Inseec - Strategic Marketing - Rodolfo Cremer

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Inseec - Strategic Marketing - Rodolfo Cremer

  1. 1. International Academic Seminars January, 2014
  2. 2. Rodo fo C Rodolf J. Cr Rodolfo J Crem MBA Ph D ( ) Cremer, MBA, Ph.D. (c) rcremer@marketingdeservicios.com © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  3. 3. Rodolfo J. Cremer, MBA, Ph.D. (c) Academic Vice President San Ignacio de Loyola University © Dr. (c) Rodolfo J. Cremer - Escuela de Postgrado Universidad San Ignacio de Loyola
  4. 4. The way we will interact (in this course) “When teaching , teach also to doubt what you teach” Ortega y Gasset © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  5. 5. ¿who are you? ¿where do you come from? ¿what do you expect to happen? (in this 6 hours)
  6. 6. ¿who am I? ¿what am I doing here? (what do I expect to happen)
  7. 7. Ph.D. (c) Rodolfo J. Cremer, MBA Vice President at Universidad San Ignacio de Loyola, Lima, Perú Director at Marketing de Servicios for Perú, MdS Director at MERCO for Peru Professor Cremer is the Academic Vice President at Universidad San Ignacio de Loyola, responsible of the operation of the graduate, undergraduate & working adult programs. Until December 2012 he was Dean at the Universidad San Ignacio de Loyola Graduate School of Business. He is also Director at MdS (Marketing de Servicios, Peru), and member of the Advisory Committee at Merco Perú. He was Vice President at Universidad Peruana de Ciencias Aplicadas – UPC, member of Laureate International Universities), and his professional experience and academic background during the past 20 years have taken him to lead projects, directories and general management at different industries and market segments. He has wide experience in commercial and marketing strategies, designing strategic planning and constructing balanced scorecards, defining KPIs, designing service and loyalty programs, and the tactic execution of the strategy in the operational business. Professor Cremer teaches Strategic Marketing and Service Marketing, and has been lecturer in subjects as strategic planning and balanced scorecard, loyalty programs and service marketing strategies in many prestigious universities, MBA programs and postgraduate schools, as well as in open seminars and consulting projects. He was also lecturer in the international event BALAS 2006 (Business Association of Latin American Studies) and in the XI Seminary and I International Congress of Marketing and Publicity in Bucaramanga, Colombia (2007), and visiting professor at DeSales University, Pennsylvania, US (2009). His professional experience background is in multinational companies, where he has held the positions of director, marketing manager and commercial manager. His professional experience is in strategic planning and commercial and marketing plans, developing loyalty programs (CRM). He has worked for companies such as Pepsico, Price Waterhouse Coopers, Yamaha Motor of Peru, Kawasaki, Suzuki of Peru, General Motors, Mibanco, Los Delfines Hotel & Casino, Banco Financiero, Atlantic City Casino. He has developed programs of consultancy and participated in in-company seminaries for Interbank, Nissan, LAN, Asosiación Peruano-Britpanico, Constructora Líder, Besco, Impulse Telecom, Belcorp, Telefónica, Postobón (Colombia), among others. Mr. Cremer is a Ph.D. candidate in International Business Administration at Universidad Politécnica de Cataluña, Spain. He is also MBA by the UQÀM (Université du Quebec à Montreal), Canada, and MBA by the Universidad San Ignacio de Loyola (Lima, Peru). In both cases he graduated first place in his class.
  8. 8. Education Student Teacher / Lecturer Undergraduate • Business Administration Graduate • MBA Doctoral • International Administratrion © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  9. 9. Work Experience Full Time Consultancy Services • • • • • • • • Education Banking Microfinance Gaming Beauty Consultancy Security Health Automobile / Motorcycles / Industry Consumer Goods Construction / Real State © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  10. 10. ¿who am I? ¿what am I doing here? (what do I expect to happen)
  11. 11. Getting to know your expectations ¿what do you expect from a quality STRATEGIC MARKETING? “course” of www.marketingdeservicios.com
  12. 12. Expectations from the STRATEGIC MARKETING course Course: Strategic Marketing INSEEC, Paris. 2014-01-20 13
  13. 13. OK. Let’s start … IMPORTANT / “DISCLAIMER”: This PPT is only supporting material for class discussion. Not everything that we discuss in class is in the PPT, either everything that is in the PPT will not necessary be discussed in class … However, I am available at rcremer@marketingdeservicios.com or rcremer@usil.edu.pe for any further information .
  14. 14. Neils Böhr said: “The opposite of a fact is a falsehood; but the opposite of a profound truth may well be another profound truth. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 15
  15. 15. Confucius said: “Study without thinking is a waste of time; thinking without study is dangerous”. The Art of Strategy, Thomas Cleary (the same: from my personal experience working with people who know nothing about marketing -and they are taking marketing decisions-) © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 16
  16. 16. In this seminar : We are going to do something executives rarely do (and I include myself of course). 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 17
  17. 17. We are going to think (to think strategically) 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 18
  18. 18. We have no time to plan the future; we are too busy solving today’s problems. Anonymous (and -on the waywe are measuring anything) My own experience – Rodolfo Cremer © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  19. 19. “I am interested in the future because is where I am going to spend the rest of my life”. Woody Allen © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  20. 20. 2 favours: 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 21
  21. 21. 1. During learning periods the mind acts as a parachute 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 22
  22. 22. It’s better when it is open 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 23
  23. 23. The opposite to … 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 24
  24. 24. The closes to … 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 25
  25. 25. 2. NO Paradigms / NO Prejudices. 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 26
  26. 26. agenda (objectives) for today 1. Foundations and Process of Strategic Marketing : what is (& what is not) Marketing (a perspective from the XXI century). 2. Transactional Marketing vs Relationship Marketing. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  27. 27. Fuente: http://trescosashermosas.blogspot.com/2011/02/y-pensaba-que-telefonica-era.html © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  28. 28. Sales are the result of relations [ not the other way around]. 1 Fuente: 1 ALCAIDE CASADO, Juan Carlos; SORIANO SORIANO, Claudio L. Marketing Bancario Relacional. McGraw-Hill / Interamericana de España, S.A. [2005] © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  29. 29. Requires a change of Paradigm from the Transaction to the Relation © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios !
  30. 30. The BIG picture © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  31. 31. Market Research Environment: external factors. Competitors, laws, social , politic, economic, technologic, demographic, geographic & trends and factors as values and lifestyle etc… Total Market / Population Understand the insight and the consumer buying behaviour: habits, like, preferences, fears, etc Segment // Targeting Differentiate We align the Marketing Mix 1.Product 2.Price 3.Place 4.Promotion 5.People 6.Processes 7.Physical evidence (Perceptions) 8.Provision Moment of Truth Position (Positioning) Fuente y Elaboración: Rodolfo J. Cremer, Ph.D. (c) Marketing Plan 1. 2. 3. Actions: What, Who, When, How, Where, Why… How much: forecast, Budgets and objectives. Indicators and Ratios.
