Special Slides for Marketing Management 2 (1)

8/6/2019 Special Slides for Marketing Management 2 (1)

1/27

Rethinking some of theRethinking some of the

Marketing Management UnitsMarketing Management Units

FURTHERFURTHER

DIMENSIONSDIMENSIONS


2/27

The Relationship between providers andThe Relationship between providers and

users in nonusers in non--commercial organisationcommercial organisation

Do public serviceorganisations haveCustomers?

1 Pro arguments2 Anti arguments

3 ProactiveCustomers?

4 ReactiveCustomers?

SupplyingOrganisation

Business?

Pros Cons

Is based uponproviding Services?

Should beProactive orReactive?


3/27

ORIENTATIONS?ORIENTATIONS?

CUSTOMER? Customer is always right

We can accommodate the problems of individual users

People in organisation have direct contact with customer

PRODUCTION OR SERVICE ORIENTATION? Deliver methods are set by management without taking user

needs into account

Design and production of service involves costs that areunjustified

Service is seen as more important than the benefits it gives tousers


4/27

ORIENTATIONSORIENTATIONS ContinuedContinued

SYSTEM ORIENTATION? All our activities are rules by standardised procedures

All staff have no autonomy to be flexible in responding to theusers/customers

A hierarchical system of control and line management Creation of a bureaucratic culture

MARKETING ORIENTATION? Managers identify those areas and activities where its interests

are consistent with its customers

A continual search for better ways of satisfying customers andmonitoring effectiveness and customer satisfaction

Every in the University own the marketing approach!


5/27

UniversitiesUniversities

Passive BuyerPassive Seller or?Passive BuyerPassive Seller or?

MARKETING ACCOMMODATION

FOOT IN

THE DOOR NO BUSINESS

PRACTIVE

CUSTOMER

REACTIVE

CUSTOMERS

PROACTIVE

SELLER

REACTIVE

REACTIVE

SELLER


6/27

4Ps FOR A UNIVERSITY IS?4Ps FOR A UNIVERSITY IS?

PRODUCT....? a Service

PLACE...? crucial, physicaland electronic Market Place

Online Shopping parallel? PRICE.? money, entry

points; who choosing WHO?

PROMOTIONS..?

SHOULD WE ADD PEOPLE?

SHOULD WE ADD PLANNING?


7/27

THREE FUNDAMENTAL QUESTIONSTHREE FUNDAMENTAL QUESTIONS

IN PUBLIC SECTOR MARKETINGIN PUBLIC SECTOR MARKETING

Who are our clients?

How can we respond to them?

How can we resource our activities?

Should public service organisations

strive to desire to have a UserCharter, e.g. do you remember the

Patients Charter?


8/27

Driving Forces ofPublic SectorDriving Forces ofPublic Sector

MarketingMarketing

Social considerations and aspirations Meeting social need a Right?

Access and Widening participation

Limited choice as to what is available

State and/or client may be buying/paying the cost of meeting theneed

Distress purchasing - NHS

Economic Realities and necessities: who pays? Resources and budgeting

Political guidance Lip service to increasing power of individual schools

Encouraging increasing competition


9/27

UNIT 3UNIT 3 BUYER DECISIONBUYER DECISION

MODELSMODELS

Customers, Consumers, buyers and Users

Market = group of similar customers whodecide what needs are to be satisfied.

Buyer = a consumer who pays for a unit ofthe product/service on offer and probablyconsumes it

User: Buyers and User terms used

synonymously in the private sector User: Public sector buyer and user are

different agents


10/27

Which way to think of this.?Which way to think of this.?

BuyerBehaviour or UserBehaviour?

CustomerBehaviour: how consumers think andact in buying and consuming products andservices from both profit and non-profitorganisations (Howard 1989)

In public orgs a high proportion of transactionsare free at the point of delivery

In public sector you have a Governmental

Market national, local and at individual levelor mediated through a system, e.g. HEFC &QAA via DfES


11/27

Tangibles and IntangiblesTangibles and Intangibles

Tangibles:

Services to People: Surgery, Transport

Services to things: House maintenance, road

repairs

Intangibles:

Services to People: Education, Citizens

Advice Services to things: Building Regulations

approval


12/27

COMPETITIONCOMPETITION

PRIVATE SECTOR?

PUBLIC SECTOR?

CHARITY ORGANISATIONS? VOLUNTARY ORGANISATIONS?


13/27

What is the relationship betweenWhat is the relationship between

the provider and the customer?the provider and the customer?

Providers are? University

QAA

HEFC PROFESSIONAL BODIES

ORGANISATION MANAGEMENT

LECTURERS AND TEACHERS

SUPPORT SERVICES Beneficiaries? students, parents, employers,

future spouses etc


14/27

Do nonDo non--private orgs. Still need toprivate orgs. Still need to

do a Market Audit?do a Market Audit?

1. Yes or No? Back up your Answer

2. What is involved in a Market Audit?

The Environment Nature of Market

Our Organisation and its Systems

The Marketing Function


15/27

Key QuestionsKey Questions

What services should a University provide? theTotal Product

What are the mechanisms by which the

customer has user experiences? Interpersonal with people in the organisation

The environment of the organisation

The organisations procedures The Systemorientation v market orientations?

