Transcript Marketing Decision Making

MARKETING
DECISION
MAKING
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.
Marketing and Customer Service Stories
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.
Marketing and Customer Service Stories
“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!…”.

Marketing and Customer Service Stories
Top
causes of Customer
Complaints:
Auto dealers, Computer
dealers, Mail Order and
Catalog shopping,
Home Furnishing stores,
Auto repair shops.
Marketing and Customer Service Stories
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
Product
Price
Promotion
Place
Marketing Mix.
Turn the 4 P’s into 9 P's
 The
marketing mix is the set
of controllable, tactical
marketing tools that the firm
blends to produce the
response it wants in the
marketplace.
Marketing Mix.
Turn the 4 P’s into 9 P's
Consists
of everything
controllable, tactical the
firm can do to influence
demand for the product.
Turns into 7P’s
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 to
pay. Retail price/wholesale, discounts,
trade-in allowances, credit terms,
quantity discounts, credit terms, sales
and payment periods.
Turns into 7P’s
5.PromotionThe activities that
promote and
communicate the merits
of the overall product.
Marketing Mix.
Turn the 4 P’s into 9 P's
Promotion Includes
A. Personal Selling
or Sales Force
B. Advertising
C. Sales Promotion –
Samples, coupons, premiums, cash refunds,
demos, point-of-purchase materials, display
allowances, trade shows, sales rep contests
Marketing Mix.
Turn the 4 P’s into 9 P's
Promotion Includes
D. Public Relations
E. Direct Marketing
Direct mail, direct-response,
database management,
catalogs and telemarketing
F. Internet and Interactive
CD-ROMS, kiosks, Interactive TV
Marketing Mix.
Turn the 4 P’s into 9 P's
Push strategies vs.
Pull strategies.
P>W>R>C>U
P
>C
Turns into 7P’s
6. Place/DistributionThe 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.
Accounting Department:
Not always willing to analyze sales and costs.
What about marketing territory info? Pricing?
Credit Department:
Look at keeping costs down. Bad debt.
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.
Integrated Marketing
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.
Integrated Marketing
 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 Marketing
Marketing Myopia
& Marketing’s Role