Marketing ConceptEnvironmental AnalysisBehavior and Segmentation AnalysisMarketing ResearchMarketing Mix

Uncontrollables

Needs

Technology

Competitors

Government

MarketingStrategy

The Marketing MachineIf you know how the marketing machine works, and

can turn the crank, you will always produce the correct marketing strategy.

The machine does not change.

The only thing that changes are the inputs.

Different inputs produce different outputs.

The Marketing MachineIf the machine never changes, then there is no such

thing as:International MarketingIndustrial MarketingServices MarketingeMarketingNon-Profit Marketing

………..???

tangible intangiblesalt

dinner in a restaurant hair style

Services are a form of products.

Services Marketing…but they have different attributes that affect

marketing strategies:

PerishableCannot be stored or shipped

InseparableConsumer is present when service is produced.Cannot separate service from service provider.

Services MarketingService Attributes (cont.)

HeterogeneityQuality varies over time.Demand varies over time.

SubstitutabilityYou can always do it yourself.

PostponabilityYou can always stall.

Services MarketingGap Theory:

Satisfaction is a function of the gap between expected service and perceived service.

An extension of buyer behavior What you thought was going to happen versus your perception

of what happened

Key is to minimize the gapGive the customer what they expect…?

Services MarketingNon-profit organizations

Service Sector

IRS tax classification, not an operating strategy

Lack marketing orientationEquate marketing to advertisingHave non-professional boardsLack clear marketing objectives

What is the purpose of a charity?…the profit?

Services MarketingMarketing strategy is different for services.

Different inputs, different outputs

PricingMust be more flexibleService demand is highly volatile

Use price to shift demand away from peak periods

More negotiated prices

Services MarketingService Strategy (cont.)

PromotionMust promote the benefits.

…dead bugs versus a safe, pest-free environment

Build a tangible image, personalize the firm.Personal selling is critical for the professional service provider.

…and they do not want to do it.

Services MarketingService Strategy (cont.)

DistributionLocation/convenience are critical

Cannot store or ship.Can postpone, substitute

Short, Direct ChannelsIntermediaries are agents or brokers

Services MarketingNon-profit organizations need two strategies:

Donors versus ClientsRarely overlap

The people who give the money don’t use the service.

Need one strategy for each.…but management is frequently less qualified to manage multiple

strategies

Services MarketingOrganization Marketing

“Sell” the organization itself

Public RelationsPerform image assessmentThen shift image toward goal

Services MarketingPerson Marketing

Create, maintain, alter attitudes toward a particular individual

Similar to organization marketing but with more dramatic life-cycles

Celebrity and sports agents.

Services MarketingPlace Marketing

“Sell” a general geographic areaHouses, buildings, land, vacation locations

Market segmentation and information flowsWho might be interested?How do we reach them?

Services MarketingIdea Marketing (aka social marketing):

This is the ultimate intangible.

One time action…vote, get flu shot.

Understanding…food labels

Change behavior…wear seat belts

Change a belief…religion