  32. 32. then … “¿What is marketing?” © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  33. 33. Marketing Is About War © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  34. 34. Shaman from Piura TIE UP YOUR IMPOSSIBLE LOVE © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 35
  35. 35. PLUMBER, in Trujillo, Perú. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 36
  36. 36. FUMIGATION MAN, in Lima, Perú. 2014.01.16 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 37
  37. 37. Other proposals are more sophisticated and exciting © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  38. 38. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  39. 39. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  40. 40. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  41. 41. 92% of our Customers are satisfy with our service. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 42
  42. 42. Which company is more commitmted? We arrive in 15 minutes or we pay you $100 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 43
  43. 43. During a road trip on a lonely road, I stopped in a town to buy something to eat. When entering the pizza restaurant I saw a sign that said: “Quality, Service, Good Price. Choose two.” Selecciones del Reader’s Digest Pp 101, agosto 2007 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  44. 44. ¿What’s happened? [where’s the marketing?] ¿What is “Marketing”? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  45. 45. Marketing To offer the customers Products and services to reach the satisfaction of their needs, wishes and expectations. J Jerome McCarthy / Phili K tl M C th Philip Kotler t l © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  46. 46. The paradox of satisfaction © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  47. 47. Let’s look at the example of the automotive industry © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  48. 48. In the automotive industry… Only 15% renews with the same brand Completely mpletel satisfied Very satisfied 10% Satisfied Very disatisfied 80% completely disatisfied 10% 80% + 10% = 90% Dropout Rate = 75% Satisfaction does NOT guarantee loyalty © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  49. 49. A LADA salesmas says: “A LADA is forever …” What he didn’t say was: “… becasue nobody would buy it later”. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  50. 50. Survey of more than 2.000 general directors, commercial directors and Marketing directors of the most relevant national and international companies of different sectors. ƒ 1 out of 4 Spanish companies (25.4%) expects to lose between 10% and 30% of their customers. ƒ ƒ ƒ ƒ 19,9% of the companies believes they’ ll lose between 10% and 20%. While 5,5% forsees that the droput rate will be between 20% and 30%. 7% of the surveyed companies admits that the churn rate can rapidly grow more than an alarming 30%. Numerous companies choose to accept droput rates in a natural way, intensifying their efforts to attract new clients. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  51. 51. Survey of more than 2.000 general directors, commercial directors and Marketing directors of the most relevant national and international companies of different sectors. ƒ Asked about the reason for the dropout, 73% of the customers mentioned “customer service” as the main one, compared to 21% of the managers. ƒ 50% of the managers attributed the dropouts to the price, 24% of the “deserter” customers mentioned the prices as the reason. while only a ƒ This difference speaks for itself about the learning & understanding necessary. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  52. 52. and ¿HOW is the QUALITY of a SERVICE measured? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  53. 53. “If we paid services in the street the same attention we give to the products in the factory, certainly a large number of new opportunities will appear”. Theodore Levitt- ©Fuente: IMdS. Cremer – MdS Marketing de Servicios Dr. (c) Rodolfo J. www.marketingdeservicios.com
  54. 54. THE QUALITY EQUATION (in services) (1) Expectations © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  55. 55. E I came for this promise Pero recuerda y se queda con esta realidad (y se lo cuenta al resto!!) © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  56. 56. E I came for this promise And I found this reality (this is what he tells the rest!!) P © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  57. 57. The Quality Service Equation C=P–E © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  58. 58. The Quality Service Equation C=P–E ¿How much should C be (obligation)? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  59. 59. The Quality Service Equation C=P–E 0 ¿How much should C be (obligation)? ¿How do we ensure a C+? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  60. 60. The Quality Service Equation C=P–E 0 + ¿How much should C be (obligation)? ¿How do we ensure a C+? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  61. 61. I have a question for you © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  62. 62. Can we apply a high quality service strategy & operation model in any business? ƒ What about a supermarket? ƒ (It's a “commodity store”?) Or an “low fare” airline? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  63. 63. In other words … Quality, Service & Good Price. Can we have all three together? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  64. 64. Let see how (or if it) it works. C=P–E © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  65. 65. www.marketingdeservicios.com “When the company have no clear and specific quality standards, the daily and everyday decision of what should the final quality that the products and services of the organization be is left to the employees” Article: Los Estándares de Calidad en el Servicio, del MdS ©Fuente: IMdS. Cremer – MdS Marketing de Servicios Dr. (c) Rodolfo J. www.marketingdeservicios.com
  66. 66. www.marketingdeservicios.com “¡¡Best wishes and good faith DOES NOT ensure that the CRITERIA of the employees meet the EXPECTATIONS of the CUSTOMERS!!” ©Fuente: IMdS. Cremer – MdS Marketing deicios.com Dr. (c) Rodolfo J. www.marketingdeservicios.com v Servicios
  67. 67. The first step: PART-TIME MAID NEEDED DOESN’T NEED TO KNOW ANYTHING JUST OBBEY
  68. 68. www.marketingdeservicios.com “Satisfying the customers is no longer enough, we have to delight them and even amaze them.” Article: La medición de la satisfacción del cliente (Juan Carlos Alcaide, director del MdS) ©Fuente: IMdS. Cremer – MdS Marketing de Servicios Dr. (c) Rodolfo J. www.marketingdeservicios.com
  69. 69. “It’s not the products but the processes that create the products, what adds up to the long term success of the companies”. Michael Hammer & James Champy Reengineering the Corporation: A Manifesto for Business Revolution ©Fuente: IMdS. Cremer – MdS Marketing de Servicios Dr. (c) Rodolfo J. www.marketingdeservicios.com
  70. 70. © Fuente: MdS. www.marketingdeservicios.com Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  71. 71. In many cases the “obsession” for customers’ satisfaction can become the only safe way to guarantee the short and long term survival of the company . Article: La Medición de la Satisfacción del Cliente de MdS © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  72. 72. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  73. 73. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  74. 74. • • • • Our values: The customer is our reason for being Our people is most important Innovation Superior performance © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  75. 75. WORD OF MOUTH: THE CONSUMER AS A MARKETING TOOL © Dr. (c) Rodolfo J. Cremer - Escuela de Postgrado Universidad San Ignacio de Loyola
  76. 76. Let’s talk about the “ E ” ¿How are (customers’) expectations formed? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  77. 77. Definition (according to RAE) Expectation: the Hope to do or get soemthing. Reasonable posibility of soemthing to happenPossibility to get a right, an inheritance, a job or any other thing provided that a planned event happens. 79 Fuente: RAE. www.rae.es
  78. 78. Marketing Communication of the company Sales Process Management Other communications from the company “Athmosphere” created at the meeting point of the service Personal Experience with the company “Mout to Mouth” communication Personal Experience with other companies ©Fuente: IMdS. Cremer – MdS Marketing de Servicios Dr. (c) Rodolfo J. www.marketingdeservicios.com
  79. 79. Expectation What to do Marketing Communication Don’t make primises you can’t not keep. You can Underpromise (and give more) Sales Process Management Do Not “over-sell ” the virtues of your services; sooner or later you will have to deliver the moon. Other communications Control the implicit messages they contain “Athmosphere” created Use the tangible elements and the environment of the at the meeting point of meeting to show what the customers should expect. the service Personal Experience with the company Don’t allow “valleys and peaks” in the services of the company: clients always expect a steady quality of service “Mout to Mouth” communication Keep your customers satisfied so that they “speak well of you” Personal Experience Constantly check what the competition does [and how with other companies it does it]; use benchmarking © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  80. 80. They 10 key Expectations [Berry, Parasuraman & Zeithaml] 82 Fuente: MdS. www.marketingdeservicios.com
  81. 81. ¿What has happened? In XXI Century © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  82. 82. Transactional Marketing Product Price Place Promotion ƒ Management culture dominated by the supply side. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  83. 83. marketing was born in this era for this products competitors & customers © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  84. 84. It does NOT Work in XXI century! © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  85. 85. And there was another option left for us… The services had no choice but to adopt (product) marketing Just as it had been thought for the products (in despite of the obvious differences between products and services) © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  86. 86. Differences between Products and Services Î The intangibility [of the service] Î Simultaneity production – consumption Î Production process Î Contact company-customer Î Heterogeneity of services, and Î Customer engagement [in the production process] © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  87. 87. I Birth Pure adoption 4Ps II Evolution A cry (shout) of freedom 1977: “Breaking Free From Product Marketing” (Liberémonos del marketing de productos) G. Lynn Shostack, Vicepresidenta del CitiBank III Adaptation Aplicability Relationship Marketing Traditional Marketing © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios Internal Marketing
