MKT 3401 Lecture Notes - Lecture 8: Harvard Business Review, Job Satisfaction, Marketing Mix
MKT 3401 Final Review: - Karam will be here to ask questions too next Tuesday.
45 Multiple Choice: Cumulative Concepts of Costumer Service >> Products.
- Know the Marketing Strategy Framework.
Know: Niche Marketing, Harley Davidson Article, Marketing Mix Section – (minus)Netflix, Black Eye Peas
= Articles
Three Goals to Marketing:
1. Customer Value:
a. Value = Benefits – Cost
b. This will make customers want to buy your product.
c. Some people focus on benefits and some focus more on costs, even when costs are high.
i. Ex: Boxes at the stadium, benefits/value are still very high, southwest does very well
with low costs.
2. Customer Satisfaction & Employee Satisfaction:
a. Harvard Business Review :
i. 63% of customers are more likely to change their behavior based upon 1 clerk.
ii. 75% of people who change companies would tell somebody else why they are
changing companies > switching; tell them about their bad experience.
iii. 7% will tell the manager to correct a problem.
b. Service Profit Chain: To measure employee job satisfaction:
i. Company – everyone wants to work in sports, a lot of money spent on training
employees
ii. Customer – have to research and figure out what they think
iii. Employee job satisfaction > customer value > customer satisfaction > customer
loyalty > profits > back to employee satisfaction.
1. Canes – employees are good all the time to where they give good customer
service.
c. Prospect Theory: We remember the bad things so much that we forget about all the good
things – rather than multiple good aspects, we recall that one bad thing.
i. Mystery Shopper – posed as a customer, used to enable a company to evaluate a
company and keep the staff on their toes.
1. Ex: McDonald’s – breakfast and coffee = bad, service = terrible, so they
learned and created McCafe and fresher options.
ii. 2 Types of Dissatisfied Customers:
1. Angry Customer – always will be violent, obnoxious; cause a scene; you have
already identified them
2. Remorseful Customer – goes to an event and sits and eats and sounds like
they enjoyed every minute but once they walk away they complain
Recover – says sorry for service failure
3. ****Failure Recovery: Companies must have a recovery system in place because if and when
failure takes place there must be plans for repairment. You want to be able to correct a problem
and also do something that is beneficial to the customer, every company should have one.
a. You thought you were giving them good service and you weren’t so now they are mad.
b. If we failed, research/customer will tell us that. How we are going to identify it, recognize
it, acknowledge it and correct it.
c. Sometimes companies fail on purpose.
find more resources at oneclass.com
find more resources at oneclass.com
d. If you can figure out a well thought out planned apology – top 6 benefits that you can use in
your line of work.
i. Ex: United breaks the guitar.
Marketing Strategy Framework: ******
• Three levels of the marketing strategy framework:
o LEVEL ONE: Market Analysis—in a market analysis, you look at factors and analyze and
see what value you are missing out on. 4 elements:
▪ Look at the company→ who are you, what are your strengths and weaknesses, do
you have the resources and finances and personnel and the supply chain
management in place.
▪ Look at the customer→ who is the customer and does the customer change and do
we see the customer change. Is the population big enough to matter?
• Demographics How you use them:
o Age—from pre-birth until death, there are many categories that
marketing has identified (baby boomers, senior citizens). The big
money is in baby boomers (they like to save their money).
o Gender—Male or female
o Race—so simply but it is often ignored.
▪ EX: Before the Civil Rights movement, Pepsi couldn’t find
someone to buy their product because Coke was taking over.
The Negro population could afford soft drinks but no one
would appeal to them. Pepsi shifted their advertisements and
appealed to Negro families and it was enough to generate
revenue to keep them surviving.
▪ EX: corner drug store where Chimes is now. There was one
shelf in the entire store that sold beauty products for African
Americans.
