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ChapterChapterChapterChapter
Hit a Home Run with
Customers
4.1 The Marketing Concept4.1 The Marketing Concept
4.2 Discover What People Want4.2 Discover What People Want
4.3 Target Markets4.3 Target Markets
4.4 Customer Service4.4 Customer Service
4
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Lesson 4.1
The Marketing Concept
Goals
Explain the central focus of themarketing concept.
Explain the reasons for increasedsports and entertainment options.
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Terms marketing concept
productivity
breakeven point
opportunity cost
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THE MARKETING CONCEPT About half of every consumer dollar
spent pays for marketing costs.
Satisfying customer needs is the mostimportant aspect of marketing.
marketing concept
keeping the focus on the customers needsfor a product or service
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Maintain Relationships Successful customer relationships are
critical to the marketing concept.
Customer satisfaction is the bottom linefor maintaining successful marketingrelationships.
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What is the most important aspect of
marketing?
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INCREASED SPORTS AND
ENTERTAINMENT OPTIONS
U.S. citizens have more discretionaryincome than in the past.
drives up demand for sports andentertainment
increases competition
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Customer Focus productivity
rate at which companies produce goods orservices in relation to the amount ofmaterials and number of employees utilized
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identify customer needs
location
provide products perceived as superior
maintain successful customer relationships
offer the appropriate marketing mix product
price promotion
location
successful marketing strategy
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Weekend Entertainment
Choices
breakeven point
the minimum sales and attendancerequired to cover all of the expenses oforganizing, planning and promoting theevent
profit revenue earned beyond the breakeven
point
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Opportunity Cost opportunity cost
the value of the next best alternative that
you forgo when making a choice
The value is measured in terms of thebenefits that you are giving up.
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Explain the reasons for increased sports
and entertainment options.
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Lesson 4.2
Discover What People Want
Goals
Ex
plain the importance of understandingbuyer behavior when making marketingdecisions.
List and describe means of collectingmarketing information for use in decisionmaking.
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Terms economic market
benefits derived
comparative advantage
emotional purchases
rational purchases
patronage purchases
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UNDERSTAND BUYER
BEHAVIOR
economic market
all of the consumers who will purchase a
product or service
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Consumer Spending Hab
its benefits derived
the value people believe they receive from
a product or service
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the capability to produce products orservices more efficiently and economicallythan the competition
comparative advantage
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Consumer Wants and Needs hierarchy of needs
identifies five human areas of needs
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spending with little thought during emotionaltimes
rational purchases
define wants and needs assess priorities and budget
conduct research
compare alternatives
make a well thought out purchase
emotional purchases
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based on loyalty to a particular brand orproduct
patronage purchases
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What is meant by benefits derived?
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GATHER INFORMATIONMarketers are often involved in every
step of the decision-making process.
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recognize a need or a want
conduct product research
evaluate choices decide what to purchase
evaluate the product after the purchase
The decision-making process involves
the following steps.
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Information Needed for
Marketing Decisions Information about consumers that is
important to consider include
demographics
shopping behaviors
how consumers spend money
product and brand preferences frequency of purchases
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economic uncertainty reduces consumerspending
marketplace competition providesconsumers with choices
technological advances have impactedhow consumers research and buy
products
The business environment impacts
consumer spending as follows:
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Sources of Information for
Businesses internal sources a businesss own customer records, sales
records, production records, and operationrecords
external sources government reports, trade and
professional organizations, businesspublications, commercial data, andinformation services
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obtained for the first time and specificallyfor the particular problem or issue beingstudied
secondary data information previously collected for
another purpose but is now found useful inthe current study
primary data
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Explain the difference between primaryand secondary data.
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Lesson 4.3
Target Markets
Goals
D
efine target market and marketsegment.
Describe how businesses use marketsegmentation.
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Terms target market
market segment
market share
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DETERMINE THE TARGET
MARKET target market
specific group of consumers you want to
reach
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Focus Marketing Effortsmarket segment
a group of consumers within a larger
market who share one or morecharacteristics
Consumers belong to multiple marketsegments.
Marketers must identify the marketsegment to which they want to sell.
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Meet Target Market NeedsMarket segmentation data can improve
business decision making.
number of potential customers
customer income level
level of interest in product or service
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What is a target market? Provide anexample of a companys target market.
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MARKET SEGMENTATIONMarkets may be segmented in many ways. geographic location
demographics psychographics
behavior
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Geographic Segmentation divides markets into physical locations
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Demographic Segmentation information that can be measured age
income profession
gender
education
marital status
household size
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Psychographics Segmentation
characteristics that cannot be physicallymeasured
values
interests
lifestyle choices
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Behavioral-Based Segmentation
behavioral-based segmentation
focuses on a customers attitude toward productsand services
product usage
what products you use and how often
product benefits
the positive experiences or associations peoplederive from using a product or service
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Capture a Market Sharemarket share
percentage of total sales of a product or
service that a company expects to capturein relation to its competitors
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List and describe four types of marketsegmentation.
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Lesson 4.4
Customer Service
Goals
Explain the importance of outstandingcustomer service.
Explain what it means to establish aservice culture.
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Terms customer service gap
values-based culture
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OUTSTANDING SERVICE
EQUALS SUCCESS Business success depends on excellent
customer service.
Customer relationships should continueafter the sale of goods and services.
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A Track Record for Great
Customer Service customer service gap
the difference between customer
expectations and the services actuallyreceived
Customers are likely to tell at least 10
people about their poor customerservice experiences.
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Why is outstanding customer servicecritical to a business in a highlycompetitive marketplace?
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CREATING A SERVICE
CULTUREGallery Furniture has effective customer
service principles. They are:
Demonstrate a values-based culture that isrooted in high performance and excellentcustomer service.
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Passion results in energy.
Demonstrate pride in every sale.
Remember the value of long-term positiverelationships.
Follow the FAST (Focus, Action, Search,
Tenacity) strategy.
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How May I Help You?
Its not my department should bereplaced with How may I help you?
mystery guest hired by an outside firm to have an
individual assess the performance of a
business feedback on the individuals experience as a
customer is provided to the hiring business
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PERFORMANCE INDICATORS
EVALUATED
Communicate ideas clearly to the judge(potential investor).
Analyze all relevant data for proposing anew celebrity-theme restaurant.
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Interpret demographics and financial datafor a proposed business.
Understand consumer demand and the
existing competition.
Demonstrate critical thinking and problem-solving skills necessary to propose andoperate a successful business.
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THINK CRITICALLY1. Why is a business plan necessary for a
popular celebrity who wants to open a
restaurant in a city where he or she iswell liked?
2. Give three examples of successful
celebrity-theme restaurants and whatmakes them popular.
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4. What advantage does a professionalathlete have over an average citizenwhen opening a restaurant?
3.
What would be a good grand openingevent to attract the maximum amount ofattention to the new restaurant?