marketing-banking diploma examination
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MARKETING Advertising
� Objectives
� Budget
� Strategy
� Effectives
Public Relations� Role and impact
� Tools
Advertising
Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor Advertisin
Developing and Advertising Programs
Advertising
Setting Advertising Objectives
An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific time
Objectives are classified by primary purpose
� Inform
� Persuade
� Remind
Advertising
Setting Advertising Objectives
Informative advertising is used when introducing a new product category; the objective is to build primary demandComparative advertising directly or indirectly compares the brand with one or more other brands
Persuasive advertising is important with increased competition to build selective demand
Reminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the
product
Table 15.1Possible Advertising Objectives
Advertising
Setting the Advertising Budget
Factors to consider when setting the budget
� Product life-cycle stage
� Market share
� Competition and clutter
� Advertising frequency� Product differentiation
� Amount of profit
Advertising
Setting the Advertising BudgetProduct life-cycle stage
� New products require larger budgets
� Mature brands require lower budgets
Market share
� Building or taking market share requires larger budgets
� Markets with heavy competition or high advertising clutter require larger budgets
� Undifferentiated brands require larger budgets
Advertising
Setting the Advertising BudgetMethod of setting the budget
� Affordable method
� Percentage of sales method
� Competitive parity method
� Objectives and task method
� Arbitrary method
AdvertisingDeveloping Advertising Strategy
Advertising strategy is the strategy by which the company accomplishes its advertising objectives and consists of:
� Creating advertising messages
� Selecting advertising media
Advertising
Creating the Advertising Message
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Advertisements need to break through the clutter:
� Gain attention
� Communicate
well
Advertising
Creating the Advertising Message
Advertisements need to be better planned, more imaginative, more entertaining, and more rewarding to consumers
Advertising
Creating the Advertising Message
Message strategy is the general message that will be communicated to consumers
� Identifies consumer benefits
AdvertisingCreating the Advertising Message
Creative concept is the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign
Characteristics of the appeals include:
� Meaningful
� Believable
� Distinctive
Advertising
Creating the Advertising Message
� Message execution The creative team must find the best approach, style, tone, words, and format for executing the message.
Advertising
Creating the Advertising Message
AdvertisingCreating the Advertising Message
Message execution also includes:� Tone
� Positive or negative
� Attention-getting words
� Format
� Illustration
� Headline
� Copy
Advertising
Selecting Advertising Media
Major steps include:
� Deciding on reach-frequency-impact� Selecting media vehicles
� Deciding on media timing
Advertising
Selecting Advertising Media
Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time
Frequency is a measure of how many times the average person in the target market is exposed to the message
Impact is the qualitative value of a message exposure through a given mediumAdvertising
Selecting Advertising Media
Selecting media vehicles involves decisions presenting the media effectively and efficiently to the target customer and must consider the
message�s:
� Impact
� Effectiveness� Cost
Advertising
Selecting Advertising Media
When deciding on media timing, the planner must consider:
� Seasonality
� Pattern of the advertising
� Continuity�scheduling within a given period
Advertising
Evaluating the Effectiveness and Return on Advertising Investment
Communication effects indicate whether the ad and media are communicating the ad message well and should be tested before or after th
ad runs
Sales and profit effects compare past sales and profits with past expenditures or through experiments
IS Advertising Wasteful
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IS Advertising Wasteful
Public Relations
Public relations involves building good relations with the company�s various publics by obtaining favorable publicity, building up a go
corporate image, and handling unfavorable rumors, stories, and events
Public relations is used to promote product, people, ideas, and activities
Public Relations
Public relations department functions include:
� Media relations
� Product publicity
� Counseling� Lobbying
� Sponsor
� Arranging special events
Public Relations
The Role and Impact of Public Relations
� Lower cost than advertising
� Stronger impact on public awareness than advertising
Public RelationsMajor Public Relations Tools
Principles of
MARKETING
Communicating Customer Value:Integrated Marketing Communications Strategy
Topic Outline
� The Promotion Mix
� Integrated Marketing Communications
� A View of the Communications Process
� Steps in Developing Effective Marketing Communication
� Setting the Total Promotion Budget and Mix
The Promotion Mix
The promotion mix is the specific blend of advertising, public relations, personal selling, and direct-marketing tools that the company us
persuasively communicate customer value and build customer
Major Promotion Tools
Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor
� Broadcast
� Internet
� Outdoor
Sales promotion is the short-term incentives to encourage the purchase or sale of a product or service
� Discounts
� Coupons
� Displays
� Demonstrations
Public relations involves building good relations with the company�s various publics by obtaining favorable publicity, building up a go
corporate image, and handling or heading off unfavorable rumors, stories, and events
� Press releases
� Sponsorships� Special events
� Web pages
Personal selling is the personal presentation by the firm�s sales force for the purpose of making sales and building customer relationsh
� Sales presentations
� Trade shows
� Incentive programs
Direct marketing involves making direct connections with carefully targeted individual consumers to both obtain an immediate response
cultivate lasting customer relationships�through the use of direct mail, telephone, direct-response television, e-mail, and the Internet to
communicate directly with specific consumers
� Catalog
� Telemarketing
Integrated Marketing Communications
The New Marketing Communications Landscape
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� Consumers are better informed
� More communication
� Less mass marketing
� Changing communications technology
The Need for Integrated Marketing Communications
Integrated marketing communications is the integration by the company of its communication channels to deliver a clear, consistent, and
compelling message about the organization and its brands
A View of the Communication ProcessSteps in Developing Effective Marketing Communication
Identifying the Target market
Determining the Communication Objectives
Marketers seek a purchase response that results from a consumer decision-making process that includes the stages of buyer readiness
Designing a Message
� AIDA Model
� Get Attention
� Hold Interest
� Arouse Desire
� Obtain Action
Message content is an appeal or theme that will produce the desired response
� Rational appeal
� Emotional appeal
� Moral appeal
Message Format
Designing a Message
Rational appeal relates to the audience�s self-interest
Emotional appeal is an attempt to stir up positive or negative emotions to motivate a purchase
Moral appeal is directed at the audience�s sense of right and proper
Choosing Media
Personal communication involves two or more people communicating directly with each other
� Face to face
� Phone
� Internet chatPersonal communication is effective because it allows personal addressing and feedback
CHOOSING MEDIA
Personal CommunicationOpinion leaders are people within a reference group who, because of their special skills, knowledge, personality, or other characteristics
exerts social influence on others
Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their
communities