  88. 88. therefore… a three-dimensional approach is needed © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  89. 89. New Three-dimensional Perspective Relationship Marketing Delivers what was promised and manages the relationship Traditional Tradicional Internal Marketing Comunication of promise Allows the delivery of what was promised (accomplish) © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 91
  90. 90. New Three-dimensional Perspective Relationship Empowerment Provision – Marketing Emotional People connection: People Abilitues, emotions, attitudes, service vocation “depart “moment, of true” from the script”, extra mile ,,, Experiences Delivers what was promised and manages the relationship Customer Traditiona lMarketing Product Price Place Promotion 4Ps Communication of promise i “moments of thruth” Internal Processes Processes Physical Marketing Evidence Standards Homogeneity at the point of sale: Tasks, tools, formation, scripts, moments of truth… Allows the delivery of CRM what was promised (accomplish) © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 92
  91. 91. New Adapted Approach in XXI century (expanded marketing) Product – Service Price People Place Process Promo Provision Phsycal Elements (evidence) Benefitdelivery Fuente: MdS. www.marketingdeservicios.com
  92. 92. What is an organization chart like? organization customer Process (need cross-functional organization) © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  93. 93. This is the way in which a traditional organization chart works today Contribution from Prosper Bernard, Ph.D. (mi professor at UQÀM Graduate School) © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  94. 94. … and these are the results… It’s not enough to do things right, we have to do “right” the “right” things. ©Fuente: IMdS. Cremer – MdS Marketing de Servicios Dr. (c) Rodolfo J. www.marketingdeservicios.com
  95. 95. ƒ Comunication – direct marketing: increases its importance in saturation and lack of massive means ƒ Distribution: strategic partnership between the channel and the manufacturer, procedures and shared databases ƒ Service Marketing: increases customer satisfaction, frequency and quality of contact and its impact on loyalty. ƒ Marketing of industrial and high technology products: development of “one to one”, joint ventures, joint development and common perspective of the value chain ƒ Quality: TQC, TQM, importance of the quality of satisfaction. ƒ Flexible Production – JIT: cost reduction of changes enables the client-oriented strategy. Orientation to maximun flexibility in scale economy ƒ Enterprise Strategy: “keiretsu” clusters with interrelated interests and long-term commercial links © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  96. 96. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  97. 97. [then] ¿what is marketing? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  98. 98. Marketing According to G. Lynn Shostack Marketing is the area (and the 1 in charge of processes) keeping the link between the company and its customers link = relation ¿elements of a relation? 1. Contribution from Mr. Victor Requena. UQAM XVI. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  99. 99. link = relation ¿elements of a relation? Satisfaction Trust Respect Comunication A relation: Win – Win Loyalty Fidelity (trust) They are not the same Passion Love + Convenience Forgiveness Kowledge © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  100. 100. ¿Why is customer service important? Î More loyalty from consumers, customers and users. ÎIncrease in sales and profitability(the high quality allows, among other things, to la alta calidad permite, entre otras cosas, set higher prices than the competition). ÎMore frequent sales, more repetition of business with the same clients, users or consumers. Î A much higher level of indivudual sales per customer, consumer or user (satisfied clients buy more of the same products and services). ÎMore cross-selling, since the customers are more likely to buy other products or services from the company. ÎMore new customers acquired through word of mouth communication , the references from satisfied clients, etc. ÎLower expenses in traditional marketing activities (advertising, sales promotion and so on). © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  101. 101. ¿Why is customer service important? ÎFewer complaints so therefore fewer expenses solving them. ÎBetter image and reputation of the company. Î A clear differentiation of the company over its competitors (even though there products and services are similar to those of their competitors , customers perceive as different and even as unique). Î A better internal working climate, since employees are no longer under the pressure of frequent complaints form users, customers or consumers. ÎBetter internal relations inside the staff since all of themwork, together, towards a common goal. ÎFewer complaints and absenteeism from the staff (higher productivity). ÎLower staff turnover. ÎMore market share. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  102. 102. (according to Bernd Schmitt) Functional characeristis are considered based on theri importance. Its presence iin the product that is most useful (defined as the sum of weighted features). Anything that does not fit is “image”, “irrelevant” or “meaningless” Acknowledging the need Competnece is produced inside a restricted andefined product category: the battle field of the product managers and brand managers Searching information Evaluating options Buying anf consuming ƒ Regression models ƒ Positioning maps ƒ Joint analysis (functional advantages perceived by the consumer) Fuente: MdS. www.marketingdeservicios.com
  103. 103. [ soemthing to take into account … ] “The essential difference between emotion and reason is that …
  104. 104. [ something to take into account … ] “The essential difference between emotion and reason is that … emotion leads to action while reason leads to conclusions.” Kevin Roberts [Lovemarks: the future beyond brands]
  105. 105. “the wallet is closer to the heart than it is to head.” d2 $ d1 d1 < d2 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  106. 106. 9 Less loyal to a brand More 9 Wider varierty of choices (election) heterogeneous 9 More diverse needs 9 Makes decisions at the selling point and harder to reach customer It could be up to the © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 80%
  107. 107. Adapted from Pajunen y O’dell 1. They accept your invitation to be loyal 2. They frequently change segments and mislead our strategies , their behaviour is unpredictable 3. They are smart and are well-informed 4. They are cynical and sceptical 5. They ar not willing to “fight” (they just leave), they rather “harm consciuosly” 6. They are interested in the others’ experiences 7. They know their own value ey y w ir wn ue n 8. They are proud to be “butterflies”: they know they have the power. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  108. 108. Adapted from Pajunen y O’dell Excelent service (feeling of being exceptional) Put the price on the second place based on their ”level” as a customer Pride of belonging “red carpet” Routines and “lazyness” to look for another supplier, sale cost based on comfort “one to one” treatment . (what they value more than the link “companyperson”) © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  109. 109. Adapted from de Pajunen y O’dell 9 Suspicious and cautious 9 Experienced 9 Skeptic 9 Impatient 9 Unpredictable 9 Highly informed 9 Non conformist 9 Bad-tempered 9 Bothersome Troublesome 9 Somebody has to pay for what’s happening © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  110. 110. Adapted from Marketing de Servicios – tendencies 2014 Hiper connected (AAA) 9 Any Device 9 Anywhere 9 Anytime The Rise of Generation 9 Connected 9 Communicating 9 Content-Centric 9 Computerized 9 Community-oriented, 9 always Clicking © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios C
  111. 111. (AAA + Generation C) © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  112. 112. “It’s not the products but the processes that create the products, what adds up to the long term success of the companies”. Michael Hammer & James Champy Reengineering the Corporation: A Manifesto for Business Revolution Fuente: MdS. www.marketingdeservicios.com 115
  113. 113. ¿What do CUSTOMERS EXPECT from US? Fuente: Berry, Parasuraman & Zeithaml © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  114. 114. Reliability- Credibility E P “we don’t have customers , we have believers” Carlos Navarrete DIES business partner Customers can believe & trust In our standard quality © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  115. 115. responsiveness E P The employees are willing to provide the service when w willin the customer needs it. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  116. 116. Courtesy E P “we just sell the product, we don’t manufacture it.” An important department store in Perú The staff tr treats the customers kindly and attentively reats they don’t react negatively with an angry customer. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  117. 117. Accesibility E P Adequate location and schedules, signaling, e loc services provided match the customer times, managers willing to listen. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  118. 118. Communication E P The staff explain clearly without using technical explains cle ns words; they listen patiently. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  119. 119. Understanding Som S mebody c Somebody calling y himself himse elf customer asks E P for soemthing called service Custom Customers expect to be heard and helped; the satff mers “understand the customers’ side”. “Personalized” service (segmented). © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  120. 120. Professionalism E P The staff knows how to provide the requested service. Know your products! © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  121. 121. Security E P The company cares about the customers’ physical and econo economic safety, (data) confidentiality. omic © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  122. 122. Comunication is very important © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios !
