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The Marketing Machine

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					The Marketing Machine
Government
Uncontrollables

Technology
Needs

Competitors

Marketing Concept Environmental Analysis Behavior and Segmentation Analysis Marketing Research Marketing Mix

Marketing Strategy

The Marketing Machine
If 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 Machine
If the machine never changes, then there is no such thing as:
International Marketing Industrial Marketing Services Marketing eMarketing Non-Profit Marketing ………..???

Services Marketing
dinner in a restaurant

salt

hair style

tangible

intangible

Services are a form of products.

Services Marketing
…but they have different attributes that affect marketing strategies:
Perishable
Cannot be stored or shipped

Inseparable
Consumer is present when service is produced. Cannot separate service from service provider.

Services Marketing
Service Attributes (cont.)
Heterogeneity
Quality varies over time. Demand varies over time.

Substitutability
You can always do it yourself.

Postponability
You can always stall.

Services Marketing
Gap 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 gap
Give the customer what they expect…?

Services Marketing
Non-profit organizations
Service Sector IRS tax classification, not an operating strategy
Lack marketing orientation
Equate marketing to advertising Have non-professional boards Lack clear marketing objectives
What is the purpose of a charity?…the profit?

Services Marketing
Marketing strategy is different for services.
Different inputs, different outputs

Pricing
Must be more flexible Service demand is highly volatile
Use price to shift demand away from peak periods

More negotiated prices

Services Marketing
Service Strategy (cont.)

Promotion
Must 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 Marketing
Service Strategy (cont.)

Distribution
Location/convenience are critical
Cannot store or ship. Can postpone, substitute

Short, Direct Channels
Intermediaries are agents or brokers

Services Marketing
Non-profit organizations need two strategies:
Donors versus Clients
Rarely 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 Marketing
Organization Marketing
“Sell” the organization itself Public Relations
Perform image assessment Then shift image toward goal

Services Marketing
Person Marketing
Create, maintain, alter attitudes toward a particular individual Similar to organization marketing but with more dramatic life-cycles
Celebrity and sports agents.

Services Marketing
Place Marketing
“Sell” a general geographic area
Houses, buildings, land, vacation locations

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

Services Marketing
Idea 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


				
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posted:4/17/2008
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