Transcript Satisfaction - ibsgsection

Marketing
A Philosophy
An Attitude
A Set of Activities
A Perspective
A Management
Orientation
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The Purpose of Marketing
• To understand the Needs & Wants of Customers
• To create customer value through satisfaction and
loyalty
• To operate more effectively and efficiently than
competitors
• To increase the value of the organization
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Core Marketing Concepts
Needs, wants,
and demands
Products,
Services,
Experiences
Core
Marketing
Concepts
Markets
Value and
satisfaction
Exchange, transactions,
and relationships
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Marketing Management Process
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Stage 1: Identifying marketing opportunities or problems.
– Understand major environmental forces that create both
opportunities and threats.
Stage 2: Market Segmentation, targeting, and positioning.
– : Identify the most promising segment (s) and consider how to satisfy
the customers that have homogeneous needs within each segment.
Stage 3: Understanding the customers.
– Design a new product by understanding potential customers’ needs
and purchasing patterns.
Stage 4: Developing a marketing mix.
– Design a competitive marketing strategy by blending product, price,
promotion, and place strategies.
Stage 5: Managing the marketing efforts.
– Measure and evaluate the performances of current marketing
strategy.
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Evolution of Business Models and
the role of Marketing
Production
Selling
Product
variety
Marketing
Societal
Mktg
As business philosophy has evolved, so has the
role of marketing…customer satisfaction is now
at the core
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Product Orientation vs. Market Orientation
Company
Product
Market
Indian Railways
We run rail
services
We are a peopleand-goods mover
Xerox
We make copying
equipment
We improve office
productivity
Standard Oil
We sell gasoline
We supply energy
Columbia Pictures
We make movies
We entertain
people
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The Marketing Concept itself
has evolved from..
1) Catering to the customer
2) Anticipating the customer
3) Fulfilling the customer
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Old vs New marketing
Challenges for Marketing in 21st
century
Speed ?….Outrun….?
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Some New-Age Marketing Trends
• Relationship Marketing
• Database Marketing
• Network Marketing
• Permission or Interruption marketing
• Viral Marketing
• Ambush Marketing
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So…Marketing is managing..
Connecting with
Customers
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Fundamental Goals of Marketing
•
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Goal 1: Attracting Customers:
– Attract new customers by promising superior value and
create transactions with them.
– known as the leaky bucket approach.
Goal 2: Retaining and Growing Customers:
– Satisfied customers are more likely to be loyal
customers, and loyal customers are more likely to give
the company a larger share of their business in the long
run.
– Retention strategy: Retain current customers for
maintaining profitable long-term relationships with them
by delivering superior value and customer satisfaction.
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What is marketing all about?
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Marketing Strategy Process
Market Analysis (The 4 C’s)
Customers
Creating
Value
Company
Competitors
Target
Market
Selection
Market
Segmentation
Creating
Value
Collaborators
Product and
Service
Positioning
Marketing Mix (The 4 P’s )
Product and Service
Capturing
Value
Sustaining
Value
Place/Channels
Promotion
Pricing
Customer Acquisition
Customer Retention
Profits
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Stakeholder Management- beyond marketing
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What is sustainability?
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Why is it important to achieve both
satisfaction and loyalty?
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Satisfaction is a person’s
feelings of pleasure or
disappointment resulting
from comparing a product’s
perceived performance (or
outcome) in relation to his or
her expectations.
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Satisfaction & Loyalty
Satisfaction:
Feelings from experience
Loyalty:
Choice of brand
over others
Outcomes:
– Sales to increase revenues
– Less price sensitivity
– Lower organization’s costs
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Value and Satisfaction:
– Customers choose a product that provides the
maximum perceived value among many marketing
offers.
• Customer perceived value = total benefits – total
costs.
• Total benefits: product features, services,
information, and experiential values.
• Total costs: monetary, time, and psychological costs.
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Determinants of Customer
Delivered Value
Image value
Personnel value
Services value
Total
customer
value
Product value
Customer
delivered
value
Monetary cost
Time cost
Energy cost
Total
customer
cost
Psychic cost
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Traditional Organization Chart
Top
Management
Middle Management
Front-line people
Customers
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Customer-Oriented
Organization Chart
Customers
Front-line people
Middle management
Top
management
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Customer Development
Suspects
Prospects
Disqualified
prospects
First-time
customers
Repeat
customers
Clients
Advocates
Partners
Inactive or
ex-customers
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Marketing Strategy
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The Generic Value Chain
Support
Activities
Firm infrastructure
Human resource management
Technology Development
Procurement
MarketOutServing
Inbound Operabound
ice
Logistics tions
and
Logistics
sales
Primary Activities
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Market-Oriented Strategic
Planning
Objectives
Resources
Profit
and
Growth
Skills
Opportunities
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Growth Strategies: Ansoff’s
Product/Market Expansion Grid
Existing
products
Existing
markets
1. Market
penetration
New
markets
2. Market
development
New
products
3. Product
development
4. Diversification
Marketing Environment
What is ?
