marketing final

sales promotion

The set of marketing activities undertaken to boost sales of the \n product or service

sales promotion is a process of….

persuading a potential customer to buy the product.

Sales promotion tools are used by organizations, including

• manufacturers

• distributors

• retailers

• not-for-profit institutions

sales promotion is targeted to

final buyers

examples of consumer oriented promotional tools

• Free samples

• Coupons

• Exchange scheme

• Discounts

• Premium offers

• Personality promotions

• Installment sales

example of trade-oriented sales promotion

• Cash bonuses

• Stock return

• Credit terms

• Dealer conferences

• Dealer trophies

• Push incentives

the advantages of sales promotion

• price discrimination

• effect on consumer behaviors

• luring new customers with price

disadvantage of sales promotion

• increase price sensitivity

• short term orientation

push strategy

A push promotional strategy involves taking the product directly to the customer via whatever means, ensuring the customer is aware of your brand at the point of purchase.

examples of push tactics

• Trade show promotions to encourage retailer demand

• Direct selling to customers in showrooms or face to face

• Negotiation with retailers to stock your product

• Efficient supply chain allowing retailers an efficient supply

• Packaging design to encourage purchase

• Point of sale displays

“taking the product to the customer”

push strategy

the annoying sales person

push strategy

one that keeps on pushing, calling, or showing up

push strategy

selling by yourself

pull strategy

pull strategy

A pull promotional strategy uses advertising to build up customer demand for a product \n or service

“let the customer come to you”

pull strategy

This is the sales person that’s laid back “One that you feel is not interested in your \n business”

pull strategy

relationship marketing

An organization’s attempt to develop a long-term, cost-effective link with a customer for the benefit of both the customer and the organization

relationship marketing shifts from….

individual transactions to the establishment of longer term relationships

regular, ongoing contact with patients

relationship marketing

relationship marketing focus on what the customer is buying, not what the organization is…

providing

value

is it relates to patient outcomes relative to cost of care (a payer-centric focus)

relationship marketing empowers employees to

meet customer needs

quality focus

beyond the clinical of service delivery

quality, research, or education

as goals, but few measure their patients' treatment outcomes or report them – either to their clinicians or the public. Improving value can only happen when providers align the focus of their clinical teams and their market strategy on achieving excellent ...

the customer loyalty pyramid

\
Progression of customer psychological movement \n toward loyalty \n • Awareness \n • Interest \n • Evaluation \n • Trial \n • Satisfaction \n • Repeat purchase \n • Loyalty

The value of loyalty

• the loyal customers make frequent and repeat purchases

• reduction in acquisition costs

  • 5:1 ratio

• lifetime value of customers

• referral, word-of-mouth referral

• more tolerant if there is a problem

bottom tier of customer loyalty pyramid (low connection with brand)

behavioral loyalty

behavioral loyalty

• it convenient

• customer purchases this brand due to convenience, habit, or bribery

• easily switches

• potential dissatisfaction with marketing mix

mid tier of customer loyalty pyramid

rational loyalty

rational loyalty

• a conscious level of loyalty

• customer likes the brand, wants to return, but will shop around and switch if level of customer interaction is low or switch it better for lifestyle

top of customer loyalty pyramid (strong emotional brand connection)

emotional loyalty

emotional loyalty

• brand delights consumer at every touchpoint

• brand fits with consumer’s ego and lifestyle

• consumer recommends their love brand to others

creating customer value

• consumer defines the appropriate service quality and price level

• customer defines the price/value relationship of service

• this value is relative to competitive offerings

• the health care service value equation

value (equation)

value = clinical quality provided + process quality - (price + service acquisition costs)

clinical quality provided

technology and expertise

process quality

the ease with which the customer can access the clinical quality

In management literature, gap analysis involves the comparison of

actual performance with potential or desired performance

If an organization does not make the best use of current resources, or forgoes investment in capital or technology, it may produce or perform….

below its potential

the five possible gaps

• Between Expectations of service quality and \n management perceptions of customer expectations

• Between management perceptions of customer \n expectations and service quality specifications

• Between service quality specifications and service \n delivery

• Between service delivery and external \n communications to customers (promotion in nature)

• between expected service and perceived service

perception is reality to who?

the customers

who sets expectations?

the marketers

The Gap chart

measuring service performance, it must meet three criteria

• measurement tool must be managerially useful

• tool must recognize the role of customer expectations

• tool must direct action to the most relevant areas

develop a measurement tool is to conduct a customer audit

use of flow charts to observe process and identify potential difficulties

medical service blueprints

mapping process

moments of truth

customer contact points

developing a customer recovery system

• an organized system that anticipates service delivery failure

• defined script for handling problems

developing a customer recovery system ( critical components for implementation)

• Focused recovery training must be conducted with all \n employees

• Recovery standards must exist

• The organization must be ‘easy to complain to’

• Frontline employees must see themselves as part of the \n system

• Employees need to believe they are a part of a quality- \n conscious organization.

