Inseec - Strategic Marketing - Rodolfo Cremer

International Academic Seminars January, 2014

Rodolfo J. Cremer, MBA, Ph.D. (c) [email protected]

RodolfRodolfRodo fo J Cremfo J CrJ C MBA Ph DMBA (( )

© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios

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

The way we will interact (in this course)

“When teaching , teach also to doubt

what you teach” Ortega y Gasset


¿who are you? ¿where do you come from?

¿what do you expect to happen? (in this 6 hours)

¿who am I? ¿what am I doing here?

(what do I expect to happen)

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.

Student Teacher / Lecturer

Undergraduate • Business

Administration

Graduate • MBA

Doctoral • International

Administratrion

Education


Full Time Consultancy

Services • Education • Banking • Microfinance • Gaming • Beauty • Consultancy • Security • Health

Automobile / Motorcycles / Industry

Consumer Goods

Construction / Real State

Work Experience


¿who am I? ¿what am I doing here?

(what do I expect to happen)

¿what do you expect from a quality

“course” of STRATEGIC MARKETING?

www.marketingdeservicios.com

Getting to know your expectations

13

Expectations from the STRATEGIC MARKETING course

Course: Strategic Marketing INSEEC, Paris. 2014-01-20

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 [email protected] or [email protected] for any further information .

OK. Let’s start …

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.


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-)


2012 © - Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicioseservicios.com 17

In this seminar :

We are going to do something executives rarely do

(and I include myself of course).



We are going to

think (to think strategically)


We have no time to plan the future; we are too busy

solving today’s problems.

Anonymous

(and -on the way- we are measuring anything)

My own experience – Rodolfo Cremer


“I am interested in the future

because is where I am going to spend

the rest of my life”. Woody Allen



2 favours:


1. During learning periods the mind acts as

a parachute


It’s better when it is

open


The opposite to …


The closes to …


2. NO Paradigms / NO Prejudices.

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.

agenda (objectives) for today


Fuente: http://trescosashermosas.blogspot.com/2011/02/y-pensaba-que-telefonica-era.html


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]


to the

Relation

Requires a change of Paradigm!!

from the Transaction


The

BIG picture


Market Research

Segment // Targeting

Fuente y Elaboración: Rodolfo J. Cremer, Ph.D. (c)

Differentiate

Position (Positioning)

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

Marketing Plan

1. Actions: What, Who, When, How, Where, Why…

2. How much: forecast, Budgets and objectives.

3. Indicators and Ratios.

Understand the insight and the

consumer buying behaviour: habits, like, preferences,

fears, etc

Environment: external factors. Competitors, laws, social , politic, economic, technologic, demographic, geographic & trends and factors as values and lifestyle etc…

Total Market / Population

then …

“¿What is

marketing?”


Marketing Is

About War


35

Shaman from Piura TIE UP YOUR

IMPOSSIBLE LOVE


36

PLUMBER, in Trujillo, Perú.


37

FUMIGATION MAN, in Lima, Perú.

2014.01.16


Other proposals are more sophisticated and exciting





42

92% of our Customers are satisfy

with our service.


43

We arrive in 15 minutes or we pay

you $100

Which company is more commitmted?


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


¿What’s happened? [where’s the marketing?]

¿What is “Marketing”? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios

Marketing

Jerome McCarthy / Philip Kotler J MM CC th / PhilliC thC t K tlK tlK tl

To offer the customers Products and services

to reach the satisfaction of their needs, wishes and expectations.


The paradox of satisfaction


Let’s look at the example of the automotive

industry


Satisfaction does NOT guarantee loyalty

Completely satisfied Very satisfied Satisfied Very disatisfied completely

disatisfied

80% 10% 10%

80% + 10% = 90% Dropout Rate = 75%

mpletel

Only 15% renews with the same brand

In the automotive industry…


A LADA salesmas says:

“A LADA is forever …”

What he didn’t say was:

“… becasue nobody would buy it later”.


� 1 out of 4 Spanish companies (25.4%) expects to lose between 10% and 30% of their customers.

� 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.

Survey of more than 2.000 general directors, commercial directors and Marketing directors of the most relevant national and international companies of different sectors.


�Asked about the reason for the dropout, 73% of the customers mentioned “customer service” as the main one, compared to 21% of the managers.

� 50% of the managers attributed the dropouts to the price, while only a 24% of the “deserter” customers mentioned the prices as the reason.

� This difference speaks for itself about the learning & understanding necessary.


Survey of more than 2.000 general directors, commercial directors and Marketing directors of the most relevant national and international companies of different sectors.

and ¿HOW is the QUALITY of a

SERVICE measured?


Fuente: IMdS. www.marketingdeservicios.com

“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-


(1) Expectations

THE QUALITY EQUATION (in services)


I came for this promise

Pero recuerda y se queda con

esta realidad (y se lo cuenta

al resto!!)


E

I came for this promise

And I found this reality

(this is what he tells the

rest!!)


