MAR 3023961

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MAR 3023-961

• Basic Marketing
• Fall 2003St. Petersburg
• September 3, 2003
• Customer OrientationCustomer Satisfaction
• Rich Gonzalez University of South Florida

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URLs (used today)

• mailman.acomp.usf.edu/mailman/listinfo/MAR3023-691
  
• www.burton.com
• www.theacsi.org

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September 3, 2003--Agenda

• LISTSERV
• Student Survey Results
• VideoBurton Snowboards
• Quiz 1
• Customer Satisfaction
• For September 10

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For September 3

• Chapter 1
• Drucker Handout
• LISTERV Subscribe and Introduction

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For September 10

• Chapter 3--Environment
• Chapter 9Consumer Behavior
• LISTERV Subscribe and Introduction

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Class Websites

• coba.usf.edu
• coba.usf.edu/departments/marketing/grads/gonzalez
• Lets Demo One More Time

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Listserv Follow-Up

• Subscribe or Viewmailman.acomp.usf.edu/mailman/
  listinfo/MAR3023-691
• Subscribe or View mailman.acomp.usf.edu/mailman/l
  istinfo/mar3023-691
• Send tomar3023-691_at_mailman.acomp.usf.edu
• Do NOT Send tomar3023-691-owner_at_mailman.acomp.u
  sf.edu

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LISTSERV

• Subscribe Use Simple Password!!!
• Sign on by Thursday
• Send Introduction on Friday after 1000 AM
• SUBJECT Mary IrvineIntroduction1) Major, how
  long at USF?2) What youre looking for in
  Marketing class3) A little bit about yourself,
  career, hobbies, etc.Same as you would do in
  class

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(No Transcript)
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Survey Results

• People like cellular phones
• 87 are using them
• 1248 estimated minutes/ month
• Only 5 Have PDAsOnly 3 Use PDAs

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Survey Results I-Net

• Age 26.2
• 38 of 38 are using the Internet
• Internet usage range is 2 - 70 hrs./week
• 15.7 hr/week Your Average
• 5.1 hr/week U.S. Average
• 15.0 Last Basic Marketing Class
• 13.7 hr/week MBA Class
• 11.2 hr/week Your Average of TV
• TV 12.4 hours/week for Last Basic Class
• U.S. Average 24 hr/week

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Survey Results Best Company I Ever Dealt With

• 5Publix
• 3Wal-Mart
• 2-- Dell, Circuit City ,Home Depot, Best Buy
• 1Suntrust, Eddie Bauer, First Union, Ann
  Taylor, Dillards, Super Target, Sony, Verizon...
• 8 Blank, None

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Survey ResultsLikely Careers

• Accounting------------------ 8
• Law---------------------------4
• Management-----------------5

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Survey Results--Careers to Avoid!

• Accounting------------ 9
• Medical---------------- 4
• Science-----------------3

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Survey Results-Marketing Is

• Advertising.
• Advertising to the public in an effective way.
• Sales.
• Tactics used in order to push sales
• Selling and creating advertising for a product
• Basically the advertising and selling of
  products or services.
• Meeting customers satisfaction
• A way to make people prefer your product

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Survey Results-Marketing Is

• Process ... which companies utilize to get their
  products info to consumer(s)/potential
  consumers.
• the basis for any/all business.

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Survey Results-Marketings Importance

• Make money.
• Increase profit.
• Information to choose products
• To make the business better.
• Influences consumers.
• It helps a company by giving direction in what
  to do in order to achieve sales.
• Im trying to start a business.

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Survey Results-Cool Answers

• Career to avoid waiting tables
• Career to avoid anything with cubicles
• Career to avoid waste management
• Career to avoid marketing
• Favorite Web Site google.com
• Marketing Is Advertising, publishing and
  exaggeration of information to attract customers
  .

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Burton Snowboards

• Video
• Take Notes for Discussion

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Discussion
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Burton SnowboardsJake Burton

• 1977College Done, Snurfer
• Develop New Product
• Develop New Market
• Develop Relationship With Customers
• 1970-80s Resistance Ski Resorts
• Creating UtilitySomething New!