How to analyze? For what?
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Actors in the Microenvironment
The Company’s Macroenvironment
Economic Factors
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Inflation
Employment
Disposable income
Business cycles
Energy availability and cost
Others?
Technological Factors
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New discoveries and innovations
Speed of technology transfer
Rates of obsolescence
Internet; Mobile ; Cloud and
Information processing technology
– Platforms and Portability
– Copy/Clone
Political/legal Factors
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Monopolies legislation
Environmental protection laws
Taxation policy
Employment laws
Government policy
Legislation
Others?
Political Environment
Includes Laws,
Government Agencies,
and Pressure Groups
that Influence or Limit
Various Organizations
and Individuals In a
Given Society.
Increasing Legislation
Changing Government
Agency Enforcement
Increased Emphasis on Ethics
& Socially Responsible Actions
Sociocultural factors
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Demographics
Distribution of income
Social mobility
Lifestyle changes
Consumerism
Levels of education
The Cultural Environment
institutions and other forces that affect a society’s basic values,
perceptions, preferences, and behaviors.
• Core beliefs are
persistent
– Passed from parents
to children; reinforced
by society
– Shape attitudes and
behavior
• Society’s cultural values
are expressed through
people’s views of:
• Secondary cultural values
change and
shift more easily
–
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Themselves
Others
Organizations
Society
Nature
The Universe
The Marketing Environment and
Competitor Analysis
• Five forces analysis
• SWOT analysis
Porter’s Five forces analysis
Potential
entrants
Threat of
entrants
Suppliers
COMPETITIVE
RIVALRY
Buyers
Bargaining
power
Bargaining
power
Threat of
substitutes
Substitutes
Five Forces Analysis: Key
Questions and Implications
• What are the key forces at work in the competitive
environment?
• Are there underlying forces driving competitive
forces?
• Will competitive forces change?
• What are the strengths and weaknesses of
competitors in relation to the competitive forces?
• Can competitive strategy influence competitive forces
(eg by building barriers to entry or reducing
competitive rivalry)?
Responding to the
Marketing Environment
• Reactive:
Passive Acceptance and Adaptation;
Avoidance
• Proactive:
Environmental Management and New Product
Development
Customer/Product
Profitability Analysis
Customers
C1
P
r
o
d
u
c
t
s
P1
P2
+
+
P3
P4
+
High
profit
customer
C2
+
C3
+
Highly
profitable
product
Profitable
product
Mixed-bag
customer
-
Losing
customer
Losing
product
Mixed-bag
product
Consumer Behaviour
An Introduction
What is Consumer Behaviour?
Those activities directly involved
in obtaining , consuming and
disposing of products and
services, including the decision
processes that precede and follow
these actions
Consumer Characteristics… TakeAway
• CB is influenced by consumer characteristics
– Individual chars (Personality, Lifestyle)
– Environment (Reference Groups, Culture)
• Important to take these variables into account in your
marketing plan
– introvert/extrovert:
• Also important to keep track of trends…
– E.g., lifestyle trends (McDonald’s)
• Culture: Important because of global marketing
– Localization vs. Standardization??
– Flexible Globalization is often the solution (McDonald’s)
Perspectives of CB
Logical Positivism
1. Understanding and predicting consumer
behaviour
2. Cause and effect relationships that
govern persuasion and/or education
Post Modern – to understand consumption
behaviour without any attempt to
influence it
7 O FRAMEWORK eg purchase of soap
External Influence
Input
Firm’s Marketing Efforts
1. Product
2. Promotion
3. Price
4. Channels of distribution
Need
Recognition
Process
Prepurchase
Search
Evaluation of
Alternatives
Output
Purchase
1. Trial
2. Repeat purchase
Post purchase Evaluation
Sociocultural Environment
1. Family
2. Informal sources
3. Other noncommercial
sources
4. Social class
5. Subculture and culture
Psychological Field
1. Motivation
2. Perception
3. Learning
4. Personality
5. Attitudes
Experience
A Model of
Consumer
Decision
Making 50
Decision Issues
• Types of decisions
– Routinized response (e.g.,
gas, sodas)
– Limited problem solving
(e.g., car service, fast food)
– Extended problem solving
(e.g., new car, computer,
medical procedures)
• Type of evaluation:
– Compensatory: Decision
based on overall value of
alternatives (good attribute
can outweigh bad ones)
– Non-compensatory:
Absolutely must meet at
least one important
criterion (e.g., car must
have automatic
transmission)
Potential Family Life Cycle
Stages
YOUNG
SINGLE
YOUNG
COUPLE
EMPTY NEST
I/II
FULL NEST
I/II/III
SINGLE
PARENT
OLDER
SINGLE
BLENDED
Household Decision Making
• Roles/influence
– Information
gatherers/holders
– Influencers
– Decision makers
– Purchasers
– Users
Adoption Process
1.