  123. 123. Listen carefully © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  124. 124. make questions © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  125. 125. Film: The beaver and the shepherd © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  126. 126. Don’t “jump” to conclusions Often, problems occur due to a poor communication. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios !
  127. 127. Film: Nose operation © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  128. 128. Before going on Lets’ make a short summary © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  129. 129. [ something to keep in mind ] “the key difference between emotion and reason is that … © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  130. 130. [ something to keep in mind … ] emotion end up in action while reason ends up in conclusions.” Kevin Roberts [Lovemarks: the future beyond brands] © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  131. 131. Final Considerations “Not everything that can be counted counts; Not everything that counts can be counted” Albert Einstein fuente: www.marketingdeservicios.com © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  132. 132. Final Considerations “what’s important is invisible to the eyes” Antoine de Saint-Exupéry en El Principito © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  133. 133. Final Considerations “90% of what we call ‘management’ consists of making things hard for those who must do things.”— P.D. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  134. 134. Final Considerations ÎFidelity (trust) is not Loyalty. ÎThe CRM [technology without strategy] guarantees nothing. ÎClassical Marketing doesn’t work anymore. ÎCustomer service is a key element to keep customers. ÎA radical change in the communication paradigms: we moved from publicity and (massive) promotion to personalized communication. ÎQuality is not enough; we need kindness (human Q). © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  135. 135. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  136. 136. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  137. 137. complaints book (“public”) Commitment of quality The “employee” of the month! © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  138. 138. Now… let´s see traditional (transactional) marketing © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 141
  139. 139. CAUTION there's no space for mistakes here © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 142
  140. 140. Process of Strategic Planning Focus the strategy with quatitative and cualitatove criteira Customers Company S. W. O. T. Segmentation & Target Product Place Target Market Differentiation& Positioning Price Promotion Competitors Marketing External Environment 143 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  141. 141. SEGMENTATION What’s a segment? Where do they come from? Why we need segmentation? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 144
  142. 142. UNSEGMENTED MARKET SEGMENTED MARKET DIMENSIONS: THE CONCEPT, THE TECHNIQUE AND THE STRATEGY 145 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  143. 143. SEGMENTATION 9 Generally ,a company cannot serve all the customers in a big market. 9 They are numerous, disperse and their purchase requirements vary. 9 Any competitor, will be in a better position to reach specific segments. 9 The company identifies the kind of buyers that differ the most in their product requirements, in how they respond to the marketing mix or both. 9 The company has to idnetify the most attractive segments that it can serve more efficiently than the competence. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  144. 144. INTRODUCTION 9 Today, massive markets are becoming less massive into a lot of micromarkets characterized by different lifestyles that are looking for different products, in different distribution channels they see in different mass media (diff mkt mix). 9 Differentiated or concentrated segmentation allows the adjustment of products, prices, distribution channels and communication to reach the target market more efficiently © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  145. 145. INTRODUCTION “Mass society is an illusion” “We have entered the era of demassification” Alvin Toffler, in: “The third wave” “Fragmentation has placed the power into the consumers’ hands” © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  146. 146. SEGMENTATION Nadal vs Steffi Differences between men and women © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  147. 147. To be instrinsincally homogenoeus (similar) • Consumers from a segment should be as similar as possible regarding their probable f h ld b l bl d h answers to the mix of variables in marketing and their dimensions of segmentation. Heterogeneous among themselves: • Consumers from many segments should be as differetnt as possible reg regarding their probable answers to the mix of variables in marketing. Big enough: • To guarantee the profitability of the segment. segment Operational: • To identify the clients and choose the mix of variables of marketing. The demorgraphic dmiension should be included in order to make decisions regarding the place and promo. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  148. 148. Massive Marketing unsegmented Focused on a segment t Segmented Marketing Concentrated Niche Marketing M Individualized Ma Marketing 121 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  149. 149. SEGMENTATION GEOGRAPHIC IC DEMOGRAPHIC IC SOCIOECONOMIC IC PSICOGRAPHIC AND LIFESTYLES ES BEHAVIORAL AL BY TYPE OF USE SE © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  150. 150. Men & Women Brain © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios Link al video
  151. 151. DIFFERENTIATION & POSITIONING What’s Differentiation? Why we need Differentiation? What’s Positioning? Why Positioning is important? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 154
  152. 152. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  153. 153. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  154. 154. Process of Strategic Planning Focus the strategy with quatitative and cualitatove criteira Customers Company S. W. O. T. Segmentation & Target Product Place Target Market Differentiation& Positioning Price Promotion Competitors Marketing External Environment 157 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  155. 155. DIFFERENTIATION “If I'm going to sing like someone else, then I don't need to sing at all.” Billie Holiday 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 158
  156. 156. DIFFERENTIATION M. Porter (1996) “The essence of strategy is choosing to perform activities differently than rivals do.” 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 159
  157. 157. DIFFERENTIATION definition ƒ To establish a series of MEANINGFUL DIFFERENCES , to distinguish the supply from the company from those of the competitors © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  158. 158. DIFFERENTIATION © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  159. 159. DIFFERENTIATION © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  160. 160. DIFFERENTIATION THE COMPETENCCE IS NOT WON COMPETING … SUCCESS COMES FROM THE FACT OF BEING DIFFERENT. the new „ Process „ Provision – “Moment of truth” „ People-person „ Physical evidence163 4P concept 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 163
  161. 161. DIFFERENTIATION 4 Ways to generate value [5 really] 1. BETTER PRODUCT 2. NEWER 3. FASTER 4. CHEAPER 5. ABILITY TO CHANGE © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  162. 162. DIFFERENTIATION 4 Ways to generate value [5 really] 1. BETTER PRODUCT 2. NEWER 3. FASTER 4. Be very careful CHEAPER 5. ABILITY TO CHANGE © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  163. 163. Competitive Advantage ƒ What’s a competitive advantage? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  164. 164. COMPETITIVE ADVANTAGE “Something” my company has Competitive Advantage “Something" that my competition does not “Some “Something" my market m wants 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com Dr 167
  165. 165. COMPETITIVE ADVANTAGE “We have only two sources of competitive advantage: ƒ The ability to learn quickly more about our customers than our competitors do, & ƒ The ability to quickly convert that knowledge into action faster than our competitors do.” Jack Welch, CEO de GE 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 168