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Burton SnowboardsJake Burton

• 1980-90s Create Distribution Channel
• Create AwarenessClinics, Demos
• SponsorshipsCompetitions
• Learn To Ride Program
• Catalog
• 2000- Web Site www.burton.com
• 2002- Olympics Medal Sport

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Last Time

• What Is Marketing?
• Where Is Marketing?
• Drucker

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Peter Drucker--Discussion

• What is the purpose of a company?
• Do customers always know what they want?
• Do customers buy products?
• What customers value is not always obvious.

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Peter Drucker contd

• How does a business create customers? What
  functions must a business perform?
• Marketing
• Innovation

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Marketing

• 1. Process (Planning Execution)
• 2. Product, Price, Promotion, Distribution
• 3. Goods, Services, Ideas
• 4. Exchange Relationship
• 5. Satisfy Objectives (Customer Organization)

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Marketing Basics

• Definitions, Elements, Building Blocks for
  Understanding Marketing

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If we want to know what a business is, we have to
start with its purpose. And its purpose must lie
outside the business itself. In fact, it must
lie in society since a business enterprise is an
organ of society. There is one valid definition
of business purpose to create a customer.
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Marketing

• At the broadest level, the function of marketing
  activities is to bring together buyers and
  sellers.

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Marketing Functions

• ExchangeBuying Selling
• DistributionTransport Storing

• FacilitatingStandardizingFinancingRisk-TakingI
  nformation

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Utility
Want-satisfying power of a good or service.
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Four Types of Utility
Type
Function
Form
Production
Time
Marketing
Place
Marketing
Ownership (Possession)
Marketing
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Marketing
Process of planning and executing the conception,
pricing, promotion and distribution of ideas,
goods, services, organizations, and events to
create and maintain relationships that satisfy
individual and organizational objectives.
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Exchange Process
Activity in which two or more parties give
something of value to each other to satisfy
perceived needs.
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How does a firm create a customer?

• Identifying customer needs
• Designing goods and services that meet those
  needs
• Communicating information about those goods and
  services
• Making goods or services available at
  times/places that meet customers needs

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How does a firm create a customer?

• Pricing goods and services to reflect costs,
  competition, and customers ability to buy
• Providing for the necessary service and follow-up
  to ensure customer satisfaction after the purchase

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Four Eras in the History of Marketing
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Production Orientation
Business philosophy stressing efficiency in
producing a quality product, with the attitude
toward marketing that a good product will sell
itself.
Ford Any color they want, as long as its
black.
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Sales Orientation
Consumers will resist purchasing nonessential
goods Only creative advertising and personal
selling can overcome consumers resistance
The salesman Has an answer for EVERY objection
or question?
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Consumer Orientation
Business philosophy incorporating the marketing
concept that emphasizes first determining unmet
consumer needs and then designing a system for
satisfying them.
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Marketing Concept
Companywide consumer orientation with the
objective of achieving long-run success.
Invented by GE in the 50s, Drucker talked about
it too.
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Marketing Concept

• Target market
• Customer needs wants
• Integrated company efforts
• Profits

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(No Transcript)
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Marketing Myopia
What is your business? Really.
Verizon, JetBlue, Nintendo, as examples
Revlon, as an example
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Boeing

• Is in what business?
• Global aerospace-technology company
• SatellitesAircraft servicesInternet service on
  airlines

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Elements of the Marketing Mix within an
Environmental Framework
Competitive
Distribution
Product
Political-Legal
Target Market
Social-Cultural
Price
Promotion
Technological
Economic
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Target Market
Group of people toward whom a firm markets its
goods, services, or ideas with a strategy
designed to satisfy their specific needs and
preferences.
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Product Strategy
Element of marketing decision making involved in
developing the right good or service for the
firms customers, including package design,
branding, trademarks, warranties, product life
cycles, and new-product development.
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Pricing Strategy
Element of marketing decision making dealing with
methods of setting profitable and justifiable
prices.
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Distribution Strategy
Element of marketing decision making concerned
with activities and marketing institutions that
get the right good or service to the firms
customers.
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Promotional Strategy
Element of marketing decision making that
involves appropriate blending of personal
selling, advertising, and sales promotion to
communicate with and seek to persuade potential
customers.
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Marketing Mix
Blending the four strategy elements of marketing
decision making--product, price, distribution,
and promotion--to satisfy chosen consumer
segments.
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Technology
Application to business of knowledge based on
scientific discoveries, inventions, and
innovations.
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Quiz 1
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Quiz 1 Q1

• 1. The group of people toward whom a firm markets
  its goods, services or ideas with a strategy
  designed to satisfy their specific needs and
  preferences is
•  
• A) best served with relationship marketing.
• B) a customer cluster.
• C) frequently bigger than what is estimated.
• D) a target market.
• E) a target population.
•  

D Lecture and Ch. 2, page p45
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Quiz 1 Q2

• 2. Companies always try to create time and place
  utility. Marketing creates time utility and
  manufacturing (production) creates place utility.
  
