inseec - strategic marketing - rodolfo cremer
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International Academic Seminars January, 2014
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Rodolfo J. Cremer, MBA, Ph.D. (c) [email protected]
RodolfRodolfRodo fo J Cremfo J CrJ C MBA Ph DMBA (( )
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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Rodolfo J. Cremer, MBA, Ph.D. (c) Academic Vice President
San Ignacio de Loyola University
© Dr. (c) Rodolfo J. Cremer - Escuela de Postgrado Universidad San Ignacio de Loyola
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The way we will interact (in this course)
“When teaching , teach also to doubt
what you teach” Ortega y Gasset
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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¿who are you? ¿where do you come from?
¿what do you expect to happen? (in this 6 hours)
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¿who am I? ¿what am I doing here?
(what do I expect to happen)
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Ph.D. (c) Rodolfo J. Cremer, MBA Vice President at Universidad San Ignacio de Loyola, Lima, Perú Director at Marketing de Servicios for Perú, MdS Director at MERCO for Peru Professor Cremer is the Academic Vice President at Universidad San Ignacio de Loyola, responsible of the operation of the graduate, undergraduate & working adult programs. Until December 2012 he was Dean at the Universidad San Ignacio de Loyola Graduate School of Business. He is also Director at MdS (Marketing de Servicios, Peru), and member of the Advisory Committee at Merco Perú. He was Vice President at Universidad Peruana de Ciencias Aplicadas – UPC, member of Laureate International Universities), and his professional experience and academic background during the past 20 years have taken him to lead projects, directories and general management at different industries and market segments. He has wide experience in commercial and marketing strategies, designing strategic planning and constructing balanced scorecards, defining KPIs, designing service and loyalty programs, and the tactic execution of the strategy in the operational business. Professor Cremer teaches Strategic Marketing and Service Marketing, and has been lecturer in subjects as strategic planning and balanced scorecard, loyalty programs and service marketing strategies in many prestigious universities, MBA programs and postgraduate schools, as well as in open seminars and consulting projects. He was also lecturer in the international event BALAS 2006 (Business Association of Latin American Studies) and in the XI Seminary and I International Congress of Marketing and Publicity in Bucaramanga, Colombia (2007), and visiting professor at DeSales University, Pennsylvania, US (2009). His professional experience background is in multinational companies, where he has held the positions of director, marketing manager and commercial manager. His professional experience is in strategic planning and commercial and marketing plans, developing loyalty programs (CRM). He has worked for companies such as Pepsico, Price Waterhouse Coopers, Yamaha Motor of Peru, Kawasaki, Suzuki of Peru, General Motors, Mibanco, Los Delfines Hotel & Casino, Banco Financiero, Atlantic City Casino. He has developed programs of consultancy and participated in in-company seminaries for Interbank, Nissan, LAN, Asosiación Peruano-Britpanico, Constructora Líder, Besco, Impulse Telecom, Belcorp, Telefónica, Postobón (Colombia), among others. Mr. Cremer is a Ph.D. candidate in International Business Administration at Universidad Politécnica de Cataluña, Spain. He is also MBA by the UQÀM (Université du Quebec à Montreal), Canada, and MBA by the Universidad San Ignacio de Loyola (Lima, Peru). In both cases he graduated first place in his class.
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Student Teacher / Lecturer
Undergraduate • Business
Administration
Graduate • MBA
Doctoral • International
Administratrion
Education
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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Full Time Consultancy
Services • Education • Banking • Microfinance • Gaming • Beauty • Consultancy • Security • Health
Automobile / Motorcycles / Industry
Consumer Goods
Construction / Real State
Work Experience
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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¿who am I? ¿what am I doing here?
(what do I expect to happen)
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¿what do you expect from a quality
“course” of STRATEGIC MARKETING?
www.marketingdeservicios.com
Getting to know your expectations
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Expectations from the STRATEGIC MARKETING course
Course: Strategic Marketing INSEEC, Paris. 2014-01-20
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IMPORTANT / “DISCLAIMER”: This PPT is only supporting material for class discussion.
Not everything that we discuss in class is in the PPT, either everything that is in the PPT will not necessary be
discussed in class …
However, I am available at [email protected] or [email protected] for any further information .
OK. Let’s start …
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Neils Böhr said:
“The opposite of a fact is a falsehood;
but the opposite of a profound truth may well be
another profound truth.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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Confucius said:
“Study without thinking is a waste of time;
thinking without study is dangerous”.
The Art of Strategy, Thomas Cleary
(the same: from my personal experience working with people who know nothing about marketing -and they are taking marketing decisions-)
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 17
In this seminar :
We are going to do something executives rarely do
(and I include myself of course).
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 18
We are going to
think (to think strategically)
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We have no time to plan the future; we are too busy
solving today’s problems.
Anonymous
(and -on the way- we are measuring anything)
My own experience – Rodolfo Cremer
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“I am interested in the future
because is where I am going to spend
the rest of my life”. Woody Allen
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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2 favours:
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1. During learning periods the mind acts as
a parachute
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It’s better when it is
open
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The opposite to …
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The closes to …
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2. NO Paradigms / NO Prejudices.
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1. Foundations and Process of Strategic Marketing :
what is (& what is not) Marketing (a perspective from the XXI century).
2. Transactional Marketing vs Relationship Marketing.
agenda (objectives) for today
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Fuente: http://trescosashermosas.blogspot.com/2011/02/y-pensaba-que-telefonica-era.html
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Sales are the result of relations
[ not the other way around]. 1
Fuente: 1 ALCAIDE CASADO, Juan Carlos; SORIANO SORIANO, Claudio L. Marketing Bancario Relacional. McGraw-Hill / Interamericana de España, S.A. [2005]
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to the
Relation
Requires a change of Paradigm!!
from the Transaction
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The
BIG picture
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Market Research
Segment // Targeting
Fuente y Elaboración: Rodolfo J. Cremer, Ph.D. (c)
Differentiate
Position (Positioning)
We align the Marketing Mix
1.Product 2.Price 3.Place 4.Promotion 5.People 6.Processes 7.Physical
evidence (Perceptions)
8.Provision - Moment of Truth
Marketing Plan
1. Actions: What, Who, When, How, Where, Why…
2. How much: forecast, Budgets and objectives.
3. Indicators and Ratios.
Understand the insight and the
consumer buying behaviour: habits, like, preferences,
fears, etc
Environment: external factors. Competitors, laws, social , politic, economic, technologic, demographic, geographic & trends and factors as values and lifestyle etc…
Total Market / Population
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then …
“¿What is
marketing?”
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Marketing Is
About War
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Shaman from Piura TIE UP YOUR
IMPOSSIBLE LOVE
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PLUMBER, in Trujillo, Perú.
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FUMIGATION MAN, in Lima, Perú.