  166. 166. DIFFERENTIATION 4 dimensions to differentiate 1. PRODUCT 2. SERVICE 3. STAFF 4. IMAGE CHARACTERISTICS DELIVERY COMPETENT SYMBOL / BRAND QUALITY PERFORMANCE INSTALLATION COURTESY MASS MEDIA CUSTOMER TRAINING CREDIBILTY ATHMOSPHERE RELIABILITY EVENTS COMPLIANCE WITH SPECIFICATIONS DURABILITY CONSULTING SERVICE RELIABILITY REPARIRS REPAIR CAPABILITY MISCELLANEOUS SERVICE STYLE RESPONSIVENESS COMMUNICATION DESIGN © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  167. 167. PRODUCT VALUE SERVICE VALUE STAFF VALUE Differentiation by Value TOTAL VALUE FOR THE CUSTOMER CUSTOMER NET VALUE IMAGE VALUE MONETARY PRICE TIME COST TOTAL COST FOR THE CUSTOMER ENERGY COST PHYSICOLOGICAL COST © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  168. 168. DIFFERENTIATION 7 Criteria to validate a differentiation strategy: 1. Important. 2. Distinctive. 3. Superior. 4. Communicable. 5. Exclusive / Unique. 6. Affordable / Accessible (on “my budget”). 7. Profitable. 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 171
  169. 169. DIFFERENTIATION 7 Criteria to validate a differentiation strategy: 1. And also you can … Video: Bud - Drinkability Video: Jet Blue Inverse Differentiation 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 172
  170. 170. beware hyper competition “immutable” (strategy & marketing) rules. big fish eats’ small fish 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 173
  171. 171. beware hyper competition … they are not any more. fast fish eats’ slow fish 2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 174
  172. 172. Process of Strategic Planning Focus the strategy with quatitative and cualitatove criteira Clients Company S. W. O. T. Segmentation & Target Product Place Target Market Differentiation& Positioning Price Promotion Competitors Marketing External Environment 175 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  173. 173. The Market’s Life cycle © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  174. 174. Cycles are geting always shorter … © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  175. 175. PRODUCT’S LIFE CYCLE definition ƒ The Life Cycle of the product: describe the stages through which the idea of a new product goes, from beginning to end: ƒ Introduction in the market ƒ Growth in the market ƒ Maturity of the market ƒ Decline of sales © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  176. 176. MARKET’S LIFE CYCLE PROFIT Máx. SALES LOSS 0,0 I&D PROFIT Introduction Growth Maturity Decline time © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  177. 177. MARKET’S LIFE CYCLE INTRODUCTION - GROWTH © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  178. 178. MARKET’S LIFE CYCLE MATURITY © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  179. 179. BCG MATRIX & LIFE CYCLE Product’s life cycle Máx. 0,0 I&D Introduction Growth Maturity © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios Decline
  180. 180. LIFE CYCLE. Management & Development stage Introduction growth maturity decline Competitive situation Monopoly or monopolistic competence Monopolistic competence or olygopoly Monopolistic competence or olygopoly oriented to pure competence Pure competence product One or a few variety: try to find the best product Create familiarity with the brand All the products are the same; the brand wars grows Some products abandon the market; price war Trend to a more intense distrubution ¿new emergent markets? place promotion prize Build channels Maybe selctive distribution Create basic channelsr Innovative information Create selective demand high? descreme bajo? penetration Deal with competence(specially in the ologopoly) Price reduction offers persuade / remember (frenzied competence © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  181. 181. PRODUCT © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  182. 182. In 1954: How will looks lihe a home computer in 2004
  183. 183. Product: is a comny’s offer to satisfy a need What the companies really sell is the satisfaction, use or the benefit the user wants © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  184. 184. 9 The idea of “product” as potential satisfaction or benefit for the customer is the most important 9 The industrial customer or manufacturer will be interested in the utility they will get once they use the “product” and sell it again © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  185. 185. physical good combination service Nails, (some) canned soup, electric cables, tubes 100% Emphasis on the physical good Food in a restaurant, car tunning Bank services, haircuts, mail service. Commodity diferentiation 0% 0% Emphasis on 100% the service © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  186. 186. Key Differences: MDS www.marketingdeservicios.com Products Service Tangible Intangible Standard supplies (similar) Heterogeneous and variable [“each” moment of truth is not necessary the same] Producction is separated from consumption [use] Production and consumption [use] are simultaneous Long-lasting [stock] Non long-lasting [Non Stock] [Almost] No companycustomer contact Frequent company-customer contact Standard demand inside the Customers have their own same category personal demands regarding the same service. next … © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  187. 187. Key Differences: MDS www.marketingdeservicios.com Products Service The customer does not participate in the production process (manufacturing) Customers participate in the production process “Personalization” of a product is difficult & hard It’s easy to [must] pesonalize the supply The supply can be “accurately” defined before handing it to the final customer or user. It’s impossible to control all the characteristics of the service the final user or customer gets. Quality perception depends on internal quality. External quality is as or more important than internal quality. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  188. 188. Product’s type and variety r The types of product begin with the type of customer ƒ All the products fit in one of the 2 general groups based on the type of customer: ƒ Conmsumer Products: orientend to the final user ƒ Industrial Products : oriented to make other products © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  189. 189. Comsumer products ƒ The consumer products are classified in 4 groups: ƒ Convenience products ƒ Comparision poducts ƒ Specialty products ƒ Unsought products © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  190. 190. PRODUCTS: GOODS AND SERVICE Consumer products - SUMMARY Type Sub- type Examples Exam Examp Basic Chocolate; magazines ICE; car batery Homogeneous Comparision Impulse Emergency Convenience Salt Mobile Phone Samsung vs. LG Heterogeneous videocamera X ray machine Specialty Newly unsought Unsought Trout fillet; motorbikes Normally unsought Finisterre Burial insurance The same product can be seen in different ways simultaneously © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  191. 191. “The customer needs the brand to simplify his task of buying products” Today, products offer similar benefits and differ very little from each other. The differentiation is reached through communication. It plays an important role in the selection process using mechanisms linked to feelings. “Brands must be able to provoke people’s feelings” © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  192. 192. PRODUCTOS: BIENES Y SERVICIOS BRANDS 9 Renokwn brands make buying easy [for example a supermarket has 25,000 items / now 60,000!] 9 A good brand reduces time and sale efforts. 9 Sometimes the only element of the marketing mix that competitors cannot copy [unless you are in a not developed country]. 9 Speeds up the acceptance of new product associated to it. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  193. 193. When is using a brand is convenient 1. The producy is easy to identify by the name or the brand 2. The quality of the product is the optimus value ofthe price and it is easy to keep. 3. A generalized and reliable distribution is possible [coverage and distribution] 4. Strong demand able to deal with the market price to make it profitable investing in the brand 5. It’s possible to get escale economies 6. Good exhibition points (shelfves, windows) are easy to get … © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  194. 194. “Group of assests [and liabilities] linked to the name and the brand that add r [or take] the value given by a product or service to the company and/or its customers.” © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  195. 