Transcript SEM Chap 04

Chapter 4
Hit a Home Run with
Customers
4.1 The Marketing Concept
4.2 Discover What People Want
4.3 Target Markets
4.4 Customer Service
Sports and Entertainment Marketing
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Winning Strategies
Frito-Lay Reaches Teens
 U.S. teenagers spend $175 billion annually
 teens are trendsetters and early adopters
 teens offer a potential lifetime of purchasing for
the products they start to use when they are
young
 in an effort to obtain teen customers, Frito-Lay
initiated a variety of innovative marketing
techniques involving music partnerships
 this strategy resulted in a huge return on investment
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Lesson 4.1
The Marketing Concept
Goals
 Explain the central focus of the
marketing concept.
 Explain the reasons for increased
sports and entertainment options.
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Terms
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marketing concept
productivity
breakeven point
opportunity cost
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THE MARKETING CONCEPT
 About half of every consumer dollar
spent pays for marketing costs.
 Satisfying customer needs is the
most important aspect of marketing.
 marketing concept
 keeping the focus on the customer’s needs
for a product or service
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Maintain Relationships
 Successful customer relationships are
critical to the marketing concept.
 Customer satisfaction is the bottom line
for maintaining successful marketing
relationships.
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 What is the most important aspect of
marketing?
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INCREASED SPORTS AND
ENTERTAINMENT OPTIONS
 Productivity
 U.S. citizens have more discretionary
income than in the past.
 drives up demand for sports and
entertainment
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demand increases competition
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Customer Focus
 productivity
 rate at which companies produce goods or
services in relation to the amount of
materials and number of employees utilized
 Technology has helped this greatly improved
demand can be met when needed
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 successful marketing strategy
 identify customer
 needs
 location
 provide products perceived as superior
 maintain successful customer relationships
 offer the appropriate marketing mix
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product
price
promotion
location
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Weekend Entertainment Choices
 breakeven point
 the minimum sales and attendance required to
cover all of the expenses of organizing,
planning and promoting the event
 profit
 revenue earned beyond the breakeven point
 On-demand, Netflix, etc causing major
competition for movie theaters
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Opportunity Cost
 opportunity cost
 the value of the next best alternative that
you forgo when making a choice
 The value is measured in terms of the
benefits that you are giving up.
 Ex. Going to a concert over a Phillies
game the opportunity cost is the Phillies
game
 Rising fuel costs cause lots of consumers
to watch at home rather than attend events
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 Explain the reasons for increased sports
and entertainment options.
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More productivity
Increased discretionary income
Increased demand
Increased competition lead to better options
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Lesson 4.2
Discover What People Want
Goals
 Explain the importance of understanding
buyer behavior when making marketing
decisions.
 List and describe means of collecting
marketing information for use in decision
making.
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Terms
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economic market
benefits derived
comparative advantage
emotional purchases
rational purchases
patronage purchases
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Consumer Spending Habits
 Serve as a guide for business to offer the most
profitable mix of goods and services
 Comparative advantage
 the capability to produce products or services more
efficiently and economically than the competition.
Ex. Walmart selling items cheap they use cheap
labor and bulk buying
 benefits derived
 the value people believe they receive from a
product or service. Ex. Wearing Phillies gear to
show support and pries. Coach, BMW
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UNDERSTAND BUYER
BEHAVIOR
 economic market
 all of the consumers who will purchase a
product or service
 Allows us to better satisfy customer needs
and wants
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Consumer Wants and Needs
 hierarchy of needs
 identifies five human areas of needs
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 emotional purchases
 spending with little thought during emotional times
 Ex. Buying an expensive T-shirt at concert
 rational purchases
 define wants/needs to make a thought out purchase
 assess priorities and budget
 conduct research
 compare alternatives
 Ex. Buying a house or car
 patronage purchases
 based on loyalty to a particular brand or product
 Ex. Only wearing Eagles not Cowboys
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 What is meant by benefits derived?
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GATHER INFORMATION
 Marketers are often involved in every
step of the decision-making process.
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 The consumer decision-making process
involves the following steps.