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• A) True
• B) False
• .
•  

B Chap 1 p 5-6
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Quiz 1 Q3

• 3. According to Chapter 1, a category of
  nontraditional marketing is
•  
• a. emotion marketing.
• b. distinction marketing.
• c. place marketing.
• d. event marketing.
• e. both c. and d.

E Chap 1 p15-19
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Quiz 1 Q4

• 4. The Marlboro example discussed in class was
  primarily about
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• a. the litigation in the tobacco industry.
• b. how price is important in marketing.
• c. how Marlboro has lost market share.
• d. how good marketing can change product image.
• e. the lack of a females in Marlboro ads.
•  

D Class Lecture Aug. 27
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Quiz 1 Q5

• 5. The Sales Era (1925 1950s) was the best era
  for marketing .
•  
• A) True
• B) False.
•  

B Chap 1 p 10
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We Stopped Right Here...
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Customer Satisfaction

• National Measurement by ACSI

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Why Satisfy Customers?

• There is only one boss, the customer, and he can
  fire everybody in the company, from the chairman
  down, simply by spending his money elsewhere.
• Sam Walton, P24

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Satisfaction

• What is it?

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(No Transcript)
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Customer Satisfaction

• Performance - Expectations

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Customer Satisfaction

• ACSI
• American Customer Satisfaction Index
• Claes Fornell---University of Michigan
• American Society for Quality
• Annual Quarterly--updating industries
• 7 categories

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ACSI--Each Quarter

• 15,000 customers of190 companies70 government
  agencies
• Firms represent 30-40 U.S. GDP
• Experience--Expectations is Satisfaction
• Customer perceptions of value quality
• Computer Model gives score of 1 to 100
• 3 point change is significant

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www.theacsi.org

• Lets Take a Look At Real Customer Sat
  Datahttp//www.theacsi.org/overview.htm
• 2nd Quarter 2004 Scores (Aug. 20,
  2004)http//www.theacsi.org/second_quarter.htm
• The Customer Sat Modelhttp//www.theacsi.org/mod
  el.htm

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• Overall, is Customer Sat getting better???

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Trend??? Overall Sat

• 1994 74.5
• 1995 74.2
• 1996 73.0
• 1997 71.1
• 1998 72.2
• 1999 72.1
• 2000 72.0
• 2001 72.2
• 2002 73.2

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Recent Reductions in C.S.

• Kmart
• Ford
• Gateway
• Firestone
• AT T
• US Air
• Northwest Airlines

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Questions

• What are some implications?
• How is marketing affected?
• Do you agree/disagree with results?

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Summary

• Customer Satisfaction is part of the overall
  marketing of a product/service offering
• Customer Sat is crucial to business performance

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Conclusions Customer Sat Going Down

• A. Companies emphasized PRODUCTIONduring the 90s
  and are making cuts in the last 2 years
• B. Increased expectations of customers --
• Consumer expectations are increasing faster
  than companies can improve quality and benefits

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Class Analysis

• Is there a relationship between
• customer satisfaction
• and business performance???

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Michael Dell

• 1984UT-Austin
• Buying Parts (HD, PS, etc) Putting Together PCs
  for Friends and Customers
• Office/Workshop Dorm
• Figured Out Customers Were Novices AND That
  Biggies Were NOT Efficient
• Dell Created Utility
• Dell Was Customer Oriented
• Dell Was an Entrepreneur

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Dell Experience A Current Example

• Web Site
• Doesnt Work unless ziphttp//support.dell.com/d
  ellcare/orderstatus/orderstatus.aspx
• Workshttp//support.dell.com/dellcare/orderstatu
  s/singleorderstatus.aspx?order_number452819148va
  lidate33549_ctl38.x0_ctl38.y0

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For September 3

• Chapter 3--Environment
• Chapter 9Consumer Behavior
• LISTERV Subscribe and Introduction