Internal Marketing1

7/28/2019 Internal Marketing1

1/228


2/228

Definition of Marketing

the process of planning and executing

the conception, pricing, promotion, and

distribution of ideas, goods, and servicesto create exchanges that satisfy

individual and organizational objectives. Proses perencanaan dan melaksanakan bayangan pengertian, Menetapkan harga,

Promosi, Dan distribusi ide, Barang, Dan pelayanan-pelayanan membuat

penukaran yang memuaskan sendiri dan sasaran hasil organisatoris.


3/228

E.g. Vitasoy
http://www4.mercedes-benz.com/amgiwc/index.html?loc=enhttp://www4.mercedes-benz.com/amgiwc/index.html?loc=en


4/228

Exchange

a process by which two or more persons

give and receive something of value. Perubahan

Proses dengan dua atau lebih orang memberi dan menerima sesuatu berharga.


5/228

The Marketing Concept -

Focus on the Customer

Market focus

Customer orientation

Co-ordinated marketing

Profit seeking


6/228

Drawbacks of Marketing

Concept

ignores public

influences values &

ideas


7/228

Recent Development-- Societal Marketing Concept

Concerns public welfare

and social responsibility

e.g. CLP
http://www.vitasoy.com.hk/TVCs/mandarin.wmvhttp://www.vitasoy.com.hk/TVCs/mandarin.wmv


8/228

The role of Marketing

Marketing Analysis

Marketing Planning

Marketing Implementation

Marketing Control


9/228


10/228

Marketing Research

Gathering, recording

and analysis of data

to solve a specific

problem that is too

important to be answered by guessing

an informational input to decisions


11/228

What M.R. can tell ?

How satisfied the consumers are

How products are perceived Evaluate the sales potential

Determine the effectiveness of ad

Predict the impact of price changes


12/228

Defining the Problem & Research Objectives

Developing the Research Plan

Implementing the Research Plan

Interpreting and Reporting the Findings

The Marketing Research Process


13/228

1. Defining the problem and

research objectives

to find out the real problem but not the

symptom

set the research objectives

research approaches:

exploratory descriptive

causal


14/228

Examples

ExploratoryResearch

Descriptive Research Causal Research

Our sales aredeclining and we

dont know why.

What kind of peopleare buying our

products?

Will buyers purchasemore of our product

in a new package

Would people beinterested in ournew-product idea?

What features dobuyers prefer in ourproduct?

Which of the twoadvertisingcampaigns is more

effective?


15/228

2. Developing research plan

Determine specific information needs

Source of information secondarydata

Internal

External

primarydata


16/228

Benefits and Limitations of Secondary

Data

Benefits

Low cost

Less effort Less time

Sometimes more

accurate

Some information onlyfrom secondary sources

Limitations

Collected for other purpose

No control over data collection

Potential accuracy problem

May not be reported in requiredform

May be outdated

May not meet requirements

A number of assumptions made


17/228

Planning primary data collection

research approach

contact methods

sampling plan

research instruments


18/228

Research approach

Observational research

survey research

focus group

experimental research


19/228

Contact methods

Telephone survey

mail questionnaires

personal interviews


20/228

Sampling plan

sampling unit

sampling size

sampling procedure


21/228

Sampling Techniques

Probability Sampling

All population members have a knownprobability of being in the sample

Simple Random Sampling Each population member, and each possible

sample, has equal probability of beingselected

Stratified Sampling

The chosen sample is forced to contain unitsfrom each of the segments or strata of the

population


22/228

Sampling Techniques (Contd.)

Cluster Sampling

Involves dividing population into subgroups

Random sample of subgroups/clusters is

selected and all members of subgroups are

interviewed

Very cost effective

Useful when subgroups can be identified that

are representative of entire population


23/228

Research instrument

The most common instrument is questionnaire

what questions to ask

question structure

wording of question

order of question


24/228

Implementing the research

plan

collecting and

analyzing data


25/228

Interpreting and reporting the

finding Interpret the findings, draw conclusions andreport to management

the manager willutilize these findings

to make decisions


26/228


27/228

Consumer behaviour

refers to the buying

behaviour of final

consumers

it includes the analysis

of factors that

influences purchasedecisions and product

use


28/228

Definition

Consumer behaviour studies how

individuals, groups,and organizations

select, buy, use, and dispose of goods,services, ideas,or experiences to satisfy

their needs and desires.


29/228

Buyers

black box

Buyers

response

Marketing

and otherstimuli

Consumer Behaviour


30/228

External factors

1. Culture


31/228

2. Social factor

- reference

groups


32/228

3. Family


33/228

4. Salesperson


34/228

5. Advertising

e.g. Fancl
http://www.fancl-hk.com/fun/fun.asphttp://www.vitasoy.com.hk/TVCs/2002_Water_Lawyers.wmvhttp://www.vitasoy.com.hk/TVCs/2002_Water_Lawyers.wmvhttp://www.fancl-hk.com/fun/fun.asp


35/228

6. Situation


36/228

Internal factors

1. Perception

the process by which we select organize and

interpret these stimuli into a meaningful and

consistent picture


37/228


38/228


39/228


40/228

Esteem Needs

2. Motivation

to fulfill some kind of need

Self-actualization Needs

Esteem Needs

Social Needs

Security Needs

Physiological Needs


41/228

3. Learning

creates changes in

behaviour through

experience and

practice


42/228

4. Attitude

Consistently favourable or unfavourable

evaluation, feelings and tendencies toward an

idea.