2.
3.
4.
5.
6.
Awareness
Interest
Evaluation
Trial
Decision
Confirmation
Organizational Buyers
• Types
– Industrial
– Reseller
– Government and nonprofit organizations
• Characteristics
– Greater involvement
– Bureaucracy
– Long term
relationships
Organizational decision making
v/s Consumer decision making
•
Purchase decisions made by companies frequently involve many people
•
Organizational and industrial products are often bought according to
precise, technical specifications that require a lot of knowledge about the
product category.
•
Impulse buying is rare because buyers are professionals, their decisions are
based on past experience and a careful weighing of alternatives.
•
Decisions often are risky, especially in the sense that a buyer´s career may
be riding on his demonstration of good judgment.
•
The business-to-business marketing often involves more of an emphasis on
personal selling than on advertising or other forms of promotion.
MODELS OF ORGANIZATIONAL
BUYING BEHAVIOR
To gain a simplified view to organizational buying behaviour for
a practical use, there are several models to handle the complex
environment. The following introduces four major groups first
conceptualized by Rowland T. Moriarty :
• Task oriented model
• Non task oriented model
• Decision process model
• Complex model
three types of buying decisions:
• Straight rebuy- Purchasing department reorders on a
regular basis. The buyer chooses from suppliers on an
approved list. The suppliers make an effort to maintain
product and service quality and propose “automatic
reordering systems”. The “out-suppliers” attempt to
offer something new or exploit dissatisfaction with
existing supplier.
• Modified rebuy- The buyer wants to modify product
specifications, prices, delivery requirements and other
terms. This involves additional decision participants on
both sides. The “in-suppliers” become nervous and
“out-suppliers” try to offer a better deal.
• New task- The purchaser buys a product or service for
the first time.
MARKET SEGMENTATION
• CONCEPT AND DEFINITION
The concept of market segment is based
on the fact that the market of commodities
are not homogeneous but they are
heterogeneous. Market represent a group
of customer having common
characteristics but two customer are never
common in their nature, habits, hobbies
income and purchasing techniques.
• According to Philip kotler , “ Market
segmentation is sub-dividing a market into
distinct and homogeneous subgroups of
customers, where any group can
conceivably be selected as a target market
to be met with distinct marketing mix.”
• Market Segmentation is a method of
“dividing a market (Large) into smaller
groupings of consumers or organisations
in which each segment has a common
characteristic such as needs or
behaviour.”
DEFINITIONS
• MARKET SEGMENTATION: Customer
oriented -- identifies customer subgroups
of the market as they currently exist.
• PRODUCT DIFFERENTIATION: Product
oriented -- identifies subgroups of
competing products.
RULE OF MARKET
SEGMENTATION
• Maximize homogeneity within market
segments
• Maximize heterogeneity between
market segments
Why you need customer
segments
• Customers are usually very different
• College students, senior citizens, families
with children, empty nesters…
• The same message to all may not work so
well.
• Solution: create segments, and design a
program for each segment.
A valid segment strategy
involves:
• Communications to the segment (direct mail,
email, on-location personal attention)
• Rewards designed to modify behavior
• Controls to measure the success of the strategy
• A budget for implementation of the strategy
• Specific goals and metrics for engagement: for
behavior modification
• An organization that accepts responsibility for
the segment
LEVELS OF MARKET
SEGMENTATION
1. SEGMENT MARKETING
Consists of a group of customers
who share a similar set of needs
and wants.
Identifiable Group with in a
Market with Similar
• Wants
• Purchasing Power
• Geographical Location
• Buying Attitudes
FLEXIBLE MARKET OFFERING
• Even in segments 100 % needs are not
same – consists of two parts
1.Naked Solution :- products and services that
all members of the segment values.
2.Discretionary options :- that some segment
members value. Each option might carry an
additional charge.
 Example: Automobile industry – basic model is
same but for A.C , power steering, power
window buyer
has to pay extra price.
 Delta Airlines offers all economy
passengers a seat and soft drinks. It
charges economy passengers extra for
alcoholic beverages.