What kind of data do we need about thecustomer experience?


16/27

MARKETING OF SERVICESMARKETING OF SERVICES

Do you remember the five ways that these

can be distinguished from tangible goods?


17/27

ANSWERANSWER

INTANGIBILITY Not Physical

INSEPARABILIT hard to separate from the person orpeople who deliver the services

HETEROGENEITY (lack ofuniformity): hard tostandardise the service experience or quality of it overtime or from different providers of the same organisation

PERISHABILITY: cannot be saved/stored for lateruse

SYNCHRONICITY: Matching level of demand to the

level of capacity/provision OWNERSHIP: easier to think of hiring a service but not

owning (in the sense that I own a packet of fish fingers)


18/27

ISSUES RELATING TO SERVICE,ISSUES RELATING TO SERVICE,

CONTROL AND QUALITYCONTROL AND QUALITY

The Transaction or service package

Importance of customers and marketing

Customers and expectations Issues of response

Issues of resources, control and quality

Performance measurement Positioning and strategy


19/27

Concepts ofControl and QualityConcepts ofControl and Quality

Control Systems: Quality Management - technical and relating to efficiency

Quality Control seeks to maintain standards by continuousinspection

Quality Assurance the use of precise procedures to achieveclearly defined objectives, e.g. BS 5750

Total Quality Management (TQM) Tries to achieve customer orientation by building in at all levels

in an organisation by looking a Total CustomerResponsiveness via: search, arrival, pre-contact, withdrawaland follow-up stage model of customer experience.

Points of Focus: Customer Satisfaction; Zero defects; On-timeperformance; Nil defections; Cycle times

Performance Measures: three Es: Economy, Efficiencyand Effectiveness


20/27

Problems with CUSTOMERProblems with CUSTOMER

EXPECTATIONSEXPECTATIONS

Assumes the Power of the Buyer

Assumes UserChoice

More power to the User and thus the increased

importance of the users perceptions of quality Assumes competition (therefore strengthening

the User and their power ofChoice)

Source of Expectation levels

Hard to experience the Service before becominga user

Perceptual, attitudinal and informational drivers


21/27

DO PROSPECTIVE STUDENTS GO

THROUGH THE BUYER PROCESS

What is the BuyerProcess?

What are the Buyer Roles


22/27

COMMUNICTION AND PROMOTIONCOMMUNICTION AND PROMOTION

Draw an Simple model of thecommunication process

Has it: Sender/decoding: Channel:Receiver/encoding

Formal and Informal Communications

Types ofCommunication Channels and

the Sender and Receiver match? Problems: Apathy, Lack ofunderstanding

and Competition (also vying for attention)


23/27

ADVERTISING and PromotionADVERTISING and Promotion

AKLPP = Awareness, Knowledge, Liking, Preference culminatingin Purchase and Use

Other Forms ofPromotion: personal selling, Sales Literature &demonstrations, and Public Relations

Public Sector: traditionally used promotion to develop awareness

and use of services, almost like a commercial tool Increasing Competition and Choice, Increased participation rates in

HE = need to attract student numbers = raise Image

Generic Competition: in some sectors transport but none forHealth (NHS)

Internal: within the sector, e.g. HE, local schools, between bus

companies Does Promotion objectives vary according to: Generic or Internal

Competition?..........Tell me NOW!


24/27

Special considerations for NonSpecial considerations for Non--forfor--

Profit SectorPromotionProfit SectorPromotion

The political dimension need to be aware of thepolitical sensitive public interest issues, e.g. Foundationdegrees

Different Target Markets: may have many; some are

harder to reach, e.g. with the Widening Participationsegment

Inability to pay: most users do not pay but some pay fullcost.?

User Resistance: may not be wanted because alien toown cultures and value systems

Limited Resources may lead to Demarketing orrationing


25/27

Should we remember..Should we remember..

Selective Communication in NonSelective Communication in Non--forfor--profitprofit

Organisations and Common Sense?Organisations and Common Sense?

Performing: using someactivity

Open Day

Pleading: asking people tobecome Our Neighbours

Pilot Schemes with localSchools and Colleges

Petitioning: seekingsponsorship

Funding sources, ResearchGrants, Business Firm links;Bursary Schemes with someof Above

Objectives of Promotion:which customers: Whichneeds we can serve; How weaim to satisfy these needs;awareness and information

passing; persuasion;USP; Resources

Message

Co-ordinating ALL thepromotional activities

Monitoring promotionaleffectiveness


26/27

WHAT MR do we need in aWHAT MR do we need in a

University andUniversity and

What is the MR process?

Discuss this in your groupsand present

Types of Data?

Where from?

Impact of IT on MR process?

What are you using MR to dofor you in a University?

Patterns of recruitmentand placement percourse

Perceptions of Services

Attitude to our Services

Motivations for using ourServices

Repeat Business

Types ofUsers Competition

Others


27/27

How do we evaluate a web site?How do we evaluate a web site?

Let us use the External Links button and

see

You will all need to go to a pc and comeback with floppies ready to put on the pc in

this room

Then do a group 5 minute presentation

Documents

Special Slides for Marketing Management 2 (1)