43/228

5. Personality

refers to the unique

psychological characteristics

that lead to relatively consistentand lasting responses

E.g. Vita Distilled Water
http://www.clpgroup.com/society_environment/document/env_adv_eng.htmhttp://www.clpgroup.com/society_environment/document/env_adv_eng.htmhttp://www.clpgroup.com/society_environment/document/env_adv_eng.htm


44/228

6. Demographic factors

such as age, sex, income,

education, occupation,.


45/228

Industrial Buying behaviour


46/228

Industrial market

Consists of all the individuals and

organizations acquiring goods and services

that enter into the production of other

products and services that are sold, rented,

or supplied to others


47/228

Types of buying situations

Straight rebuy

modified rebuy

new task buying


48/228

Industrial buying process

Recognise the problem

determine product needs and describe

product specifications

search for suppliers

assess and select suppliers evaluate overall performance


49/228

Participants in the industrial

buying process

Users

influencers

buyers

deciders

gatekeepers


50/228

Factors affecting industrial buying

behaviour: External factors

Level of demand

economic outlook

budget constraints supply conditions

political/legal and competitive environmental

changes

rate of technological change


51/228

: internal factors

Organizational influences

interpersonal influences

Diff b t


52/228

Industrial market

Businesses do not buy

products for finalconsumption. Instead,

they make purchases to

be used directly or

indirectly in meeting theneeds of final

consumers.

Consumer market

For direct consumption

Buying motive:

Differences between consumer

market and industrial market

Diff b t


53/228

Industrial market

Tend to be larger

Consumer market

Tend to be smaller

Size of purchase:



Diff b t


54/228

Industrial market

Less frequent

Consumer market

More frequent



Frequency of purchase:

Diff b t


55/228

Industrial market

Stable and long term

relationship with seller

Consumer market

Businesses that

produce products for

sale to final consumers

often have little contactwith customers

Buyer-seller relationship:



Diff b t


56/228

Industrial market

More complex,

customized; product

support is critical.

Consumer market

Less complex,

standardized; product

support is important

Product:



Diff b t


57/228

Industrial market

Competitive bidding

and negotiation; list

prices on standard

products

Consumer market

List prices



Price:

Diff b t


58/228

Industrial market

More direct (shorter)

Consumer market

Less direct (longer)



Distribution:

Diff b t


59/228

Industrial market

Emphasis on

personal selling

Consumer market

Emphasis on

advertising



Promotion:


60/228


61/228

Marketing strategy

the plan of action for accomplishing the

marketing objectives

consists of

specific strategies for target market

marketing mix

marketing expenditure level

A l d l t t t


62/228

Analyze and select target

market

Market

the set of all actual and potential buyers of

a product


63/228

steps of selecting target market

market segmentationmarket targeting

market positioning


64/228

Step 1

Marketing

Segmentation


65/228

Market segmentation

the act of dividing large, heterogeneous

(dissimilar) markets into smaller,

homogeneous (similar) submarkets.


66/228

Advantages of segmentation

Precise market definition

better analysis of competition

rapid response to changing market needs

effective resources allocation

effective strategic planning

Dimensions for segmenting


67/228

Dimensions for segmenting

consumer markets

Geographic segmentation

dividing the market into different geographical

units.


68/228

Demographic segmentation

dividing the market into groups based on

variables like age, sex, family size, family

life cycle, income, occupation, education,

religion, race, nationality,

popular because of

consumer needs vary closely with demographicvariables

easier to measure


69/228

Psychographic segmentation

based on social class, lifestyle, or

personality characteristics


70/228

Segmentation by benefits

base on what a product will

do rather than consumer

characteristics


71/228

Criteria for effective

segmentation Substantial enough to serve

Accessible by marketing means

Differentiable:

conceptually distinguishable and responding

differently


72/228

Actionable:

effective programs can be designed for

attracting target customers

Measurable:

size of market segment, purchasing

power and profile of target customers


73/228

Step 2

Market Targeting


74/228

to reveal the firm market-segment

opportunities

to evaluate the various segments

segment size and growth segment structural attractiveness

company objectives and resources


75/228

Undifferentiated marketing

A firm decides to ignore market segment

differences and go after the whole market

with one offer. E.g. McDonald


76/228

Differentiated marketing

A firm decides to target several market

segments and design separate offers for

each

E.g. Giordano: men, ladies


77/228

Concentrated marketing

A firm goes after a large share of one or a few

sub-markets.

Selected segments

Specific products

Specific markets


78/228

Step 3

Market

Positioning


79/228

Market positioning

to arrange for a product to occupy a clear,

distinctive and desirable image relative to

competing products in the minds of targetconsumers.


