Weitere ähnliche Inhalte Ähnlich wie Inseec - Strategic Marketing - Rodolfo Cremer (20) Mehr von Juan Carlos Alcaide Casado (16) Kürzlich hochgeladen (20) Inseec - Strategic Marketing - Rodolfo Cremer2. Rodo fo C
Rodolf J. Cr
Rodolfo J Crem MBA Ph D ( )
Cremer, MBA, Ph.D. (c)
rcremer@marketingdeservicios.com
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
3. 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
4. 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
8. 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.
12. Getting to know your
expectations
¿what do you expect from a quality
STRATEGIC
MARKETING?
“course” of
www.marketingdeservicios.com
13. Expectations from the STRATEGIC MARKETING course
Course: Strategic Marketing
INSEEC, Paris. 2014-01-20
13
14. OK. Let’s start …
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 rcremer@marketingdeservicios.com or
rcremer@usil.edu.pe for any further information .
15. 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
15
16. 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
16
17. In this seminar :
We are going to do something
executives rarely do
(and I include myself of course).
2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
17
18. We are going to
think
(to think strategically)
2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
18
19. We have no time to plan the
future; we are too busy
solving today’s problems.
Anonymous
(and -on the waywe are measuring anything)
My own experience – Rodolfo Cremer
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
20. “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
21. 2 favours:
2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com
21
22. 1. During learning
periods the mind acts as
a parachute
2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com
22
23. It’s better
when it is
open
2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com
23
24. The opposite to …
2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com
24
25. The closes to …
2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com
25
26. 2.
NO Paradigms /
NO Prejudices.
2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com
26
27. agenda (objectives) for today
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.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
29. 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]
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
30. Requires a change of Paradigm
from the
Transaction
to the
Relation
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
!
32. Market Research
Environment: external factors.
Competitors, laws, social , politic, economic,
technologic, demographic, geographic &
trends and factors as values and lifestyle etc…
Total Market / Population
Understand the
insight and the
consumer buying
behaviour: habits,
like, preferences,
fears, etc
Segment //
Targeting
Differentiate
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
Position
(Positioning)
Fuente y Elaboración: Rodolfo J. Cremer, Ph.D. (c)
Marketing Plan
1.
2.
3.
Actions: What,
Who, When,
How, Where,
Why…
How much:
forecast, Budgets
and objectives.
Indicators and
Ratios.
35. Shaman from Piura
TIE UP
YOUR
IMPOSSIBLE LOVE
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
35
38. Other proposals are more sophisticated and exciting
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
39. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
40. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
41. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
42. 92% of our
Customers are satisfy
with our service.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
42
43. Which company is more commitmted?
We arrive in 15
minutes or we pay
you $100
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
43
44. 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
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
46. Marketing
To offer the customers
Products and services
to reach the satisfaction of their
needs, wishes and expectations.
J
Jerome McCarthy / Phili K tl
M C th Philip Kotler
t
l
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
48. Let’s look at the example
of the automotive
industry
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
49. In the automotive industry…
Only 15% renews with the same brand
Completely
mpletel
satisfied
Very satisfied
10%
Satisfied
Very disatisfied
80%
completely
disatisfied
10%
80% + 10% = 90% Dropout Rate = 75%
Satisfaction does NOT guarantee loyalty
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
50. A LADA salesmas says:
“A LADA
is forever …”
What he didn’t say was:
“… becasue
nobody would
buy it later”.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
51. Survey of more than 2.000 general directors, commercial directors and Marketing directors
of the most relevant national and international companies of different sectors.
ƒ 1 out of 4 Spanish companies (25.4%) expects
to lose between 10% and 30% of their
customers.
ƒ
ƒ
ƒ
ƒ
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.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
52. Survey of more than 2.000 general directors, commercial directors and Marketing directors
of the most relevant national and international companies of different sectors.
ƒ Asked about the reason for the dropout, 73% of the
customers mentioned “customer service” as
the main one, compared to 21% of the managers.
ƒ 50% of the managers attributed the dropouts to the price,
24% of the “deserter” customers mentioned
the prices as the reason.
while only a
ƒ This difference speaks for itself about the learning &
understanding necessary.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
55. “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-
©Fuente: IMdS. Cremer – MdS Marketing de Servicios
Dr. (c) Rodolfo J. www.marketingdeservicios.com
57. E
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
58. E
I came for this
promise
And I found
this reality
(this is what
he tells the
rest!!)
P
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
59. The Quality Service Equation
C=P–E
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
60. The Quality Service Equation
C=P–E
¿How much should C be (obligation)?
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
61. The Quality Service Equation
C=P–E
0
¿How much should C be (obligation)?
¿How do we ensure a C+?
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
62. The Quality Service Equation
C=P–E
0
+
¿How much should C be (obligation)?
¿How do we ensure a C+?
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
63. I have a question for you
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
64. Can we apply a high quality
service strategy & operation
model in any business?
ƒ What about a supermarket?
ƒ
(It's a “commodity store”?)
Or an “low fare” airline?
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
65. In other words …
Quality,
Service &
Good Price.