 Market Segments can be defined in many
different ways. One way to carve up a
market is to identify Preference
segments
Suppose ice cream buyers are asked how
much they value sweetness and
creaminess as two product attributes.
Three different patterns can emerge.
Homogeneous preference :
– where all the consumer have roughly the same preferences.
– We would predict that existing brand would be similar and cluster
around the middle of the scale in both sweetness and
creaminess.
Diffused preference :
– consumers vary greatly in their preferences
Clustered preference :
creaminess
sweetness
Homogeneous Preference
-no natural segments
-all buyers have same preference
creaminess
sweetness
Diffused Preference
-no pattern (…or poor research)
-take center position
creaminess
sweetness
Clustered Preference
-natural segments
-increases as number of competitors increases
2. NICHE MARKETING

Group of customers seeking a distinctive mix of benefits who are
ready to pay extra premium.
 Niche = segment
sub – segments
Eg. Washing detergents
hard & gentle washes . Surf
excel for tough stains ( hard on clothes) & Ezee from Godrej for
delicate clothes.
--- Astha , Sanskar , Q TV – focus on religion & spiritualism.
 DISTINCT NEEDS
 PAY PREMIUM
 SPECIALIZATION
 LESS COMPETITION
 POTENTIAL
3. LOCAL MARKETING
•
Marketing programs tailored to the needs & wants of local customer
groups in trading areas, neighborhoods , etc.
• this trend is called grass roots marketing.
Ex. – Spiderman 3 was released in 5 different language in India
including bhojpuri.
Pune
sarees
Chitle
Kashmiri silk
4. INDIVIDUAL MARKETING
•
Ultimate segmentation – segments of 1 or customized marketing or
one to one marketing.
• Customerization – empower the consumers to design the product or
service offering of their choice.
• Ex. Paint companies have started doing this- Asian Paint , Nerolac ,
Berger Paints
• Arvind mills launched Ruff’n Tuff Jeans, branded ready – to – stitch
GEOGRAPHIC SEGMENTATION
Divide the market into different group based on :
• Region – South India , North , Western Region, East
• City – metro cities, cities with population more than 1
million
• World
• Density
• Climate
• States
Ex.- Mcdonalds globally, sell burgers aimed at local
markets, for example, burgers are made from lamb in
India rather then beef because of religious issues. In
Mexico more chilli sauce is added and so on.
DEMOGRAPHIC
SEGMENTATION
Segment Strategy
An ideal segment…
• Has definable characteristics in terms of behavior
and demographics: for example, Retired Couples
• Is large enough in terms of potential sales to justify
a custom marketing strategy with appropriate
rewards and budget
• Has members who can be motivated by cost
effective rewards to modify their behavior in ways
that are profitable for your company
• Makes efficient use of available data to support
segment definition and marketing efforts
• Can be measured in performance, with control
groups
• Justifies an organization devoted to it: can be a
single person, or part of a person’s time, but there
should be someone who “owns” each segment.
Segment action plan:
• A roadmap showing what will happen when.
“Send each policyholder a birthday card and a
policy review 45 days before their policy renewal
date.”
• A budget for the infrastructure and for the
segment marketing plans
• An organization chart that shows who is
responsible for each segment
• Specific goals to be achieved with milestones for
measurement of success
BASES FOR SEGMENTING
MARKETS
CONSUMER:
• Geographic
• Demographic (age, income,
marital, occupation, ethnicity,
etc.
• Psychographic (AIO,
lifestyles)
• Behavioral (occasions, user
status, usage rate, loyalty
status, hierarchy of needs)
• Benefits
BUSINESS TO BUSINESS:
• Demographic (industry, size,
location)
• Customer Variables (technology,
user/nonuser, loyalty status)
• Purchasing(centralized/decentral
ized, functional orientation,
contracts vs. bids vs. lease)
• Situational (urgency, order size,
product application)
PSYCHOGRAPHIC
SEGMENTATION
BEHAVIOURAL SEGMENTATION
OCCASIONS - Archies and Hallmark
cards, Monaco at tea time.
 BENEFITS – Shampoo for hair conditioning,
cleaning , hair fall defence dandruff control
 USER STATUS- light – medium – heavy
user
 LOYALTY STATUS- hardcore loyal , split
loyal- loyal to 2-3 brand ,shifting loyal,
switcher
PSYCHOGRAPHIC
SEGMENTATION
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Actualizers (taste, finer things)
Fulfilleds (functionability, value, durability)
Believers (established products/brands)
Achievers (visibility to peers)
Strivers (emulation)
Experiencers (experiential consumption)
Makers (basic practical possessions)
Strugglers (urgent basic needs)