80/228

Purpose:

to reinforce or develop an image concerns

a product in customer mind


81/228

Ways of positioning

Product features

product benefits

associating the product with a use or

application

user category


82/228

St f iti i


83/228

Steps of positioning

1. Identifying a set of possible competitive

advantages

2. Selecting the right competitive

advantages

3. Communicating and delivering the

chosen position to the market


84/228

M k ti Mi


85/228

Marketing Mix

the set of controllable marketing variables

that the firm blends to produce the response

it wants in the target market

4 Ps

product

price

place

promotion


86/228


87/228


88/228

A product is anything that can be

offered to a market for attention,

acquisition, use, or consumption and

that might satisfy a want or need

3 levels of product

core product actual product

augmented product


89/228

P d t Cl ifi ti


90/228

Product Classification

Convenience goods

Shopping goods

Specialty goods

Unsought goods


91/228

Classification of consumer goods

I di id l d t d i i


92/228

Individual product decisions

Product attribute decisions

Brand decisions

Packaging decisions

Product-Support decisions

P d t Li D i i


93/228

Product Line Decisions

A product line is a group of products that

are related in function, customer-purchase

needs, or distribution channels.

Prod ct mi decisions


94/228

Product mix decisions

the set of all product lines and items that a

particular seller offers for sale

4 dimensions

width

length

depth

consistency


95/228

H i ?


96/228

How new is new?

New to the world

New to the firm

Product line extensions

Product improvement

Product modification


97/228

Why does a company need new products?

Obtain greater profits/ROI

Capture larger market share

Meet customers changing needs &tastes

Shorterproduct life cycle

Build competitive advantages Planned obsolescence

New product development


98/228

New product development

Steps:

Product idea generation

Product idea screening and product

concept development

Business analysis

Product testing

Market testing

Commercialization

Product life cycle (PLC)


99/228

Product life cycle (PLC)

the course of a products sales and profit

over its lifetime

4 stages:

introduction

growth

maturity decline


100/228

Introduction Growth Maturity Decline

Sales

Profit

Time

Salesandp

rofit

Introduction Stage


101/228

Introduction Stage

slow sales growth

profit are nonexistent

high promotion spending

a few competitors

usually focus on high-income groups

Growth Stage


102/228

Growth Stage

rapid market acceptance

new competitors will enter

introduce new product features

market will expand

profit increases

Maturity Stage


103/228

Maturity Stage

slowdown in sales

competitors begin marking down prices,.to find better versions of the product

drop in profit

only well-established competitors

Decline Stage


104/228

Decline Stage

sales fall off and profits

drop

some firms withdraw from

the market

Summary of Product Life-Cycle Characteristics, Objectives, and

Strategies


105/228

INTRODUCTION GROWTH MATURITY DECLINE

Characteristics

Sales Low sales Rapidly rising sales Peak sales Declining sales

Costs High cost per

customer

Average cost per

customer

Low cost per

customer

Low cost per

customer

Profits Negative Rising profits High profits Declining profits

Competitors Few Growing number Stable number,

beginning to decline

Declining number

Marketing

Objectives

Create product

awareness and trial

Maximize market

share

Maximize profit while

defending market

share

Reduce expenditure

and milk the brand

Strategies

Product Strategy Offer a basic product Offer product

extensions, service,

warranty

Diversify brand and

models

Phase out weak

items

Pricing Strategy High price, unique

product/ cover

introduction costs

Lower price with

passage of time

Price at or below

competitors

Set price to stay

profitable or

decrease to liquidate

Promotion Strategy Mount sales

promotion for product

awareness

Appeal to mass

market; emphasize

features, brand

Emphasize brand

differences, benefits,

loyalty

Reinforce loyal

customers; reduce

promotion

expenditures

Place Strategy Distribute through

selective outlets

Build intensive

network of outlets

Enlarge distribution

network

Be selective in

distribution; trim

away unprofitable

outlets

Ways to extend PLC


106/228

Ways to extend PLC

To increase the frequency of use

to add new user

to find new uses

to change package size, label,

or product quality


107/228

Factors influencing pricing


108/228

decisions ---- Internal Factors

1. Business and marketing objectives

pricing objectives derive directly from

company objectives


109/228

2. Marketing mix strategy

must coordinate with product, design,distribution and promotion decisions


110/228

3. Costs

set the floor for the price

External factors


111/228

External factors

1. The market and demand

Pricing in different types of market

consumer perception of

price and value


112/228

2. Competitors prices and offers


113/228

3. Other external factors

economic conditions

reseller conditions

Government

Pricing Objectives


114/228

Pricing Objectives

Profit maximizing objective

Market share objective

Competition objective

Social objective

Image objective

General Pricing Approaches


115/228

General Pricing Approaches

Cost-based approach

Buyer-based approach

Competition-based approach

Pricing Strategies for New


116/228

g g

Products

Market-skimming pricing

Penetration pricing

Price-adjustment strategies


117/228

Price adjustment strategies

Discount pricing and allowances

cash discounts

quantity discounts

functional discounts

seasonal discounts

trade-in allowances promotional allowances


118/228

Discriminatory pricing

customer-segment pricing

product-form pricing

location pricing

time pricing


119/228

Psychological pricing

Promotional pricing

loss leaders

special event pricing

cash rebates


120/228

Promotion tools


121/228

Promotion tools

advertising

sales promotion

public relations

personal selling

Setting the promotion budget


122/228

Setting the promotion budget

Affordable method

ignores the effect of

promotion on sales


123/228

Percentage-of-sales method

wrongly view sales as thecause of promotion rather

than as the result


124/228

Competitive-Parity

method


125/228

Objective-and-task method


126/228

Five important decisions


127/228

Five important decisions

1. Setting objectives

to inform,

persuade, or

remind


128/228

2. Setting the advertising budget

stage in the PLC

market share

competition

advertising frequency

product differentiation


129/228

3. Creating the advertising message

message generation

message evaluation

message execution


130/228

4. Selecting advertising media

reach, frequency, impact

media types

media vehicles

media timing


131/228

5. Advertising evaluation

communication effects

sales effects


132/228

Sales promotion


133/228

p

A wide variety of short-term incentive tools

coupons

premiums

contests

buying allowances

to stimulate consumers, the trade partners,and the companys own salesforce

Purposes of sales promotion


134/228

p p

to stimulate consumer trials, to reward loyal

customers, to increase repurchase rate, to

cement long-term relationship with

retailers,

used together with advertising or personal

selling

Steps of sales promotion


135/228

p p

Setting sales-promotion objectives

selecting sales-promotion tools

pretesting and implementing

evaluating


136/228

Public relations


137/228

Building good relations with the companys

various publics obtaining favorable publicity

building up good corporate image

handling or heading off unfavourable rumors,

stories and events

Public relations tools


138/228

Create news

speeches

special events

written materials

audiovisual materials

corporate identity materials

contributing money and time to public-

service activities

Major public relations

d i i


139/228

decisions

Setting public relations objectives

choosing public relations messages and

vehicles

implementing the public relations plan

evaluating public relations results


140/228

Steps of sales management


141/228

g

Setting salesforce objectives

designing salesforce strategy

structure, size and compensation recruiting and selecting

training

supervising

evaluating

Personal Selling Process


142/228

g

Prospecting

Preapproach

Approaching the prospect Making the presentation

Handling Objections

Close the sale

Follow up

Factors affecting the

promotion mix


143/228

promotion mix

Type of product/market

push vs. pull strategy

buyer readiness state

PLC stage


144/228


145/228

The role of distribution is getting a product

to its target market.

Channels of distribution: the routesfollowed by products as they change

ownership in the movement from production

to consumption

Distribution channel functions


146/228

Information

promotion

contact

matching

Negotiation

physical distribution

financing

risk taking

Designing distribution channel


147/228

Selecting the proper type of distribution

channel

selecting the types of middlemen

determining the intensity of distribution

Meaning of logistics


148/228

the movement of all

materials :

raw materials : from

the sources to theprocessing point

finished goods :

from the plant toultimate customers


149/228

concerns with the management of physical

flow

Major logistics activities


150/228

Transportation

inventory maintenance

order processing

warehousing

materials handling

Protective packaging

acquisition

product scheduling

information

maintenance


151/228

Definition


152/228

Service is an activity or benefit that one party can

offer to another that is essentially intangible and

does not result in the ownership of anything.

Its production may or may not be tied to aphysical product

Diamond medical diagnosis

The Servuction system
http://images.google.com.hk/imgres?imgurl=http://www.artsculpt.com/images/reassurance_cover.jpg&imgrefurl=http://www.artsculpt.com/&h=269&w=182&sz=9&tbnid=XZoMN0CMPw0J:&tbnh=108&tbnw=73&hl=en&start=5&prev=/images%3Fq%3Dreassurance%26hl%3Den%26lr%3D%26sa%3DGhttp://images.google.com.hk/imgres?imgurl=http://www.artsculpt.com/images/reassurance_cover.jpg&imgrefurl=http://www.artsculpt.com/&h=269&w=182&sz=9&tbnid=XZoMN0CMPw0J:&tbnh=108&tbnw=73&hl=en&start=5&prev=/images%3Fq%3Dreassurance%26hl%3Den%26lr%3D%26sa%3DG


153/228

5 elements influence the service:

Organization and system (invisible)

Environment (visible)

Contact personnel / service provider

Customer A

Customer B

The

Servuction System


154/228

Servuction System

Characteristics of service


155/228

Intangibility

inseparability

heterogeneity

perishability

fluctuating demand

Characteristics of Services

differing from Goods


156/228


Goods Services Resulting Implications MarketingStrategies

tangible intangible Services cannot be

inventoried, patented,

readily displayed/communicated

Tangibilize

the

intangible

The

Peninsula


http://hongkong.peninsula.com/index.shtmlhttp://hongkong.peninsula.com/index.shtmlhttp://images.google.com.hk/imgres?imgurl=http://www.kidsclubholidays.com/egypt/redsea/images/ritz-carlton-sharm-hotel-logo.jpg&imgrefurl=http://www.kidsclubholidays.com/egypt/redsea/hotels/ritz-carlton-sharm-hotel-images.htm&h=296&w=300&sz=27&tbnid=_JtaK74QRqhttp://hongkong.peninsula.com/index.shtmlhttp://hongkong.peninsula.com/index.shtmlhttp://hongkong.peninsula.com/index.shtmlhttp://images.google.com.hk/imgres?imgurl=http://www.kidsclubholidays.com/egypt/redsea/images/ritz-carlton-sharm-hotel-logo.jpg&imgrefurl=http://www.kidsclubholidays.com/egypt/redsea/hotels/ritz-carlton-sharm-hotel-images.htm&h=296&w=300&sz=27&tbnid=_JtaK74QRq