Can we have
all three together?
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
66. Let see how (or if it) it works.
C=P–E
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
67. 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
©Fuente: IMdS. Cremer – MdS Marketing de Servicios
Dr. (c) Rodolfo J. www.marketingdeservicios.com
68. www.marketingdeservicios.com
“¡¡Best wishes and good
faith DOES NOT
ensure that the
CRITERIA of the
employees meet the
EXPECTATIONS of the
CUSTOMERS!!”
©Fuente: IMdS. Cremer – MdS Marketing deicios.com
Dr. (c) Rodolfo J. www.marketingdeservicios.com
v Servicios
70. 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)
©Fuente: IMdS. Cremer – MdS Marketing de Servicios
Dr. (c) Rodolfo J. www.marketingdeservicios.com
71. “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
©Fuente: IMdS. Cremer – MdS Marketing de Servicios
Dr. (c) Rodolfo J. www.marketingdeservicios.com
72. © Fuente: MdS. www.marketingdeservicios.com
Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
73. 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
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
74. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
75. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
76. •
•
•
•
Our values:
The customer is our reason for being
Our people is most important
Innovation
Superior performance
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
77. WORD OF MOUTH: THE CONSUMER
AS A MARKETING TOOL
© Dr. (c) Rodolfo J. Cremer - Escuela de Postgrado Universidad San Ignacio de Loyola
78. Let’s talk about the “
E
”
¿How are (customers’)
expectations formed?
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
79. Definition (according to RAE)
Expectation: the Hope to do or get soemthing.
Reasonable posibility of soemthing to happenPossibility to get a right, an inheritance, a job or
any other thing provided that a planned event
happens.
79
Fuente: RAE. www.rae.es
80. Marketing Communication of the
company
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
©Fuente: IMdS. Cremer – MdS Marketing de Servicios
Dr. (c) Rodolfo J. www.marketingdeservicios.com
81. Expectation
What to do
Marketing
Communication
Don’t make primises you can’t not keep.
You can Underpromise (and give more)
Sales Process
Management
Do Not “over-sell ” the virtues of your services; sooner
or later you will have to deliver the moon.
Other
communications
Control the implicit messages they contain
“Athmosphere” created Use the tangible elements and the environment of the
at the meeting point of meeting to show what the customers should expect.
the service
Personal Experience
with the company
Don’t allow “valleys and peaks” in the services of the
company: clients always expect a steady quality of service
“Mout to Mouth”
communication
Keep your customers satisfied so that they “speak
well of you”
Personal Experience
Constantly check what the competition does [and how
with other companies it does it]; use benchmarking
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
82. They 10 key Expectations
[Berry, Parasuraman & Zeithaml]
82
Fuente: MdS. www.marketingdeservicios.com
85. marketing was born in this era
for this products
competitors
& customers
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
86. It does NOT
Work in XXI
century!
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
87. 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)
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
88. Differences between Products and Services
Î The intangibility [of the service]
Î Simultaneity production –
consumption
Î Production process
Î Contact company-customer
Î Heterogeneity of services, and
Î Customer engagement [in the production
process]
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
89. I Birth
Pure adoption
4Ps
II Evolution
A cry (shout) of freedom
1977: “Breaking Free From Product Marketing”
(Liberémonos del marketing de productos)
G. Lynn Shostack, Vicepresidenta del CitiBank
III Adaptation
Aplicability
Relationship
Marketing
Traditional
Marketing
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
Internal
Marketing
92. New Three-dimensional Perspective
Relationship
Empowerment
Provision –
Marketing
Emotional
People
connection:
People
Abilitues, emotions,
attitudes, service
vocation “depart
“moment, of true”
from the script”,
extra mile ,,,
Experiences
Delivers what was promised
and manages the relationship
Customer
Traditiona
lMarketing
Product
Price
Place
Promotion
4Ps
Communication of
promise
i
“moments of thruth”
Internal
Processes
Processes
Physical
Marketing
Evidence
Standards
Homogeneity
at the point of
sale:
Tasks, tools,
formation, scripts,
moments of truth…
Allows the delivery of
CRM
what was promised
(accomplish)
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
92
93. New Adapted Approach in XXI century (expanded marketing)
Product – Service
Price
People
Place
Process
Promo
Provision
Phsycal Elements
(evidence)
Benefitdelivery
Fuente: MdS. www.marketingdeservicios.com
94. What is an organization chart like?
organization
customer
Process
(need cross-functional organization)
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
95. This is the way in
which a traditional
organization chart
works today
Contribution from
Prosper Bernard, Ph.D.
(mi professor at UQÀM
Graduate School)
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
96. … and these are the results…
It’s not enough to do things right,
we have to do “right” the “right” things.
©Fuente: IMdS. Cremer – MdS Marketing de Servicios
Dr. (c) Rodolfo J. www.marketingdeservicios.com
97. ƒ
Comunication – direct marketing:
increases its importance in
saturation and lack of massive means
ƒ
Distribution: strategic partnership between the channel and the
manufacturer, procedures and shared databases
ƒ
Service Marketing: increases customer satisfaction, frequency and
quality of contact and its impact on loyalty.