2014.01.16
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Other proposals are more sophisticated and exciting
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92% of our Customers are satisfy
with our service.
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We arrive in 15 minutes or we pay
you $100
Which company is more commitmted?
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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During a road trip on a lonely road, I stopped in a town to buy something to eat.
When entering the pizza restaurant I saw a sign that said:
“Quality, Service, Good Price. Choose two.”
Selecciones del Reader’s Digest Pp 101, agosto 2007
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¿What’s happened? [where’s the marketing?]
¿What is “Marketing”? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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Marketing
Jerome McCarthy / Philip Kotler J MM CC th / PhilliC thC t K tlK tlK tl
To offer the customers Products and services
to reach the satisfaction of their needs, wishes and expectations.
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The paradox of satisfaction
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Let’s look at the example of the automotive
industry
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Satisfaction does NOT guarantee loyalty
Completely satisfied Very satisfied Satisfied Very disatisfied completely
disatisfied
80% 10% 10%
80% + 10% = 90% Dropout Rate = 75%
mpletel
Only 15% renews with the same brand
In the automotive industry…
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A LADA salesmas says:
“A LADA is forever …”
What he didn’t say was:
“… becasue nobody would buy it later”.
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� 1 out of 4 Spanish companies (25.4%) expects to lose between 10% and 30% of their customers.
� 19,9% of the companies believes they’ ll lose between 10% and 20%.
� While 5,5% forsees that the droput rate will be between 20% and 30%.
� 7% of the surveyed companies admits that the churn rate can rapidly grow more than an alarming 30%.
� Numerous companies choose to accept droput rates in a natural way, intensifying their efforts to attract new clients.
Survey of more than 2.000 general directors, commercial directors and Marketing directors of the most relevant national and international companies of different sectors.
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�Asked about the reason for the dropout, 73% of the customers mentioned “customer service” as the main one, compared to 21% of the managers.
� 50% of the managers attributed the dropouts to the price, while only a 24% of the “deserter” customers mentioned the prices as the reason.
� This difference speaks for itself about the learning & understanding necessary.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
Survey of more than 2.000 general directors, commercial directors and Marketing directors of the most relevant national and international companies of different sectors.
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and ¿HOW is the QUALITY of a
SERVICE measured?
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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Fuente: IMdS. www.marketingdeservicios.com
“If we paid services in the street the same attention we give to the
products in the factory, certainly a large number of new
opportunities will appear”.
Theodore Levitt-
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(1) Expectations
THE QUALITY EQUATION (in services)
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I came for this promise
Pero recuerda y se queda con
esta realidad (y se lo cuenta
al resto!!)
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
E
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I came for this promise
And I found this reality
(this is what he tells the
rest!!)
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
E P
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C = P – E The Quality Service Equation
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C = P – E ¿How much should C be (obligation)?
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
The Quality Service Equation
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C = P – E ¿How much should C be (obligation)?
¿How do we ensure a C+?
0 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
The Quality Service Equation
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C = P – E 0 + © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
¿How much should C be (obligation)? ¿How do we ensure a C+?
The Quality Service Equation
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© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
I have a question for you
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Can we apply a high quality service strategy & operation
model in any business? � What about a supermarket?
(It's a “commodity store”?) � Or an “low fare” airline?
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
Quality, Service &
Good Price. Can we have
all three together?
In other words …
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C = P – E Let see how (or if it) it works.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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Fuente: IMdS. www.marketingdeservicios.com
www.marketingdeservicios.com
“When the company have no clear and specific quality standards, the daily and
everyday decision of what should the final quality that the products and services of
the organization be is left to the employees”
Article: Los Estándares de Calidad en el Servicio, del MdS
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Fuente: IMdS. www.marketingdeservicios.com
“¡¡Best wishes and good
faith DOES NOT ensure that the CRITERIA of the
employees meet the EXPECTATIONS of the
CUSTOMERS!!” vvvvvvvvvviiiiiiccccciiiiooooss..cccoooommm
www.marketingdeservicios.com
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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The first step: PART-TIME MAID NEEDED DOESN’T NEED TO KNOW ANYTHING
JUST OBBEY
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Fuente: IMdS. www.marketingdeservicios.com
“Satisfying the customers is no longer enough,
we have to delight them and even amaze them.”
Article: La medición de la satisfacción del cliente (Juan Carlos Alcaide, director del MdS)
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
www.marketingdeservicios.com
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Fuente: IMdS. www.marketingdeservicios.com
“It’s not the products but the processes that create the
products, what adds up to the long term
success of the companies”.
Michael Hammer & James Champy Reengineering the Corporation: A Manifesto for Business Revolution
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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Fuente: MdS. www.marketingdeservicios.com © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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In many cases the “obsession” for customers’ satisfaction can become the only safe way to guarantee the short and long term survival of the company .
Article: La Medición de la Satisfacción del Cliente de MdS
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Our values: • The customer is our reason for being • Our people is most important • Innovation • Superior performance
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© Dr. (c) Rodolfo J. Cremer - Escuela de Postgrado Universidad San Ignacio de Loyola
WORD OF MOUTH: THE CONSUMER AS A MARKETING TOOL
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Let’s talk about the “E”
¿How are (customers’) expectations formed?
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79
Expectation: the Hope to do or get soemthing. Reasonable posibility of soemthing to happen- Possibility to get a right, an inheritance, a job or any other thing provided that a planned event happens.
Fuente: RAE. www.rae.es
Definition (according to RAE)
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Fuente: IMdS. www.marketingdeservicios.com
Sales Process Management
Other communications from the company
“Athmosphere” created at the meeting point of the service Personal Experience with the
company
“Mout to Mouth” communication
Personal Experience with other companies
Marketing Communication of the company
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Use the tangible elements and the environment of the meeting to show what the customers should expect.
“Athmosphere” created at the meeting point of the service
Control the implicit messages they containOther communications
Keep your customers satisfied so that they “speak well of you”
“Mout to Mouth” communication
Constantly check what the competition does [and howit does it]; use benchmarking
Personal Experiencewith other companies
What to doExpectation
Don’t allow “valleys and peaks” in the services of the company: clients always expect a steady quality of service
Personal Experience with the company
Do Not “over-sell ” the virtues of your services; sooner or later you will have to deliver the moon.
Sales Process Management
Don’t make primises you can’t not keep. You can Underpromise (and give more)
Marketing Communication
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82 Fuente: MdS. www.marketingdeservicios.com
They 10 key Expectations [Berry, Parasuraman & Zeithaml]
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¿What has
happened? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
In XXI Century
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Product Price Place Promotion
� Management culture dominated by the supply side.
Transactional Marketing
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© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
marketing was born in this era for this products
competitors & customers
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It does NOT Work in XXI
century!