157/228


Goods Services Resulting Implications MktStrategies

standardized heterogeneous Service delivery &

customer satisfactiondepend on employee

actions

Service quality depends

on many uncontrollable

factors

No sure knowledge that

service delivered matches

what was planned &

promoted

HRM mgt

recruitTrain

Process

standardization

empowerment

Servicerecovery


http://hk.wrs.yahoo.com/;_ylt=ApKGaYmg_iU4tOG_Nzx3AZi1ygt.;_ylu=X3oDMTA2bTQ0OXZjBHNlYwNzcg--/SIG=1j7e5tkfg/EXP=1115880765/**http%3A%2F%2Fhk.search.yahoo.com%2Fimages%2Fview%3Fback%3Dhttp%253A%252F%252Fhk.search.yahoo.com%252Fsearch%252Fimages%253Fp%253Dlogos%2


158/228


Goods Services Resulting Implications MktStrategies

Production

separate

fromconsumption

Inseparability

of production

&consumption

(interaction)

Customers participate in & affect

the transaction

Customers affect each otherEmployees affect the service

outcome

Decentralize may be essential

Mass production is difficult

isolate

technical

coredecrease

contact level

Increase

customer

participation




159/228


Goods Services Resulting Implications Mkt

Strategies

Non-

perishable

Perishable

-fluctuate

demand

Difficult to synchronize supply &

demand with service

Services cannot be returned /

resold

Services cannot be inventoried

Capacity

mgt

Queuing

mgt

Marketing Mix for Services
http://hk.wrs.yahoo.com/;_ylt=AiBXERG0jIl3Ty36a289HP..ygt.;_ylu=X3oDMTA4NDgyNWN0BHNlYwNwcm9m/SIG=139fbc6qk/EXP=1115881610/**http%3A%2F%2Fwww.lactamme.polytechnique.fr%2FMosaic%2Fimages%2FFRA3.L1.16.D%2Fimage.jpghttp://hk.wrs.yahoo.com/;_ylt=AiBXERG0jIl3Ty36a289HP..ygt.;_ylu=X3oDMTA4NDgyNWN0BHNlYwNwcm9m/SIG=139fbc6qk/EXP=1115881610/**http%3A%2F%2Fwww.lactamme.polytechnique.fr%2FMosaic%2Fimages%2FFRA3.L1.16.D%2Fimage.jpg


160/228

Product

Price

Promotion

Place

+

People

Process

Physical evidence Singapore air

Product
http://images.google.com.hk/imgres?imgurl=http://www.circleofasia.com/bookings/hotels/photos/peninsula-9.jpg&imgrefurl=http://www.circleofasia.com/bookings/hotels/peninsula-bangkok-photo7.htm&h=300&w=400&sz=42&tbnid=VYtx35ujfpUJ:&tbnh=90&tbnw=120&hl=en&start=3http://images.google.com.hk/imgres?imgurl=http://www.circleofasia.com/bookings/hotels/photos/peninsula-9.jpg&imgrefurl=http://www.circleofasia.com/bookings/hotels/peninsula-bangkok-photo7.htm&h=300&w=400&sz=42&tbnid=VYtx35ujfpUJ:&tbnh=90&tbnw=120&hl=en&start=3http://images.google.com.hk/imgres?imgurl=http://www.cynical-c.com/archives/bloggraphics/bmwlogo.jpg&imgrefurl=http://www.cynical-c.com/archives/2004_09.html&h=200&w=200&sz=5&tbnid=sT8ggszlmp4J:&tbnh=99&tbnw=99&hl=en&start=7&prev=/images%3Fq%3Dcar%2Blogos%26hl


161/228

Product

Tangiblize the intangible

core and supplementary services

customization vs. standardization

the service mix

Price
http://images.google.com.hk/imgres?imgurl=http://www.intercot.com/news/happiest/images/castle2005.jpg&imgrefurl=http://www.intercot.com/news/happiest/default.asp&h=480&w=400&sz=62&tbnid=iuEaQbXYzNsJ:&tbnh=126&tbnw=105&hl=en&start=24&prev=/images%3Fq%3Ddisney%2http://images.google.com.hk/imgres?imgurl=http://www.diagraph.co.uk/images/car_logos.jpg&imgrefurl=http://www.diagraph.co.uk/custom.php&h=346&w=470&sz=126&tbnid=99cdop-30U0J:&tbnh=92&tbnw=125&hl=en&start=2&prev=/images%3Fq%3Dcar%2Blogos%26hl%3Den%26lr%3D%26sa%http://images.google.com.hk/imgres?imgurl=http://money.cnn.com/2004/02/20/images/flash/shell.03.jpg&imgrefurl=http://ipkitten.blogspot.com/2005_01_01_ipkitten_archive.html&h=161&w=215&sz=16&tbnid=BqoLWNqfs38J:&tbnh=75&tbnw=100&hl=en&start=9&prev=/images%3Fq%3Dhttp://images.google.com.hk/imgres?imgurl=http://www.carlone.ch/logos/lamborghini_logo.gif&imgrefurl=http://www.carlone.ch/gallerie1a.htm&h=140&w=140&sz=10&tbnid=-Tr_U_V6rIEJ:&tbnh=88&tbnw=88&hl=en&start=4&prev=/images%3Fq%3Dlamborghini%2Blogo%26hl%3Den%26lr%3