Non-Personal Communication Channels
Non-personal communication is media that carry messages without personal contact or feedback, including major media, atmospheres, a
events that affect the buyer directly
Major media include print, broadcast, display, and online mediaEvents are staged occurrences that communicate messages to target audiences
� Press conferences� Grand openings
� Exhibits
� Public tours
Selecting the Message SourceThe message�s impact on the target audience is affected by how the audience views the communicator
� Celebrities
� Athletes
� Entertainers
� Professionals
� Health care providers
Collecting Feedback
Involves the communicator understanding the effect on the target audience by measuring behavior resulting from the behavior
Setting the Total Promotion Budget and Mix
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Setting the Total Promotion Budget
Affordable budget method sets the budget at an affordable level
� Ignores the effects of promotion on sales
Percentage-of-sales method sets the budget at a certain percentage of current or forecasted sales or unit sales price� Easy to use and helps management think about the relationship between promotion, selling price, and profit per unit
Competitive-parity method sets the budget to match competitor outlays
� Represents industry standards
� Avoids promotion wars
Objective-and-task method sets the budget based on what the firm wants to accomplish with promotion and includes:� Defining promotion objectives
� Determining tasks to achieve the objectives
� Estimating costsShaping the Overall Promotion Mix
The Nature of Each Promotion Tool
Advertising reaches masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message m
timesPersonal selling is the most effective method at certain stages of the buying process, particularly in building buyers� preferences,
convictions, actions, and developing customer relationships
Sales promotion includes coupons, contests, cents-off deals, and premiums that attract consumer attention and offer strong incentives to
purchase, and can be used to dramatize product offers and to boost sagging sales
Public relations is a very believable form of promotion that includes news stories, features, sponsorships, and events
Direct marketing is a non-public, immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telemarket
and online marketingPromotion Mix Strategies
Integrating the Promotion Mix
Checklist
Socially Responsible Marketing Communication
� Communicate openly and honestly with consumers and resellers
� Avoid deceptive or false advertising
� Avoid bait-and-switch advertising
� Conform to all federal, state, and local regulations
� Follow rules of �fair competition�� Do not offer bribes
� Do not attempt to obtain competitors� trade secrets
� Do not disparage competitors or their products
CONSUMER BUYER BEHAVIOR
Consumer Markets and Consumer Buyer Behavior Topic Outline
� Model of Consumer Behavior
� Characteristics Affecting Consumer Behavior
� The Buyer Decision Process
Model of Consumer Behavior
Consumer buyer behavior refers to the buying behavior of final consumers�individuals and households who buy goods and services fo
personal consumption
Characteristics Affecting Consumer Behavior
Factors Influencing Consumer Behavior
Culture is the learned values, perceptions, wants, and behavior from family and other important institutions
Subcultures are groups of people within a culture with shared value systems based on common life experiences and situations� Bengalis
� Gujaratis
� Punjabis
Social classes are society�s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors
� Measured by a combination of occupation, income, education, wealth, and other variables
Social Factors
� Family is the most important consumer-buying organization in society
� The groups, family, clubs, and organizations that a person belongs to define his/her social role and status
Personal Factors
� Age and life-cycle stage
� Profession
� Economic situation
� Personality and self-concept
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Occupation affects the goods and services bought by consumers
Economic situation includes trends in:
Lifestyle is a person�s pattern of living as expressed in his or her psychographics
� Measures a consumer �s AIOs (activities, interests, opinions) to capture information about a person�s pattern of acting and
interacting in the environmentPersonality and self-concept
� Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the
consumer �s environment
Psychological Factors
Psychological FactorsMotivation
A motive is a need that is sufficiently pressing to direct the person to seek satisfaction
Motivation research refers to qualitative research designed to probe consumers� hidden, subconscious motivations
Maslow�s
Hierarchy of Needs
Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from thre
perceptual processes
� Selective attention
� Selective distortion
� Selective retention
Learning is the change in an individual�s behavior arising from experience and occurs through interplay of:
Psychological Factors
Beliefs and AttitudesBelief is a descriptive thought that a person has about something based on:
� Knowledge
� Opinion
� Faith
Attitudes describe a person�s relatively consistent evaluations, feelings, and tendencies toward an object or idea
Types of Buying Decision Behavior
Types of Buying Decision Behavior
Four Types of Buying Behavior
The Buyer Decision Process/Buyer Decision Making Process
Need RecognitionOccurs when the buyer recognizes a problem or need triggered by:
� Internal stimuli
� External stimuli
Information Search
Sources of Information
� Personal sources�family and friends
� Commercial sources�advertising, Internet
� Public sources�mass media, consumer organizations
� Experiential sources�handling, examining, using the product
Evaluation of AlternativesHow the consumer processes information to arrive at brand choicesPurchase Decision
� The act by the consumer to buy the most preferred brand
� The purchase decision can be affected by:
� Attitudes of others
� Unexpected situational factors
Post-Purchase Decision� The satisfaction or dissatisfaction that the consumer feels about the purchase
� Relationship between:
� Consumer �s expectations
� Product�s perceived performance
� The larger the gap between expectation and performance, the greater the consumer �s dissatisfaction
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Customer satisfaction is a key to building profitable relationships with consumers�to keeping and growing consumers and reaping thei
customer lifetime value
The Buyer Decision Process for New Products
Influence of Product Characteristics on Rate of Adoption
ROLE OF MARKETING
Role of Marketing of Financial services in the Economic Development Like Bangladesh� Increase in agricultural production
� Development of foreign trade
� Market development and expansion
� Proper distribution
� Increase in national income� Creating employment opportunity
� Facilitating competition
� Increase export
� Increasing industrial production
� Creation of new utility of product
� Maintenance of economic stability
� Service marketing
� Development of standard of living
Marketing Challenges
� Technological advances
� Rapid globalization
� Deregulation
� Privatization� Free market economy
� Growing attention to social and environmental responsibilities
� Greater use of marketing by nonprofit and public sector organizations
� Customer empowerment
Companywide Strategic Planning
Setting Company Objectives and Goal
Designing the Business Portfolio
The business portfolio is the collection of businesses and products that make up the company
Portfolio analysis is a major activity in strategic planning whereby management evaluates the products and businesses that make up thecompany
Analyzing the Current Business Portfolio
Strategic business unit (SBU) is a unit of the company that has a separate mission and objectives that can be planned separately from othcompany businesses
� Company division
� Product line within a division
� Single product or bran
Companywide Strategic Planning:
Problems with Matrix Approaches� Difficulty in defining SBUs and measuring market share and growth
� Time consuming
� Expensive
� Focus on current businesses, not future planning