▪ EX: Lowe’s and (ome Depot—manuals in English and Spanish
▪ Proctor and Gamble article in Wall Street Journal—on the
labeling they will have more words in Spanish (instead of
Downy, they will have Downy in Spanish)
o Education—sometimes an uneducated population probably does not
care about sophisticated products (EX: iPad)
▪ You will know what kind of appeal to use.
o Income—low-income workers don’t care about sophisticated
technology products (their life is very simple).
▪ Financial planners are marketing to our generation. They
convince us to save money.
o Occupation
o Religion—does not matter all of the time. You have to make sure that
in your appeal to identify a segment market, you don’t want to offend
a population. You want to be able to appeal to a population.
o Geographical regions—what happens in different parts of the country.
Sell different products in Louisiana and Minnesota.
o EX: selling expensive sunglasses—go to China to sell the sunglasses
and only about half of the population buys the sunglasses.
▪ Rebuild sunglasses to conform with the facial structure of the
Asian population.
find more resources at oneclass.com
find more resources at oneclass.com
▪ Understand your competition→ who they are and what are they doing, embrace
the competition and see what you can do with your customers so they don’t leave
and go to the competitor.
• EX: the competition to LSU is Drew Brees and the Saints.
• EX: Before iPhone, the Blackberry was the main phone and now Blackberry is
struggling. Stock is falling off the charts and now they are being forced to
market in Indonesia.
• EX: Proctor and Gamble has to know what Colgate is doing.
▪ Conditions→ what is happening around us. Look at the external environment and
everything around you. External factors to look at:
• Economy—when economic conditions are good, we can price a certain way.
Then when the economy changes, we have to change the prices.
• Technological changes—are you able to keep up when the technology
changes. Technology is the ability to make work easier; the ability to create a
device that can transport information fast and to create machines that will ad
value to the company.
o EX: blackberry lost here
o Ford used technology to differentiate themselves from the
competitors. It lifted them above every one else. They were able to
create this very inexpensive car.
o EX: UPS uses a card now to get to the packages instead of a key.
• Political changes—the government says that things are going to change and
you have to respond or you will not be able to keep up. The government will
ban certain billboard ads.
o EX: laws require that every car must be made with seat belts.
• Social factors—the lifestyles and the values of the day. When the social
factors change, how do you respond?
o Due to 9/11 events, the FDA made regulations that if you did not have
a small bag that could go through the scanner, then they must be
checked. Samsonite went to research and development department
with the dimensions and they designed a bag that is the correct size
and that could hold everything that a male or female needed.
o LEVEL TWO: Strategy Development—three phases of strategy development
▪ Phase 1→ Segmentation—how are you going to divide the population and then
focus on that segment. Four ways to make sure that the segment you have identified
is worth identifying:
• Identifiable→ is the population identifiable
• They have to be able to respond to what you are selling→ do they need the
product and do they want the product
• Can you reach this population→ you know who they are and you have
identified them. Can you reach them: can you get the product to them
(distribution) and can you communicate with them through things like
technology (radio).
• Substantial→ is the population big enough to matter.
▪ Phase 2→ Types of Targeting—who are you going to target. Three strategies for
selecting a proper target market:
• Undifferentiating—mass marketing. You are shooting for the entire
population that buys this product.***
• Multi-segment—choose not just one large population, but several
segments.******
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Mkt 3401 final review: - karam will be here to ask questions too next tuesday. 45 multiple choice: cumulative concepts of costumer service >> products. Know: niche marketing, harley davidson article, marketing mix section (minus)netflix, black eye peas. Recover says (cid:498)sorry(cid:499) for service failure: you thought you were giving them good service and you weren"t so now they are mad, if we failed, research/customer will tell us that. How we are going to identify it, recognize failure takes place there must be plans for repairment. Is the population big enough to matter: demographics how you use them: marketing has identified (baby boomers, senior citizens). The negro population could afford soft drinks but no one would appeal to them. Pepsi shifted their advertisements and appealed to negro families and it was enough to generate revenue to keep them surviving: ex: corner drug store where chimes is now.