195. Strategic importance of packing ƒ The packing includes the product’s protection and promotion ƒ It makes it easier to use and store it. ƒ Prevents deterioration and damage. ƒ Good packing makes product’s identification easy & promotes the brand in the SP (sales Point) ƒ It should link the product with the rest of the marketing strategy. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  196. 196. Strategic importance of packing ƒ A good packing “usually offers” a better promotionap effect than publicity, becasue it is seen at the store where people buy. ƒ It should take the smallest space at the store, be protected, easy to pile up, transport and exhibit. ƒ It should be identified using a bar code (or new tech…) © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  197. 197. Warrantee 9 Warrantee : what the seller promises about the product 9 The laws, the needs of the client and the offers form the competence must be taken into account. 9 The common law states that manufacturers must endorse their products, even if they don’t offer a warrantee. 9 The warrantee should be available before the purchase. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  198. 198. Warrantee 9 The warrantee is an attraction that can improve the marketing mix 9 The risk to offer a warrantee is higher for a service than for a product. 9 The warrantee costs must be included price © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  199. 199. PRICE © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  200. 200. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 205
  201. 201. I have a question for you © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 206
  202. 202. ¿Is the PRICE the most important variable of the marketing mix? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 207
  203. 203. Introduction “If you pay peanuts … … you get monkeys” © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 208
  204. 204. “I buy; then I exist.” Rodolfo J. Cremer, MBA Ph.D (c)
  205. 205. “You are what you buy”. Guillermo D’Andrea, CAMP 2006 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  206. 206. “if you can pay, you can stay” “You value how much you have”. Brother Fred Fink SM, from my [Christian] school, 1980 – 1984.
  207. 207. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  208. 208. FLIGHTS FROM 19 EUROS WE ARE NOT JOKING, WE ARE GERMAN From Spain to Germany up to 50 times a week © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  209. 209. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  210. 210. Objectives & Price Policies introduction 9 Price is one of the 4 main variables the marketing manager controls . 9 (but) Its effects are directly (& immediately) seen in the sales and profit (financial statements) Price is what is given in exchange of the benefits got from the rest of the marketing mix. Therefore it directly influences the value for the customer. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  211. 211. Objectives & Price Policies introduction Basically the marketing manager must decide: ƒ ƒ ƒ Objetives and policies to set prices, Which prices problems they will face, and How the company will solve it 1. how flexible the prices will be 2. At which level they will be stablished along the life cycle of the product 3. Who and when disccounts and sales 4. How will the transportation cost be handled 5. Elasticity © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  212. 212. Objectives & Price Setting Expected performance Profit oriented Maximize profit Objetives of prices Sales increase in units or dollars Sales oriented Market share growth Status Quo oriented © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios Match the competence price Competence unrelated to the price
  213. 213. Objectives & Price Policies Season [season] Size Price Discounts Cash Discount Offer price Commercial [channel] © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  214. 214. Price Setting Demand Oriented Psychological Odd- Even “bait” [hook] Leader Prestige Methods for price setting demand- oriented Price range Set forth [demand] Value-of-use Reference © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  215. 215. The taxi driver example © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 220
  216. 216. The taxi driver example Asks for S/.200 Pays S/.10 x 24 days In total he pays S/.240 after 24 days… ¿What was the annual interest rate? 1,441% !! [0.76% per day] Go to excel © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 221
  217. 217. The house-to-house clothes salesman (In a extremely poor zone in Lima) © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 222
  218. 218. The house-to-house clothes salesman He pay S/.20 (in Gamarra) for a pair of jeans (trousers) He sells it at a S/.1.00 a day during 30 días He gets S/.30 in the end (50% more in 30 days) … ¿What was the annual interest rate? 12,875% !! [1.36% a day] ¿Sir, what’s a “Sol” a day,? Go to excel © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 223
  219. 219. Promotion and Demand Curve Demanda Elasticity Price Price Price D D1 D D2 0 D D Quantity A. Make it less elastic 0 Quantity B. Move it ot the right 0 Quantity C. Both: less elastic and to the right © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 224
  220. 220. Objectives & Price Policies c elasticity Mathematically, it isexpressed in the following way, where: Ed elasticity, Qd required quantity and P price: ƒ Demand elasticty is the degree at which the required quantity (Q) responds to the price (P) variations of the market. In this case, given certain prices (P) and some quantities (Q) and a (P*Q)=income, then:  When the price (P) reduction increases the required demand (Q) so much that the multiplication of the (P * Q) be higher than the original one , an elastic demand is present.  When the price (P) reduction increases the required demand (Q) in similar quantities of the (P * Q) , the elasticity is proportional or the same as a 1.  When the price (P) reduction decreases the required demand (Q) so much that the multiplication of the (P * Q) is lower than the original one, the elasticiy of a good it is said to be less elastic or rigid. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 225
  221. 221. Let see the example of Beer © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 226
  222. 222. The elasticity of Beer Background: ƒ You work in a top cafeteria in a 5-star hotel located in San Isidro (business district in Lima). ƒ Price of Beer P0 (all the brands) = S/.10.00 ƒ Daily average sales (Q0) = 15 bottles of 330ml Opportunity: ƒ Because of the FIFA World Cup Qualifications (where Peru will be elimanted while others qualify), you decide to place giant screens and make a special offer of snacks to attract people to watch the soccer matches. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 227
  223. 223. The elasticity of Beer Preliminary results: ƒ The campaign is successful. The sales increased. ƒ Soccer days are booked which completes the cafeteria’s capacity. ƒ The general sales of snacks and mixed drinks, have rapidly grown (& the average ticket increased). ƒ However, the daily beer sales is still constant (15 bottles a day). Question: ƒ What has happened with the sales of beer and soccer? ƒ There is no correlation between them? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 228
  224. 224. The elasticity of Beer Experiment: ƒ An experiment with beer it’s done. Its price is lowered – only on soccer days at P1 = S/.6.99 and the sales rapidly grow at more than Q1 = 180 bottles a day (and the stock was over on the first day, then the sales could have been higher -but we dont know how much…-). Question: ƒ Is beer, in this case, an elastic good? ƒ What has happened with the gorss margin (per unit) assumin a unitary cost of S/.1.50 per bottle? ƒ What decision would you make based on these results and analysis? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 229
  225. 225. The elasticity of Beer Po 10 P1 6.99 Prom 8.495 Qo 15 = Q1 180 Qprom 97.5 -4.77613085 Demand's price elasticity: (Q1 - Qo)/Qprom (P1 - Po)/Prpom ƒ ƒ ƒ ƒ Every 1% of price reduction, there is a 4.78% increase in the requested quantity The sign is not considered for the interpretation. The absolut value (4.78) is considered for the comparison Since the result is higher than 1, we say the elasticity is high. Price elasticity is always negative becasue the curve is negative. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 230
  226. 226. The elasticity of Beer 12 10 Precio 8 6 4 2 0 0 20 40 60 80 100 120 140 160 180 200 Cantidad Esc 1 Esc 2 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 231
