additional notes for marketing yr 2 slides

8/11/2019 Additional Notes for Marketing Yr 2 Slides

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ADDITIONAL NOTES FOR SLIDES

1. INTRODUCTION TO MARKETING

SLIDE NO 3:

Types of marketing entities:

• Goods/products, e.g. cars, food, electronics

• Services, e.g. hotels, restaurants, airlines, accountants, bankers, lawyers, doctors

• Events, e.g. trade shows, artistic performances, company anniversaries, sporting events(Olympics, World Cup)

• Experiences, e.g. Disney Theme Parks, Climbing Mount Everest

• Persons, e.g. Celebrity marketing (David Beckham, Paris Hilton)

• Places, e.g. Cities, Regions, Countries

• Properties, e.g. real estate, financial property (stocks and bonds)

• Organisations, e.g. Companies (Tesco, Apple), Universities, Museums

• Information, e.g. Books, magazines

• Ideas, e.g. selling hope, prestige or some other benefit

SLIDE NO 5:

Physical environment/packaging

Example of Process/programming: “the customer experience” Going on a cruise – from the moment that you arrive at the dockside, you are greeted; your

baggage is taken to your room. You have two weeks of services from restaurants and eveningentertainment, to casinos and shopping. Finally, you arrive at your destination, and your baggage

is delivered to you. This is a highly focused marketing process, and is an example of theimportance of process in enabling delivery of the customer proposition. Another way of lookingat this example is that there is end to end service support, which has enabled transactions

between the company and its customers.

An extended 8 th P for Service Marketing: Partnership



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SLIDE NO 7: Four characteristics: intangibility, inseparability, variability and perishability , that set

services apart from physical goods Employees affect the service outcome Customers participate in and affect the transaction Customers affect each other Mass production is difficult

2. CUSTOMER NEEDS AND EXPECTATIONS

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Basic needs have to be met first before achieving customer loyalty (the marketer has to appeal tothe basic needs first)

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Customer needs can be:1. Clearly understood or expressed2. Latent needs

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Gap 1: Do customers want better food, more comfortable accommodation or faster service?Gap 2: E.g. Message “as soon as possible”, “fast”.Gap 3: poorly trained personnel, implicit service promises, e.g. clean sheets in a hotel.Gap 4: Hotel brochure shows a beautiful room, the room is actually cheap-looking with basicdecor

Always ‘Under - promise’ and ‘over -deliver’

3. CUSTOMER BUYING BEHAVIOUR

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There are three different perceptual processes which are selective attention, selective distortionand selective retention.

In case of selective attention , marketers try to attract the customer attention to their particular brand communications, to the detriment of hundreds others (customers are more likely to notice



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stimuli/ads relating to a specific/current need, or one they anticipate, or for huge deviations fromnormal offers, e.g. large discounts/promotions).

Whereas, in case of selective distortion , consumers try to interpret the information in a way thatwill support what they already believe (their preconceptions).

Similarly, in case of selective retention , customers try to retain information that supports theirattitudes and beliefs (e.g. remembering the good points of a strong brand).

4. THE PURCHASING PROCESS

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Complex buying behaviour: a car, smartphoneVariety-seeking Buying behaviour: washing powder, chocolates, promotional items atsupermarketsHabitual Buying Behaviour: toothpaste, shampooDissonance-reducing Buying Behaviour: floor tiles

5. MARKET RESEARCH

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1. Define the problem and research objectives2. Develop the Research plan3. Collect the data/information4. Analyze the data5. Prepare the final report/present the findings6. Make the decision based on the study results

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Examples of Qualitative measures:

Projective techniques=give people an incomplete stimulus and ask them to complete it, or givethem an ambiguous stimulus and ask them to make sense of it, e.g. “bubble exercises” Visualization=require people to create a collage from magazine photos or drawings to depicttheir perceptionsBrand personification=ask subjects what kind of person they think of when the brand ismentioned



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FURTHER READING: HOSPITALITY MARKETING MANAGEMENT, REID,ROBERT D. AND BOJANIC, DAVID C., CHAPTER 6, P.209 to 241

6. SEGMENTATION AND TARGETING

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Segments must be durable to maintain stability of cost and impact to profits.

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Example: Hilton hotels customize rooms and lobbies according to location. Hotels in thenortheastern United States are sleeker and more cosmopolitan. Hotels in the southwest United

States are more rustic. SLIDE NO 9:

SRI Consulting Business Intelligence’s VALS framework: Values and Lifestyles

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Generic market: buyers with similar needs, satisfied by sellers in many different ways

FURTHER READING: HOSPITALITY MARKETING MANAGEMENT, REID,ROBERT D. AND BOJANIC, DAVID C., CHAPTER 4, P. 127 to 145

7. SALES INDICATORS AND YIELD MANAGEMENT

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RevPAR example: An average room rate of $100, times an average occupancy rate of 50%means the revenue per available room (RevPAR) is $50

For Restaurants: Use of RevPASH - Revenue per Available Seat Hour. The same idea as hotelsuse to measure Revenue per Available Room. For RevPASH take the total number of 'seat hours'and divide total revenue for a period by this number

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KPI= Key Performance Indicator

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The ideal outcome of a revenue management strategy is to match customers' time and service

characteristics to their willingness to pay-ensuring that the customer acquires the desired serviceat the desired time at an acceptable price, while the organization gains the maximum revenue possible given the customer and business characteristics.

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The strategic levers of yield management are geared to matching service timing and pricing tocustomers' willingness to pay for service in relation to its timing. Based on customers' demandlevels and characteristics, management can shift the demand of those customers who arerelatively price sensitive but time insensitive to off-peak times. Shifting that demand clears primetimes for customers who are relatively time sensitive but price insensitive.

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Forecasting demand: pattern for demand based on historical figures and past trends, low v/s highseason, week days v/s weekends

Optimizing demand: at the price you want customers to pay

additional notes for marketing yr 2 slides

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