E P

C = P – E The Quality Service Equation


C = P – E ¿How much should C be (obligation)?


The Quality Service Equation

C = P – E ¿How much should C be (obligation)?

¿How do we ensure a C+?

0 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios


C = P – E 0 + © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios

¿How much should C be (obligation)? ¿How do we ensure a C+?



I have a question for you

Can we apply a high quality service strategy & operation

model in any business? � What about a supermarket?

(It's a “commodity store”?) � Or an “low fare” airline?



Quality, Service &

Good Price. Can we have

all three together?

In other words …

C = P – E Let see how (or if it) it works.




“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



“¡¡Best wishes and good

faith DOES NOT ensure that the CRITERIA of the

employees meet the EXPECTATIONS of the

CUSTOMERS!!” vvvvvvvvvviiiiiiccccciiiiooooss..cccoooommm



The first step: PART-TIME MAID NEEDED DOESN’T NEED TO KNOW ANYTHING

JUST OBBEY


“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)




“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 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios

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




Our values: • The customer is our reason for being • Our people is most important • Innovation • Superior performance


© Dr. (c) Rodolfo J. Cremer - Escuela de Postgrado Universidad San Ignacio de Loyola

WORD OF MOUTH: THE CONSUMER AS A MARKETING TOOL

Let’s talk about the “E”

¿How are (customers’) expectations formed?


79

Expectation: the Hope to do or get soemthing. Reasonable posibility of soemthing to happen- Possibility to get a right, an inheritance, a job or any other thing provided that a planned event happens.

Fuente: RAE. www.rae.es

Definition (according to RAE)


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

Marketing Communication of the company


Use the tangible elements and the environment of the meeting to show what the customers should expect.

“Athmosphere” created at the meeting point of the service

Control the implicit messages they containOther communications

Keep your customers satisfied so that they “speak well of you”

“Mout to Mouth” communication

Constantly check what the competition does [and howit does it]; use benchmarking

Personal Experiencewith other companies

What to doExpectation

Don’t allow “valleys and peaks” in the services of the company: clients always expect a steady quality of service

Personal Experience with the company

Do Not “over-sell ” the virtues of your services; sooner or later you will have to deliver the moon.

Sales Process Management

Don’t make primises you can’t not keep. You can Underpromise (and give more)

Marketing Communication


82 Fuente: MdS. www.marketingdeservicios.com

They 10 key Expectations [Berry, Parasuraman & Zeithaml]

¿What has

happened? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios

In XXI Century

Product Price Place Promotion

� Management culture dominated by the supply side.

Transactional Marketing



marketing was born in this era for this products

competitors & customers

It does NOT Work in XXI

century!


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)


� The intangibility [of the service]

� Simultaneity production – consumption

� Production process

� Contact company-customer

� Heterogeneity of services, and

� Customer engagement [in the production process]

Differences between Products and Services


Pure adoption I Birth 4Ps

Aplicability III Adaptation

Traditional Marketing

Internal Marketing

Relationship Marketing

A cry (shout) of freedom II Evolution 1977: “Breaking Free From Product Marketing” (Liberémonos del marketing de productos) G. Lynn Shostack, Vicepresidenta del CitiBank


therefore…

a three-dimensional approach is needed


91

Traditional Tradicional Comunication of promise

Internal Marketing Allows the delivery of what was promised (accomplish)

Relationship Marketing Delivers what was promised and manages the relationship

New Three-dimensional Perspective


92

Traditiona lMarketing Communication of promise

Internal Marketing Allows the delivery of what was promised (accomplish)

Relationship Marketing Delivers what was promised and manages the relationship

TraditionalMarketingCommunication of

i4Ps

InternalMarketingAllows the delivery of what was promised

Processes Standards

CRM

RelationshipMarketingDelivers what was promised

People Empowerment Experiences

Product Price Place

Promotion

Processes Physical Evidence

People Provision – “moment of true”

Homogeneity at the point of

sale: Tasks, tools,

formation, scripts, moments of truth…

Emotional connection: Abilitues, emotions,

attitudes, service vocation , “depart from the script”,

extra mile ,,,

Customer “moments of thruth”

New Three-dimensional Perspective


Product – Service

Phsycal Elements (evidence)

Place Process

Price People

Promo Provision Benefit- delivery

New Adapted Approach in XXI century (expanded marketing)

Fuente: MdS. www.marketingdeservicios.com

organization Process

(need cross-functional organization) customer


What is an organization chart like?

Contribution from

Prosper Bernard, Ph.D.

(mi professor at UQÀM

Graduate School)

This is the way in which a traditional organization chart works today



It’s not enough to do things right, we have to do “right” the “right” things.

… and these are the results…


� Comunication – direct marketing: increases its importance in saturation and lack of massive means

� Distribution: strategic partnership between the channel and the manufacturer, procedures and shared databases

� Service Marketing: increases customer satisfaction, frequency and quality of contact and its impact on loyalty.