ƒ
Marketing of industrial and high technology products:
development of “one to one”, joint ventures, joint development and common
perspective of the value chain
ƒ
Quality: TQC, TQM, importance of the quality of satisfaction.
ƒ
Flexible Production – JIT: cost reduction of changes enables the
client-oriented strategy. Orientation to maximun flexibility in scale economy
ƒ
Enterprise Strategy: “keiretsu” clusters with interrelated interests
and long-term commercial links
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
98. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
100. Marketing
According to G. Lynn Shostack
Marketing is the area (and the
1 in charge of
processes)
keeping the link between
the company and its customers
link = relation
¿elements of a relation?
1. Contribution from Mr. Victor Requena. UQAM XVI.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
101. link = relation
¿elements of a relation?
Satisfaction
Trust
Respect
Comunication
A relation: Win – Win
Loyalty
Fidelity (trust)
They are not the same
Passion
Love + Convenience
Forgiveness
Kowledge
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
102. ¿Why is customer service important?
Î More loyalty from consumers, customers and users.
ÎIncrease 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).
ÎMore frequent sales, more repetition of business with the same clients,
users or consumers.
Î A much higher level of indivudual sales per customer, consumer
or user (satisfied clients buy more of the same products and services).
ÎMore cross-selling, since the customers are more likely to buy other
products or services from the company.
ÎMore new customers acquired
through word of mouth
communication , the references from satisfied clients, etc.
ÎLower expenses in traditional marketing activities
(advertising, sales promotion and so on).
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
103. ¿Why is customer service important?
ÎFewer complaints so therefore fewer expenses solving them.
ÎBetter image and reputation of the company.
Î 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).
Î A better internal working climate, since employees are no longer
under the pressure of frequent complaints form users, customers or consumers.
ÎBetter internal relations inside the staff since all of themwork,
together, towards a common goal.
ÎFewer complaints and absenteeism from the staff (higher
productivity).
ÎLower staff turnover.
ÎMore market share.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
104. (according to Bernd Schmitt)
Functional characeristis are considered based on
theri importance. Its presence iin the product that
is most useful (defined as the sum of weighted
features). Anything that does not fit is “image”,
“irrelevant” or “meaningless”
Acknowledging the need
Competnece is produced inside a
restricted andefined product category:
the battle field of the product managers
and brand managers
Searching information
Evaluating options
Buying anf consuming
ƒ Regression models
ƒ Positioning maps
ƒ Joint analysis (functional
advantages perceived by the
consumer)
Fuente: MdS. www.marketingdeservicios.com
105. [ soemthing to take into account … ]
“The essential difference
between
emotion and reason
is that …
106. [ 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]
108. “the wallet is closer to
the heart than it is to
head.”
d2
$
d1
d1 < d2
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
109. 9 Less loyal to a brand
More
9 Wider varierty of
choices (election)
heterogeneous
9 More diverse needs
9 Makes decisions at the
selling point
and harder to
reach
customer
It could be up to the
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
80%
110. Adapted from Pajunen y O’dell
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. They know their own value
ey
y
w
ir wn ue
n
8. They are proud to be “butterflies”: they know they have the
power.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
111. Adapted from Pajunen y O’dell
Excelent service
(feeling of being
exceptional)
Put the price on
the second place
based on their
”level” as a
customer
Pride of belonging
“red carpet”
Routines and
“lazyness” to look
for another
supplier, sale cost
based on comfort
“one to one”
treatment .
(what they value
more than the link
“companyperson”)
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
112. Adapted from de Pajunen y O’dell
9 Suspicious and
cautious
9 Experienced
9 Skeptic
9 Impatient
9 Unpredictable
9 Highly informed
9 Non conformist
9 Bad-tempered
9 Bothersome
Troublesome
9 Somebody has to pay
for what’s happening
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
113. Adapted from Marketing de Servicios – tendencies 2014
Hiper connected
(AAA)
9 Any Device
9 Anywhere
9 Anytime
The Rise of Generation
9 Connected
9 Communicating
9 Content-Centric
9 Computerized
9 Community-oriented,
9 always Clicking
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
C
115. “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
Fuente: MdS. www.marketingdeservicios.com
115
117. Reliability- Credibility
E
P
“we don’t have
customers , we
have believers”
Carlos Navarrete
DIES business partner
Customers can believe & trust
In our standard quality
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
119. Courtesy
E
P
“we just sell the
product, we
don’t
manufacture it.”
An important
department store in
Perú
The staff tr
treats the customers kindly and attentively
reats
they don’t react negatively with an angry customer.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
120. Accesibility
E
P
Adequate location and schedules, signaling,
e loc
services provided match the customer times,
managers willing to listen.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
121. Communication
E
P
The staff explain clearly without using technical
explains cle
ns
words; they listen patiently.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
122. Understanding
Som
S mebody c
Somebody calling
y
himself
himse
elf
customer asks
E
P
for soemthing called
service
Custom
Customers expect to be heard and helped; the satff
mers
“understand the customers’ side”.