• Customer recovery paradox

Mass marketing

• Develop marketing mix to appeal to the broadest group

• Everyone in the market wants the same product delivered \n priced and promoted the same way

mass marketing advantage

cost advantage

mass marketing disadvantage

people have different demands, needs, habits

market segmentation

Grouping into clusters consumers who have similar wants or needs to which an organization can respond by tailoring one or more elements of the marketing mix

market segmentation can be accomplished with any element of the marketing mix through…

• concentration strategies

• multisegment strategies

concentration strategies (targeting one segment)

A strategic approach in which a business focuses on a single market or product. This allows the company to invest more resources in production and marketing in that one area, but carries the risk of significant losses in the event of a drop in demand or increase in the level of competition.

multisegment strategies

Through research, marketers divide potential customers into groups based on common sets of characteristics. These traits pinpoint similar professions, income levels, geographic groups, lifestyles, aspirations and perceptions. When companies target more than one segment, they practice multi-segment marketing.

example of concentration strategy

niche strategy

niche strategy (very narrow segment)

A marketing approach for a good or service with features that appeal to a particular minority market subgroup. A typical product marketed using a niche strategy will be easily distinguished from other products, and it will also be produced and sold for specialized uses within its corresponding niche market.

example of multisegment strategy

• pursue several market segments with varying mixes

• product differentiation - positioning strategy

selecting market segments - criteria

• Identifiable

• Accessibility (promotion or distribution)

• Members are inclined to buy product/service

• Able to buy

• Profitable to serve

• Desirability – image of organization

• Consistency (with message)

• Availability (brand loyal elsewhere?)

what are the bases for segmentation?

• sociodemographic

• geographic

• psychographic

• usage

• cohort

sociodemographic

• age

• gender

• ethnicity

psychographic

• lifestyle

• social class

type of usage rate

the heavy half consumer

heavy half consumer

• 80/20

• has been identifies in which a small group of consumers accounts for a disproportionate amount of the products sale

type of usage

• how its used

• A second segmentation based on type of usage, or how the product is used.33 Orange juice manufacturers can develop different marketing mix strategies geared to different types of usage segments.

usage

• usage rates

• how its used

• brand loyalty

• hard-core loyalty split loyalty, switchers

• benefit segmentation

cohort segmentation

groups of people bond together in history by a set of events

examples of cohort segmentation

• the great depression

• WWII

• Post war

• baby boomers

• gen x

• n-gen

• millennials

separating business markets

• demographics

• operating variables

• purchasing approaches

• usage segmentation

demographics

• size of company

• industry type

• customer location

operating variables

• technology

• product use

• customer capabilities

purchasing approaches

• purchasing procedures

• purchasing criteria

usage segmentation

Another major category for segmentation is grouping people based on product usage or purchase. Of all the bases for segmentation, usage segmentation may be one of the most valuable. This approach segments the market based on the percentage of a product that consumers buy or a service that ...

Health care marketers are attempting to determine if segmenting and tailoring offerings to a segment is worth the

time

Marketers want to affect the

actual purchase, which is the most accurate level of market segmentation.

the heuristics of segmentation

described several possible methods for segmenting the market, whether targeting individuals or companies. Health care marketers should determine the most helpful way to segment as well as how the alternative methods relate to each other

health care is acting more like a what?

traditional business vis-à-vis market segmentation strategies

the inability of becoming an effective leader stems from what?

poor communication

the first step of better communication

get honest feedback

If you sense your employees might be hesitant to provide feedback because they fear negative repercussions, consider conducting

an anonymous survey

second step of better communication

know your audience

third step of better communication

put in extra effort at crisis time

good communication is especially critical during….

major endeavors like a merger

a ____________ is the precise time to keep people more in the loop

time of change

failure to keep people in the loop can lead to

frustration

confusion

low morale

fourth step to better communication

listen more and more closely

______ is a critical nontechnical skill for all accounting and finance professionals to master, but especially managers

listening

active listening

means giving the other person your full attention, noting their nonverbal cues and focusing on their words rather than silently formulating a response while they are speaking to you.

fifth step to better communication

be available

sixth step for better communication

paint the big picture

seventh step to better communication

embrace straight vtalk

straight talk is hard but sincerity is a much better communication strategy than being

vague or over-promising

when do you present the massage of the presentation?

• in the beginning

• make it clear to the audience that they cant afford to miss anything

out of your control variables on why audience gets distracted

• not enough sleep

• poor sound system

• people walking by

• other noises

with your control reasons on why audiences get distracted

• speaker error

• presentation error

common errors of a presentation

• speaker lives in their own little world

• presentation structure, reasoning, unclear

• visual aids confusing or unreadable

• long, complicated sentences and argon

• speaker reads speech from paper

• monotonous sentences, bad pronunciation

rule of thumb is to speak at ___ words per minute

150

most written reports follow this format

• Introduction

• Description of problem

• Description of system, experimental methods

• Results

• Discussion

• Conclusion

• References

ten steps to a successful presentation

• start on time

• the message

• select results and order them

• opening and introduction

• conclusion and ending

• design figures for impact

• making your slides

• communication, not necessarily performing

• timing

• nervous