  227. 227. The elasticity of Beer Unitary Price Unitary Cost Unitary Gross Margin Margin % ƒ Esc 2 S/. 6.99 S/. 1.50 S/. 5.49 366% U sales sales S/. Costs S/. Gross Margin S/. ƒ Esc 1 S/. 10.00 S/. 1.50 S/. 8.50 567% S/. 15.00 S/. 150.00 S/. 22.50 S/. 127.50 S/. 180.00 S/. 1,258.20 S/. 270.00 S/. 988.20 -35.4% 675.1% The unitary gross margin is reduced from 567% to 366%. Generally speaking, you get 35.4% less per sold bottle. However, the gross margin grows 675.1%, product of higher requested quantity. Since this is an elastic good, the requested quantity greatly makes up for the loss due to the price reduction. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 232
  228. 228. Objectives & Price Policies elasticity Elasticity -some conclusionsƒ If the demand is elastic to the price, it is possible to lower the price to increase the total profit ƒ If the demand is not elastic to the price, it is possible to increase the price to get higher profit. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 233
  229. 229. Objectives & Price Policies elasticity Elasticity -some conclusionsFactors that determine the lack of elasticity of the demand: 1. 2. 3. 4. There are a few or no competitors Buyers do not easily perceive the higher price Buyers slowly change their consumption habits Buyers think higher prices are justified by quality, infalation or other reasons © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 234
  230. 230. Other factors that influence Cost & Price (usually hidden) ƒ The time orders are processed ƒ Procedures to process orders ƒ The place where the inventary is storaged ƒ Accuarcy of the order’s delivery ƒ Cost of rejected or returned orders (freight, time, damaged product) ƒ ƒ Rotation rate and finnancial costs Size or variety ƒ Delivery costs [fake or false freights] ƒ RE-processing costs due to defficient quality ƒ Robberies, shortage, obsolete goods ƒ Direct costs: insurance, electricity, staff, maitenance ƒ Indirect costs [service, systems and security staff] ƒ Lost sales due to shortage, delivery time, etc … © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 235
  231. 231. Key factors that influence Price Setting Company objectives Target price Price flexibility Experience curve Breakeven point Demand’s response Market’s Life Cycle Elasticity Discounts and bonus Costs Price setting Competitors and substitutes Distribution and Surcharge chain [mark-up] In the channel Law, restrictions and price control Geographic prices’ conditions © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios Price of other products of the same line 236
  232. 232. The war of prices! © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  233. 233. Who wins & Who loses the price war? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  234. 234. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  235. 235. Let´s talk about McDonald´s & Starbucks Fuente: Ph.D. Moez Limayem, Dean College of Business USF. Conferencia en USIL el 9 de mayo, 2013. 240
  236. 236. Let´s talk about McDonald´s & Starbucks ƒ ƒ ƒ ƒ ƒ ƒ ¿How much does a hamburger cost at McDonald’s? ¿How much does coffee cost at Starbucks? ¿Do all McDonald’s in (Lima) have the same prices? ¿Do all Starbucks? ¿Should it be like that? ¿What are the pros and cons? And ¿how do you think it works in the USA? Fuente: Ph.D. Moez Limayem, Dean College of Business USF. Conferencia en USIL el 9 de mayo, 2013. 241
  237. 237. Let´s talk about McDonald´s & Starbucks ƒ ƒ ƒ ƒ ƒ ƒ At Starbucks USA (in Lima) all locals have the same price for its products (inside each country). At McDonald’s (USA), they ARE NOT. ¿How much does the price of a hamburger vaaries between teh cheapes and the most expensive local in US? 650% ¿Where is the most expensive hamburger sold? ¿Why? Fuente: Ph.D. Moez Limayem, Dean College of Business USF. Conferencia en USIL el 9 de mayo, 2013. 242
  238. 238. Process of Strategic Planning Focus the strategy with quatitative and cualitatove criteira Clients Company S. W. O. T. Segmentation & Target Product Place Target Market Differentiation& Positioning Price Promotion Competitors Marketing External Environment 243 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  239. 239. PLACE © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  240. 240. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  241. 241. Domestic gas distribution. Lima, Perú. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  242. 242. Montreal, Canadá. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  243. 243. introduction PLACE [also meanes, distribution]: “to put the goods and services in the right quantity and place when the customers wants them” ƒ Distribution channel: series of companies or people that participates in the flow of products from the manufacturer to the final consumer. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  244. 244. introduction ƒ Responds to the time and place use. ƒ The type of product helps define how much exposure in the market is needed according to each geopgraphic region. ƒ The same target market must show the same attitudes therefore it should be satisfied with the same type of distribution. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  245. 245. Channels’ system ƒ Channels’ system can be: ƒ Direct, when the maniufacturer is in charge of the complete distribution, or ƒ Indirect, when it is in charge of wholesaler, retailer or other specialists. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  246. 246. Channels’ system Direct Distribution Indirect Distribution • Total control of the variables of the marketing mix • Gives part of the control over the marketing mix to the intermediary • It’s not easy to work with indepent intermediaries who have their own objectives • An effort should be coordinated to meet common objectives ( it’s not easy n the channel has too much power.) • When there’s a new product there aren’t interested intermediaries • It is the easiest way to enter international markets • When there is a lack of finnancial resources or knowledge to develop a distribution channel • The intermediaries invest in keeping an inventary and a commercial structure and take the risks of credit. • More used for industrial products with a few grouped consumers • More used in products where the consumers are disperse. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  247. 247. More control Lower costs Added value i the in production process pro Some Reasons To choose Direct Distribution Direct c contact with the cust customers’ need Fast Faster response and changes in the Marketing Mix There isn’t any available intermediary channel © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  248. 248. Specialized intermediaries p Channel run by a manufacturer Product Place Channel run by a retailer Product C Price Promotion Place C Price © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios Promotion
  249. 249. PROMOTION © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  250. 250. definition ƒ Promotion: consists on communicating information between the seller and the potential buyer or other memebers of the channel with the objective of influencing in their attitudes and behaviour ƒ ƒ ƒ There is [normally] inmmediate feedback that helps to make appropriate changes or adjustments. Sometimes is very expensive. Personal sales Î refers to the “one-toone” sales, interacting with customers. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  251. 251. characteristics ƒ A seller attracts more atention than an add or a shelf. ƒ He can addapt (the speech directly with the customer) based on his partner’s feedback,culture and other influences of the context or the behaviour. ƒ He can ask questions to get to know his prospect’s interests. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  252. 252. Massive sales ƒ Massive sales: consists of establishing communication with big quantities of prospects at the same time. ƒ It’s less felxible than personal sale. ƒ It will be cheaper if the target market is big and disperse. ƒ There are two types. ƒ Publicity [advertising] ƒ Publicity for free [publicity] © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  253. 253. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  254. 254. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  255. 255. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  256. 256. Introduction [Advertising] ƒ Can cost a lot of money. ƒ Can rapidly reach many people. ƒ Can produce a combination of short and long term results. ƒ Can greatly contribute to position the marketing mix. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  257. 