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And there was another option left for us…
The services had no choice but to
adopt (product) marketing
Just as it had been thought for the products
(in despite of the obvious differences
between products and services)
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� The intangibility [of the service]
� Simultaneity production – consumption
� Production process
� Contact company-customer
� Heterogeneity of services, and
� Customer engagement [in the production process]
Differences between Products and Services
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Pure adoption I Birth 4Ps
Aplicability III Adaptation
Traditional Marketing
Internal Marketing
Relationship Marketing
A cry (shout) of freedom II Evolution 1977: “Breaking Free From Product Marketing” (Liberémonos del marketing de productos) G. Lynn Shostack, Vicepresidenta del CitiBank
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therefore…
a three-dimensional approach is needed
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91
Traditional Tradicional Comunication of promise
Internal Marketing Allows the delivery of what was promised (accomplish)
Relationship Marketing Delivers what was promised and manages the relationship
New Three-dimensional Perspective
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92
Traditiona lMarketing Communication of promise
Internal Marketing Allows the delivery of what was promised (accomplish)
Relationship Marketing Delivers what was promised and manages the relationship
TraditionalMarketingCommunication of
i4Ps
InternalMarketingAllows the delivery of what was promised
Processes Standards
CRM
RelationshipMarketingDelivers what was promised
People Empowerment Experiences
Product Price Place
Promotion
Processes Physical Evidence
People Provision – “moment of true”
Homogeneity at the point of
sale: Tasks, tools,
formation, scripts, moments of truth…
Emotional connection: Abilitues, emotions,
attitudes, service vocation , “depart from the script”,
extra mile ,,,
Customer “moments of thruth”
New Three-dimensional Perspective
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Product – Service
Phsycal Elements (evidence)
Place Process
Price People
Promo Provision Benefit- delivery
New Adapted Approach in XXI century (expanded marketing)
Fuente: MdS. www.marketingdeservicios.com
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organization Process
(need cross-functional organization) customer
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
What is an organization chart like?
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Contribution from
Prosper Bernard, Ph.D.
(mi professor at UQÀM
Graduate School)
This is the way in which a traditional organization chart works today
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Fuente: IMdS. www.marketingdeservicios.com
It’s not enough to do things right, we have to do “right” the “right” things.
… and these are the results…
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� Comunication – direct marketing: increases its importance in saturation and lack of massive means
� Distribution: strategic partnership between the channel and the manufacturer, procedures and shared databases
� Service Marketing: increases customer satisfaction, frequency and quality of contact and its impact on loyalty.
� Marketing of industrial and high technology products: development of “one to one”, joint ventures, joint development and common perspective of the value chain
� Quality: TQC, TQM, importance of the quality of satisfaction.
� Flexible Production – JIT: cost reduction of changes enables the client-oriented strategy. Orientation to maximun flexibility in scale economy
� Enterprise Strategy: “keiretsu” clusters with interrelated interests and long-term commercial links
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¿what is marketing? [then]
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Marketing According to G. Lynn Shostack
Marketing is the area (and the processes)1 in charge of
keeping the link between the company and its customers
link = relation ¿elements of a relation?
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
1. Contribution from Mr. Victor Requena. UQAM XVI.
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link = relation ¿elements of a relation?
Satisfaction Trust
Respect Comunication
A relation: Win – Win Loyalty
Fidelity (trust) Passion
Love + Convenience Forgiveness Kowledge
They are not the same
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¿Why is customer service important? � More loyalty from consumers, customers and users.
�Increase in sales and profitability(the high quality allows, among other things, to la alta calidad permite, entre otras cosas, set higher prices than the competition).
�More frequent sales, more repetition of business with the same clients, users or consumers.
� A much higher level of indivudual sales per customer, consumer or user (satisfied clients buy more of the same products and services).
�More cross-selling, since the customers are more likely to buy other products or services from the company.
�More new customers acquired through word of mouth communication , the references from satisfied clients, etc.
�Lower expenses in traditional marketing activities (advertising, sales promotion and so on).
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¿Why is customer service important? �Fewer complaints so therefore fewer expenses solving them.
�Better image and reputation of the company.
� A clear differentiation of the company over its competitors (even though there products and services are similar to those of their competitors , customers perceive as different and even as unique).
� A better internal working climate, since employees are no longer under the pressure of frequent complaints form users, customers or consumers.
�Better internal relations inside the staff since all of themwork, together, towards a common goal.
�Fewer complaints and absenteeism from the staff (higher productivity).
�Lower staff turnover.
�More market share.
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Acknowledging the need
Searching information
Evaluating options
Buying anf consuming
Functional characeristis are considered based on theri importance. Its presence iin the product that is most useful (defined as the sum of weightedfeatures). Anything that does not fit is “image”, “irrelevant” or “meaningless”
Competnece is produced inside a restricted andefined product category: the battle field of the product managers and brand managers
� Regression models � Positioning maps � Joint analysis (functional
advantages perceived by the consumer)
(according to Bernd Schmitt)
Fuente: MdS. www.marketingdeservicios.com
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[ soemthing to take into account … ]
“The essential difference between
emotion and reason is that …
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[ something to take into account … ]
“The essential difference between
emotion and reason is that …
emotion leads to action while
reason leads to conclusions.”
Kevin Roberts [Lovemarks: the future beyond brands]
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“the wallet is closer to the heart than it is to
head.”
d1 d2
d1 < d2 $
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� Less loyal to a brand
� Wider varierty of choices (election)
� More diverse needs
� Makes decisions at the selling point
More heterogeneous and harder to reach customer
It could be up to the 80%
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1. They accept your invitation to be loyal 2. They frequently change segments and mislead our strategies ,
their behaviour is unpredictable 3. They are smart and are well-informed 4. They are cynical and sceptical 5. They ar not willing to “fight” (they just leave), they rather “harm
consciuosly” 6. They are interested in the others’ experiences 7. Theyey y knoww w theiri r ownwn n valueue 8. They are proud to be “butterflies”: they know they have the
power.
Adapted from Pajunen y O’dell
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Excelent service (feeling of being
exceptional) Pride of belonging “red carpet”
Put the price on the second place
based on their ”level” as a customer
“one to one” treatment .
(what they value more than the link
“company-person”)
Routines and “lazyness” to look
for another supplier, sale cost based on comfort
Adapted from Pajunen y O’dell
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� Suspicious and cautious
� Experienced � Skeptic � Impatient � Unpredictable � Highly informed � Non conformist � Bad-tempered � Bothersome
Troublesome � Somebody has to pay
for what’s happening
Adapted from de Pajunen y O’dell
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Hiper connected (AAA)� Any Device � Anywhere � Anytime
Adapted from Marketing de Servicios – tendencies 2014
The Rise of Generation C � Connected � Communicating � Content-Centric � Computerized � Community-oriented, � always Clicking
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(AAA + Generation C)
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115 Fuente: MdS. www.marketingdeservicios.com
“It’s not the products but the processes that create the
products, what adds up to the long term
success of the companies”.