162/228

Customer being inseparable in the process,

outlay by customers include:

Time

Physical effort

Psychological burdens (mental effort, negative

feelings)

Negative sensory burdens (unpleasant

sensations affecting any of the 5 senses)

Price


163/228

Good understanding of the costs is needed

as decrease of above burdens justify higher

pricing

Difficult to define a unit of service, considering:

Visible vs. invisible

Difference in speed

Direct contact vs. impersonal channel

Promotion
http://www.cartoonstock.com/lowres/jdo0207l.jpghttp://www.cartoonstock.com/lowres/jdo0207l.jpg


164/228

Different from advertising for goods

Intangible nature vivid information that produce a clear impression on the

senses, e.g. symbols

Services are harder for customer to evaluate

Use tangible cues, e.g. high calibre personnel (DHL)

Strong organizational image

Use personal information source, e.g.celebrity endorsements

Engaging in post-purchase communication

Place
http://hk.wrs.yahoo.com/;_ylt=ApKGaYmg_iU4tOG_Nzx3AZi1ygt.;_ylu=X3oDMTA2bTQ0OXZjBHNlYwNzcg--/SIG=1j7e5tkfg/EXP=1115880765/**http%3A%2F%2Fhk.search.yahoo.com%2Fimages%2Fview%3Fback%3Dhttp%253A%252F%252Fhk.search.yahoo.com%252Fsearch%252Fimages%253Fp%253Dlogos%2http://hk.promotions.yahoo.com/priceline/recommend/index.htmlhttp://images.google.com.hk/imgres?imgurl=http://www.elastico.net/archives/DHL_ShakingUp.jpg&imgrefurl=http://www.elastico.net/archives/2004_10.html&h=400&w=344&sz=26&tbnid=56YY1M5mHeMJ:&tbnh=120&tbnw=103&hl=en&start=13&prev=/images%3Fq%3DDHL%26hl%3Den%26lr%3Dhttp://images.google.com.hk/imgres?imgurl=http://www.evoucher.com.au/images/logos/priceline.gif&imgrefurl=http://www.evoucher.com.au/c_profile.asp%3Fcmpid%3D87&h=228&w=266&sz=4&tbnid=po5csM0J-kUJ:&tbnh=92&tbnw=107&hl=en&start=1&prev=/images%3Fq%3Dpriceline%26hhttp://images.google.com.hk/imgres?imgurl=http://www.cs.wisc.edu/~sacmuse/coke/cocacola.gif&imgrefurl=http://www.cs.wisc.edu/~sacmuse/coke/coke.html&h=277&w=277&sz=12&tbnid=Ey6MAq5UwWcJ:&tbnh=109&tbnw=109&hl=en&start=70&prev=/images%3Fq%3Dcoke%26start%3D60%26hhttp://images.google.com.hk/imgres?imgurl=http://www.elastico.net/archives/DHL_ShakingUp.jpg&imgrefurl=http://www.elastico.net/archives/2004_10.html&h=400&w=344&sz=26&tbnid=56YY1M5mHeMJ:&tbnh=120&tbnw=103&hl=en&start=13&prev=/images%3Fq%3DDHL%26hl%3Den%26lr%3Dhttp://hk.wrs.yahoo.com/;_ylt=ApKGaYmg_iU4tOG_Nzx3AZi1ygt.;_ylu=X3oDMTA2bTQ0OXZjBHNlYwNzcg--/SIG=1j7e5tkfg/EXP=1115880765/**http%3A%2F%2Fhk.search.yahoo.com%2Fimages%2Fview%3Fback%3Dhttp%253A%252F%252Fhk.search.yahoo.com%252Fsearch%252Fimages%253Fp%253Dlogos%2http://hk.promotions.yahoo.com/priceline/recommend/index.htmlhttp://images.google.com.hk/imgres?imgurl=http://www.jontek.co.uk/images/call_centre_girl.jpg&imgrefurl=http://www.jontek.co.uk/products/answerlink.html&h=204&w=204&sz=13&tbnid=iUUUa3Q1ht8J:&tbnh=99&tbnw=99&hl=en&start=76&prev=/images%3Fq%3Dcall%2Bcentre%26sta


165/228

Identify core services

Reduce contact of low contact element e.g.download application forms

Use of technology to create new channels: e.g. Octopus for ticketing, online shopping