� Marketing of industrial and high technology products: development of “one to one”, joint ventures, joint development and common perspective of the value chain

� Quality: TQC, TQM, importance of the quality of satisfaction.

� Flexible Production – JIT: cost reduction of changes enables the client-oriented strategy. Orientation to maximun flexibility in scale economy

� Enterprise Strategy: “keiretsu” clusters with interrelated interests and long-term commercial links



¿what is marketing? [then]


Marketing According to G. Lynn Shostack

Marketing is the area (and the processes)1 in charge of

keeping the link between the company and its customers

link = relation ¿elements of a relation?


1. Contribution from Mr. Victor Requena. UQAM XVI.

link = relation ¿elements of a relation?

Satisfaction Trust

Respect Comunication

A relation: Win – Win Loyalty

Fidelity (trust) Passion

Love + Convenience Forgiveness Kowledge

They are not the same


¿Why is customer service important? � More loyalty from consumers, customers and users.

�Increase 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).

�More frequent sales, more repetition of business with the same clients, users or consumers.

� A much higher level of indivudual sales per customer, consumer or user (satisfied clients buy more of the same products and services).

�More cross-selling, since the customers are more likely to buy other products or services from the company.

�More new customers acquired through word of mouth communication , the references from satisfied clients, etc.

�Lower expenses in traditional marketing activities (advertising, sales promotion and so on).


¿Why is customer service important? �Fewer complaints so therefore fewer expenses solving them.

�Better image and reputation of the company.

� 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).

� A better internal working climate, since employees are no longer under the pressure of frequent complaints form users, customers or consumers.

�Better internal relations inside the staff since all of themwork, together, towards a common goal.

�Fewer complaints and absenteeism from the staff (higher productivity).

�Lower staff turnover.

�More market share.


Acknowledging the need

Searching information

Evaluating options

Buying anf consuming

Functional characeristis are considered based on theri importance. Its presence iin the product that is most useful (defined as the sum of weightedfeatures). Anything that does not fit is “image”, “irrelevant” or “meaningless”

Competnece is produced inside a restricted andefined product category: the battle field of the product managers and brand managers

� Regression models � Positioning maps � Joint analysis (functional

advantages perceived by the consumer)

(according to Bernd Schmitt)

Fuente: MdS. www.marketingdeservicios.com

[ soemthing to take into account … ]

“The essential difference between

emotion and reason is that …

[ 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]

“the wallet is closer to the heart than it is to

head.”

d1 d2

d1 < d2 $


� Less loyal to a brand

� Wider varierty of choices (election)

� More diverse needs

� Makes decisions at the selling point

More heterogeneous and harder to reach customer

It could be up to the 80%


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. Theyey y knoww w theiri r ownwn n valueue 8. They are proud to be “butterflies”: they know they have the

power.

Adapted from Pajunen y O’dell


Excelent service (feeling of being

exceptional) Pride of belonging “red carpet”

Put the price on the second place

based on their ”level” as a customer

“one to one” treatment .

(what they value more than the link

“company-person”)

Routines and “lazyness” to look

for another supplier, sale cost based on comfort

Adapted from Pajunen y O’dell


� Suspicious and cautious

� Experienced � Skeptic � Impatient � Unpredictable � Highly informed � Non conformist � Bad-tempered � Bothersome

Troublesome � Somebody has to pay

for what’s happening

Adapted from de Pajunen y O’dell


Hiper connected (AAA)� Any Device � Anywhere � Anytime

Adapted from Marketing de Servicios – tendencies 2014

The Rise of Generation C � Connected � Communicating � Content-Centric � Computerized � Community-oriented, � always Clicking


(AAA + Generation C)


115 Fuente: MdS. www.marketingdeservicios.com

“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

¿What do CUSTOMERS EXPECT from

US? Fuente: Berry, Parasuraman & Zeithaml


Customers can believe & trust In our standard quality

Reliability- Credibility

E P

“we don’t have customers , we have believers”

Carlos Navarrete DIES business partner


The employees are willing to provide the service when the customer needs it.

responsiveness

E willinThe employees are w

P © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios

The staff treats the customers kindly and attentively they don’t react negatively with an angry customer.

Courtesy

E reatsThe staff tr

P

“we just sell the product, we

don’t manufacture it.”

An important department store in

Perú


Adequate location and schedules, signaling, services provided match the customer times,

managers willing to listen.

Accesibility

E e locAdequate


The staff explains clearly without using technical words; they listen patiently.

Communication

E ns cleThe staff explain


Customers expect to be heard and helped; the satff “understand the customers’ side”.

“Personalized” service (segmented).

E mersCustom

P

Somebody calling himself

customer asks for soemthing called

service

SS yy ccelf

SommmmmmmmmmmmmmmmmmmmmebodySomebodyhimse

Understanding


The staff knows how to provide the requested service. Know your products!