“Personalized” service (segmented).
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
124. Security
E
P
The company cares about the customers’ physical and
econo
economic safety, (data) confidentiality.
omic
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
132. [ something to keep in mind ]
“the key difference between emotion
and reason is that …
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
133. [ something to keep in mind … ]
emotion end up in action
while
reason ends up in conclusions.”
Kevin Roberts [Lovemarks: the future beyond brands]
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
134. Final Considerations
“Not everything
that can be
counted counts;
Not everything
that counts can be
counted”
Albert Einstein
fuente: www.marketingdeservicios.com
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
136. Final Considerations
“90% of what we call
‘management’ consists of
making things hard for
those who must do
things.”— P.D.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
137. Final Considerations
ÎFidelity (trust) is not Loyalty.
ÎThe CRM [technology without strategy] guarantees
nothing.
ÎClassical Marketing doesn’t work anymore.
ÎCustomer service is a key element to keep customers.
ÎA radical change in the communication paradigms:
we moved from publicity and (massive) promotion to
personalized communication.
ÎQuality is not enough; we need kindness (human Q).
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
138. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
139. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
143. Process of Strategic Planning
Focus the strategy with quatitative and cualitatove criteira
Customers
Company
S.
W.
O.
T.
Segmentation
& Target
Product
Place
Target
Market
Differentiation&
Positioning
Price
Promotion
Competitors
Marketing External Environment
143
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
146. SEGMENTATION
9 Generally ,a company cannot serve all the customers in a
big market.
9 They are numerous, disperse and their purchase
requirements vary.
9 Any competitor, will be in a better position to reach specific
segments.
9 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.
9 The company has to idnetify the most attractive segments
that it can serve more efficiently than the competence.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
147. INTRODUCTION
9 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).
9
Differentiated or concentrated segmentation allows the
adjustment of products, prices, distribution channels and
communication to reach the target market more efficiently
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
148. INTRODUCTION
“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”
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
150. To be instrinsincally homogenoeus (similar)
• Consumers from a segment should be as similar as possible regarding their probable
f
h ld b
l
bl
d
h
answers to the mix of variables in marketing and their dimensions of segmentation.
Heterogeneous among themselves:
• Consumers from many segments should be as differetnt as possible reg
regarding their
probable answers to the mix of variables in marketing.
Big enough:
• To guarantee the profitability of the segment.
segment
Operational:
• 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.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
153. Men & Women Brain
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
Link al video
155. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
156. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
157. Process of Strategic Planning
Focus the strategy with quatitative and cualitatove criteira
Customers
Company
S.
W.
O.
T.
Segmentation
& Target
Product
Place
Target
Market
Differentiation&
Positioning
Price
Promotion
Competitors
Marketing External Environment
157
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
158. DIFFERENTIATION
“If I'm going to
sing like
someone else,
then I don't need
to sing at all.”
Billie Holiday
2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com
158
159. DIFFERENTIATION
M. Porter (1996)
“The essence of strategy
is choosing to perform
activities differently than
rivals do.”
2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com
159
163. DIFFERENTIATION
THE COMPETENCCE
IS NOT WON COMPETING …
SUCCESS COMES FROM
THE FACT OF BEING DIFFERENT.
the new
„ Process
„ Provision –
“Moment of truth”
„ People-person
„ Physical evidence163
4P
concept
2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com
163
164. DIFFERENTIATION
4 Ways to generate value [5 really]
1.
BETTER PRODUCT
2.
NEWER
3.
FASTER
4.
CHEAPER
5. ABILITY TO CHANGE
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
165. DIFFERENTIATION
4 Ways to generate value [5 really]
1.
BETTER PRODUCT
2.
NEWER
3.
FASTER
4.
Be very
careful
CHEAPER
5. ABILITY TO CHANGE
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
168. COMPETITIVE ADVANTAGE
“We have only two sources of
competitive advantage:
ƒ The ability to learn quickly
more about our customers
than our competitors do, &
ƒ The ability to quickly convert
that knowledge into action
faster than our competitors
do.”
Jack Welch, CEO de GE
2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com
168
169. DIFFERENTIATION
4 dimensions to differentiate
1. PRODUCT
2. SERVICE
3. STAFF
4. IMAGE
CHARACTERISTICS
DELIVERY
COMPETENT
SYMBOL / BRAND
QUALITY
PERFORMANCE
INSTALLATION
COURTESY
MASS MEDIA
CUSTOMER
TRAINING
CREDIBILTY
ATHMOSPHERE
RELIABILITY
EVENTS
COMPLIANCE WITH
SPECIFICATIONS
DURABILITY
CONSULTING
SERVICE
RELIABILITY
REPARIRS
REPAIR CAPABILITY
MISCELLANEOUS
SERVICE
STYLE
RESPONSIVENESS
COMMUNICATION
DESIGN
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
170. PRODUCT VALUE
SERVICE VALUE
STAFF VALUE
Differentiation
by Value
TOTAL VALUE
FOR THE
CUSTOMER
CUSTOMER
NET
VALUE
IMAGE VALUE
MONETARY PRICE
TIME COST
TOTAL COST
FOR THE
CUSTOMER
ENERGY COST
PHYSICOLOGICAL
COST
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
171. DIFFERENTIATION
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.
