5. Basic features of consumer and services marketing
Services marketing. 4 main characteristics:
1. Service intangibility
For example, people undergoing cosmetic surgery cannot see the result before the purchase. Airline passengers have nothing but a ticket and a promise that they and their luggage will arrive safely at the intended destination, hopefully
at the same time. To reduce uncertainty, buyers look for signals of service quality. They draw conclusions about quality from the place, people, price, equipment, and communications that they can see.
2. Service inseparability
Services are produced and consumed at the same time and cannot be separated from their providers. Customers don’t just buy and use a service, they play an active role in its delivery. Customer co-production makes provider–customer interaction, a special feature of services marketing. Both of them affect the service outcome.
3. Service variability
The quality of services may vary greatly depending on who provides them and when, where, and how they are provided.
4. Service perishability
Services cannot be stored for later sale or use. Ex. Some doctors charge patients for missed appointments because the service value existed only at that point and disappeared when the patient did not show up.
6. Basic principles of exchange and transaction in marketing
Exchange:
- get something (product/service) by offering something in return (value)
- exchange is a value creating process because it leaves both parties better off (win-win situation)
Exchange may not take place even if conditions are met
An agreement between buyer and seller is required before an exchange occurs
Transaction:
- is an exchange between two things of value on agreed conditions and a time and place of agreement
- to make successful transaction a marketer should understand what each party expects from transaction
7. Holistic marketing concept as an integral approach to modern vend; 4 themes of holistic marketing
Based on development, design and implementation of marketing programs, processes and activities
4 themes of holistic marketing:
Relationship Marketing – building long term mutually satisfying relations with customer, suppliers, distributors in order to retain their long term preference and business
Integrated Marketing
- it is the tools that an organization employs to pursue its marketing objectives in the target market
- 4 P’s Product, Price, Place, Promotion
- 4 C’s Customer solution, Cost, Convenience, Communication
3. Internal Marketing
- Marketing Department
- Senior Management
- Other Departments
4. Socially Responsible Marketing
- Ethics
- Environment
- Legal
- Community
8. Marketing process and implications of marketing; the steps of target marketing
Marketing is a social and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. Once have built profitable, value-laden exchange relationships with customers, we define marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
5-step model of the marketing process for creating and capturing customer value. In the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. In final step, companies reap the rewards of creating superior customer value. By that, they capture value from consumers in the form of sales, profits, and long-term customer equity.
Marketing process (по её презентации):
* Analyzing marketing opportunities: marketers need to measure demand of their product and do forecasting, need to consider the previous sales and the current environmental factors that may have impact on current demand
* Selecting target market: it requires managers to do market segmentation, targeting and positioning.
* Developing the strategy by using Marketing Mix.
* Managing the marketing effort: analysis, planning, implementation, control = functions of marketing managers.
Implications of Marketing (по её презентации):
1) Who are existing / potential customers?
2) What are their needs?
3) How can we satisfy them?
4) Can we offer a product / service that the customer would value?
5) Can we communicate with our customers?
6) Can we deliver a competitive product / service?
7) Why should customers buy from us?
3 Main Activities of Target Marketing (интернет)
Commonly referred to as the S-T-P marketing process. Target marketing means identifying specific market segments within a larger audience and targeting them with ad campaigns.
1) Segmenting - breaking up the market into smaller, homogeneous segments. Segmenting strategies include demographics, lifestyle, geographic and behavioral approaches.
2) Targeting - the next step is to pick a select market to target or focus on. Companies often focus on one market segment at a time with marketing and ad campaigns. Whichever market is the most attractive from a profit standpoint or long-term potential is usually selected first. Factors including size of the market, growth potential and competitive intensity impact the perceived opportunity in targeting a given market.
3) Positioning - how the company wants the targeted market to perceive its brand or product. Some companies make quality a key positioning message and try to market their product as top quality for the target market segment. Other qualities commonly used to differentiate include service, unique features, environmental friendliness, family friendliness, safety, reliability, durability and low cost. The key is to stand out from competitors with a unique message that appeals to the interests of the targeted market.