CCT 322

Marketing Information Products & Services

SECTION  A

For the section(s) taught by Prof. Tim Richardson

. last updated 2005 Sept 13
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Section A Section B Section C Section D Section E
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Chapter 1

page 4, 8

Customer
Satisfaction

Wants &
Needs

 The key to developing a "Marketing Orientation" is that
Customer Satisfaction is the Focus
o dealing with what customers needs, and wants
sometimes what you need is more important than what you want but successful marketing programs can creat a "want" were previously nothing existed - eg. beanie babies
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http://www.witiger.com/watches/omegaSMPwallpaper800.jpg example

I need to be able to tell time - I need a simple 10$ watch

I want an Omega Seamaster, even though I only go skin diving in the Caribbean twice a year ;-)
Just because you want an Omega doesn't mean you are a potential customer
A customer is defined in traditonal marketing as being a person, or persons that has three qualities
1. an interest in buying
2. enough money (or credit) to buy the thing
3. and permission or access to buy the thing

If you don't have all of these three things then strictly speaking you are not a customer
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Chapter 1
The Marketing Mix
composed of
    - the controllable variables
        - the things you can do something about
    • product - you can change it, add new features
    • price - you can lower it, raise it
    • promotion - you decide the advertising
    • place / distribution - you decide where it is sold
. We call it a mix because some companies put different emphasis on each of these 4 things - they "mix" it up
- example, some companies, all the focus is on making a good quality product
- other companies, the emphasis is on making it at a cheap price
- other companies, the emphasis is on the promotion and advertising to sell it
Regardless of your emphasis, you need some degree of attention to ALL 4, or you will not be successful
- some companies that fail - are failures because the focused on two or three things in the mix and missed out on the distribution, or price.

WTGR
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 www.witiger.com/marketing/4Ps.htm
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The key to developing a "Marketing Orientation" is that
Customer Satisfaction is the Focus
o what drives customer satisfaction (discussed on page 8)
. Figuring out what drives customer satisfaction, or simply why people like your stuff is difficult. There are many factors to consider and sometimes these factors are hard to measure.

But, if you can do this it is very valuable because then you know what specifically to do to INCREASE customer satisfaction in a competitive environment. 

WTGR
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Chapter 1

page 15-17

Product Focus
Sales Focus
Marketing Focus

 The Evolution of Marketing Thinking
 
. The reason why you should understand how marketing used to be is simply because some companies still use those older methods for obtaining customers - and you need to know this in order to interact effectively with companies or persons who still think like that. 

WTGR
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bottom of page 15
o Product Focus
o Sales Orientation
o Customer Focus (Marketing Orientation)

o Product Focus
  • people made "stuff" and concentrated on the FABs (Features, Advantages and Benefits) to sell it
  • emphasized making things just because they thought there was a demand
  • oriented to the product, not the customer
  • examples on top of page 21
o Sales Orientation
  • selling something regardless of whether people want it
  • believing that if the product price is low enough, people will buy it even if they don't want it
  • heavy use of advertising and PR campaigns
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Chapter 1

page 15-17

Product Focus
Sales Focus
Marketing Focus

 The Evolution of Marketing Thinking

o Customer Focus (Marketing Orientation)

  • selling something AFTER first doing some research to see what it is the customer really wants
  • use customer surveys to change FABs so the subsequent product/service is more attractive
  • consideration of after-sales services such as upgrading, warranty and repairs
  • highly aware of the competitive nature of marketing
  • understanding CLV - Customer Lifetime Value  (bottom of page 17)
  • keeping customers is just as important as getting customers
  • customer loyalty points programs
4R's 

o Retention
o Referrals
o Relationships
o Recovery
see http://www.witiger.com/marketing/4Rs.htm
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 www.witiger.com/marketing/marketingconcept.htm
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Chapter 1

page 25		 Before beginning this course it is important to address the fundamental question of 
"Is marketing important?"