Professionalism

E P


The company cares about the customers’ physical and economic safety, (data) confidentiality.

Security

E omicecono


Comunication is very

important ! © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios

Listen carefully © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios

make

questions



Film:

The beaver and the shepherd

Don’t “jump” to conclusions

Often, problems occur due to

a poor communication.

! © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios


Film:

Nose operation

Before going on Lets’ make a short summary


[ something to keep in mind ]

“the key difference between emotion and reason is that …


[ something to keep in mind … ]

emotion end up in action while

reason ends up in conclusions.” Kevin Roberts [Lovemarks: the future beyond brands]


“Not everything that can be

counted counts;

Not everything that counts can be

counted” Albert Einstein

fuente: www.marketingdeservicios.com

Final Considerations


“what’s important is invisible to the eyes”

Antoine de Saint-Exupéry en El Principito



“90% of what we call ‘management’ consists of

making things hard for those who must do

things.”— P.D.



�Fidelity (trust) is not Loyalty.

�The CRM [technology without strategy] guarantees nothing.

�Classical Marketing doesn’t work anymore.

�Customer service is a key element to keep customers.

�A radical change in the communication paradigms: we moved from publicity and (massive) promotion to personalized communication.

�Quality is not enough; we need kindness (human Q).





complaints book

(“public”) Commitment of

quality

The “employee” of the month!


141

Now… let´s see traditional

(transactional) marketing © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios

142

CAUTION there's no space for mistakes here


143

Customers

Company

Competitors

S. W. O. T.

Segmentation & Target

Differentiation& Positioning

Product Place

Promotion Price

Focus the strategy with quatitative and cualitatove criteira

Marketing External Environment

Target Market

Process of Strategic Planning


144

SEGMENTATION

What’s a segment? Where do they come from?

Why we need segmentation? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios

145

UNSEGMENTED MARKET SEGMENTED MARKET

DIMENSIONS: THE CONCEPT, THE TECHNIQUE AND THE STRATEGY


� Generally ,a company cannot serve all the customers in a big market.

� They are numerous, disperse and their purchase requirements vary.

� Any competitor, will be in a better position to reach specific segments.

� 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.

� The company has to idnetify the most attractive segments that it can serve more efficiently than the competence.

SEGMENTATION


� 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).

� Differentiated or concentrated segmentation allows the adjustment of products, prices, distribution channels and communication to reach the target market more efficiently

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”

INTRODUCTION


Differences between men and women

Nadal vs Steffi

SEGMENTATION


•Consumers from a segment should be as similar as possible regarding their probable answers to the mix of variables in marketing and their dimensions of segmentation.

f h ld b l bl d h

To be instrinsincally homogenoeus (similar)

•Consumers from many segments should be as differetnt as possible regarding their probable answers to the mix of variables in marketing.

•Consumers from many segments should be as differetnt as possible reg

Heterogeneous among themselves:

•To guarantee the profitability of the segment. •To guarantee the profitability of the segment

Big enough:

•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.

Operational:


unsegmented

Focused on a segment

Concentrated

Individualized

Massive Marketing

Segmented Marketing

Niche Marketing

Marketing 121

tt

MMMM

Ma


GEOGRAPHICICIC

DEMOGRAPHICICIC

SOCIOECONOMICICIC

PSICOGRAPHIC AND LIFESTYLESESES

BEHAVIORALALAL

BY TYPE OF USESESE

SEGMENTATION


© Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios Link al video

Men & Women Brain

154

DIFFERENTIATION & POSITIONING What’s Differentiation?

Why we need Differentiation? What’s Positioning?

Why Positioning is important? © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios



157

Customers

Company

Competitors

S. W. O. T.



Product Place

Promotion Price



Target Market




“If I'm going to sing like

someone else, then I don't need

to sing at all.”

Billie Holiday

DIFFERENTIATION


M. Porter (1996)

“The essence of strategy is choosing to perform activities differently than rivals do.”

DIFFERENTIATION

� To establish a series of MEANINGFUL DIFFERENCES , to distinguish the supply from the company from those of the competitors

DIFFERENTIATION

definition


DIFFERENTIATION


DIFFERENTIATION



163

THE COMPETENCCE IS NOT WON COMPETING … SUCCESS COMES FROM THE FACT OF BEING DIFFERENT.

4P � Process � Provision –

“Moment of truth” � People-person � Physical evidence

the new

concept

DIFFERENTIATION

1. BETTER PRODUCT

2. NEWER

3. FASTER

4. CHEAPER

5. ABILITY TO CHANGE

DIFFERENTIATION 44 Ways to generate value [5 really]


1. BETTER PRODUCT

2. NEWER

3. FASTER

4. CHEAPER

5. ABILITY TO CHANGE

Be very careful

DIFFERENTIATION 4 Ways to generate value [5 really]


� What’s a competitive advantage?

