Marketing issues in the Czech Republic Richard Selby Czech University of Life Sciences, Prague

Marketing issues inMarketing issues inthe Czech Republicthe Czech Republic

Richard Selby

Czech University of Life Sciences, Prague

Orientation: remember the historyOrientation: remember the history

• 50 years of communism, before that….• 5 years of occupation• In any case it’s a young country:

– Czech republic: 15 years– Newly independent: 19 years– Czechoslovakia: 90 years

……..so, have the people changed in any way?

Think about the peopleThink about the people

Because marketing is all about people!

Basics of marketingBasics of marketing

ContentContent

• Marketing• Sales• The ‘P’s of Marketing• The Product Life Cycle• Market Segmentation• Advertising Agencies• Caring for Customers

Marketing and SalesMarketing and Sales

• Definition of Marketing• “Marketing is the identification and profitable

satisfaction of customers’ needs”

• Definition of Sales• “Sales is the last stage in the marketing

process”

Components of MarketingComponents of Marketing

• Identifying the needs• Satisfying them• Making a profit

“Matching the company’s capabilities to the wants of the customer”

The Four ‘P’s of MarketingThe Four ‘P’s of Marketing

• The Product• The Price• Place• Promotion

“Often called the marketing mix”

Some more ‘P’s of MarketingSome more ‘P’s of Marketing

• The Product• The Price• Place• Promotion• People• Planning, and• PROFIT!!!!

Product or ServiceProduct or Service

• The product is usually a tangible product or service, associated with an assessment or beliefs

• The product life cycle• A product strategy• A brand name to differentiate it from other

products offered by the same company or by a competitor

Price Price

• Quantifiable way of measuring the value customers place on a product

• Price can be based on costs, what the market can bear or positioned in relation to the competition

• A pricing strategy• Market entry, maturing and withdrawal prices • Discount price

Place or DistributionPlace or Distribution

• Selling points such as shops, regional centres, headquarters or a warehouse

• Retailer, wholesaler, mail order or the internet• Distribution channels are concerned with

relationships between the producer, the middleman/woman and the customer

“The name for the way in which a product or service gets from its point of origin to its final destination, to the person or the business that uses it”

Promotion Promotion

• Promoting a product or service involves informing and persuading customers to buy

• Having selected the audience there are many ways of reaching the audience through the following media and methods– television, radio, national newspapers,

regional newspapers, local newspapers, through the Internet, mail shots (direct mail), fax shots, email shots, telephone selling and personal selling

The Product Life CycleThe Product Life Cycle

All products & services have a All products & services have a Life CycleLife Cycle

Time

Mar

ket

Rev

enue

s

Introduction Growth Maturity Decline

Early Early adoptersadopters

Early Early majoritymajority

Mass Mass marketmarket LaggardsLaggards

Revenues

Prices

Competition

Fixed-Line TelephonyFixed-Line Telephony

Early adopters

Early majority

Mass market

Laggards

1998 2000 Time 2020Privatisation

Mar

ket

Rev

enue

s

Introduction Growth Maturity Decline?

Market SegmentationMarket Segmentation

(This is where we really need to find out about the people!)

Market SegmentationMarket Segmentation • Every market can be segmented into groups of

potential customers who have similar characteristics. The benefit to the marketer in doing this is that each segment has less variability than the market as a whole

• The most common bases of segmentation are:– Demographic– Socio-economic– Buying patterns– Personality, attitudes, values– Life style

Special considerations about the Special considerations about the Czech peopleCzech people

Are people in the Czech Republic the same as people in our home country?

Find out more at: http://www.geert-hofstede.com

Cultural considerations - HofstedeCultural considerations - Hofstede

Advertising AgenciesAdvertising Agencies

Advertising AgenciesAdvertising Agencies

Advantages

• One-stop shop for advertising, marketing and public relations services

• Usually work with one person, the account representative

• Design and manage a co-ordinated marketing and advertising campaign

• Access to the media on a regular basis

Advertising AgenciesAdvertising Agencies

Disadvantages

• Agencies are very expensive - besides paying for the final product, you are also paying for someone to take over the burden of managing your product

• Agencies generally want long term contracts and will not work on individual projects

Caring for your CustomersCaring for your Customers

ChoiceChoice

Given that there is little difference in

Products

Technology

Prices

What makes the difference?

ChoiceChoice

Customer service

Processes ….

Our relationship with customers

ComplaintsComplaints

In the UK

Dissatisfied customers

ComplaintsComplaints

In the UK

Dissatisfied customers

Complaints

ComplaintsComplaints

In the UK

Dissatisfied customers (100%)

Complaints (4%)

ComplaintsComplaints

In the UK

Dissatisfied customers (100%)

Complaints (4%)

ComplaintsComplaints

In the UK

Dissatisfied customers (100%)

Complaints (4%)

You never get to hear of the 96%!You never get to hear of the 96%!

ComplaintsComplaints

• “We only have about 3 or 4 complaints a month”

• Means we actually have about 100 dissatisfied customers!

Dealing with ComplaintsDealing with Complaints

• Never ignore the customer’s complaints – refer upwards if necessary

• Involve customers and staff in finding solutions

• Failing a solution, explain the issues to the customer – eg: the effect on price

Improving Customer CareImproving Customer Care

• Find out what your customers want• Compare what you offer to what your

competitors offer• Do something extra to attract customers• Keep abreast of product/service development

ReviewReview

• Marketing• Sales• The ‘P’s of Marketing• The Product Life Cycle• Market Segmentation• Advertising Agencies• Caring for Customers

Lost in TranslationLost in Translation

The Spanish translation read:

The Spanish translation read:

“Are you lactating?”

The Spanish translation read:

“Are you lactating?”

In Chinese means………

In Chinese means………

“Eat your fingers off!”

…..and Schweppes Tonic Water became

…..and Schweppes Tonic Water became

Schweppes TOILET Water……..when translated into Italian!

Barcardi’s new product in

Germany was called “Pavian”

Barcardi’s new product in

Germany was called “Pavian”

“Pavien” means “Baboon” in German!

Chevy, Opel and Vauxhall tried to

sell their “Nova” in Spain and S. America…..

Chevy, Opel and Vauxhall tried to

sell their “Nova” in Spain and S. America…..

…..only to find it means

“Won’t go”in Spanish!

……..and now, some advertising!..and now, some advertising!