Michael Hammer & James Champy Reengineering the Corporation: A Manifesto for Business Revolution
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¿What do CUSTOMERS EXPECT from
US? Fuente: Berry, Parasuraman & Zeithaml
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Customers can believe & trust In our standard quality
Reliability- Credibility
E P
“we don’t have customers , we have believers”
Carlos Navarrete DIES business partner
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The employees are willing to provide the service when the customer needs it.
responsiveness
E willinThe employees are w
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The staff treats the customers kindly and attentively they don’t react negatively with an angry customer.
Courtesy
E reatsThe staff tr
P
“we just sell the product, we
don’t manufacture it.”
An important department store in
Perú
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Adequate location and schedules, signaling, services provided match the customer times,
managers willing to listen.
Accesibility
E e locAdequate
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The staff explains clearly without using technical words; they listen patiently.
Communication
E ns cleThe staff explain
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Customers expect to be heard and helped; the satff “understand the customers’ side”.
“Personalized” service (segmented).
E mersCustom
P
Somebody calling himself
customer asks for soemthing called
service
SS yy ccelf
SommmmmmmmmmmmmmmmmmmmmebodySomebodyhimse
Understanding
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The staff knows how to provide the requested service. Know your products!
Professionalism
E P
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The company cares about the customers’ physical and economic safety, (data) confidentiality.
Security
E omicecono
P © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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Comunication is very
important ! © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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Listen carefully © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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make
questions
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© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
Film:
The beaver and the shepherd
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Don’t “jump” to conclusions
Often, problems occur due to
a poor communication.
! © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
Film:
Nose operation
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Before going on Lets’ make a short summary
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[ something to keep in mind ]
“the key difference between emotion and reason is that …
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[ something to keep in mind … ]
emotion end up in action while
reason ends up in conclusions.” Kevin Roberts [Lovemarks: the future beyond brands]
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“Not everything that can be
counted counts;
Not everything that counts can be
counted” Albert Einstein
fuente: www.marketingdeservicios.com
Final Considerations
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“what’s important is invisible to the eyes”
Antoine de Saint-Exupéry en El Principito
Final Considerations
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“90% of what we call ‘management’ consists of
making things hard for those who must do
things.”— P.D.
Final Considerations
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�Fidelity (trust) is not Loyalty.
�The CRM [technology without strategy] guarantees nothing.
�Classical Marketing doesn’t work anymore.
�Customer service is a key element to keep customers.
�A radical change in the communication paradigms: we moved from publicity and (massive) promotion to personalized communication.
�Quality is not enough; we need kindness (human Q).
Final Considerations
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complaints book
(“public”) Commitment of
quality
The “employee” of the month!
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141
Now… let´s see traditional
(transactional) marketing © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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142
CAUTION there's no space for mistakes here
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143
Customers
Company
Competitors
S. W. O. T.
Segmentation & Target
Differentiation& Positioning
Product Place
Promotion Price
Focus the strategy with quatitative and cualitatove criteira
Marketing External Environment
Target Market
Process of Strategic Planning
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144
SEGMENTATION
What’s a segment? Where do they come from?
Why we need segmentation? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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145
UNSEGMENTED MARKET SEGMENTED MARKET
DIMENSIONS: THE CONCEPT, THE TECHNIQUE AND THE STRATEGY
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� Generally ,a company cannot serve all the customers in a big market.
� They are numerous, disperse and their purchase requirements vary.
� Any competitor, will be in a better position to reach specific segments.
� The company identifies the kind of buyers that differ the most in their product requirements, in how they respond to the marketing mix or both.
� The company has to idnetify the most attractive segments that it can serve more efficiently than the competence.
SEGMENTATION
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� Today, massive markets are becoming less massive into a lot of micromarkets characterized by different lifestyles that are looking for different products, in different distribution channels they see in different mass media (diff mkt mix).
� Differentiated or concentrated segmentation allows the adjustment of products, prices, distribution channels and communication to reach the target market more efficiently
INTRODUCTION
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“Mass society is an illusion”
“We have entered the era of demassification” Alvin Toffler, in: “The third wave”
“Fragmentation has placed the power
into the consumers’ hands”
INTRODUCTION
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Differences between men and women
Nadal vs Steffi
SEGMENTATION
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•Consumers from a segment should be as similar as possible regarding their probable answers to the mix of variables in marketing and their dimensions of segmentation.
f h ld b l bl d h
To be instrinsincally homogenoeus (similar)
•Consumers from many segments should be as differetnt as possible regarding their probable answers to the mix of variables in marketing.
•Consumers from many segments should be as differetnt as possible reg
Heterogeneous among themselves:
•To guarantee the profitability of the segment. •To guarantee the profitability of the segment
Big enough:
•To identify the clients and choose the mix of variables of marketing. The demorgraphic dmiension should be included in order to make decisions regarding the place and promo.
Operational:
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unsegmented
Focused on a segment
Concentrated
Individualized
Massive Marketing
Segmented Marketing
Niche Marketing
Marketing 121
tt
MMMM
Ma
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GEOGRAPHICICIC
DEMOGRAPHICICIC
SOCIOECONOMICICIC
PSICOGRAPHIC AND LIFESTYLESESES
BEHAVIORALALAL
BY TYPE OF USESESE
SEGMENTATION
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© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios Link al video
Men & Women Brain
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154
DIFFERENTIATION & POSITIONING What’s Differentiation?
Why we need Differentiation? What’s Positioning?
Why Positioning is important? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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157
Customers
Company
Competitors
S. W. O. T.
Segmentation & Target
Differentiation& Positioning
Product Place
Promotion Price
Focus the strategy with quatitative and cualitatove criteira
Marketing External Environment
Target Market
Process of Strategic Planning
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2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 158
“If I'm going to sing like
someone else, then I don't need
to sing at all.”
Billie Holiday
DIFFERENTIATION
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2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 159
M. Porter (1996)
“The essence of strategy is choosing to perform activities differently than rivals do.”
DIFFERENTIATION
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� To establish a series of MEANINGFUL DIFFERENCES , to distinguish the supply from the company from those of the competitors
DIFFERENTIATION
definition
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DIFFERENTIATION
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DIFFERENTIATION
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2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 163
163
THE COMPETENCCE IS NOT WON COMPETING … SUCCESS COMES FROM THE FACT OF BEING DIFFERENT.
4P � Process � Provision –
“Moment of truth” � People-person � Physical evidence
the new
concept
DIFFERENTIATION
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1. BETTER PRODUCT
2. NEWER
3. FASTER
4. CHEAPER
5. ABILITY TO CHANGE
DIFFERENTIATION 44 Ways to generate value [5 really]
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1. BETTER PRODUCT
2. NEWER
3. FASTER
4. CHEAPER
5. ABILITY TO CHANGE
Be very careful
DIFFERENTIATION 4 Ways to generate value [5 really]
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� What’s a competitive advantage?