Well, if you are selling a product or service, and there is no competition, then marketing is not too important cause the customers have no choice but to buy your stuff - but, if the competitive environment" is intense - then the customers have a lot of choice; - so you'll have to do some marketing to be successful, otherwise nobody will have heard about your product and you will have no sales.

So,... the first thing we deal with is the fact that the degree of intensity in the competitive environment has an effect on the degree to which a compant does, or does not have a big marketing campaign.

Some good examples in 2004 of which there are intense marketing campaigns, because there are many companies making the product

o DVD players
o Digital cameras
o SUVs and other "Sport Utes"
o cell phones
o MP3 players
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Chapter 2
The things you cannot do anything about are the 6 environments 
These environments are the constraints within which marketing exists
  • economic environment - page 33
  • competitive environment - page 34
  • social / cultural / demographic environment - page 35
  • technological environment - page 36
  • political / legal / regulatory environment - page 37
  • geographic environment (not mentioned in the text). 
Writing detailed notes in a business plan about how these environments will effect your business can sometimes be called by a fancy term "Environmental Scan". (p. 46) Whether you title it an "Environmental Scan", or simple have several chapters on the the influences of the current economic environment, competitive environment etc. - is up to you
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environments		 In international business, dealing with the 6 environments are critical to developing your 4P's
 http://www.witiger.com/internationalbusiness/6environments.htm
- we will look at a this unit in CCT322 because some of the explanations of the environments can apply to 
Marketing Information Products & Services
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. A big part of this course is learning how to develop a marketing plan. A Marketing Plan is simply the Marketing Strategy + the time related details. In order to understand what a Marketing Strategy is we first have to look at the word strategy itself

WTGR
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Marketing Strategy
composed of
1 - Target Market - a group of homogenous customers
2 - Marketing Mix (the marketing mix being the 4 p's) - page 6
    - the controllable variables
        - the things you can do something about 
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Chapter 2
Strategic Company Planning

p. 44-45		 . 
. Strategic - the most overused, and misunderstood word in marketing.

To use the word Strategy correctly, we will take time to look at the whole sequence of Goals, Objectives, Strategies, Plans and Tactics.
 www.witiger.com/ecommerce/GOPST~SWOT.htm

You may refer to some of the material on page 44

The text says a Strategy is a broad plan - this is wrong, a plan is a plan; more correctly, a plan is a collection of several strategies with the time related details of when.

WTGR
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http://www.witiger.com/ecommerce/GOPST~SWOT.htm . 
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Key Points Mission Statements are different than Goals.

Goals are usually something expressed in terms of Corporate Planning and serve the purpose of trying to identify where we are headed and how do we know if we get there. Goals are something that can be achieved if you satisfy certain Objectives.

Mission Statements serve a more "public" purpose of having a slogan for employees and customers so that the company is able to say something that motivates employees and makes customers think they are a social responsible firm with a great product.

In truth, many large companies have Mission statements which the employees mock, and customers are sceptical about. Unless the phrase is genuinely sincere, it is better in our jaded times to not emphasize a Mission Statement because you leave yourself open to ridicule and sarcasm.

WTGR
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Chapter 2
SWOT, page 46 text see www.witiger.com/ecommerce/GOPST~SWOT.htm
  • Strength 
  • Weakness 
  • Opportunities 
  • Threats
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The Marketing Plan - part of the Marketing Strategy - part of the Marketing Program
-  Chapter 2 page 42 in text
 
TARGET MARKET
+ = MARKETING STRATEGY
MARKETING MIX
MARKETING STRATEGY
+ = MARKETING PLAN
TIME DETAILS
MARKETING PLAN
+ = A FIRM'S WHOLE MKT PROGRAM
OTHER MKTG PLANS

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. So if someone asks you 
"What is a Marketing Strategy?", you can tell them it's the Target Mkt + the 4Ps. 

If someone asks you 
"What is a Marketing Plan?", you can tell them it's the Marketing Strategy + the Time related details 

If someone asks you to develop a whole marketing program for a firm, you put together several marketing plans for all the different products. 

