product or service. – Watching a good game– Showing your pride by wearing the

team logo

Comparative Advantage– The capability to produce products

or services more efficiently and economically than the competition.– Apparel companies who are able to

produce their service at a lower price are able to pass along that price to their customers.

Maslow’s Hierarchy of Needs Pyramid

Buying Motives• Emotional Purchases

– When consumers spend with little thought during emotional highs or lows.

• Rational Purchases– When consumers recognize needs and

wants, assess their priorities and budget, conduct research, compare alternatives, and then make purchases based on thought.

Buying Motives Con’tPatronage Purchases

Based on loyalty to a particular brand or product.

Gathering InformationInternal Sources

A businesses own customer records, sales records, production records, and operation records

External SourcesInformation used by businesses obtained through government records, trade and professional organizations, business publications, commercial data, and information services

Types of DataPrimary Data

Obtained for the first time and specifically for the particular problem or issue being studied.

Secondary DataData that has been collected for some other purpose but is now found useful in the current study.

Quick Review1. The peak of Maslow’s hierarchy of

needs pyramid representsA. Physiological NeedsB. Self-Actualization NeedsC. Self-Esteem NeedsD. Rational Purchases

Another QuestionPrimary data may be collected

through?A. Surveys and observationB. Government reportsC. Business publications D. Both B and C

Target Markets

1. Why is it important for marketers to identify members of their target market?

2. How does identifying market segments allow for subtle changes within the marketing campaign?

3. Compare and contrast the different types of market segmentation and identify how each type of segmentation affects the marketing campaign?

Target Market– A specific group of consumers you

want to reach. – To promote and sell products and

services, a company must know the needs and wants of its target market.

Market Segment– A group of consumers within a

larger market who share one or more characteristics.

– Example:– People who like basketball – Market– People who like Celtics – Market

Segments

Geographic Segmentation– Divides markets into physical

locations, such as Eastern, Northern, Southern, and Western regions of the United States or of a particular state.

– Commonly used in:– Cities– Travel and Tourism

Demographic Segmentation

Focuses on information that can be measured, such as age, income, profession, gender, education, marital status, and size of household.

Psychographics Segmentations

Focuses on characters that cannot be physically measured, such as values, interests, and lifestyle choices.

Behavioral-Based Segmentation

Focuses on a customer’s attitude toward products and services.

Product Usage Reflects what products you use and how often.

Product BenefitsBased on the benefits derived from products or services.

Market ShareThe percentage of total sales of a product or service that a company expects to capture in relation to its competitors.

Quick ReviewDemographics

A. Categorize market segments by age, gender, race, income, and educational level.

B. Refer to the frequency of use of a product.C. Refer to interests, values, and emotional

responses.D. Consider different parts of a country where

market segments live.

Another QuestionMarket share

A. Is the total number of people in a particular age group

B. Refers to customers in a particular part of the country

C. Is a group of consumers within a larger market who share one or more characteristics

D. Is the percentage of total sales of a product or service that a company expects to capture in relation to the competition

Customer Service

1. How do businesses create outstanding customer service to please their target market?

2. How should marketers work with businesses to ensure a customer service culture amongst their company?

3. Compare and contrast elements of good and bad customer service and their affects on a marketing campaigns.

Customer Service Gap– The difference between customer

expectations and the service that is actually received.

Bad Examples of Customer Service

Chatting on the phone while customers are waiting to be served.

Dismissing a customer by whining “It’s not my department.”

Yelling a customer who fails to understand company policies

Transferring customers from department to department

Principles to Good Customer Service

1. Demonstrate a value – based culture that is rooted in high performance and excellent customer service

- Value – Based Culture- Going beyond expectations- Providing top value- Keeping promises

More Principles to Good Customer Service

2. Follow the FAST strategy.Focus, Action, Search Tenacity

3. Passion results in energy.4. Demonstrate pride in every sale.5. Remember the value of long-term

positive relationships.

Quick Review1. The customer service gap

A. Is the first step toward quality customer service.

B. Is not a major factor for businesses to consider.

C. Indicates unmet customer service expectations.

D. Must be established and maintained for continued success.

Another Question2. Which element would not be part

of a values-based culture?A. Going beyond expectations.B. Explaining to customers that their

problem is out of your department.C. Providing top value.D. Keeping Promises.

Chapter Review1. When one company can produce

goods more efficiently than the competition, itA. Has a financial disadvantage.B. Has a comparative advantage.C. Will not have a high market share.D. Cannot compete effectively in the

marketplace.

Chapter Review2. An example of a specific market

segment would beA. Females between the ages of 14 and

18.B. The entire population of a country

where the business is located.C. All women worldwide. D. None of the above

Chapter Review3. Which of the following is an

example of secondary data?A. Observation of consumer behaviorB. Government census figures.C. Telephone surveys from customers.D. All of the above.