2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com
171
172. DIFFERENTIATION
7 Criteria to validate a differentiation strategy:
1. And also you can …
Video: Bud - Drinkability
Video: Jet Blue
Inverse Differentiation
2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com
172
174. beware hyper competition
… they are not any more.
fast fish eats’ slow fish
2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com
174
175. Process of Strategic Planning
Focus the strategy with quatitative and cualitatove criteira
Clients
Company
S.
W.
O.
T.
Segmentation
& Target
Product
Place
Target
Market
Differentiation&
Positioning
Price
Promotion
Competitors
Marketing External Environment
175
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
177. Cycles are geting always shorter …
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
178. PRODUCT’S LIFE CYCLE
definition
ƒ
The Life Cycle of the product: describe the stages
through which the idea of a new product
goes, from beginning to end:
ƒ Introduction in the market
ƒ Growth in the market
ƒ Maturity of the market
ƒ Decline of sales
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
182. BCG MATRIX & LIFE CYCLE
Product’s life cycle
Máx.
0,0
I&D
Introduction
Growth
Maturity
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
Decline
183. LIFE CYCLE. Management & Development
stage
Introduction
growth
maturity
decline
Competitive
situation
Monopoly or
monopolistic
competence
Monopolistic
competence
or olygopoly
Monopolistic
competence
or olygopoly
oriented to
pure competence
Pure
competence
product
One or a few
variety: try to find
the best product
Create familiarity
with the brand
All the products
are the same;
the brand wars
grows
Some products
abandon the market;
price war
Trend to a
more intense
distrubution
¿new emergent
markets?
place
promotion
prize
Build channels
Maybe selctive
distribution
Create basic
channelsr
Innovative
information
Create selective demand
high? descreme
bajo? penetration
Deal with competence(specially in the ologopoly)
Price reduction offers
persuade / remember
(frenzied competence
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
188. 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
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
189. 9
The idea of “product” as potential satisfaction
or benefit for the customer is the most
important
9
The industrial customer or manufacturer will
be interested in the utility they will get once
they use the “product” and sell it again
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
190. physical good
combination
service
Nails, (some) canned soup,
electric cables, tubes
100%
Emphasis on
the physical
good
Food in a restaurant, car
tunning
Bank services,
haircuts, mail service.
Commodity
diferentiation
0%
0%
Emphasis on 100%
the service
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
191. Key Differences: MDS www.marketingdeservicios.com
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 companycustomer contact
Frequent company-customer
contact
Standard demand inside the Customers have their own
same category
personal demands regarding the
same service.
next …
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
192. Key Differences: MDS www.marketingdeservicios.com
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.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
193. Product’s type and variety
r
The types of product begin with
the type of customer
ƒ
All the products fit in one of the 2 general
groups based on the type of customer:
ƒ Conmsumer Products: orientend to the
final user
ƒ Industrial Products : oriented to make
other products
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
194. Comsumer products
ƒ The consumer products are classified in 4
groups:
ƒ Convenience products
ƒ Comparision poducts
ƒ Specialty products
ƒ Unsought products
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
195. PRODUCTS: GOODS AND SERVICE
Consumer products - SUMMARY
Type
Sub- type
Examples
Exam
Examp
Basic
Chocolate; magazines
ICE; car batery
Homogeneous
Comparision
Impulse
Emergency
Convenience
Salt
Mobile Phone Samsung vs. LG
Heterogeneous
videocamera
X ray machine
Specialty
Newly unsought
Unsought
Trout fillet; motorbikes
Normally unsought
Finisterre Burial insurance
The same product can be seen in
different ways simultaneously
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
196. “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”
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
197. PRODUCTOS: BIENES Y SERVICIOS
BRANDS
9 Renokwn brands make buying easy
[for example a supermarket has 25,000 items / now
60,000!]
9 A good brand reduces time and sale efforts.
9 Sometimes the only element of the marketing mix that
competitors cannot copy [unless you are in a not
developed country].
9 Speeds up the acceptance of new product associated
to it.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
198. 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 …
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
199. “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
200. Strategic importance of packing
ƒ The packing includes the product’s protection and
promotion
ƒ It makes it easier to use and store it.
ƒ Prevents deterioration and damage.
ƒ Good packing makes product’s identification easy &
promotes the brand in the SP (sales Point)
ƒ It should link the product with the rest of
the marketing strategy.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
201. Strategic importance of packing
ƒ A good packing “usually offers” a better promotionap
effect than publicity, becasue it is seen at the store
where people buy.
ƒ It should take the smallest space at the store, be
protected, easy to pile up, transport and exhibit.
ƒ It should be identified using a bar code (or new tech…)
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
202. Warrantee
9 Warrantee : what the seller promises about the
product
9 The laws, the needs of the client and the offers
form the competence must be taken into account.