Developing Strategies for Growth and Downsizing
Product/market expansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification
Developing Strategies for Growth and Downsizing
Product/Market Expansion Grid Strategies
Developing Strategies for Growth and Downsizing
Product/market expansion grid strategies
Market penetration is a growth strategy increasing sales to current market segments without changing the product
Market development is a growth strategy that identifies and develops new market segments for current products
Product development is a growth strategy that offers new or modified products to existing market segments
Diversification is a growth strategy through starting up or acquiring businesses outside the company�s current products and markets
Downsizing is the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fi
company�s overall strategy
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Planning Marketing
Partnering to Build Customer Relationships
Value chain is a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm�s
productsValue delivery network is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to imp
performance of the entire system
Marketing Strategy and the Marketing Mix
Customer-Driven Marketing Strategy
Market segmentation is the division of a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and w
might require separate products or marketing mixes
Market segment is a group of consumers who respond in a similar way to a given set of marketing effortsCustomer-Centered Marketing Strategy
Market targeting is the process of evaluating each market segment�s attractiveness and selecting one or more segments to enter
Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the
minds of the target consumer
Developing an Integrated Marketing Mix
Marketing mix is the set of controllable tactical marketing tools� product, price, place, and promotion�that the firm blends to produce
response it wants in the target market
Managing the Marketing Effort
Market Planning�Parts of a Marketing Plan
Marketing Implementation
Implementing is the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives� Successful implementation depends on how well the company blends its people, organizational structure, decision and rewar
system, and company culture into a cohesive action plan that supports its strategiesMarketing Department Organization
Marketing Control
� Controlling is the measurement and evaluation of results and the taking of corrective action as needed
� Operating control
� Strategic control
Measuring and Managing
Return on Marketing Investment
Return on Marketing Investment (Marketing ROI)
Return on marketing investment (Marketing ROI) is the net return from a marketing investment divided by the costs of the marketing
investment. Marketing ROI provides a measurement of the profits generated by investments in marketing activities.MARKETING CHANNELS
The Nature and Importance of Marketing Channels
How Channel Members Add Value
Intermediaries offer producers greater efficiency in making goods available to target markets. Through their contacts, experience,
specialization, and scale of operations, intermediaries usually offer the firm more than it can achieve on its own.
Number of Channel Levels
Connected by types of flows:
� Physical flow of products
� Flow of ownership
� Payment flow
� Information flow
� Promotion flowChannel Behavior and Organization
Channel Behavior Marketing channel consists of firms that have partnered for their common good with each member playing a specialized role
Channel conflict refers to disagreement over goals, roles, and rewards by channel members� Horizontal conflict
� Vertical conflict
Conventional Distributions Systems
Conventional distribution systems consist of one or more independent producers, wholesalers, and retailers. Each seeks to maximize its
profits, and there is little control over the other members and no formal means for assigning roles and resolving conflict.
Vertical Marketing SystemsVertical marketing systems (VMSs) provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified
system and consist of:
� Corporate marketing systems
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� Contractual marketing systems
� Administered marketing systems
Multichannel Distribution System
Changing Channel Organization
Disintermediation occurs when product or service producers cut out intermediaries and go directly to final buyers, or when radically newtypes of channel intermediaries displace traditional ones
Channel Design Decisions
Setting Channel Objectives
� Targeted levels of customer service
� What segments to serve� Best channels to use
� Minimizing the cost of meeting customer service requirements
Identifying Major Alternatives� Types of intermediaries
� Number of marketing intermediaries
� Responsibilities of channel members
Marketing Logistics and
Supply Chain Management
Major Logistics Functions
Warehousing Decisions
� How many
� What types
� Location
� Distribution centers
Transportation affects the pricing of products, delivery performance, and condition of the goods when they arrive
ANALYZING THE MARKETING ENVIRONMENT
Topic Outline
� The Company�s Microenvironment
� The Company�s Microenvironment
� Responding to the Marketing Environment
The Marketing Environment
The marketing environment includes the actors and forces outside marketing that affect marketing management�
s ability to build andmaintain successful relationships with customersMicroenvironment consists of the actors close to the company that affect its ability to se
its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.
The Company�s Microenvironment
Actors in the Microenvironment
The Company
� Top management
� Finance
� R&D
� Purchasing
� Operations
� AccountingSuppliers
� Provide the resources to produce goods and services
� Treated as partners to provide customer value
Marketing Intermediaries
Help the company to promote, sell and distribute its products to final buyersTypes of Marketing Intermediaries
CompetitorsFirms must gain strategic advantage by positioning their offerings against competitors� offerings
Publics
Any group that has an actual or potential interest in or impact on an organization�s ability to achieve its objectives
� Financial publics
� Media publics
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� Government publics
� Citizen-action publics
� Local publics
� General public
� Internal publics
Customers
Customer is a person or organization that buys something from a shop/store or business
Demographic EnvironmentDemography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics
� Demographic environment is important because it involves people, and people make up markets
� Demographic trends include age, family structure, geographic population shifts, educational characteristics, and population
diversity� Growth in the rural population
� A changing family system
� The changing role of women
� Increasing diversity
Economic Environment
Economic environment consists of factors that affect consumer purchasing power and spending patterns
� Industrial economies are richer markets
� survival economies consume most of their own agriculture and industrial output
Natural Environment
Natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities
� Trends
� Shortages of raw materials
� Increased pollution� Increase government intervention
Technological Environment
� Most dramatic force in changing the marketplace
� Creates new products and opportunities
Political EnvironmentPolitical environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and
individuals in a given society
Cultural environment consists of institutions and other forces that affect a society�s basic values, perceptions, and behaviors
Responding to the Marketing Environment
Views on Responding
MARKETING RESEARCH AND INFORMATION SYSTEMS
Chapter Objectives
� Explain the importance of information� Understand marketing information systems
� Outline the marketing research process
� Discuss data collection techniques
� Discuss special issues in market research
Marketing Information Systems: System Functions
� Assess information needs
� Develops needed information
� Information analysis
� Distributes information
Assessing Information Needs
� Balances:
� What would be liked?� What is needed?
