Introduction.
This practical work consists of a 10-question questionnaire provided by the professor of the Marketing department. The material to be used consists of the knowledge and notes acquired in class, as well as the bibliography of the following authors: P. Kotler Mercadotecnia 6ta. Edition, JJ Lambín Marketing Estratégico 3rd edition.
Based on the concepts acquired from this questionnaire, an investigation will be developed in order to know the management of decision-making concerning distribution logistics and communication with the target market, of the automobile dealership organization Haimovich Hnos. Y Cía. SRL
1.) Identify the relationships between the contents of points 1 and 2 of UNIT II and the contents of UNIT I.
Between Units 1 and Unit 2 there is an intersection and a communication.
For the intersection, it is necessary to know the needs and satisfactory products to achieve the intersection. The product must be promoted and there must be access to all markets.
Controllable relative variables plus the organization the 4 P Plaza and promotion, which implies communication and access to new channels. This supposes a classification of the channels with respect to the commercialization and distribution. Short, long channels and direct marketing.
Communication is different from advertising and is different from informing.
By the demand for a product, the communication that the market received about the product is known.
2.) Make the chart demonstrating the role of MARKETING in terms of the MATERIAL ORGANIZATION OF EXCHANGE: "LOGISTICS OF DISTRIBUTION" AND COMMUNICATION "
The meeting of the terms of trade is not enough to ensure an effective match between supply and demand.
In order for it to be exercised, the exchange of goods implies that potential buyers are aware and are aware of the existence of the goods, that is, of the alternative combinations of attributes capable of satisfying their needs. The communication activities aim to "Produce" knowledge for producers, distributors and buyers. Different communication flows can be distinguished in a market, as reflected in the following demonstration table.
1-Before production, a collection of information at the initiative of the producer, in order to identify the needs and functions of the buyers, which constitute an attractive opportunity for him. It is the function of "market research and strategic marketing"
2-At the initiative of the potential buyer, the study of the possibilities offered by the suppliers and the organization of the "announcements of offer stimuli."
3- After production, the communication actions of the manufacturer “oriented towards distribution” and whose objective is to obtain product information and the cooperation of distributors in terms of sales space, promotion and price.
4- At the initiative of the manufacturer, the promotional activities are through "advertising or the sales force aimed at making buyers aware of the existence of the goods and their distinctive qualities claimed by the producer"
5- At the initiative of the distributors, "promotional and communication activities" aimed at the buyer and aimed at making the assortment offered and the conditions of sale known and creating customer loyalty.
6- After the use or consumption of the goods, the measures of "satisfaction or dissatisfaction" collected by the producer to allow adjusting their offer or the reactions of buyers.
7- After the use or consumption of the goods, the “evaluations and / or claims” are the objectivity, the concrete character
3.) In relation between the notion PRODUCT - SERVICE and proposal N ° 4 of this: "EVERY PRODUCT IS A SET OF TECHNICAL CHARACTERISTICS, ATTRIBUTES (QUALITIES) AND SERVICES (FUNCTIONS)
A) Indicate how the information can be classified according to the sources. B) Outline an advertisement that sufficiently describes the technical characteristics, attributes and services. C) Indicate how the advertising measurement and information costs should be done.
a) Information sources dominated by the producer, that is, advertising, opinion and advice from sellers and distributors, samples and prospectuses. The advantages of this type of information are that it is free and easy to access. However, it is nothing more than incomplete and targeted information, in the sense that they only value the positive characteristics of the product and tend to hide the others.
Personal information sources, dominated by consumers, are those communicated by friends, neighbors, opinion leaders, etc. What is called oral transmission. This type of information is often highly adapted to the needs of the future buyer. Its reliability will obviously depend on the issuer of the information.
Neutral information sources, such as articles in newspapers and specialized magazines related to housing, furniture, hunting, audiovisuals, the automobile, etc. These publications allow access to a large number of information at a relatively low cost. Also part of these categories are official reports and specialized agencies, laboratory tests and comparative tests published on the initiative of consumer associations. The advantages of this source of information are the objectivity, the concrete character and the competence of the opinions formulated.
Advertising measurement methods.
To measure the total utility of a brand, you can proceed in two ways, following a "composition or decomposition" approach.
In the composition approach, the value of the total utility is constructed, from the measures of importance and the degree of perceived presence of the determining attributes of the choice. Combining these measures in a compensatory integration model, a value of the total utility is obtained that synthesizes the partial evaluations of the individuals and that is by this revealing of their preferences.