Competitive Advantage



“Something” my company

has

“Something" that my

competition does not

“Something" my market

wants

“Somemy m

2012 © - Dr

Competitive Advantage

COMPETITIVE ADVANTAGE


� The ability to learn quickly more about our customers than our competitors do, &

� The ability to quickly convert that knowledge into action faster than our competitors do.”

Jack Welch, CEO de GE

“We have only two sources of competitive advantage:

COMPETITIVE ADVANTAGE

SYMBOL / BRAND

MASS MEDIA

ATHMOSPHERE

EVENTS

COMPETENT

COURTESY

CREDIBILTY

RELIABILITY

RESPONSIVENESS

COMMUNICATION

DELIVERY

INSTALLATION

CUSTOMER TRAINING

CONSULTING SERVICE

REPARIRS

MISCELLANEOUS SERVICE

CHARACTERISTICS

QUALITY PERFORMANCE

COMPLIANCE WITH SPECIFICATIONS

DURABILITY

RELIABILITY

REPAIR CAPABILITY

STYLE

DESIGN

4. IMAGE 3. STAFF 2. SERVICE 1. PRODUCT

DIFFERENTIATION 44 dimensions to differentiate


PRODUCT VALUE

SERVICE VALUE

STAFF VALUE

IMAGE VALUE

MONETARY PRICE

TIME COST

ENERGY COST

PHYSICOLOGICAL COST

TOTAL VALUE FOR THE

CUSTOMER

TOTAL COST FOR THE

CUSTOMER

CUSTOMER NET

VALUE

Differentiation by Value



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.

DIFFERENTIATION


7 Criteria to validate a differentiation strategy: 1. And also you can …

Video: Bud - Drinkability

Video: Jet Blue

Inverse Differentiation

DIFFERENTIATION


beware hyper competition

“immutable” (strategy & marketing) rules.

big fish eats’ small fish


… they are not any more.

fast fish eats’ slow fish

beware hyper competition

175

Clients

Company

Competitors

S. W. O. T.



Product Place

Promotion Price



Target Market



The Market’s

Life cycle © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios

Cycles are geting always shorter …


� TThe Life Cycle of the product: describe the stages through which the idea of a new product goes, from beginning to end:

� Introduction in the market

� Growth in the market

� Maturity of the market

� Decline of sales

PRODUCT’S LIFE CYCLE

definition


0,0

Máx.

LOS

S

PRO

FIT

I&D Growth Maturity Decline Introduction

SALES

PROFIT

time

MARKET’S LIFE CYCLE


MARKET’S LIFE CYCLE INTRODUCTION - GROWTH


MARKET’S LIFE CYCLE MATURITY


Product’s life cycle

I&D Growth Maturity Decline Introduction 0,0

Máx.

BCG MATRIX & LIFE CYCLE


stage

Competitive situation

product

place

promotion

prize

Introduction

Monopoly or monopolistic competence

One or a few

Build channels Maybe selctive distribution

Create basic channelsr Innovative information high? descreme bajo? penetration

growth

Monopolistic competence or olygopoly

variety: try to find the best product Create familiarity with the brand

Create selective demand

Deal with competence(specially in the ologopoly) Price reduction offers

maturity

Monopolistic competence or olygopoly oriented to pure competence

All the products are the same; the brand wars grows

Trend to a more intense distrubution

persuade / remember

decline

Pure competence

Some products abandon the market; price war

¿new emergent markets?

(frenzied competence

LIFE CYCLE. Management & Development


PRODUCT


In 1954:

How will looks lihe a home computer in 2004

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


� The idea of “product” as potential satisfaction or benefit for the customer is the most important

� The industrial customer or manufacturer will be interested in the utility they will get once they use the “product” and sell it again


physical good servicecombination

100%

0% 0% 100% Emphasis on

the service

Emphasis on the physical

good

Nails, (some) canned soup, electric cables, tubes

Food in a restaurant, car tunning

Bank services, haircuts, mail service.

Commodity

diferentiation


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 company-customer contact

Frequent company-customer contact

Standard demand inside the same category

Customers have their own personal demands regarding the same service.

next …

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.

Key Differences: MDS www.marketingdeservicios.com


Prroduct’s type and variety

The types of product begin with the type of customer

� All the products fit in one of the 2 general groups based on the type of customer:

� Conmsumer Products: orientend to the final user

� Industrial Products : oriented to make other products


CComsumer products � The consumer products are classified in 4

groups:

� Convenience products

� Comparision poducts

� Specialty products

� Unsought products


Type Sub- type Examples

Convenience

Basic Salt

Impulse Chocolate; magazines

Emergency ICE; car batery

Comparision Homogeneous Mobile Phone Samsung vs. LG

Heterogeneous videocamera

Specialty X ray machine

Unsought Newly unsought Trout fillet; motorbikes

Normally unsought Finisterre Burial insurance

The same product can be seen in different ways simultaneously

PRODUCTS: GOODS AND SERVICE

EExampExam

Consumer products - SUMMARY


“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”


BRANDS � Renokwn brands make buying easy

[for example a supermarket has 25,000 items / now 60,000!]

