1. Working With Customers
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.