2. Marketing and Customer Service
Stories
A distinguished-looking
gentleman in blue jeans walks
into a bank and asks the teller
to make a specific transaction.
3. Marketing and Customer Service
Stories
Bringing “Marketing” into the
court room.
Prosecutors “Brand Martha
Stewart as a liar”, in the closing
arguments of 2004 trial.
4. Marketing and Customer Service
Stories
A telephone call to a typical service organization.
You call the toll-free number and hear
this phrase: “We are experiencing
higher than usual call volumes…” If
they know this, why don’t they staff
for it? Why are they wasting my time
because they do not know how to staff
—a basic customer service function?
5. Marketing and Customer Service
Stories
On the Fans… “We’re not really going to
worry about what the fans think about us.
They can boo us every day, but they’re still
going to ask for our autographs if they see
us on the street.
That’s why they’re fans and we’re NBA
players.”
Bonzi Wells, Portland Trail Blazers.
6. Marketing and Customer Service
Stories
“If the fans throw something,
we’ve got to protect our honor.”
Sam Cassell, Minneapolis
Timberwolves
Is image everything and common sense
and marketing nothing?
7. Marketing and Customer Service
Stories
Update 2003-4 NBA season:
Bonzi Wells made an obscene gesture to fans.
Cursed his coach.
Lost his captain status on team.
Was unloaded for less than what a journeyman
NBA player makes.
Attendance in Portland is down 17%, after four
drug arrests in 13 months.
On the Fans… “We’re not really going to worry
about what the fans think about us!…”.
8. Marketing and Customer Service
Stories
Top causes of Customer
Complaints:
Auto dealers, Computer dealers,
Mail Order and Catalog shopping,
Home Furnishing stores, Auto
repair shops.
9. Marketing and Customer Service
Stories
Blair Witch Project and Circuit
City
The $500 High-8 video camera
Most profitable movie of all time.
$60K in costs with a $248 Million
Box Office
10. Marketing Mix.
Turn the 4 P’s into 9 P's
The 4 P’s
Product
Price
Promotion
Place
11. Marketing Mix.
Turn the 4 P’s into 9 P's
The marketing mix is the set of
controllable, tactical marketing tools
that the firm blends to produce the
response it wants in the marketplace.
12. Marketing Mix.
Turn the 4 P’s into 9 P's
Consists of everything
controllable, tactical the firm
can do to influence demand for
the product.
13. Turns into 7P’s
1. Planning or Process
2. People (Target Market)
3. Product- The goods and service
combination the firm offers to the target
market. Includes variety of product mix,
features, designs, packaging, sizes,
services, warrantees and return policies.
4. Price- The price consumers are willing to
pay. Retail price/wholesale, discounts,
trade-in allowances, credit terms, quantity
discounts, credit terms, sales and payment
15. Marketing Mix.
Turn the 4 P’s into 9 P's
Promotion Includes
A. Personal Selling or
Sales Force
B. Advertising
C. Sales Promotion –
Samples, coupons, premiums, cash
refunds,
demos, point-of-purchase materials,
display allowances, trade shows, sales rep
16. Marketing Mix.
Turn the 4 P’s into 9 P's
Promotion Includes
D. Public Relations
E. Direct Marketing Direct mail,
direct-response, database
management,
catalogs and telemarketing
F. Internet and Interactive
CD-ROMS, kiosks, Interactive TV
17. Marketing Mix.
Turn the 4 P’s into 9 P's
Push strategies vs.
Pull strategies.
P>W>R>C>U
P >C
18. Turns into 7P’s
6. Place/Distribution-
The company’s activities
that make the product
available to the target
market. Includes channel of
distribution, geographic
coverage, locations,
inventory, transportation
19. Turns into 7P’s
7. Partners/Alliances-
The joint relationships
involving cooperation and
responsibilities. Involves
several duties including
products, distribution and
promotion functions.
20. Marketing’s Role
R & D Department:
Interested in making new discoveries. Like Ronco, but
can they sell? Sometimes they expect marketing people
to find markets for their new concepts and inventions..
Engineering Department:
Looking for design simplicity
and economy.
Purchasing Department:
Looks for economy in purchasing and not
always quality.
Manufacturing Department:
Wants to keep costs low, fewer models and keep the
assembly line moving.
21. Marketing’s Role:
Inventory Department:
Keep inventory costs low, fewer models. Hold down
carrying costs. Doesn’t always look at the costs of
stock-outs.
Finance Department:
Keep company’s expenses down. Generate good
ratios.
Accounting Department:
Not always willing to analyze sales and costs.
What about marketing territory info? Pricing?
Credit Department:
Look at keeping costs down. Bad debt.
22. Integrated Marketing
When all of the company’s
departments work together to
serve the customer’s interests.
Unfortunately, not all employees
are trained or motivated to work
for the customer.
23. Integrated Marketing
Two levels:
The various marketing functions of
marketing research, planning, sales
force, advertising, product/brand
management, pricing and promotion
work together.
“Think Customer”: Marketing must
be well-coordinated with the other
departments.
24. Integrated Marketing
It works best when all employees and
departments appreciate their impact on
customers and their satisfaction.
Before, during and after sale and delivery.
David Packard of Hewlett-Packard said:
“Marketing is too important to be left to the
marketing department!”
25. Marketing’s Role
Marion Harper said “To manage a
business well is to manage its future;
and to manage the future is to manage
information.”
The organization must learn to think
of itself not as producing goods and
services but as buying customers, as
doing things that will make people
want to do business with it.
26. Marketing Myopia
Theodore Levitt proposed market
definitions of a business are superior to
product or technological definitions.
Target Markets/Groups and Marketing
Needs.
Every major industry was once a growth
industry.
Railroads, Hollywood and others.
27. Marketing Myopia
No guarantee against product
obsolescence. Company’s own
product research will, or
another company will produce,
product obsolescence.
28. Marketing’s Role
The chief executive has the
inescapable responsibility for
creating this environment,
viewpoint, attitude and
inspiration. Sets the
company’s style, direction and
goals.
29. Marketing’s Role
Marketing should try to mobilize the
company’s resources to develop
customer satisfaction. Requests from the
marketing department sometime increase
product design, material costs, disrupt
production schedules, increase finance
and accounting costs and create budget
headaches.
30. Marketing’s Role
Marketing should try to mobilize the
company’s resources to develop
customer satisfaction. Requests from the
marketing department sometime increase
product design, material costs, disrupt
production schedules, increase finance
and accounting costs and create budget
headaches.