� A good brand reduces time and sale efforts.

� Sometimes the only element of the marketing mix that competitors cannot copy [unless you are in a not developed country].

� Speeds up the acceptance of new product associated to it.

PRODUCTOS: BIENES Y SERVICIOS


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 …


“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

SStrategic importance of packing � The packing includes the product’s protection and

promotion � It makes it easier to use and store it. � Prevents deterioration and damage. � Good packing makes product’s identification easy &

promotes the brand in the SP (sales Point)

� It should link the product with the rest of the marketing strategy.


� A good packing “usually offers” a better promotionap effect than publicity, becasue it is seen at the store where people buy.

� It should take the smallest space at the store, be protected, easy to pile up, transport and exhibit.

� It should be identified using a bar code (or new tech…)

SStrategic importance of packing


Warrantee � Warrantee : what the seller promises about the

product

� The laws, the needs of the client and the offers form the competence must be taken into account.

� The common law states that manufacturers must endorse their products, even if they don’t offer a warrantee.

� The warrantee should be available before the purchase.


� The warrantee is an attraction that can improve the marketing mix

� The risk to offer a warrantee is higher for a service than for a product.

� The warrantee costs must be included price

Warrantee


PRICE


205


206 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios

I have a question for you

207

¿Is the

PRICE the most important

variable of the marketing mix?


208

“If you pay peanuts …

Introduction

… you get monkeys”


“I buy; then I exist.” Rodolfo J. Cremer, MBA Ph.D (c)

“You are what you buy”.

Guillermo D’Andrea, CAMP 2006


“if you can pay, you can stay”

“You value how much you have”. Brother Fred Fink SM, from my [Christian] school, 1980 – 1984.


FLIGHTS FROM 19 EUROS WE ARE NOT JOKING, WE ARE GERMAN

From Spain to Germany up to 50 times a week



introduction � Price is one of the 4 main variables the marketing

manager controls .

� (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.

OObjectives & Price Policies


introduction Basically the marketing manager must decide:

� 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



Sales increase in units or dollars

Market share growth

Expected performance

Maximize profit

Match the competence price

Competence unrelated to the price

Objetives of prices Sales oriented

Profit oriented

Status Quo oriented

Objectives & Price Setting


Commercial [channel]

Size Season [season]

Price Discounts

Offer price Cash

Discount

Objectives & Price Policies


Value-of-use

Psychological Odd- Even

Prestige

Leader Price range

Set forth [demand]

Reference

Methods for price setting

demand- oriented

“bait” [hook]

PPrice Setting Demand Oriented


220

The taxi driver example


221

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

The taxi driver example


222

The house-to-house clothes salesman

(In a extremely poor zone in Lima)


223

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) …

12,875% !! [1.36% a day]

¿Sir, what’s a “Sol” a day,?

Go to excel

¿What was the annual interest rate?

The house-to-house clothes salesman


224

0 D

0

Price

Quantity 0

D2

D1 D D

D

B. Move it ot the right A. Make it less elastic C. Both: less elastic and to the right

Promotion and Demand Curve Demanda Elasticity

Price Price

Quantity Quantity


225

Mathematically, it isexpressed in the following way, where: Ed elasticity, Qd required quantity and P price: � 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.

Objecctives & Price Policies

elasticity


226

Let see the example of Beer


227

The elasticity of Beer Background:

� You work in a top cafeteria in a 5-star hotel located in San Isidro (business district in Lima).

� Price of Beer P0 (all the brands) = S/.10.00 � Daily average sales (Q0) = 15 bottles of 330ml

Opportunity:

� 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.


228

Preliminary results: � The campaign is successful. The sales increased. � Soccer days are booked which completes the cafeteria’s

capacity. � The general sales of snacks and mixed drinks, have rapidly

grown (& the average ticket increased). � However, the daily beer sales is still constant (15 bottles a

day). Question:

� What has happened with the sales of beer and soccer? � There is no correlation between them?

The elasticity of Beer


229

Experiment: � 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:

� Is beer, in this case, an elastic good? � What has happened with the gorss margin (per unit) assumin a

unitary cost of S/.1.50 per bottle? � What decision would you make based on these results and

analysis?



230

Po P1 Prom Qo Q1 Qprom10 6.99 8.495 15 180 97.5

Demand's price elasticity:

(Q1 - Qo)/Qprom (P1 - Po)/Prpom

= -4.77613085

� 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.



231

0

2

4

6

8

10

12

0 20 40 60 80 100 120 140 160 180 200

Cantidad

Prec

io

Esc 1 Esc 2



232

� 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.