Competitive Advantage
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2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 167
“Something” my company
has
“Something" that my
competition does not
“Something" my market
wants
“Somemy m
2012 © - Dr
Competitive Advantage
COMPETITIVE ADVANTAGE
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2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 168
� The ability to learn quickly more about our customers than our competitors do, &
� The ability to quickly convert that knowledge into action faster than our competitors do.”
Jack Welch, CEO de GE
“We have only two sources of competitive advantage:
COMPETITIVE ADVANTAGE
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SYMBOL / BRAND
MASS MEDIA
ATHMOSPHERE
EVENTS
COMPETENT
COURTESY
CREDIBILTY
RELIABILITY
RESPONSIVENESS
COMMUNICATION
DELIVERY
INSTALLATION
CUSTOMER TRAINING
CONSULTING SERVICE
REPARIRS
MISCELLANEOUS SERVICE
CHARACTERISTICS
QUALITY PERFORMANCE
COMPLIANCE WITH SPECIFICATIONS
DURABILITY
RELIABILITY
REPAIR CAPABILITY
STYLE
DESIGN
4. IMAGE 3. STAFF 2. SERVICE 1. PRODUCT
DIFFERENTIATION 44 dimensions to differentiate
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PRODUCT VALUE
SERVICE VALUE
STAFF VALUE
IMAGE VALUE
MONETARY PRICE
TIME COST
ENERGY COST
PHYSICOLOGICAL COST
TOTAL VALUE FOR THE
CUSTOMER
TOTAL COST FOR THE
CUSTOMER
CUSTOMER NET
VALUE
Differentiation by Value
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2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 171
7 Criteria to validate a differentiation strategy: 1. Important.
2. Distinctive.
3. Superior.
4. Communicable.
5. Exclusive / Unique.
6. Affordable / Accessible (on “my budget”).
7. Profitable.
DIFFERENTIATION
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2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 172
7 Criteria to validate a differentiation strategy: 1. And also you can …
Video: Bud - Drinkability
Video: Jet Blue
Inverse Differentiation
DIFFERENTIATION
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beware hyper competition
“immutable” (strategy & marketing) rules.
big fish eats’ small fish
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… they are not any more.
fast fish eats’ slow fish
beware hyper competition
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175
Clients
Company
Competitors
S. W. O. T.
Segmentation & Target
Differentiation& Positioning
Product Place
Promotion Price
Focus the strategy with quatitative and cualitatove criteira
Marketing External Environment
Target Market
Process of Strategic Planning
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The Market’s
Life cycle © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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Cycles are geting always shorter …
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� TThe Life Cycle of the product: describe the stages through which the idea of a new product goes, from beginning to end:
� Introduction in the market
� Growth in the market
� Maturity of the market
� Decline of sales
PRODUCT’S LIFE CYCLE
definition
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0,0
Máx.
LOS
S
PRO
FIT
I&D Growth Maturity Decline Introduction
SALES
PROFIT
time
MARKET’S LIFE CYCLE
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MARKET’S LIFE CYCLE INTRODUCTION - GROWTH
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MARKET’S LIFE CYCLE MATURITY
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Product’s life cycle
I&D Growth Maturity Decline Introduction 0,0
Máx.
BCG MATRIX & LIFE CYCLE
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stage
Competitive situation
product
place
promotion
prize
Introduction
Monopoly or monopolistic competence
One or a few
Build channels Maybe selctive distribution
Create basic channelsr Innovative information high? descreme bajo? penetration
growth
Monopolistic competence or olygopoly
variety: try to find the best product Create familiarity with the brand
Create selective demand
Deal with competence(specially in the ologopoly) Price reduction offers
maturity
Monopolistic competence or olygopoly oriented to pure competence
All the products are the same; the brand wars grows
Trend to a more intense distrubution
persuade / remember
decline
Pure competence
Some products abandon the market; price war
¿new emergent markets?
(frenzied competence
LIFE CYCLE. Management & Development
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PRODUCT
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In 1954:
How will looks lihe a home computer in 2004
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Product: is a comny’s offer to satisfy a need
What the companies really sell is the satisfaction, use or the
benefit the user wants
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� The idea of “product” as potential satisfaction or benefit for the customer is the most important
� The industrial customer or manufacturer will be interested in the utility they will get once they use the “product” and sell it again
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physical good servicecombination
100%
0% 0% 100% Emphasis on
the service
Emphasis on the physical
good
Nails, (some) canned soup, electric cables, tubes
Food in a restaurant, car tunning
Bank services, haircuts, mail service.
Commodity
diferentiation
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Products Service Tangible Intangible Standard supplies (similar) Heterogeneous and variable
[“each” moment of truth is not necessary the same]
Producction is separated from consumption [use]
Production and consumption [use] are simultaneous
Long-lasting [stock] Non long-lasting [Non Stock] [Almost] No company-customer contact
Frequent company-customer contact
Standard demand inside the same category
Customers have their own personal demands regarding the same service.
next …
Key Differences: MDS www.marketingdeservicios.com
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Products Service The customer does not participate in the production process (manufacturing)
Customers participate in the production process
“Personalization” of a product is difficult & hard
It’s easy to [must] pesonalize the supply
The supply can be “accurately” defined before handing it to the final customer or user.
It’s impossible to control all the characteristics of the service the final user or customer gets.
Quality perception depends on internal quality.
External quality is as or more important than internal quality.
Key Differences: MDS www.marketingdeservicios.com
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Prroduct’s type and variety
The types of product begin with the type of customer
� All the products fit in one of the 2 general groups based on the type of customer:
� Conmsumer Products: orientend to the final user
� Industrial Products : oriented to make other products
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CComsumer products � The consumer products are classified in 4
groups:
� Convenience products
� Comparision poducts
� Specialty products
� Unsought products
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Type Sub- type Examples
Convenience
Basic Salt
Impulse Chocolate; magazines
Emergency ICE; car batery
Comparision Homogeneous Mobile Phone Samsung vs. LG
Heterogeneous videocamera
Specialty X ray machine
Unsought Newly unsought Trout fillet; motorbikes
Normally unsought Finisterre Burial insurance
The same product can be seen in different ways simultaneously
PRODUCTS: GOODS AND SERVICE
EExampExam
Consumer products - SUMMARY
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“The customer needs the brand to simplify his task of buying products”
Today, products offer similar benefits and differ very little from each other. The differentiation is reached through communication. It plays an important
role in the selection process using mechanisms linked to feelings.
“Brands must be able to provoke people’s feelings”
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BRANDS � Renokwn brands make buying easy
[for example a supermarket has 25,000 items / now 60,000!]