9 The common law states that manufacturers must
endorse their products, even if they don’t offer a
warrantee.
9 The warrantee should be available before the
purchase.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
203. Warrantee
9 The warrantee is an attraction that can improve
the marketing mix
9 The risk to offer a warrantee is higher for a service
than for a product.
9 The warrantee costs must be included price
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
205. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
205
206. I have a question for you
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
206
207. ¿Is the
PRICE
the most important
variable of the
marketing mix?
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
207
210. “You are what
you buy”.
Guillermo D’Andrea, CAMP
2006
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
211. “if you can pay, you can stay”
“You value how much you have”.
Brother Fred Fink SM, from my [Christian] school, 1980 – 1984.
212. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
213. FLIGHTS FROM 19 EUROS
WE ARE NOT JOKING, WE ARE GERMAN
From Spain to Germany up to 50 times a week
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
214. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
215. Objectives & Price Policies
introduction
9
Price is one of the 4 main variables the marketing
manager controls .
9
(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.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
216. Objectives & Price Policies
introduction
Basically the marketing manager must decide:
ƒ
ƒ
ƒ
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
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
217. Objectives & Price Setting
Expected performance
Profit oriented
Maximize profit
Objetives
of prices
Sales increase
in units or dollars
Sales oriented
Market share growth
Status Quo
oriented
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
Match the
competence price
Competence unrelated
to the price
218. Objectives & Price Policies
Season
[season]
Size
Price
Discounts
Cash
Discount
Offer price
Commercial
[channel]
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
219. Price Setting Demand Oriented
Psychological
Odd- Even
“bait” [hook]
Leader
Prestige
Methods for
price setting
demand- oriented
Price range
Set forth
[demand]
Value-of-use
Reference
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
220. The taxi driver example
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
220
221. The taxi driver example
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
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
221
223. The house-to-house
clothes salesman
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) …
¿What was the annual interest rate?
12,875% !!
[1.36% a day]
¿Sir,
what’s a
“Sol” a
day,?
Go to excel
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
223
224. Promotion and Demand Curve
Demanda
Elasticity
Price
Price
Price
D
D1
D
D2
0
D
D
Quantity
A. Make it less elastic
0
Quantity
B. Move it ot the right
0
Quantity
C. Both: less elastic
and to the right
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
224
225. Objectives & Price Policies
c
elasticity
Mathematically, it isexpressed in the following way,
where: Ed elasticity, Qd required quantity and P price:
ƒ 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.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
225
226. Let see the example
of Beer
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
226
227. The elasticity of Beer
Background:
ƒ You work in a top cafeteria in a 5-star hotel located in San
Isidro (business district in Lima).
ƒ Price of Beer P0 (all the brands) = S/.10.00
ƒ Daily average sales (Q0) = 15 bottles of 330ml
Opportunity:
ƒ 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.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
227
228. The elasticity of Beer
Preliminary results:
ƒ The campaign is successful. The sales increased.
ƒ Soccer days are booked which completes the cafeteria’s
capacity.
ƒ The general sales of snacks and mixed drinks, have rapidly
grown (& the average ticket increased).
ƒ However, the daily beer sales is still constant (15 bottles a
day).
Question:
ƒ What has happened with the sales of beer and soccer?
ƒ There is no correlation between them?
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
228
229. The elasticity of Beer
Experiment:
ƒ 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:
ƒ Is beer, in this case, an elastic good?
ƒ What has happened with the gorss margin (per unit) assumin a
unitary cost of S/.1.50 per bottle?
ƒ What decision would you make based on these results and
analysis?
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
229
230. The elasticity of Beer
Po
10
P1
6.99
Prom
8.495
Qo
15
=
Q1
180
Qprom
97.5
-4.77613085
Demand's price elasticity:
(Q1 - Qo)/Qprom
(P1 - Po)/Prpom
ƒ
ƒ
ƒ
ƒ
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.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
230
231. The elasticity of Beer
12
10
Precio
8
6
4
2
0
0
20
40
60
80
100
120
140
160
180
200
Cantidad
Esc 1
Esc 2
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
231
232. The elasticity of Beer
Unitary Price
Unitary Cost
Unitary Gross Margin
Margin %
ƒ
Esc 2
S/.
6.99
S/.
1.50
S/.
5.49
366%
U sales
sales S/.
Costs S/.
Gross Margin S/.
ƒ
Esc 1
S/. 10.00
S/.
1.50
S/.
8.50
567%
S/. 15.00
S/. 150.00
S/. 22.50
S/. 127.50
S/. 180.00
S/. 1,258.20
S/. 270.00
S/. 988.20
-35.4%
675.1%
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.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
232
233. Objectives & Price Policies
elasticity
Elasticity
-some conclusionsƒ If the demand is elastic to the price, it is
possible to lower the price to increase the total
profit
ƒ If the demand is not elastic to the price, it is
possible to increase the price to get higher
profit.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
233
234. Objectives & Price Policies
elasticity
Elasticity
-some conclusionsFactors that determine the lack of elasticity of the demand:
1.