Esc 1 Esc 2Unitary Price 10.00S/. 6.99S/. Unitary Cost 1.50S/. 1.50S/. Unitary Gross Margin 8.50S/. 5.49S/. -35.4%Margin % 567% 366%

U sales 15.00S/. 180.00S/. sales S/. 150.00S/. 1,258.20S/. Costs S/. 22.50S/. 270.00S/. Gross Margin S/. 127.50S/. 988.20S/. 675.1%



233

Elasticity -some conclusions-

� If the demand is elastic to the price, it is possible to lower the price to increase the total profit

� If the demand is not elastic to the price, it is

possible to increase the price to get higher profit.


elasticity


234

Factors that determine the lack of elasticity of the demand:

1. There are a few or no competitors 2. Buyers do not easily perceive the higher price 3. Buyers slowly change their consumption habits 4. Buyers think higher prices are justified by quality, infalation or

other reasons

elasticity


Elasticity -some conclusions-


235

� The time orders are processed � Procedures to process orders � The place where the inventary

is storaged � Accuarcy of the order’s

delivery � Cost of rejected or returned

orders (freight, time, damaged product)

� Rotation rate and finnancial costs

� Size or variety

� Delivery costs [fake or false freights]

� RE-processing costs due to defficient quality

� Robberies, shortage, obsolete goods

� Direct costs: insurance, electricity, staff, maitenance

� Indirect costs [service, systems and security staff]

� Lost sales due to shortage, delivery time, etc …

OOther factors that influence Cost & Price (usually hidden)


236

Market’s Life Cycle

Distribution and Surcharge chain

[mark-up] In the channel

Target price

Discounts and bonus

Law, restrictions

and price control

Price flexibility

Geographic prices’

conditions

Demand’s response

Costs

Price of other products of

the same line

Competitors and

substitutes

Price setting

Experience curve

Company objectives

Elasticity

Breakeven point

Key factors that influence Price Setting

© D

r. (c

) Rod

olfo

J. C

rem

er –

MdS

Mar

ketin

g de

Ser

vici

os

The war of prices!


Who wins & Who loses the price war?



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.

241

� ¿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.


242 Fuente: Ph.D. Moez Limayem, Dean College of Business USF. Conferencia en USIL el 9 de mayo, 2013.


� 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?

243

Clients

Company

Competitors

S. W. O. T.



Product Place

Promotion Price



Target Market



PLACE



Domestic gas distribution. Lima, Perú.


Montreal, Canadá. © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios

iintroduction

PLACE [also meanes, distribution]: “to put the goods and services in the right quantity and place

when the customers wants them”

� Distribution channel: series of companies or people that participates in the flow of products from the manufacturer to the final consumer.


� Responds to the time and place use.

� The type of product helps define how much exposure in the market is needed according to each geopgraphic region.

� The same target market must show the same attitudes therefore it should be satisfied with the same type of distribution.

introduction


� Channels’ system can be: � Direct, when the maniufacturer is in

charge of the complete distribution, or

� Indirect, when it is in charge of wholesaler, retailer or other specialists.

Channels’ system


• Gives part of the control over the marketing mix to the intermediary

• An effort should be coordinated to meet common objectives ( it’s not easy n the channel has too much power.)

• It is the easiest way to enter international markets

• The intermediaries invest in keeping an inventary and a commercial structure and take the risks of credit.

• More used in products where the consumers are disperse.

• Total control of the variables of the marketing mix

• It’s not easy to work with indepent intermediaries who have their own objectives

• When there’s a new product there aren’t interested intermediaries

• When there is a lack of finnancial resources or knowledge to develop a distribution channel

• More used for industrial products with a few grouped consumers

Indirect Distribution Direct Distribution

Channels’ system


More control

Lower costs

Added value in the production process

Direct contact with the customers’ need

Faster response and changes in the Marketing Mix

There isn’t any available intermediary channel

More control

Lower costs

Added value iproduction pro

Direct cthe cust

FastSome Reasons To choose Direct Distribution


Sppecialized intermediaries

Place

Promotion

C Product

Price

Product

Price

C Place

Promotion

Channel run by a manufacturer

Channel run by a retailer


PROMOTION


definition � 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 � There is [normally] inmmediate feedback that helps to make

appropriate changes or adjustments.

� Sometimes is very expensive.

� Personal sales � refers to the “one-to-one” sales, interacting with customers.


characteristics � A seller attracts more atention than an add or

a shelf.

� He can addapt (the speech directly with the customer) based on his partner’s feedback,culture and other influences of thecontext or the behaviour.

� He can ask questions to get to know his prospect’s interests.


Massive sales

� Massive sales: consists of establishing communication with big quantities of prospects at the same time. � It’s less felxible than personal sale.

� It will be cheaper if the target market is big and disperse.

� There are two types.

� Publicity [advertising]

� Publicity for free [publicity]





Introduction [Advertising]

� Can cost a lot of money.

� Can rapidly reach many people.

� Can produce a combination of short and long term results.

� Can greatly contribute to position the marketing mix.