� What is feasible?
� Irrelevant information
� Information limitations
� Costs of gathering, processing, storing, and delivering?
Developing Information
� Internal Data
� Accounting
� Manufacturing
� Sales and marketing
� Customer service
� Research studies
� Quick access, less expensive
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� Data warehouses and data mining
� Marketing Intelligence
� Company personnel
� Key customers
� Suppliers and resellers
� Government agencies
� Competitive analysis
� Trade associations
� Internet search engines
� Information companies
� Market Research
� Systematic design, collection and analysis� Reporting data and findings
� Relevant to a specific marketing situation
� Can be done internally or externally
� Information Analysis
� Information must be analyzed before use in decision making
� Advanced statistical analysis
� Analytical models
Distributing Information
� Right people at right time
� Regular management decisions
� Special situations
� Fast availability
Market Research Process: Defining Problem and Objectives� Exploratory research
� Preliminary information
� Problem definition and hypothesis suggestion
� Descriptive research
� Better describe marketing problems, situations, or markets
� Causal research
� Test hypothesis of cause and effect relationships
Develop the Research Plan
� Determine Specific Information Needs
� Target customer characteristics
� Patterns of product usage
� Demand factors
� Response of marketing channels� Customer reactions
� Projected sales
� Gather Secondary Information
� Internal database sources
� Company, public, and university libraries
� Government and business publications
� Commercial data services
� On-line databases
� Internet data sources
� International data
Advantages of Secondary Data
� Less time to obtain
� Lower cost than primary research� Alternate means of access to information
� Benefit from resources of others
Potential Problems With Secondary Data� Information may not exist
� May not be:
� Relevant
� Accurate
� Current
� Impartial
Market Research Process: Plan Primary Data Collection
� Research Approaches
� Observation
� Survey
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� Experiment
� Observational Research
� Observing relevant people, actions, situations
� Mechanical observation, people meters, checkout scanners
� Single-source data systems
� Overcomes unwilling or unable problem
� Some things not readily observed
� Difficult to monitor long-term or infrequent behaviour
� Survey Research
� Questions about knowledge, attitudes preferences or buying behaviour
� Most widely used source of primary data due to flexibility, information type collection, and sometimes quicker than
other two methods� Very difficult to construct properly; Unwilling/ unable respondents; answer questions which they have no knowledg
pleasing answers
� Experimental Research
� Best suited for gathering causal information
� Selecting matched groups of subjects
� Given different experimental treatments
� Variables controlled
� Responses measured and recorded
Contact Methods: Strengths and Weaknesses
Mail Phone Personal
Flexibility Poor Good ExcellentQuantity of data collected Good Fair Excellent
Control interviewer affects Excellent Fair Poor Control of sample Fair Excellent Fair
Speed of data collection Poor Excellent Good
Response rate Poor Good Good
Cost Good Fair Poor
Personal Interviewing
� Individual
� Talking with people in homes, offices, on the street, or in shopping malls ONE ON ONE
� Computer interviewing or computer-assisted
� Group
� Focus group
� Online
� Electronic
� Sampling Plans - three issues� What is the sampling unit?
� What is the sample size?
� What is the sampling procedure?
Market Research Process: Types of Samples
Probability Samples
� Simple random sample
� Known chance
� Equal probability
� Stratified random sample
� Mutually exclusive groups
� Random sample drawn
Non-probability Samples�
Convenience sample� Select easiest population
� Judgement sample
� Select for accurate response
� Interviewer sets number
Market Research Process: Research Instruments
� Questionnaire
� Question contribution
� Question form
� Closed-end
� Open-end
� Wording
� Ordering
�
Mechanical
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� People meters
� Checkout scanners
� Galvanometer
� Eye cameras
Market Research Process: Present the Research Plan
� Written Research Proposal
� Management problems addressed by research
� Research objectives
� Information sought
� Sources of secondary information
� Methods of obtaining primary data
� Benefits and costsMarket Research Process: Implement the Research
� Collect Data
� Company research staff
� Outside services
� Most costly and error prone process
� Analyze Data
� Isolate important information and findings
� Check accuracy and completeness
� Tabulate results
Market Research Process: Interpret and Report Findings� Focus on useful decision support
� Clear and open
� Discuss interpretation� Team approach
� Ultimate decision with management
Market Research Process: Other Considerations
� Small Business and Non-Profit Organizations
� Obtain good information through observation
� Informal surveys with convenience samples
� Informal focus groups
� Conduct simple experiments
� Secondary data is widely available
� International Marketing Research
� Growing due to multinationals
� Partnerships and alliances
� Difficulty in developing good samples� Difficulty in reaching respondents
� Language translation
� Consumer behaviour differences
� Public Policy and Ethics
� Increasing consumer resentment
� Industry codes of ethics
� Intrusions on consumer privacy
� Misuse of research findings
Marketing Information System: Developing Information
� Market Research
� Systematic design, collection and analysis
� Reporting data and findings
� Relevant to a specific marketing situation� Can be done internally or externally
Market Research Process: Defining Problem and Objectives
� Exploratory research
� Preliminary information
� Problem definition and hypothesis suggestion
� Descriptive research
� Better describe marketing problems, situations, or markets
� Causal research
� Test hypothesis of cause and effect relationships
Market Research Process: Develop the Research Plan
� Determine Specific Information Needs
� Target customer characteristics
� Patterns of product usage
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� Demand factors
� Response of marketing channels
� Customer reactions
� Projected sales
� Gather Secondary Information
� Internal database sources
� Company, public, and university libraries
� Government and business publications
� Commercial data services
� On-line databases
� Internet data sources
� International dataAdvantages of Secondary Data
� Less time to obtain
� Lower cost than primary research
� Alternate means of access to information
� Benefit from resources of others
Potential Problems With Secondary Data
� Information may not exist
� May not be:
� Relevant
� Accurate
� Current
� Impartial
Market Research Process: Plan Primary Data Collection� Research Approaches
� Observation
� Survey
� Experiment
� Observational Research
� Observing relevant people, actions, situations
� Mechanical observation, people meters, checkout scanners
� Some things not readily observed
� Survey Research
� Questions about knowledge, attitudes preferences or buying behaviour
� Most widely used source of primary data due to flexibility, information type collection, and sometimes quicker than
other two methods
� Very difficult to construct properly; Unwilling/ unable respondents; answer questions which they have no knowledg pleasing answers
� Experimental Research
� Best suited for gathering causal information
� Given different experimental treatments
� Variables controlled
� Responses measured and recorded
Personal Interviewing
� Individual
� Talking with people in homes, offices, on the street, or in shopping malls ONE ON ONE
� Computer interviewing
� Group
� Focus group
� Online� Electronic
� Sampling Plans - three issues
� What is the sampling unit?