Convenience

Number of outlets

Location

scheduling

Fluctuating Demand
http://hk.wrs.yahoo.com/;_ylt=AmFfXpfyY8BFIsdQRX53tPG1ygt.;_ylu=X3oDMTA2bTQ0OXZjBHNlYwNzcg--/SIG=1qu687mpk/EXP=1115880339/**http%3A%2F%2Fhk.search.yahoo.com%2Fimages%2Fview%3Fback%3Dhttp%253A%252F%252Fhk.search.yahoo.com%252Fsearch%252Fimages%253Fp%253Dqueuing


166/228

Supply side

Cross training

Use part time staff

Rent or share facilities &

equipment

Schedule down time during

period of low capacity (take

vacation)

Extra service hours

Use technology

Use price

Demand side

Price discrimination

Reservation

Overbook

Queuing (make the waiting

more tolerable)

Shift demand

Change the salespersons

assignment

Create promotional events

People
http://hk.wrs.yahoo.com/;_ylt=AmFfXpfyY8BFIsdQRX53tPG1ygt.;_ylu=X3oDMTA2bTQ0OXZjBHNlYwNzcg--/SIG=1qu687mpk/EXP=1115880339/**http%3A%2F%2Fhk.search.yahoo.com%2Fimages%2Fview%3Fback%3Dhttp%253A%252F%252Fhk.search.yahoo.com%252Fsearch%252Fimages%253Fp%253Dqueuing


167/228

Importance of customer contact personnel

Internal marketing (customer focus philosophy,

bonus, awards, recognition as incentive)

Ritzcarlton

Internal Marketing
http://www.ritzcarlton.com/corporate/employment/default.asphttp://images.google.com.hk/imgres?imgurl=http://5star-telemarketing.com/call-centre.jpg&imgrefurl=http://5star-telemarketing.com/call-centre.html&h=337&w=216&sz=7&tbnid=Gm5t6e8j7yEJ:&tbnh=114&tbnw=73&hl=en&start=31&prev=/images%3Fq%3Dcall%2Bcentre%26start%3D2http://www.ritzcarlton.com/corporate/employment/default.asphttp://images.google.com.hk/imgres?imgurl=http://5star-telemarketing.com/call-centre.jpg&imgrefurl=http://5star-telemarketing.com/call-centre.html&h=337&w=216&sz=7&tbnid=Gm5t6e8j7yEJ:&tbnh=114&tbnw=73&hl=en&start=31&prev=/images%3Fq%3Dcall%2Bcentre%26start%3D2


168/228

Process
http://www.berg-marketing.dk/GIF/internal_marketing_wheel.gifhttp://www.singaporeair.com/saa/app/saa;JSESSIONID_WLCS_PORTAL=CAmaQeAGAX97hzbbsCDtXnzXk62oHytWoUMZNVS7dp7pTpUW1Q9F!-1114953673!-1407778314!7501!7502?hidHeaderAction=onHeaderMenuClick&hidTopicArea=global&lang=en_UK&currentSite=global


169/228

Customer involvement in production

Educate customers in using technology or self-

service

Develop service oriented internal process Logistic support

Empowerment of staff for service recovery

Physical Evidence


170/228

Intangible nature makes service difficult to

evaluate

Communicate through corporate image, word

of mouth, pricing physical evidence, warranty,awards

ritzcarlton

Judge by process, post-purchase information

search needs re-assurance
http://www.berg-marketing.dk/GIF/internal_marketing_wheel.gifhttp://www.berg-marketing.dk/GIF/internal_marketing_wheel.gifhttp://www.berg-marketing.dk/GIF/internal_marketing_wheel.gifhttp://www.ritzcarlton.com/corporate/about_us/awards.asphttp://www.quality.nist.gov/Art_Web/MBNQA99.jpghttp://www.ritzcarlton.com/corporate/about_us/awards.asphttp://www.berg-marketing.dk/GIF/internal_marketing_wheel.gifhttp://www.quality.nist.gov/Art_Web/MBNQA99.jpg


171/228

Meaning of CRM


172/228

the process of creating,

maintaining, and

enhancing strong, value-laden relationships with

customers and other

stakeholders.


173/228

Rationale behind CRM


174/228

to retain current customers vs. to attract new

customers

new Marketing view: the science and art of

finding, retaining and growing profitable

customers


175/228

challenges

changing demographics

more sophisticated competitors

overcapacity

customer lifetime value

Key concepts in relationshipbuilding


176/228

Customer satisfaction perceived performance > expectations

Customer loyalty and retention create emotional affinity, not just rational

preference

share of customer

cross-selling

Tools to build lasting

customers


177/228

customers

Frequency marketing programs

affinity program

co-marketing and co-branding

customisation and prompt response

create long term contract


178/228

Frequency marketing programs


179/228

affinity program


180/228

co-marketing


181/228

Co-marketing

http://www4.mercedes-benz.com/amgiwc/index.html?loc=en

Co-branding
http://www.eternaldiamond.com/indexmain.htmlhttp://www.eternaldiamond.com/indexmain.htmlhttp://www.eternaldiamond.com/indexmain.htmlhttp://www.eternaldiamond.com/indexmain.html


182/228

g

Sony Ericsson Mobile Communications wasestablished in 2001 by telecommunications

leader Ericsson and consumer electronics

powerhouse Sony Corporation. The company is

owned e uall b Ericsson and Son


183/228

Meaning of consumerism


184/228

a movement that put pressure on businesse

to consider consumer needs and interests

consumer rights

right to be informed

right to be heard

right to safety right to choose

Why consumers need

protection?