� Add & Publicitary objetives should be more specific than the personal sales.

� A seller can modify his presentation, but an Add should reach a target audience with a fixed and specific communication.

Objectives of Advertising & Publicity


Introduce new products

Position brands

Get distributors (Commercial – Distribution Channel)

Ongoing contact (“top of mind”)

Support sales force

Inmediate response

Keep relations (Confirm the purchase)

Strategic Decisions to EstablishAdd & Publicity Objectives


� No Pay Add: is any "free" form of non-personal presentation of ideas, goods or serviceses.

� Try to call attention to the company and its offer without having to pay for the cost of mass media.

� If the company has a very new message to communicate, publicity (non paid add) can be more efficient than the Add (pay).

Free Add � Publicity


� 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.

� It can oriented to the public, the intermediaries or the company staff.

� It can be quickly implemented and produce fast & short-term results.

Sales Promotion




Sales Promotion

� Sales Promotion � In fact, it genrally has the objetive of

producing inmediate results.

� Usually uses more money.

� There are differents types: � Coupons � Raffles � Commercial exhibitions � Sponsoring



Final User / Consumer oriented

Contest Coupons Isle exhibition Free samples Commercial exhibitions Materials at the sales point [POP] Signalling Prizes Sponsorship

Intermediary oriented

Sales Discounts Sales contest Calendars Gifts Commercial exhibitions Catalogues Meetings Merchandising

Sale Force oriented

Contests Bonus Meetings Clients’ portfolio Shelves Sales help Training material


There is NO mix of ideal communication for all the situations.

a basic strategy is generally chosen:

Push

Pull

Communication Strategies


� 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).

The Push Strategy


� 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.

The Pull Strategy


� (A combination of) Both strategies are (must) generally used simultaneously, at some degree.

� Using both reduces the risk of failure and increases the probability of success.

� The mix (of Push & Pull) changes if we are dealing with final or industrial customers.

Push & Pull Strategies




Example: Commercial

campaign, Objetives, Metrics and Results. “you can not manage what

you cannot measure”.


278

Inserted or Mass Media

Adds

Sales campaigns and

exhibitions

Exhibitions at fixed points


279

Inserts or Mass Media Adds

Exhibitions at fixed points

(stores)

Temporary sale point

Telemarketing: Entering the prospect in the system

Sellers

Prospects

Phone

Second-hand Sales adds


280

Examples of Adds (inserts):

Free phone line 800 + associated line

(L - D, 9am a 8pm)

Technical details and specifications Prices and sales

Bonus for returning


281

Basic models and benefits

Especial prices and offers

Sale points addresses

Free phone line 800 + associated line

(L - D, 9am a 8pm)


282

Sales campaign


283

Head Office

Sales Points


284

Jockey Plaza, mall

Second-hand


285

Pandero

Suzuki / GM San Miguel

Other Sales Points


286

Prospects

Inmediately (when picking up the phone) Efectiveness of Add & Publicity and sale point ¿How did you know about 800? ¿How did you get to the SP.?

48 Hours Selesman (vendor) quality service

After 30 days: If you bought (which brand. Model, new/second -hand) If you haven’t (a second-hand is offered)

Feedback TMKT calls � Telemarketing :

Entering the prospect in the system

nEf

H

IE

�

T l k ti


287

System

Telemarketing:

•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...

Entering the information


288

� 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...


289

� 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.


290

Insert cost $20,000Total number of pages 8Unitary cost per page $2,500

Suzuki Automóviles

GM Automóviles Motocicletas Usados Totales

Number of pages 3 4 0.5 0.5 8prorated cost $7,500 $10,000 $1,250 $1,250 $20,000Total of genenrated prospects (7 days) 90 50 30 90 260

closing rate (10%) 9 5 3 9 26gross margin 15% 10% 30% 10%balance point $50,000 $100,000 $4,167 $12,500 $166,667

average net value per unit $15,500 $15,500 $2,120 $5,000

average units for balance point 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

expected gross margin (sales- sales cost) $20,925 $7,750 $1,908 $4,500 $35,083

Campaign contribution (Gross margin - prorated cost

$13,425 -$2,250 $658 $3,250 $15,083

Contribution / Investment 179% -23% 53% 260% 75%

Economic Result of the Advertising Campaign


291

� Marketing de Servicios, España. http://www.marketingdeservicios.com/

� Marketing: un enfoque global. McCarthy Jermome; Perreault, William 13a Edición

� Fundamentos de Marketing de Servicios: conceptos , estrategias y casos. Hoffman; Bateson. Ed. Thompson.


292 © Dr. (c) Rodolfo J. Cremer – MdS Marketing de Servicios r. (c) Rodolfo J. Cremer – MdS Marketing de Servicios© Dr

292

Questions?

Final Conclusions Seminar Conclusions’

1. abc

2. abc

3. …



thanks !

www.marketingdeservicios.com Rodolfo J. Cremer, MBA, Ph.D. (c)