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recognize a need or a want
conduct product research
evaluate choices
decide what to purchase
evaluate the product after the purchase
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Information Needed for
Marketing Decisions
 Information about consumers that is
important to consider include
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demographics
shopping behaviors
how consumers spend money
product and brand preferences
frequency of purchases
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 The business environment impacts
consumer spending as follows:
 economic uncertainty reduces consumer
spending
 marketplace competition provides
consumers with choices
 technological advances have impacted
how consumers research and buy
products
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Sources of Information for
Businesses
 internal sources
 a business’s own customer records, sales
records, production records, and operation
records
 external sources
 government reports, trade and
professional organizations, business
publications, commercial data, and
information services
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 primary data
 obtained for the first time and specifically
for the particular problem or issue being
studied
 secondary data
 information previously collected for
another purpose but is now found useful in
the current study
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 Explain the difference between primary
and secondary data.
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Lesson 4.3
Target Markets
Goals
 Describe the first step in marketing a
product.
 Describe how businesses use market
segmentation.
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Terms
 target market
 market segment
 market share
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DETERMINE THE TARGET
MARKET
 target market
 specific group of consumers you want to
reach
 First step of marketing a product
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Focus Marketing Efforts
 market segment
 a group of consumers within a larger
market who share one or more
characteristics
 Consumers belong to multiple market
segments.
 Marketers must identify the market
segment to which they want to sell.
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Meet Target Market Needs
 Market segmentation data can improve
business decision making.
 number of potential customers
 customer income level
 level of interest in product or service
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 What is a target market? Provide an
example of a company’s target market.
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MARKET SEGMENTATION
 Markets may be segmented in many ways.
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geographic location
demographics
psychographics
behavior
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Geographic Segmentation
 divides markets into physical locations
 Ex. Customers in Philadelphia (inner
city)
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Demographic Segmentation
 information that can be measured
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age
income
profession
gender
education
marital status
household size
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Psychographics Segmentation
 characteristics that cannot be physically
measured
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values
interests
lifestyle choices
Ex. People who like to run, vegetarians
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Behavioral-Based Segmentation
 behavioral-based segmentation
 focuses on a customer’s attitude toward products
and services
 product usage
 what products you use and how often
 Ex. Promotions for customers visiting movie
theaters once a month
 product benefits
 the positive experiences or associations people
derive from using a product or service
 Ex. Promoting sporting events as family time
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Capture a Market Share
 market share
 percentage of total sales of a product or
service that a company expects to capture
in relation to its competitors
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 List and describe four types of market
segmentation.
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Lesson 4.4
Customer Service
Goals
 Explain the importance of outstanding
customer service.
 Explain what it means to establish a
service culture.
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Terms
 customer service gap
 values-based culture
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OUTSTANDING SERVICE
EQUALS SUCCESS
 Business success depends on excellent
customer service.
 Customer relationships should continue
after the sale of goods and services.
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A Track Record for Great
Customer Service
 customer service gap
 the difference between customer
expectations and the services actually
received
 Customers are likely to tell at least 10
people about their poor customer
service experiences.
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Training Programs That Make
an Impact
 Individuals hired for customer service
positions should have a positive attitude
and look forward to meeting the public.
 Proper employee training in proactive,
efficient and courteous customer
service is critical to providing a pleasant
experience for customers.
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 Why is outstanding customer service
critical to a business in a highly
competitive marketplace?
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Principles to use when Creating a
Service Culture
 Demonstrate a values-based culture that is
rooted in high performance and excellent
customer service showing customers they
are valued.
 Follow the “FAST” (Focus, Action, Search,
Tenacity) strategy.
 Passion results in energy.
 Demonstrate pride in every sale.
 Remember the value of long-term positive
relationships.
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How May I Help You?
 “It’s not my department” should be
replaced with “How may I help you?”
 mystery guest
 hired by an outside firm to have an
individual assess the performance of a
business
 feedback on the individual’s experience as a
customer is provided to the hiring business
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 Explain what it means to have a valuesbased culture.
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PERFORMANCE INDICATORS
EVALUATED
 Communicate ideas clearly to the judge
(potential investor).
 Analyze all relevant data for proposing a
new celebrity-theme restaurant.
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 Demonstrate critical thinking and problemsolving skills necessary to propose and
operate a successful business.
 Interpret demographics and financial data
for a proposed business.
 Understand consumer demand and the
existing competition.
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THINK CRITICALLY
1. Why is a business plan necessary for a
popular celebrity who wants to open a
restaurant in a city where he or she is
well liked?
2. Give three examples of successful
celebrity-theme restaurants and what
makes them popular.
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3. What would be a good grand opening
event to attract the maximum amount of
attention to the new restaurant?
4. What advantage does a professional
athlete have over an average citizen
when opening a restaurant?
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