� What is the sample size?
� What is the sampling procedure?
Probability Samples
� Simple random sample
� Equal probability
� Mutually exclusive groups
� Random sample drawn
Non-probability Samples
� Convenience sample
� Select easiest population
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� Judgement sample
� Select for accurate response
Market Research Process: Research Instruments� Questionnaire
� Question contribution
� Question form
� Closed-end
� Open-end
� Wording
� Ordering
� Mechanical
� People meters� Checkout scanners
� Eye cameras
Market Research Process: Present the Research Plan
� Written Research Proposal
� Management problems addressed by research
� Research objectives
� Information sought
� Sources of secondary information
� Methods of obtaining primary data
� Benefits and costs
Market Research Process: Implement the Research
� Collect Data
� Company research staff � Outside services
� Most costly and error process
� Analyze Data
� Isolate important information and findings
� Check accuracy and completeness
� Tabulate results
Market Research Process: Interpret and Report Findings
� Focus on useful decision support
� Clear and open
� Discuss interpretation
� Team approach
� Ultimate decision with management
Topic Outline� What Is Marketing?
� Understand the Marketplace and Customer Needs
� Marketing Management Philosophy
� Marketing Management is Demand Management
� Function of Marketing
� Elements of Marketing
Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from
customers in return. [Philip Kotler & Armstrong]
Marketing is a process of planning and executing the conception, pricing, promotion and distributing of ideas, goods and services to crea
exchanges that satisfy individual and organizational objectives. [American Marketing Association]
� Customer needs, wants, and demands� Market offerings
� Value and satisfaction
� Exchanges and relationships
� Markets
Needs = Felt of deprivation
Wants = Need+ Cultural and individual factorsDemand = Want+ ability and willingness
Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want.
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Customer Value and Satisfaction Expectations
Value V=Benefit/Cost
Satisfaction Product Perceived Performance and Customer Expectation
PPP>CE= Highly Satisfied Customer
PPP<CE= Dissatisfied Customer
PPP=CE= Satisfied Customer
Exchange is the act of obtaining a desired object from someone by offering something in returnMarkets are the set of actual and potential buyers of a product
Marketing management is the art and science of choosing target markets and building profitable relationships with them
� What customers will we serve?
� How can we best serve these customers?Marketing Management is Demand Management
• Negative Demand
• No Demand
• Latent Demand
• Declining Demand
• Irregular Demand
• Full Demand
• Overfull Demand
• Unwholesome Demand
Selecting Customers to Serve
Market segmentation refers to dividing the markets into segments of customers.
Target marketing refers to which segments to go after.Demarketing is marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it
Marketing Management Orientations/Philosophy
Production concept is the idea that consumers will favor products that are available or highly affordable
Marketing Management Philosophies
The Production Concept
� Management focus on production and distribution efficiency
� Consumers favour
� Readily available products
� Affordable products
Marketing Management Orientations
Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Organization shou
therefore devote its energy to making continuous product improvements.
Marketing Management Philosophies
� The Product Concept
� Consumers favour products offering
� Highest quality
� Best performance
� Most innovative features
MARKET SEGMENTATIONMarket segmentation is the process that companies use to divide large heterogeneous markets into small markets that can be reached mo
efficiently and effectively with products and services that match their unique needs
� Segmenting consumer markets
� Segmenting business markets
�
Segmenting international markets� Requirements for effective segmentation
Segmenting Consumer Markets
• Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities
• Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle
income, occupation, education, religion, race, generation, and nationality
Market Segmentation
Age and life-cycle stage segmentation is the process of offering different products or using different marketing approaches for different and life-cycle groups
Gender segmentation divides the market based on sex (male or female)
Income segmentation divides the market into affluent or low-income consumers
Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality traits
Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product
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� Occasions
� Benefits sought
� User status
� Usage rate
� Loyalty status
Using Multiple Segmentation Bases
Multiple segmentation is used to identify smaller, better-defined target groups
Geodemographic segmentation is an example of multivariable segmentation that divides groups into consumer lifestyle patternsSegmenting International markets
Segmenting Business Markets
Inter market segmentation divides consumers into groups with similar needs and buying behaviors even though they are located in differcountriesMARKET SEGMENTATION, TARGETING AND POSITIONING FOR COMPETITIVE ADVANTAGE
Chapter Objectives
� Define the three steps of target marketing
� Identify the major segmentation bases for consumer and business markets
� Explain how to identify attractive market opportunities and choose market strategies
� Explain positioning and its relationship to competitive advantage
Levels of Market Segmentation: Mass Marketing
� Mass producing, mass distributing and mass promoting the same product in the same way to all consumers
� Largest potential market helps lower costs equalling lower prices or higher margins
� Difficult to access fragmented markets
� Problems in selecting from multiple ad media and distribution channels
Segmented Marketing� Marketing recognizes buyers differ in needs, perceptions, and buying behaviours
� Isolate broad segments comprising a market
� Adapt offers to best match segment needs
� Market more efficiently and effectively
� More focus and less competition
Niche Marketing
� Marketing that focuses on subgroups within large identifiable groups in a market
� Dividing a segment into sub segments
� Defining group with distinctive set of traits seeking special combination of benefits
� Price premium
� Few or no significant competitors
� Improves focus of limited resources
Micromarketing� Tailoring products and marketing programs to suit the tastes of specific individuals or locations
� Local marketing
� Local tailoring of brands and promotions
� Overcomes regional differences
� �First-line customers�� Dilutes brand image and operation efficiency
� Logistical problems
� Individual marketing
� Tailoring products and marketing programs to the needs and preferences of individual customers
� Mass customization
� Custom-made products
� Self-marketing
Segmenting Consumer Markets: Geographic Segmentation� Divide market into separate geographic units
� Nations, regions provinces, cities, etc.