2.
3.
4.
There are a few or no competitors
Buyers do not easily perceive the higher price
Buyers slowly change their consumption habits
Buyers think higher prices are justified by quality, infalation or
other reasons
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
234
235. Other factors that influence Cost & Price
(usually hidden)
ƒ
The time orders are processed
ƒ
Procedures to process orders
ƒ
The place where the inventary
is storaged
ƒ
Accuarcy of the order’s
delivery
ƒ
Cost of rejected or returned
orders (freight, time, damaged
product)
ƒ
ƒ
Rotation rate and finnancial
costs
Size or variety
ƒ
Delivery costs [fake or false
freights]
ƒ
RE-processing costs due to
defficient quality
ƒ
Robberies, shortage, obsolete
goods
ƒ
Direct costs: insurance,
electricity, staff, maitenance
ƒ
Indirect costs [service, systems
and security staff]
ƒ
Lost sales due to shortage,
delivery time, etc …
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
235
236. Key factors that influence Price Setting
Company objectives
Target price
Price
flexibility
Experience
curve
Breakeven
point
Demand’s
response
Market’s
Life Cycle
Elasticity
Discounts
and bonus
Costs
Price
setting
Competitors
and
substitutes Distribution and
Surcharge chain
[mark-up]
In the channel
Law,
restrictions
and price control
Geographic
prices’
conditions
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
Price of other
products of
the same line
236
237. The war of prices!
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
238. Who wins &
Who loses the price war?
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
239. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
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.
240
241. Let´s talk about McDonald´s & Starbucks
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
¿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.
241
242. Let´s talk about McDonald´s & Starbucks
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
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?
Fuente: Ph.D. Moez Limayem, Dean College of Business USF. Conferencia en USIL el 9 de mayo, 2013.
242
243. Process of Strategic Planning
Focus the strategy with quatitative and cualitatove criteira
Clients
Company
S.
W.
O.
T.
Segmentation
& Target
Product
Place
Target
Market
Differentiation&
Positioning
Price
Promotion
Competitors
Marketing External Environment
243
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
245. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
248. introduction
PLACE [also meanes, distribution]:
“to put the goods and services
in the right quantity and place
when the customers wants them”
ƒ
Distribution channel: series of companies or
people that participates in the flow of
products from the manufacturer to the final
consumer.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
249. introduction
ƒ
Responds to the time and place use.
ƒ
The type of product helps define how much
exposure in the market is needed according
to each geopgraphic region.
ƒ
The same target market must show the same
attitudes therefore it should be satisfied with
the same type of distribution.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
250. Channels’ system
ƒ
Channels’ system can be:
ƒ Direct, when the maniufacturer is in
charge of the complete distribution, or
ƒ Indirect, when it is in charge of
wholesaler, retailer or other specialists.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
251. Channels’ system
Direct Distribution
Indirect Distribution
• Total control of the variables of the
marketing mix
• Gives part of the control over the
marketing mix to the intermediary
• It’s not easy to work with indepent
intermediaries who have their own
objectives
• An effort should be coordinated to meet
common objectives ( it’s not easy n the
channel has too much power.)
• When there’s a new product there aren’t
interested intermediaries
• It is the easiest way to enter
international markets
• When there is a lack of finnancial
resources or knowledge to develop a
distribution channel
• The intermediaries invest in keeping an
inventary and a commercial structure
and take the risks of credit.
• More used for industrial products with a
few grouped consumers
• More used in products where the
consumers are disperse.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
252. More control
Lower costs
Added value i the
in
production process
pro
Some
Reasons
To choose
Direct
Distribution
Direct c
contact with
the cust
customers’ need
Fast
Faster response and changes
in the Marketing Mix
There isn’t any
available intermediary channel
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
253. Specialized intermediaries
p
Channel run by a
manufacturer
Product
Place
Channel run by a
retailer
Product
C
Price
Promotion
Place
C
Price
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
Promotion
255. definition
ƒ
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
ƒ
ƒ
ƒ
There is [normally] inmmediate feedback that helps to make
appropriate changes or adjustments.
Sometimes is very expensive.
Personal sales Î refers to the “one-toone” sales, interacting with customers.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
256. characteristics
ƒ
A seller attracts more atention than an add or
a shelf.
ƒ
He can addapt (the speech directly with the
customer) based on his partner’s
feedback,culture and other influences of the
context or the behaviour.
ƒ
He can ask questions to get to know his
prospect’s interests.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
257. Massive sales
ƒ
Massive sales: consists of establishing
communication with big quantities of
prospects at the same time.
ƒ
It’s less felxible than personal sale.
ƒ
It will be cheaper if the target market is big and disperse.
ƒ
There are two types.
ƒ
Publicity [advertising]
ƒ
Publicity for free [publicity]
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
258. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
259. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
260. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
261. Introduction [Advertising]
ƒ
Can cost a lot of money.
ƒ
Can rapidly reach many people.
ƒ
Can produce a combination of short and long
term results.
