Week 6 Marketing

intangibility

cannot touched before purchase

variability

quality may differ

perishability

cannot be stored

misconception barrier

mamanagement misunderstands costumer expectations

inadequate resources barrier

company unwilling to provide resources

inadequate delivery barrier

poor employee performance/training

exaggerated promise barrier

marketing promises more than delivered

ways to improve service productivity

technology, costumer involvement, balancing supply/demand (differential pricing, off-peak pricing, self-service

viral marketing

costumers spread messages themselves ( social media/ word-of-mouth)

buzz marketing

uses influential people

• Alphas = trendsetters.

  • Bees = early adopters.

digital marketing

uses digital technologies to communicate with customers and distribute products/services.

digital marketing planning

• Alignment = Must fit overall company strategy.

• Integration = Coordinate all customer touchpoints.

• Value Proposition = Explain digital benefits to customers.

• Implementation & Change = Execute and manage digital strategy.

Race framework

• Reach = Create awareness and attract visitors.

• Act = Generate interactions and leads.

• Convert = Turn prospects into customers.

  • Engage = Build loyalty and long-term relationships.

price

amound paid for product/service, signal value/quality

influences brand image

Pricing Strategies

• Cost-based pricing = costs + profit margin.

• Competitor-oriented pricing = based on competitors’ prices.

  • Value-based pricing = based on customer perceived value.

positioning

price should match the brand image (luxury vs budget)

skimming vs penetration pricing

high initial price vs low initial price to gain market share.

product line consistency

prices should make sense across products in the same line.

Channel margins

price must allow profits for distributors and retailers

international factors

taxes, tariffs, exchange rates affect pricing

Channel Selection Factors

• Market factors = customer needs, location, and buying behaviour.

• Producer factors = company resources and ability to distribute directly.

• Product factors = complexity, value, and service requirements of the product.

  • Competitive factors = competitors’ channels and market dominance.

Omnichannel Distribution

• Channels are fully integrated.

• Seamless customer experience across online and offline channels.

-              Multichannel = multiple channels.

-              Omnichannel = channels work together.