185/228

p

Manufacturer may be unfair to consumers

consumers may be unable to judge the

quality

insufficient information to evaluate service

advertisements are exaggerating concern about health

Consumer protection in HongKong


186/228

Legislation

Consumer Council

Responses of businesses toconsumerism


187/228

Provide more and better information

improve product safety

quicker response to consumer complaints

provide customers with a wide range of

products and services


188/228

International marketing


189/228

The process of

focusing the

resources and

objectives on globalmarket opportunities

Environmental forces in

International Markets


190/228

Cultural environment

economic environment

political and legal environment

Standardization vs.

adaptation


191/228

Arguments for standardization

reduce costs

moving to a world living style

international brand


192/228

Arguments for adaptation

most exported goods needed adaptation

take care of environmental differences

max. sales and profits through customization

favours local management inputs

Methods of entering overseas

market


193/228

Exporting

contract manufacturing

licensing

franchising

joint venture

strategic alliance

direct investment

countertrade

Factors affecting the choice of

entry strategy


194/228

desired speed

firm expertise

costs

flexibility

resources profit objectives

Marketing in the case of

economic downturn


195/228

moving down-market

lowering price

promoting image of good

quality and durable

find new markets


196/228


197/228

This production is sponsored by the

Contents of a Marketing Plan

Sit ti l l i


198/228

Situational analysis

Marketing Objectives

Selecting the Target

Market

Developing marketing

mix

Budget

Controls

Product attribute decisions


199/228

Product quality

Product features

Product design

Brand decisions


200/228

To brand or not to brand

Brand sponsor

manufacturers brand

private brand

Licensed brands

Co-brands

Brand equity


201/228

Brand equity

High level of consumer awareness, loyalty

Lower marketing costs

Consumer expect stores to carry the brand

The company has more bargaining powerin channeling

High credibility

Easily launch brand extensions Powerful brand

Defense against fierce price competition


202/228

Brand Strategy / Brand Development

line extensions

brand extensions

Multi-brands

new brands


203/228

Product

Existing New

Brand Existing Line

Extension

Brand

Extension

New Multi-

Brands

New

Brands


204/228

Brand PositioningAttributes

Benefits

Beliefs /values

Create surprise, passion excitement

Brand Re-positioning Competitors close positioning cutting market

share

Customers wants may shift Technology www.euyansang.com
http://www.euyansang.com/http://www.euyansang.com/


205/228

Brand Name selection

Suggest benefits and qualities

Easy to pronounce, recognize

Distinctive, extendable

Capable of registration and legal protection

Packaging decisions


206/228

to create benefits: protection, economy,

convenience and promotion

Major decisions: the main functions

specific elements of package

selecting the package design

Product-Support ServicesDecisions


207/228

deciding which product-support services

to offer

how to deliver the services to customers

Cost-based approach


208/228

Cost-plus Pricing

to add a standard mark-up to the cost

Breakeven analysis and Target Profit Pricing

Buyer-based Pricing


209/228

base on the products

perceived value

Competition-based pricing


210/228

Going rate pricing

base on competitors price

Market-skimming pricing


211/228

Set an initial high price

after initial sales slow

down, it lowers the

price to draw in the

next price-sensitivelayer of customers and

so on

Penetration pricing


212/228

set an initial low price

seek to generate

consumer interest and

stimulate trial purchase

Types of distribution channel


213/228

1.

producer

customer


214/228

2. manufacturer

retailer

consumer


215/228

3. manufacturer

wholesaler

retailer

consumer


216/228

4. manufacturer

wholesaler

retailer

consumer

agent


217/228

5. manufacturer

agent

retailer

consumer

Factors affecting choice ofdistribution channel


218/228

Industrial goods vs. consumer goods

no. of customers

importance of control

characteristics of products

services

Determining the types of

middlemen


219/228

Wholesalers

full-service merchant wholesalers

limited service merchant wholesalers

manufacturer-owned wholesaler

agent


220/228

Retailers

store retailing

nonstore retailing

Factors affecting the choice of

middlemen


221/228

Manufacturer requirement

costs

Determining the intensity of

distribution


222/228

Intensive distribution

exclusive distribution

selective distribution

Observational Research


223/228

Observing relevant people, actions and

situations

unwilling or unable to provide

limitations:

feelings, attitudes and motives, or personal

behaviour

long-run or infrequent behaviour

Survey


224/228

Find out people knowledge, attitude,

preference, or buying behaviour

gather descriptive information

structure or unstructured


225/228

Flexibility

however:

cannot remember

privacy

time pressure

appear to be smart

pleasing answer

Focus Groups


226/228

Small group of people, led by a moderator

opened discussion of a product/service or

buyer behaviour

focus on specific problems or market

opportunities

Experimental Research


227/228

Explain cause-and-effect relationships

between experimental (independent)

variables and dependent variables

Legislation - Ordinances


228/228

Weights & Measure

Sale of Goods

Trade Descriptions

Control of Exemption Clauses

Documents

Internal Marketing1