� A good brand reduces time and sale efforts.
� Sometimes the only element of the marketing mix that competitors cannot copy [unless you are in a not developed country].
� Speeds up the acceptance of new product associated to it.
PRODUCTOS: BIENES Y SERVICIOS
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When is using a brand is convenient 1. The producy is easy to identify by the name or the
brand
2. The quality of the product is the optimus value ofthe price and it is easy to keep.
3. A generalized and reliable distribution is possible [coverage and distribution]
4. Strong demand able to deal with the market price to make it profitable investing in the brand
5. It’s possible to get escale economies
6. Good exhibition points (shelfves, windows) are easy to get …
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“Group of assests [and liabilities]
linked to the name and the brand that add r [or take] the
value given by a product or service
to the company and/or its
customers.” © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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SStrategic importance of packing � The packing includes the product’s protection and
promotion � It makes it easier to use and store it. � Prevents deterioration and damage. � Good packing makes product’s identification easy &
promotes the brand in the SP (sales Point)
� It should link the product with the rest of the marketing strategy.
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� A good packing “usually offers” a better promotionap effect than publicity, becasue it is seen at the store where people buy.
� It should take the smallest space at the store, be protected, easy to pile up, transport and exhibit.
� It should be identified using a bar code (or new tech…)
SStrategic importance of packing
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Warrantee � Warrantee : what the seller promises about the
product
� The laws, the needs of the client and the offers form the competence must be taken into account.
� The common law states that manufacturers must endorse their products, even if they don’t offer a warrantee.
� The warrantee should be available before the purchase.
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� The warrantee is an attraction that can improve the marketing mix
� The risk to offer a warrantee is higher for a service than for a product.
� The warrantee costs must be included price
Warrantee
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PRICE
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206 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
I have a question for you
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¿Is the
PRICE the most important
variable of the marketing mix?
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“If you pay peanuts …
Introduction
… you get monkeys”
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“I buy; then I exist.” Rodolfo J. Cremer, MBA Ph.D (c)
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“You are what you buy”.
Guillermo D’Andrea, CAMP 2006
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“if you can pay, you can stay”
“You value how much you have”. Brother Fred Fink SM, from my [Christian] school, 1980 – 1984.
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FLIGHTS FROM 19 EUROS WE ARE NOT JOKING, WE ARE GERMAN
From Spain to Germany up to 50 times a week
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introduction � Price is one of the 4 main variables the marketing
manager controls .
� (but) Its effects are directly (& immediately) seen in the sales and profit (financial statements)
Price is what is given in exchange of the benefits got from the rest of the marketing
mix. Therefore it directly influences the value for the customer.
OObjectives & Price Policies
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introduction Basically the marketing manager must decide:
� Objetives and policies to set prices, � Which prices problems they will face, and � How the company will solve it
1. how flexible the prices will be 2. At which level they will be stablished along the life cycle
of the product 3. Who and when disccounts and sales 4. How will the transportation cost be handled 5. Elasticity
OObjectives & Price Policies
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Sales increase in units or dollars
Market share growth
Expected performance
Maximize profit
Match the competence price
Competence unrelated to the price
Objetives of prices Sales oriented
Profit oriented
Status Quo oriented
Objectives & Price Setting
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Commercial [channel]
Size Season [season]
Price Discounts
Offer price Cash
Discount
Objectives & Price Policies
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Value-of-use
Psychological Odd- Even
Prestige
Leader Price range
Set forth [demand]
Reference
Methods for price setting
demand- oriented
“bait” [hook]
PPrice Setting Demand Oriented
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The taxi driver example
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Asks for S/.200 Pays S/.10 x 24 days In total he pays S/.240 after 24 days…
¿What was the annual interest rate?
1,441% !! [0.76% per day]
Go to excel
The taxi driver example
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The house-to-house clothes salesman
(In a extremely poor zone in Lima)
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He pay S/.20 (in Gamarra) for a pair of jeans (trousers) He sells it at a S/.1.00 a day during 30 días He gets S/.30 in the end (50% more in 30 days) …
12,875% !! [1.36% a day]
¿Sir, what’s a “Sol” a day,?
Go to excel
¿What was the annual interest rate?
The house-to-house clothes salesman
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0 D
0
Price
Quantity 0
D2
D1 D D
D
B. Move it ot the right A. Make it less elastic C. Both: less elastic and to the right
Promotion and Demand Curve Demanda Elasticity
Price Price
Quantity Quantity
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Mathematically, it isexpressed in the following way, where: Ed elasticity, Qd required quantity and P price: � Demand elasticty is the degree at which the required quantity (Q) responds
to the price (P) variations of the market. In this case, given certain prices (P) and some quantities (Q) and a (P*Q)=income, then: � When the price (P) reduction increases the required demand (Q) so much that
the multiplication of the (P * Q) be higher than the original one , an elastic demand is present.
� When the price (P) reduction increases the required demand (Q) in similar quantities of the (P * Q) , the elasticity is proportional or the same as a 1.
� When the price (P) reduction decreases the required demand (Q) so much that the multiplication of the (P * Q) is lower than the original one, the elasticiy of a good it is said to be less elastic or rigid.
Objecctives & Price Policies
elasticity
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Let see the example of Beer
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The elasticity of Beer Background:
� You work in a top cafeteria in a 5-star hotel located in San Isidro (business district in Lima).
� Price of Beer P0 (all the brands) = S/.10.00 � Daily average sales (Q0) = 15 bottles of 330ml
Opportunity:
� Because of the FIFA World Cup Qualifications (where Peru will be elimanted while others qualify), you decide to place giant screens and make a special offer of snacks to attract people to watch the soccer matches.
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Preliminary results: � The campaign is successful. The sales increased. � Soccer days are booked which completes the cafeteria’s
capacity. � The general sales of snacks and mixed drinks, have rapidly
grown (& the average ticket increased). � However, the daily beer sales is still constant (15 bottles a
day). Question:
� What has happened with the sales of beer and soccer? � There is no correlation between them?
The elasticity of Beer
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Experiment: � An experiment with beer it’s done. Its price is lowered – only on
soccer days at P1 = S/.6.99 and the sales rapidly grow at more than Q1 = 180 bottles a day (and the stock was over on the first day, then the sales could have been higher -but we dont know how much…-).
Question:
� Is beer, in this case, an elastic good? � What has happened with the gorss margin (per unit) assumin a
unitary cost of S/.1.50 per bottle? � What decision would you make based on these results and
analysis?
The elasticity of Beer
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Po P1 Prom Qo Q1 Qprom10 6.99 8.495 15 180 97.5
Demand's price elasticity:
(Q1 - Qo)/Qprom (P1 - Po)/Prpom
= -4.77613085
� Every 1% of price reduction, there is a 4.78% increase in the requested quantity � The sign is not considered for the interpretation. The absolut value (4.78) is
considered for the comparison � Since the result is higher than 1, we say the elasticity is high. � Price elasticity is always negative becasue the curve is negative.