ƒ
Can greatly contribute to position the marketing
mix.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
262. Objectives of Advertising & Publicity
ƒ
Add & Publicitary objetives should be more
specific than the personal sales.
ƒ
A seller can modify his presentation, but an Add
should reach a target audience with a fixed and
specific communication.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
263. Introduce new products
Position brands
Get distributors
(Commercial – Distribution Channel)
Ongoing contact
(“top of mind”)
Strategic
Decisions
to Establish
Add & Publicity
Objectives
Support sales force
Inmediate response
Keep relations
(Confirm the purchase)
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
264. Free Add Î Publicity
ƒ
No Pay Add: is any "free" form of non-personal
presentation of ideas, goods or serviceses.
ƒ
Try to call attention to the company and its offer
without having to pay for the cost of mass media.
ƒ
If the company has a very new message to
communicate, publicity (non paid add) can be
more efficient than the Add (pay).
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
265. Sales Promotion
ƒ
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.
ƒ It can oriented to the public, the
intermediaries or the company staff.
ƒ It can be quickly implemented and produce
fast & short-term results.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
266. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
267. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
268. Sales Promotion
ƒ
Sales Promotion
ƒ In fact, it genrally has the objetive of
producing inmediate results.
ƒ Usually uses more money.
ƒ There are differents types:
ƒ
ƒ
ƒ
ƒ
Coupons
Raffles
Commercial exhibitions
Sponsoring
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
269. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
270. Final User / Consumer
oriented
Contest
Coupons
Isle exhibition
Free samples
Commercial exhibitions
Materials at the sales
point [POP]
Signalling
Prizes
Sponsorship
Intermediary
oriented
Sale Force
oriented
Sales
Contests
Discounts
Bonus
Sales contest
Meetings
Calendars
Clients’ portfolio
Gifts
Shelves
Commercial exhibitions Sales help
Catalogues
Training material
Meetings
Merchandising
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
271. Communication Strategies
There is NO mix of ideal communication
for all the situations.
a basic strategy is generally chosen:
Push
Pull
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
272. The Push Strategy
ƒ
ƒ
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).
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
273. The Pull Strategy
ƒ
ƒ
ƒ
ƒ
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.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
274. Push & Pull Strategies
ƒ
(A combination of) Both strategies are (must)
generally used simultaneously, at some degree.
ƒ
Using both reduces the risk of failure and
increases the probability of success.
ƒ
The mix (of Push & Pull) changes if we are
dealing with final or industrial customers.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
275. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
276. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
279. Second-hand
Sales adds
Prospects
Inserts or Mass
Media Adds
Phone
Exhibitions at
fixed points
(stores)
Temporary sale
point
Sellers
Telemarketing:
Entering the prospect in the system
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
279
280. Examples of Adds (inserts):
Prices and sales
Bonus for returning
Technical details
and specifications
Free phone line 800
+ associated line
(L - D, 9am a 8pm)
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
280
281. Basic models and
benefits
Especial prices and
offers
Free phone line 800
+ associated line
Sale points
(L - D, 9am a 8pm)
addresses © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
281
286. T l
Telemarketing :
k ti
Entering the prospect in the system
c
d
e
TMKT calls
Feedback
Prospects
In
Inmediately (when picking up the phone)
E
Ef
Efectiveness of Add & Publicity and sale point
¿How did you know about 800? ¿How did you get to the SP.?
H
48 Hours
Selesman (vendor) quality service
After 30 days:
If you bought (which brand. Model, new/second -hand)
If you haven’tRodolfo J. Cremer – MdS Marketing de Servicios
(a second-hand is offered)
© Dr. (c)
286
287. Telemarketing:
Entering the
information
System
•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...
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
287
288. ƒ
ƒ
ƒ
ƒ
ƒ
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...
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
288
289. ƒ
ƒ
ƒ
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.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
289
290. Economic Result of the Advertising Campaign
Insert cost
Total number of pages
Unitary cost per page
$20,000
8
$2,500
Suzuki
Automóviles
3
$7,500
GM
Automóviles
4
$10,000
90
Motocicletas
Usados
Totales
0.5
$1,250
0.5
$1,250
8
$20,000
50
30
90
260
9
15%
$50,000
5
10%
$100,000
3
30%
$4,167
9
10%
$12,500
26
$15,500
$15,500
$2,120
$5,000
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
$20,925
$7,750
$1,908
$4,500
$35,083
$13,425
-$2,250
$658
$3,250
$15,083
179%
-23%
53%
260%
75%
Number of pages
prorated cost
Total of genenrated prospects
(7 days)
closing rate (10% )
gross margin
balance point
average net value per unit
average units for balance point
expected gross margin (salessales cost)
Campaign contribution (Gross
margin - prorated cost
Contribution / Investment
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
$166,667
290
291. ƒ Marketing de Servicios, España.
http://www.marketingdeservicios.com/
ƒ Marketing: un enfoque global.
McCarthy Jermome; Perreault, William
13a Edición
ƒ Fundamentos de Marketing de Servicios:
conceptos , estrategias y casos.
Hoffman; Bateson.
Ed. Thompson.
© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios
291