� Develop regional marketing programs
Demographic Segmentation
� Most popular method
� Consumer patterns often follow their demographics
� Easier to measure than most segmentation variables
� Needed for market size and access
� Age and life-cycle stage
� Wants and needs vary with stage
� Guard against stereotypes
� Gender
� Buying patterns frequently follow gender
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� Income
� Affluent to restricted incomes
Psychographic Segmentation� Lifestyle
� Reflected in purchases
� Personality
� Express who they are
Behavioral Segmentation
� Divide market into groups based on consumer knowledge, attitude, use, or response to a product
� Occasions
� By occasions when buyers get the idea to buy, actually make the purchase, or use the item
� Benefits sought� Major benefits, people seeking, brands deliver
� User status
� Non-, ex-, potential, first-time, regular
� Usage rate
� Light - medium - heavy
� Heavy users may dominate total market
� Loyalty status
� Toward brand, store, and/or company
� Frequent buyers may not be loyal
� habit, indifference, low price, product unavailability
Multiple Segmentation Bases
� Multiple bases used to better identify segments
� Geodemographic segmentationSegmenting Business Markets
� Business demographics
� Operating characteristics
� Purchasing approaches
� Situational factors
� Personal characteristics
� Plus consumer market variables
Segmenting International Markets
� Geographic location
� Economic factors
� Political and legal
� Cultural factors
� Intermarket (global) segmentation� common needs and buying behavior
Market Targeting: Evaluating Market Segments
� Segment size and growth
� Segment structural attractiveness
� Company objectives and resources
Positioning Competitively: Product Positioning
� Defined by consumers on important attributes
� Place product occupies in mind relative to competing products
� Information overload
� Simplify evaluation
� Position happens - planned or not
Positioning Strategies
� Product attributes� Benefits offered
� Usage occasions
� Classes of users
� Directly against or away from competitor
� Different product class
Possible Competitive Advantages� Product differentiation
� Service differentiation
� Personnel differentiation
� Image differentiation
Selecting Competitive Advantage
� How many differences to promote?
� Over positioning, under positioning, confused positioning
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� Which differences to promote?
� Important, distinctive, superior, communicable, pre-emptive, affordable, profitable
Communicating and Delivering the Chosen Position� Concrete action
� Easier to develop than implement
� Positions can be quickly lost
NEW-PRODUCT DEVELOPMENT AND PRODUCT LIFE-CYCLE STRATEGIES
Two ways to obtain new productsAcquisition refers to the buying of a whole company, a patent, or a license to produce someone else�s product
New product development refers to original products, product improvements, product modifications, and new brands developed from the
firm�s own research and development
New-Product Development Reasons for new product failure
Major Stages in New-Product Development
Idea Generation
Idea generation is the systematic search for new-product ideas
• Sources of new-product ideas
� Internal
� External
Internal sources refer to the company�s own formal research and development, management and staff, and �entrepreneurial� progra
External sources refer to sources outside the company such as customers, competitors, distributors, suppliers, University and research
institutes, Business consultant and advertising agencies, other sources.
Idea Screening
� Identify good ideas and drop poor ideas� R-W-W Screening Framework:
� Is it real?
� Can we win?
� Is it worth doing?
Concept Development and Testing
Product idea is an idea for a possible product that the company can see itself offering to the market
Product concept is a detailed version of the idea stated in meaningful consumer terms
Product image is the way consumers perceive an actual or potential productConcept testing refers to testing new-product concepts with groups of target consumers
Marketing Strategy Development
� Marketing strategy development refers to the initial marketing strategy for introducing the product to the market
� Marketing strategy statement includes:
� Description of the target market� Value proposition
� Sales and profit goals
Business analysis involves a review of the sales, costs, and profit projections to find out whether they satisfy the company�s objectives
Product development involves the creation and testing of one or more physical versions by the R&D or engineering departments
� Requires an increase in investment
Test marketing is the stage at which the product and marketing program are introduced into more realistic marketing settingsProvides the marketer with experience in testing the product and entire marketing program before full introduction
Types of Test Markets
� Advantages of simulated test markets
� Less expensive than other test methods
� Faster
� Restricts access by competitors� Disadvantages
� Not considered as reliable and accurate due to the controlled setting
Commercialization is the introduction of the new product
� When to launch
� Where to launch
� Planned market
� Rollout
Successful new-product development should be:� Customer centered
� Team centered
� Systematic
New-Product Development Strategies
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Customer-centered new product development focuses on finding new ways to solve customer problems and create more customer satisfy
experiences
� Begins and ends with solving customer problems
Sequential new-product development is a development approach where company departments work closely together individually tocomplete each stage of the process before passing it along to the next department or stage
� Increased control in risky or complex projects
� Slow
Team-based new-product development is a development approach where company departments work closely together in cross-functiona
teams, overlapping in the product-development process to save time and increase effectiveness
Systematic new-product development is an innovative development approach that collects, reviews, evaluates, and manages new-producideas
� Creates an innovation-oriented culture� Yields a large number of new-product ideas
Product Life-Cycle Strategies
� Product development
� Sales are zero and investment costs mount
� Introduction
� Slow sales growth and profits are nonexistent
� Growth
� Rapid market acceptance and increasing profits.
� Maturity
� Slowdown in sales growth and profits level off or decline
� Decline
� Sales fall off and profits dropFads are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity
Introduction Stage
� Slow sales growth
� Little or no profit
� High distribution and promotion expense
Growth Stage
� Sales increase
� New competitors enter the market
� Price stability or decline to increase volume
� Consumer education
� Profits increase
� Promotion and manufacturing costs gain economies of scaleMaturity Stage
� Slowdown in sales
� Many suppliers
� Substitute products
� Overcapacity leads to competition
� Increased promotion and R&D to support sales and profits
Maturity Stage Modifying Strategies
� Market modifying
� Product modifying
� Marketing mix modifying
Decline Stage
� Maintain the product
� Harvest the product� Drop the product
Summary of Product Life Cycle
Additional Product and Service Considerations
Product Decisions and Social Responsibility
Public policy and regulations regarding developing and dropping products, patents, quality, and safety
International Product and
Service Marketing�Challenges
� Determining what products and services to introduce in which countries
� Standardization versus customization
� Packaging and labeling
� Customs, values, laws
PRICING: UNDERSTANDING AND CAPTURING CUSTOMER VALUE
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What Is a Price?