The elasticity of Beer
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0
2
4
6
8
10
12
0 20 40 60 80 100 120 140 160 180 200
Cantidad
Prec
io
Esc 1 Esc 2
The elasticity of Beer
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� The unitary gross margin is reduced from 567% to 366%. Generally speaking, you get 35.4% less per sold bottle.
� However, the gross margin grows 675.1%, product of higher requested quantity. Since this is an elastic good, the requested quantity greatly makes up for the loss due to the price reduction.
Esc 1 Esc 2Unitary Price 10.00S/. 6.99S/. Unitary Cost 1.50S/. 1.50S/. Unitary Gross Margin 8.50S/. 5.49S/. -35.4%Margin % 567% 366%
U sales 15.00S/. 180.00S/. sales S/. 150.00S/. 1,258.20S/. Costs S/. 22.50S/. 270.00S/. Gross Margin S/. 127.50S/. 988.20S/. 675.1%
The elasticity of Beer
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Elasticity -some conclusions-
� If the demand is elastic to the price, it is possible to lower the price to increase the total profit
� If the demand is not elastic to the price, it is
possible to increase the price to get higher profit.
OObjectives & Price Policies
elasticity
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Factors that determine the lack of elasticity of the demand:
1. There are a few or no competitors 2. Buyers do not easily perceive the higher price 3. Buyers slowly change their consumption habits 4. Buyers think higher prices are justified by quality, infalation or
other reasons
elasticity
OObjectives & Price Policies
Elasticity -some conclusions-
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� The time orders are processed � Procedures to process orders � The place where the inventary
is storaged � Accuarcy of the order’s
delivery � Cost of rejected or returned
orders (freight, time, damaged product)
� Rotation rate and finnancial costs
� Size or variety
� Delivery costs [fake or false freights]
� RE-processing costs due to defficient quality
� Robberies, shortage, obsolete goods
� Direct costs: insurance, electricity, staff, maitenance
� Indirect costs [service, systems and security staff]
� Lost sales due to shortage, delivery time, etc …
OOther factors that influence Cost & Price (usually hidden)
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Market’s Life Cycle
Distribution and Surcharge chain
[mark-up] In the channel
Target price
Discounts and bonus
Law, restrictions
and price control
Price flexibility
Geographic prices’
conditions
Demand’s response
Costs
Price of other products of
the same line
Competitors and
substitutes
Price setting
Experience curve
Company objectives
Elasticity
Breakeven point
Key factors that influence Price Setting
© D
r. (c
) Rod
olfo
J. C
rem
er –
MdS
Mar
ketin
g de
Ser
vici
os
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The war of prices!
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Who wins & Who loses the price war?
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240
Let´s talk about McDonald´s & Starbucks
Fuente: Ph.D. Moez Limayem, Dean College of Business USF. Conferencia en USIL el 9 de mayo, 2013.
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� ¿How much does a hamburger cost at McDonald’s?
� ¿How much does coffee cost at Starbucks? � ¿Do all McDonald’s in (Lima) have the same
prices? � ¿Do all Starbucks? � ¿Should it be like that? ¿What are the pros and
cons? � And ¿how do you think it works in the USA? Fuente: Ph.D. Moez Limayem, Dean College of Business USF. Conferencia en USIL el 9 de mayo, 2013.
Let´s talk about McDonald´s & Starbucks
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242 Fuente: Ph.D. Moez Limayem, Dean College of Business USF. Conferencia en USIL el 9 de mayo, 2013.
Let´s talk about McDonald´s & Starbucks
� At Starbucks USA (in Lima) all locals have the same price for its products (inside each country).
� At McDonald’s (USA), they ARE NOT. � ¿How much does the price of a hamburger vaaries
between teh cheapes and the most expensive local in US?
� 650% � ¿Where is the most expensive hamburger sold? � ¿Why?
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Clients
Company
Competitors
S. W. O. T.
Segmentation & Target
Differentiation& Positioning
Product Place
Promotion Price
Focus the strategy with quatitative and cualitatove criteira
Marketing External Environment
Target Market
Process of Strategic Planning
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PLACE
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Domestic gas distribution. Lima, Perú.
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Montreal, Canadá. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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iintroduction
PLACE [also meanes, distribution]: “to put the goods and services in the right quantity and place
when the customers wants them”
� Distribution channel: series of companies or people that participates in the flow of products from the manufacturer to the final consumer.
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� Responds to the time and place use.
� The type of product helps define how much exposure in the market is needed according to each geopgraphic region.
� The same target market must show the same attitudes therefore it should be satisfied with the same type of distribution.
introduction
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� Channels’ system can be: � Direct, when the maniufacturer is in
charge of the complete distribution, or
� Indirect, when it is in charge of wholesaler, retailer or other specialists.
Channels’ system
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• Gives part of the control over the marketing mix to the intermediary
• An effort should be coordinated to meet common objectives ( it’s not easy n the channel has too much power.)
• It is the easiest way to enter international markets
• The intermediaries invest in keeping an inventary and a commercial structure and take the risks of credit.
• More used in products where the consumers are disperse.
• Total control of the variables of the marketing mix
• It’s not easy to work with indepent intermediaries who have their own objectives
• When there’s a new product there aren’t interested intermediaries
• When there is a lack of finnancial resources or knowledge to develop a distribution channel
• More used for industrial products with a few grouped consumers
Indirect Distribution Direct Distribution
Channels’ system
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More control
Lower costs
Added value in the production process
Direct contact with the customers’ need
Faster response and changes in the Marketing Mix
There isn’t any available intermediary channel
More control
Lower costs
Added value iproduction pro
Direct cthe cust
FastSome Reasons To choose Direct Distribution
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Sppecialized intermediaries
Place
Promotion
C Product
Price
Product
Price
C Place
Promotion
Channel run by a manufacturer
Channel run by a retailer
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PROMOTION
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definition � Promotion: consists on communicating
information between the seller and the potential buyer or other memebers of the channel with the objective of influencing in their attitudes and behaviour � There is [normally] inmmediate feedback that helps to make
appropriate changes or adjustments.
� Sometimes is very expensive.
� Personal sales � refers to the “one-to-one” sales, interacting with customers.
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characteristics � A seller attracts more atention than an add or
a shelf.
� He can addapt (the speech directly with the customer) based on his partner’s feedback,culture and other influences of thecontext or the behaviour.
� He can ask questions to get to know his prospect’s interests.
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Massive sales
� Massive sales: consists of establishing communication with big quantities of prospects at the same time. � It’s less felxible than personal sale.
� It will be cheaper if the target market is big and disperse.