WTGR
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Chapter 2

TARGET MARKET
+ = MARKETING STRATEGY
MARKETING MIX
. The phrase "Marketing Strategy" has become increasingly important in business. In the 1990's, people used the words "Marketing Strategy" all the time without specifically implying the propr meaning of the word. In some cases, it has become more important to use the term properly and a number of newspaper stories talk about how companies need to have a good "Marketing Strategy" - because,,, without one, they are in big trouble. 

WTGR
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In the National Post Sept 23-27 there was a six part series on "Expanding your Business"
In the Sept 23rd installment there was a story on page SR1 titled "Successful Marketing is no Secret" - this story, by Tim Renshaw,  dealt intensively with the term "Marketing Strategy"
- there are many good quotes frm this article which match the material in Chpt 3 and Chpt 8 of this course.
- because of the particular usefulness of this article, we have included the full text available at the link below - you should read this
 www.witiger.com/marketing/article~marketing~strategy.htm

the following text comes from the Sept 23rd, 2002 story

"Marketing strategies for start-up businesses are hit-and-miss affairs.  Unfortunately for a large percentage of those businesses, it is more miss than hit. Up to 40% of Canadian businesses fail in their first year. By year four, that rate has jumped to as high as 70%, according to Statistics Canada. Key among the reasons  behind business failure is marketing."

"David Frey, president of Marketing Best Practices Inc., of Houston, Tex., says it should be the first element of any business plan. "Your marketing plan is where you prove your concept," he says.
 
MARKETING STRATEGY
+ = MARKETING PLAN
TIME RELATED
DETAILS
"This involves thinking through such questions as: "Does my market want my product or service? Do I have proof that my market will pay for my product or service?"
 

. meaning ... have I done any target market segmentation to focus on people that want my stuff. 

WTGR
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What competition will I face and how will those companies respond? If you can't sell it, you shouldn't produce it," he says.
 
. meaning ... have I considered the impact of the environments, particularly the Competitive Environment. 

WTGR
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A marketing plan is "a recipe for getting it right," Ms. Bishop says. That recipe should include goals, marketing tactics and specific actions to execute both. 
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. This is why we talked about GOPST in class
  • Goal
  • Objective
  • Plan
  • Strategy
  • Tactics. 
WTGR
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"It should be aimed at a specific customer and be grounded in sound research."
 

. which is why we are going to do some study of market research and target market segmentation

WTGR
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The key is to listen to the customer, to what the marketplace is saying and to what the competition is saying. "Your business ultimately depends, not on customer satisfaction but on having them return as loyal customers."
 
. which is why we talked about the Marketing Concept in Chpt 1.

WTGR
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SBUs Strategic Business Units
p. 52 Chpt 2

SBUs are created for  more effective planning and focus.

In the screen capture below from Goodyear, we can see they clearly define their SBUs
http://www.goodyear.com/corporate/sbuprof.html

- WTGR says sometimes SBUs are created by CEOs for the purpose of internal competition - to force competition within the large corporation which may in the future lead to decisions about which units to cut and which to grow
 
Cash Cows - SBUs that do well
- the slang comes from an old dairy farming term for dairy cows that yields a lot of milk
- examples, JEEP of the Daimlerchrysler auto conglomerate - mentioned in text on page 53
- p. 54 text "the long heritage of the Jeep TJ has attained almost cult status"
see www.witiger.com/backgrounds/witiger~wallpaper~jeepsandfordtrucks.htm
Dogs - SBUs that do poorly, low market share, low growth rate

 
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Chapter 2
Determine Marketing Objectives, p. 47
(also called the Product-Market Growth Matrix on bottom of page 55-56)

Types of Opportunities to pursue - 
 www.witiger.com/ecommerce/4opportunities.htm

- Market Penetration 
- Market Development 
- Product Development 
- Diversification
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Marketing Management
see www.witiger.com/marketing/PDOC.htm

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