Unit 4
- 2. The Marketing Concept 1. 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?
- 3. Quick Facts About half of every dollar you spend pays for marketing costs. Marketing costs include product development, packaging, advertising, and sales expenses. Most important aspect of marketing includes satisfying customer needs.
- 4. Marketing Concept A business that keeps the focus of satisfying customer needs. Customers’ needs should be the primary focus during the planning, production, distribution, and promotion of a product or service.
- 5. Maintain Relationships Maintaining a successful customer relationship 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 most important aspect of marketing.
- 6. Competition Consumers have more money to spend on sports and entertainment (discretionary income) Result: Higher demand More competition Improved events and merchandise
- 7. Customer Focus Productivity 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.
- 8. Breakeven Point The minimum attendance and sales required to cover all of the expenses of organizing, promoting, and running the event.
- 9. Remember This Families are spending money to attend their children’s sporting events. Restaurants, motels, hotels, and service stations all have vested interest in these events.
- 10. Different Type of Competition Movie Theaters Not just Regal 10 v. Carmike Cinemas Movie Theaters v. Video/DVD Rentals v. Pay- Per- View v. Drive- In Theaters
- 11. Opportunity Cost The value of the next best alternative that you forgo when making a choice. Measured as the benefits that you are giving up. 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 have experienced?
- 12. Quick Review 1. 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
- 13. Another Question Which 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
- 14. 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?
- 15. Economic Market – All consumers who will purchase a product or service
- 16. 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
- 17. 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
- 18. 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.
- 19. Maslow’s Hierarchy of Needs Pyramid
- 20. 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.
- 21. Buying Motives Con’t Patronage Purchases Based on loyalty to a particular brand or product.
- 22. Gathering Information Internal Sources A businesses own customer records, sales records, production records, and operation records External Sources Information used by businesses obtained through government records, trade and professional organizations, business publications, commercial data, and information services
- 23. Types of Data Primary 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.
- 24. Quick Review 1. The peak of Maslow’s hierarchy of needs pyramid represents A. Physiological Needs B. Self-Actualization Needs C. Self-Esteem Needs D. Rational Purchases
- 25. Another Question Primary data may be collected through? A. Surveys and observation B. Government reports C. Business publications D. Both B and C
- 26. Target Markets 1. 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?
- 27. 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.
- 28. 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
- 29. 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
- 30. Demographic Segmentation Focuses on information that can be measured, such as age, income, profession, gender, education, marital status, and size of household.
- 31. Psychographics Segmentations Focuses on characters that cannot be physically measured, such as values, interests, and lifestyle choices.
- 32. 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.
- 33. Market Share The percentage of total sales of a product or service that a company expects to capture in relation to its competitors.
- 34. Quick Review Demographics 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.
- 35. Another Question Market 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
- 36. Customer Service 1. 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.
- 37. Customer Service Gap – The difference between customer expectations and the service that is actually received.
- 38. 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
- 39. 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
- 40. More Principles to Good Customer Service 2. Follow the FAST strategy. Focus, Action, Search Tenacity 3. Passion results in energy. 4. Demonstrate pride in every sale. 5. Remember the value of long-term positive relationships.
- 41. Quick Review 1. 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.
- 42. Another Question 2. 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.
- 43. Chapter Review 1. 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.
- 44. Chapter Review 2. 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
- 45. Chapter Review 3. 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.