� There are two types.
� Publicity [advertising]
� Publicity for free [publicity]
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Introduction [Advertising]
� Can cost a lot of money.
� Can rapidly reach many people.
� Can produce a combination of short and long term results.
� Can greatly contribute to position the marketing mix.
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� Add & Publicitary objetives should be more specific than the personal sales.
� A seller can modify his presentation, but an Add should reach a target audience with a fixed and specific communication.
Objectives of Advertising & Publicity
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Introduce new products
Position brands
Get distributors (Commercial – Distribution Channel)
Ongoing contact (“top of mind”)
Support sales force
Inmediate response
Keep relations (Confirm the purchase)
Strategic Decisions to EstablishAdd & Publicity Objectives
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� No Pay Add: is any "free" form of non-personal presentation of ideas, goods or serviceses.
� Try to call attention to the company and its offer without having to pay for the cost of mass media.
� If the company has a very new message to communicate, publicity (non paid add) can be more efficient than the Add (pay).
Free Add � Publicity
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� Sales Promotion: designate promotional activites –which are not advertising or publicity– that stimulates the interests, the try-out of the product and its purchase by the final consumer or other members of the channel.
� It can oriented to the public, the intermediaries or the company staff.
� It can be quickly implemented and produce fast & short-term results.
Sales Promotion
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Sales Promotion
� Sales Promotion � In fact, it genrally has the objetive of
producing inmediate results.
� Usually uses more money.
� There are differents types: � Coupons � Raffles � Commercial exhibitions � Sponsoring
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Final User / Consumer oriented
Contest Coupons Isle exhibition Free samples Commercial exhibitions Materials at the sales point [POP] Signalling Prizes Sponsorship
Intermediary oriented
Sales Discounts Sales contest Calendars Gifts Commercial exhibitions Catalogues Meetings Merchandising
Sale Force oriented
Contests Bonus Meetings Clients’ portfolio Shelves Sales help Training material
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There is NO mix of ideal communication for all the situations.
a basic strategy is generally chosen:
Push
Pull
Communication Strategies
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� The PUSH Strategy: to push a product through a channel means to use the promotional effort (personal sales, publicity and promotion) to help sell the marketing mix to all the possible memebers of the channel.
� Channel cooperation and unity is seeked (fundamental).
The Push Strategy
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� The PULL Strategy: it means to make the consumers ask for the the prduct to the itermediaries.
� Promotions and efforts are oriented to the final consumer.
� If the retailer doesn’t have the product, he will lose sales: “the public asks for it”.
� Intermediaries are not the goal at that moment, only the final consumer.
The Pull Strategy
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� (A combination of) Both strategies are (must) generally used simultaneously, at some degree.
� Using both reduces the risk of failure and increases the probability of success.
� The mix (of Push & Pull) changes if we are dealing with final or industrial customers.
Push & Pull Strategies
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Example: Commercial
campaign, Objetives, Metrics and Results. “you can not manage what
you cannot measure”.
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Inserted or Mass Media
Adds
Sales campaigns and
exhibitions
Exhibitions at fixed points
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Inserts or Mass Media Adds
Exhibitions at fixed points
(stores)
Temporary sale point
Telemarketing: Entering the prospect in the system
Sellers
Prospects
Phone
Second-hand Sales adds
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Examples of Adds (inserts):
Free phone line 800 + associated line
(L - D, 9am a 8pm)
Technical details and specifications Prices and sales
Bonus for returning
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Basic models and benefits
Especial prices and offers
Sale points addresses
Free phone line 800 + associated line
(L - D, 9am a 8pm)
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Sales campaign
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Head Office
Sales Points
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Jockey Plaza, mall
Second-hand
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Pandero
Suzuki / GM San Miguel
Other Sales Points
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Prospects
Inmediately (when picking up the phone) Efectiveness of Add & Publicity and sale point ¿How did you know about 800? ¿How did you get to the SP.?
48 Hours Selesman (vendor) quality service
After 30 days: If you bought (which brand. Model, new/second -hand) If you haven’t (a second-hand is offered)
Feedback TMKT calls � Telemarketing :
Entering the prospect in the system
nEf
H
IE
�
T l k ti
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System
Telemarketing:
•Efectiveness of Add & Publicity. •Closing Rate (per selesman, product line, boss...). •Customer Service Quality. •Competence (who are we REALLY competing with, prices, lost sales rate, etc. • Technical Support quality. •Special sales of accesories, etc...
Entering the information
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� Concentration of the sales force only in the sales process (not in the generation of prospects).
� Strict performance measurement (even per salesman).
� Orienting all the commercial effort only to “TRUE PROSPECTS”.
� Generating very strict and detailed measuremetns reports use to make decisions (on time).
� Generating a prospect’s data base that can be revised with new products, new offers, etc...
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� The general closing rate is 10% (Customer / Prospect).
� 130 prospects respond the first day. 50% of it the second day, and 50% of it from the thrid to seventh day. That is a total of 260 prospects per Add.
� Out of all the prospects, 35% call for Suzuki cars, 35% for second-hand cars, 20% for GM-Chevrolet and 10% for motorbikes and mototaxis.
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Insert cost $20,000Total number of pages 8Unitary cost per page $2,500
Suzuki Automóviles
GM Automóviles Motocicletas Usados Totales
Number of pages 3 4 0.5 0.5 8prorated cost $7,500 $10,000 $1,250 $1,250 $20,000Total of genenrated prospects (7 days) 90 50 30 90 260
closing rate (10%) 9 5 3 9 26gross margin 15% 10% 30% 10%balance point $50,000 $100,000 $4,167 $12,500 $166,667
average net value per unit $15,500 $15,500 $2,120 $5,000
average units for balance point 3.2 6.5 2.0 2.5
estimated gross sales $139,500 $77,500 $6,360 $45,000 $268,360
estimated sales cost $118,575 $69,750 $4,452 $40,500 $233,277
expected gross margin (sales- sales cost) $20,925 $7,750 $1,908 $4,500 $35,083
Campaign contribution (Gross margin - prorated cost
$13,425 -$2,250 $658 $3,250 $15,083
Contribution / Investment 179% -23% 53% 260% 75%
Economic Result of the Advertising Campaign
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� Marketing de Servicios, España. http://www.marketingdeservicios.com/
� Marketing: un enfoque global. McCarthy Jermome; Perreault, William 13a Edición
� Fundamentos de Marketing de Servicios: conceptos , estrategias y casos. Hoffman; Bateson. Ed. Thompson.
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292 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios r. (c) Rodolfo J. Cremer – MdS Marketing de Servicios© Dr
292
Questions?
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Final Conclusions Seminar Conclusions’
1. abc
2. abc
3. …
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thanks !
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www.marketingdeservicios.com Rodolfo J. Cremer, MBA, Ph.D. (c)
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