The Marketing Concept1. 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 spendpays for marketing costs.Marketing costs include productdevelopment, packaging, advertising,and sales expenses.Most important aspect of marketingincludes satisfying customer needs.
Marketing ConceptA business that keeps the focus ofsatisfying customer needs.Customers’ needs should be the primaryfocus during the planning, production,distribution, and promotion of a productor service.
Maintain RelationshipsMaintaining a successful customerrelationship 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 mostimportant aspect of marketing.
CompetitionConsumers have more money to spendon sports and entertainment(discretionary income) Result: Higher demand More competition Improved 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 salesrequired to cover all of the expenses oforganizing, promoting, and running theevent.
Remember ThisFamilies are spending money to attendtheir children’s sporting events.Restaurants, motels, hotels, and servicestations all have vested interest in theseevents.
Different Type of CompetitionMovie 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 thatyou forgo when making a choice.Measured as the benefits that you are givingup.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 haveexperienced?
Quick Review1. Businesses that follow the marketing concept A. Will face little competition B. Will always be profitable C. Will focus on satisfying customer needs D. 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.
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 recordsExternal Sources Information 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 Data Data 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 represents A. Physiological Needs B. Self-Actualization Needs C. Self-Esteem Needs D. Rational Purchases
Another QuestionPrimary data may be collected through? A. Surveys and observation B. Government reports C. Business publications D. Both B and C
Target Markets1. 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 SegmentationFocuses on information that can bemeasured, such as age, income,profession, gender, education, maritalstatus, and size of household.
Psychographics SegmentationsFocuses on characters that cannot bephysically 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 Benefits Based on the benefits derived from products or services.
Market ShareThe percentage of total sales of aproduct or service that a companyexpects to capture in relation to itscompetitors.
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 Service1. 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 Service2. Follow the FAST strategy. Focus, Action, Search Tenacity3. 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, it A. 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 be A. 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 behavior B. Government census figures. C. Telephone surveys from customers. D. All of the above.