Price is the amount of money charged for a product or service. It is the sum of all the values that consumers give up in order to gain the
benefits of having or using a product or service.
Price is the only element in the marketing mix that produces revenue; all other elements represent costs
Factors to Consider When Setting PricesCustomer Perceptions of Value
Understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that valu
Value-based pricing uses the buyers� perceptions of value, not the sellers� cost, as the key to pricing. Price is considered before the
marketing program is set.
� Value-based pricing is customer driven
� Cost-based pricing is product driven
Good-value pricing offers the right combination of quality and good service at a fair price
Existing brands are being redesigned to offer more quality for a given price or the same quality for a lower price
Everyday low pricing (EDLP) involves charging a constant everyday low price with few or no temporary price discounts
High-low pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily onselected items
� Value-added pricing attaches value-added features and services to differentiate offers, support higher prices, and build pricin
power
� Pricing power is the ability to escape price competition and to justify higher prices and margins without losing market share
Cost-based pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return
its effort and risk
Company and Product CostsCost-based pricing adds a standard markup to the cost of the product
Company and Product Costs
Types of costs
Fixed costs are the costs that do not vary with production or sales level
� Rent
� Heat
� Interest
� Executive salaries
Variable costs are the costs that vary with the level of production
� Packaging
� Raw materials
Total costs are the sum of the fixed and variable costs for any given level of productionAverage cost is the cost associated with a given level of outputCosts at Different Levels of Production
Costs as a Function of Production Experience
Experience or learning curve is when average cost falls as production increases because fixed costs are spread over more units
Cost-Plus Pricing
� Cost-plus pricing adds a standard markup to the cost of the product
� Benefits
� Sellers are certain about costs
� Prices are similar in industry and price competition is minimized
� Consumers feel it is fair
� Disadvantages
� Ignores demand and competitor prices
Break-Even Analysis and Target Profit Pricing
Break-even pricing is the price at which total costs are equal to total revenue and there is no profit
Target profit pricing is the price at which the firm will break even or make the profit it�s seeking
Break-Even Analysis and Target Profit Pricing
Considerations in Setting Price
Other Internal and External Considerations Affecting Price Decisions
� Customer perceptions of value set the upper limit for prices, and costs set the lower limit
� Companies must consider internal and external factors when setting prices
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Target costing starts with an ideal selling price based on consumer value considerations and then targets costs that will ensure that the pr
is met
Organizational considerations include:
� Who should set the price
� Who can influence the price
The Market and Demand
Before setting prices, the marketer must understand the relationship between price and demand for its products
The demand curve shows the number of units the market will buy in a given period at different prices
� Normally, demand and price are inversely related
� Higher price = lower demand
� For prestige (luxury) goods, higher price can equal higher demand when consumers perceive higher prices as higher quality
Price elasticity of demand illustrates the response of demand to a change in price
Inelastic demand occurs when demand hardly changes when there is a small change in price
Elastic demand occurs when demand changes greatly for a small change in pricePrice elasticity of demand = % change in quantity demand
% change in price
Other Internal and External Considerations Competitor's Strategies
� Comparison of offering in terms of customer value
� Strength of competitors
� Competition pricing strategies
� Customer price sensitivity
PRODUCT, SERVICES, AND BRANDS: BUILDING CUSTOMER VALUE
Products, Services, and Branding StrategyProducts, Services, and Experiences
A Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or
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�fv�Mi Rb� evRv�i Advi�`qv nq ZvB cY�]Levels of Product and ServicesProduct and Service Classifications
� Consumer products are products and services for personal consumption
� Classified by how consumers buy them
� Convenience products
� Shopping products
�
Specialty products� Unsought products
Convenience products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum
comparison and buying effort
� Newspapers
� Candy
� Fast food
Shopping products are consumer products and services that the customer compares carefully on suitability, quality, price, and style� Furniture
� Cars
� Appliances
Specialty products are consumer products and services with unique characteristics or brand identification for which a significant group o
buyers is willing to make a special purchase effort� Medical services
� Designer clothes
� High-end electronics
Unsought products are consumer products that the consumer does not know about or knows about but does not normally think of buying
� Life insurance
� Blood donations
Industrial products are products purchased for further processing or for use in conducting a business
� Classified by the purpose for which the product is purchased
� Materials and parts
� Capital
� Supplies and services
Capital items are industrial products that aid in the buyer �s production or operations
Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users
Supplies and services include operating supplies, repair and maintenance items, and business services
Organizations, Persons, Places, and Ideas
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Organization marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers towar
organization
Person marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward parti
people
Place marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward partic places
Social marketing is the use of commercial marketing concepts and tools in programs designed to influence individuals� behavior to
improve their well-being and that of society
Product and Service Decisions
Individual Product and Service Decisions
Product attributes are the benefits of the product or service� Quality
� Features
� Style and design
Product quality includes level and consistency
� Quality level is the level of quality that supports the product�s positioning
Product features are a competitive tool for differentiating a product from competitors� products
Product features are assessed based on the value to the customer versus the cost to the company
Style describes the appearance of the productDesign contributes to a product�s usefulness as well as to its looks
Brand is the name, term, sign, or design�or a combination of these�that identifies the maker or seller of a product or service
Packaging involves designing and producing the container or wrapper for a product
Labels identify the product or brand, describe attributes, and provide promotion
Product support services augment actual productsProduct Line DecisionsA product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer
groups, are marketed through the same types of outlets, or fall within given price ranges
Product line length is the number of items in the product line
� Line stretching
� Line filling
Product Mix Decisions
Product mix consists of all the products and items that a particular seller offers for sale
� Width
� Length
� Depth
� Consistency
Branding Strategy: Building Strong BrandsBrand represents the consumer �s perceptions and feelings about a product and its performance. It is the company�s promise to delive
specific set of features, benefits, services, and experiences consistently to the buyers
Brand PositioningBrand strategy decisions include:
� Product attributes
� Product benefits
� Product beliefs and values
Brand Name SelectionDesirable qualities
1. Suggest benefits and qualities
2. Easy to pronounce, recognize, and remember
3. Distinctive4. Extendable
5. Translatable for the global economy
6. Capable of registration and legal protection
Brand Sponsorship� Manufacturer �s brand
� Private brand
� Licensed brand
� Co-brand
Brand Development Strategies
Services Marketing
Types of Service Industries
� Government
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� Private not-for-profit organizations
� Business services
Nature and Characteristics of a Service
Marketing Strategies for Service Firms
In addition to traditional marketing strategies, service firms often require additional strategies� Service-profit chain
� Internal marketing
� Interactive marketing
Service-profit chain links service firm profits with employee and customer satisfaction
� Internal service quality
� Satisfied and productive service employees� Greater service value
� Satisfied and loyal customers
� Healthy service profits and
Internal marketing means that the service firm must orient and motivate its customer contact employees and supporting service people towork as a team to provide customer satisfaction
Internal marketing must precede external marketing
Interactive marketing means that service quality depends heavily on the quality of the buyer �seller interaction during the service encou
� Service differentiation
� Service quality
� Service productivity
Managing service differentiation creates a competitive advantage from the offer, delivery, and image of the service
� Offer can include distinctive features
� Delivery can include more able and reliable customer contact people, environment, or process� Image can include symbols and branding
Managing service quality provides a competitive advantage by delivering consistently higher quality than its competitorsService quality always varies depending on interactions between employees and customers
Managing service productivity refers to the cost side of marketing strategies for service firms
� Employee recruiting, hiring, and training strategies
� Service quantity and quality strategies
___________END_________
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I get a lot of searches for different industries looking for useful marketing ideas. One of the terms I see show up now
and again is Bank Marketing Ideas. I can’t help but wonder how fierce the competition in the banking industry is. The
whole banking system is set up cleverly to make a lot of money. That is, if you have customers.