257. Objectives of Advertising & Publicity ƒ Add & Publicitary objetives should be more specific than the personal sales. ƒ A seller can modify his presentation, but an Add should reach a target audience with a fixed and specific communication. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  258. 258. Introduce new products Position brands Get distributors (Commercial – Distribution Channel) Ongoing contact (“top of mind”) Strategic Decisions to Establish Add & Publicity Objectives Support sales force Inmediate response Keep relations (Confirm the purchase) © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  259. 259. Free Add Î Publicity ƒ No Pay Add: is any "free" form of non-personal presentation of ideas, goods or serviceses. ƒ Try to call attention to the company and its offer without having to pay for the cost of mass media. ƒ If the company has a very new message to communicate, publicity (non paid add) can be more efficient than the Add (pay). © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  260. 260. Sales Promotion ƒ Sales Promotion: designate promotional activites –which are not advertising or publicity– that stimulates the interests, the try-out of the product and its purchase by the final consumer or other members of the channel. ƒ It can oriented to the public, the intermediaries or the company staff. ƒ It can be quickly implemented and produce fast & short-term results. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  261. 261. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  262. 262. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  263. 263. Sales Promotion ƒ Sales Promotion ƒ In fact, it genrally has the objetive of producing inmediate results. ƒ Usually uses more money. ƒ There are differents types: ƒ ƒ ƒ ƒ Coupons Raffles Commercial exhibitions Sponsoring © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  264. 264. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  265. 265. Final User / Consumer oriented Contest Coupons Isle exhibition Free samples Commercial exhibitions Materials at the sales point [POP] Signalling Prizes Sponsorship Intermediary oriented Sale Force oriented Sales Contests Discounts Bonus Sales contest Meetings Calendars Clients’ portfolio Gifts Shelves Commercial exhibitions Sales help Catalogues Training material Meetings Merchandising © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  266. 266. Communication Strategies There is NO mix of ideal communication for all the situations. a basic strategy is generally chosen: Push Pull © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  267. 267. The Push Strategy ƒ ƒ The PUSH Strategy: to push a product through a channel means to use the promotional effort (personal sales, publicity and promotion) to help sell the marketing mix to all the possible memebers of the channel. Channel cooperation and unity is seeked (fundamental). © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  268. 268. The Pull Strategy ƒ ƒ ƒ ƒ The PULL Strategy: it means to make the consumers ask for the the prduct to the itermediaries. Promotions and efforts are oriented to the final consumer. If the retailer doesn’t have the product, he will lose sales: “the public asks for it”. Intermediaries are not the goal at that moment, only the final consumer. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  269. 269. Push & Pull Strategies ƒ (A combination of) Both strategies are (must) generally used simultaneously, at some degree. ƒ Using both reduces the risk of failure and increases the probability of success. ƒ The mix (of Push & Pull) changes if we are dealing with final or industrial customers. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  270. 270. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  271. 271. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  272. 272. Example: Commercial campaign, Objetives, Metrics and Results. “you can not manage what you cannot measure”. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  273. 273. Inserted or Mass Media Adds Sales campaigns and exhibitions Exhibitions at fixed points © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 278
  274. 274. Second-hand Sales adds Prospects Inserts or Mass Media Adds Phone Exhibitions at fixed points (stores) Temporary sale point Sellers Telemarketing: Entering the prospect in the system © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 279
  275. 275. Examples of Adds (inserts): Prices and sales Bonus for returning Technical details and specifications Free phone line 800 + associated line (L - D, 9am a 8pm) © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 280
  276. 276. Basic models and benefits Especial prices and offers Free phone line 800 + associated line Sale points (L - D, 9am a 8pm) addresses © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 281
  277. 277. Sales campaign © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 282
  278. 278. Sales Points Head Office © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 283
  279. 279. Second-hand Jockey Plaza, mall © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 284
  280. 280. Other Sales Points Pandero Suzuki / GM San Miguel © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 285
  281. 281. T l Telemarketing : k ti Entering the prospect in the system c d e TMKT calls Feedback Prospects In Inmediately (when picking up the phone) E Ef Efectiveness of Add & Publicity and sale point ¿How did you know about 800? ¿How did you get to the SP.? H 48 Hours Selesman (vendor) quality service After 30 days: If you bought (which brand. Model, new/second -hand) If you haven’tRodolfo J. Cremer – MdS Marketing de Servicios (a second-hand is offered) © Dr. (c) 286
  282. 282. Telemarketing: Entering the information System •Efectiveness of Add & Publicity. •Closing Rate (per selesman, product line, boss...). •Customer Service Quality. •Competence (who are we REALLY competing with, prices, lost sales rate, etc. • Technical Support quality. •Special sales of accesories, etc... © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 287
  283. 283. ƒ ƒ ƒ ƒ ƒ Concentration of the sales force only in the sales process (not in the generation of prospects). Strict performance measurement (even per salesman). Orienting all the commercial effort only to “TRUE PROSPECTS”. Generating very strict and detailed measuremetns reports use to make decisions (on time). Generating a prospect’s data base that can be revised with new products, new offers, etc... © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 288
  284. 284. ƒ ƒ ƒ The general closing rate is 10% (Customer / Prospect). 130 prospects respond the first day. 50% of it the second day, and 50% of it from the thrid to seventh day. That is a total of 260 prospects per Add. Out of all the prospects, 35% call for Suzuki cars, 35% for second-hand cars, 20% for GM-Chevrolet and 10% for motorbikes and mototaxis. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 289
  285. 285. Economic Result of the Advertising Campaign Insert cost Total number of pages Unitary cost per page $20,000 8 $2,500 Suzuki Automóviles 3 $7,500 GM Automóviles 4 $10,000 90 Motocicletas Usados Totales 0.5 $1,250 0.5 $1,250 8 $20,000 50 30 90 260 9 15% $50,000 5 10% $100,000 3 30% $4,167 9 10% $12,500 26 $15,500 $15,500 $2,120 $5,000 3.2 6.5 2.0 2.5 estimated gross sales $139,500 $77,500 $6,360 $45,000 $268,360 estimated sales cost $118,575 $69,750 $4,452 $40,500 $233,277 $20,925 $7,750 $1,908 $4,500 $35,083 $13,425 -$2,250 $658 $3,250 $15,083 179% -23% 53% 260% 75% Number of pages prorated cost Total of genenrated prospects (7 days) closing rate (10% ) gross margin balance point average net value per unit average units for balance point expected gross margin (salessales cost) Campaign contribution (Gross margin - prorated cost Contribution / Investment © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios $166,667 290
  286. 286. ƒ Marketing de Servicios, España. http://www.marketingdeservicios.com/ ƒ Marketing: un enfoque global. McCarthy Jermome; Perreault, William 13a Edición ƒ Fundamentos de Marketing de Servicios: conceptos , estrategias y casos. Hoffman; Bateson. Ed. Thompson. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios 291
  287. 287. Questions? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios Dr r. 292
  288. 288. Final Conclusions Seminar Conclusions’ 1. abc 2. abc 3. … © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  289. 289. ! thanks © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
  290. 290. www.marketingdeservicios.com Rodolfo J. Cremer, MBA, Ph.D. (c) © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios

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