Every bank needs a sign
Whoever implemented the first digital time / temperature sign at a bank was a genius. That person deserves a medal.
mean really, they do. Every day on the way to and from work you look to see the time and outdoor temperature. It jus
so happens you also see the name of the bank displaying the sign, reinforcing its brand recognition.
Although, displaying the time in military time (where the day starts at 00:00 and ends at 23:59) and the temperature
Celsius (most Americans don’t know what that is) would be a more unconventional marketing idea. That would cause
people to stop and think for a second. That would be reason enough for someone to talk about what they just saw. Th
effects might be minimal, but you never know. It would be fun to watch people drive by staring at the sign (with your
brand on it).
To go even further, why not put up a daily trivia question? Or a random daily fact. People might even drive by your ba
every day just to read the trivia question!
Free money
People love free money, almost as much as they love air. In Seth Godin’s book, Free Prizes, he told a bank advertising
manager to slip a few $100s into the ATM. People would talk then. Mission accomplished.
Imagine someone pulls up to the ATM at midnight on a Saturday on his way to the next watering hole and he requests
$40 and gets $120 instead. Would he go to the bar and promptly tell everyone? How much would you want to bet the
bar clears out and a mass of people start withdrawing from that machine? I am willing to bet that each $50-100 you p
in the pile to replace a $20 would be redeemed in the astronomical charges implemented at the only machine in town
dispensing cash at 4 a.m. on a Saturday.
Stop with the fees already
Banks charge way too many fees, for everything. In a room with 100 people in it, not one would suggest otherwise. Seyourself apart from the crowd and stop charging fees. Maybe you opt out of fees and opt into advertising services like
credit help, financial counseling or long-term planning and management of money. Perhaps you break all the rules and
say no one will ever be charged a fee so long as they accept advertisements about these great services you can offer
them.
What kind of marketing idea generator said its OK to add random fees to a bunch of different accounts and then
promptly remove them with no questions asked when a customer asks what they are for? I mean, if the person whose
job it is to dispense and receive monies can simply remove the fee on a whim, that fee should not be there. But I am
willing to bet that people are happy when those fees are removed and do not report the devious nature of the fee to
others. On the other hand, all of those people who don’t know how to check their accounts or balance checkbooks
simply get feed to death.
Please upgrade your website
If Mint.com can offer a free budgeting service and attract thousands of people by crunching numbers and displaying
them in charts, so can you. Mint.com makes money by referring people to credit card and mortgage companies. I wou
use a budgeting service if my bank offered it. A lot of the people who use my bank would too. Other people who don’t
use my bank would consider switching or opt in to the free service because of the reputable brand. The problem with
Mint.com is that it is not a Wells Fargo, US Bank or JP Morgan. Imagine how many people would be willing to give you
platform to help market other products and services to others. Remember it is always good to promote your
competition as long at it is on your terms.
Invest in the community
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If your bank supports a nonprofit or charity people can relate to, then you will have more customers just because peop
want to believe they are part of a good cause. People are emotional. Stories of helping others and photos of people in
need play to our emotions and we want to help. Not only that, but once something has reached our emotions, we
remember it. If your bank donates a percentage to schools, homeless shelters or dog rescue, potential customers will
remember you and maybe even switch to your banking services. And I mean really donate, not just donate a lump sum
and then spend twice as much telling everyone about it.
For example, how about using the save your change program to match donations to a school? Some banks have the
save your change program where if you spend $2.12 on something they round up to $3 and put the .88 in a savings
account for you. For every individual participant, save the change adds up to about $200-300 a year in savings. If my
bank offered to match that savings from my save the change participation and donate it all to a local school, animalshelter or whatever, I would probably do it, gladly. I can just picture schools rallying all the parents to switch banks an
sign up for your save the change and donate program.
Give out candy and dog treats
My girlfriend always talks about it whenever she goes through a drive-thru of any kind and the person at the window
gives her dog a treat. Her cat was even offered a treat once. Kids love to go to the bank with Mom and Dad if they get
piece of candy from the teller. Use this idea and expand on it because adults like free treats too. Maybe on Fridays,
everyone or selected people who use the drive-thru get a $5 gas card or a coupon for a free coffee. Or maybe they are
offered a special such as a savings account with no minimum balance or the interest waved from their credit card for
one month. Or maybe every single person who goes through the drive-thru gets a piece of Godiva chocolate no matte
what day it is. People like to be surprised for the better, not that they just incurred $300 in overdraft fees. Use your
imagination.