In the decomposition approach, the interviewees react to a set of global product concepts, usually described in terms of characteristics and not attributes. The information to be collected is limited to a classification of preferences for the different proposed product concepts. It is up to the analyst to derive the partial profits for each level of characteristics. Starting from the preferential classification of the different sets of attributes, the underlying partial utilities are sought by statistical inference that allow the best possible reconstruction of the overall classification of the interviewee. A utility of a high attribute may well turn out to be of a very high importance and a very low level of presence,Either a reduced importance of the attribute compensated by a high level of presence.
There are several estimation methods. The most common and the most reliable is the econometric estimation with binary variables (0,1).
The estimates of the utility functions make it possible to make predictions about the choices made by individuals when they face brands, which constitute sets of different attributes.
Whichever approach is adopted, it is important to highlight the fact that buyer preferences are observable and measurable and that tests of their predictive values have been found to be conclusive on the whole.
Information costs. The information search activities undertaken by an individual confronted with a choice problem are essentially intended to reduce the uncertainty that exists in the available alternatives, in the relative value of each of them, and in the terms and conditions of purchase. The costs incurred for this information search can be regrouped into three categories.
The prospecting costs incurred for visiting the markets, circumscribing the set of opportunities (including substitute products) that the buyer can include in the set considered.
The costs of perception, borne in order to identify the pertinent characteristics of the goods introduced in the group considered in the terms of the exchange (place of purchase, price, guarantee).
The evaluation costs that allow evaluating the degree of presence of the perceived characteristics and verifying the authenticity of the indicators communicated by the market, on the qualities of the goods.
4.) DECISIONS ON COMMUNICATION: Make a table about the common tools in the matter of COMMUNICATION - PROMOTION.
5.) Make a chart about DETERMINING THE TARGET AUDIENCE AND THE OBJECTIVE OF THE RESPONSE SEARCHED.
Communication objectives are highly dependent on the knowledge of the product that people have and the chances that they will try it. Otteson developed the instrument called the market diagram (shown below to be used in choosing the audience and eliciting the desired response).
The horizontal dimension shows the percentage of the market that knows the brand. The vertical dimension shows the percentage that knows the brand.
By these measurements we know if the brand is satisfactory (mature).
The connoisseurs - testers are divided into those who prefer the brand (23%), the indifferent (39%), those who reject (18%).
Connoisseurs - non-testers can be divided into those who have a positive or negative attitude towards the brand.
How about becoming more knowledgeable - don't testers try the product?
This is an unworthy goal that can be achieved through sales promotion (free samples, discount coupons, etc.).
Another communication objective is to increase the proportion of testers who prefer this brand over the others. If the company wants to improve and increase preference, what is required is to improve the product and lower the price, not to intensify advertising, because the attitude of the consumer depends on the quality and price of the product.
The following conclusions can be reached about the three groups of testers.
Communication for those who already prefer the brand is not very productive unless there is a forgetfulness of the consumer and the competition targets them.
Communicating to rejects can be wasteful as it is not safe to pay attention to advertising and consider the brand.
Communication to the indifferent can be effective in attracting some part of your purchases especially if the advertising emphasizes this audience.
In this way the communication objectives depend a lot on the state of the market; when a brand is new there are few connoisseurs and testers, so communication can be very effective in increasing their number; when the brand is mature, it is convenient to try to convert non-testers into testers, by promoting sales and strive for a normal participation of indifferent testers; trying to increase the percentage of connoisseurs to reinforce flatters or try to get rejectors to switch to brand is less justified.
6.) Indicate which are the personal and impersonal channels of the promotion, explaining briefly. Point out the differences in their importance or relative weight according to the classification of the products.
In communication channels, two or more people communicate with each other, directly. They can be communicated face-to-face, from one person to your audience, by phone, or even by mail. Personal communication channels are effective because they allow for personal treatment and feedback.
Some personal communication channels are controlled by the communicator directly. For example, the company's sellers contact buyers in the target market. However, other personal communications regarding the product may reach buyers through channels that are not directly controlled by the company. These can include independent experts making claims to target buyers; consumer advocates, consumer buying guides, etc. They can also be neighbors, friends, family members, and colleagues who speak to potential buyers. The latter channel, known as word-of-mouth influencing, has huge repercussions for many products.
Personal influence carries a lot of weight in the case of expensive products or those with obvious risks. For example, buyers of automobiles or large electrical appliances often go beyond mass media sources and seek the opinion of insiders.
Businesses can take various steps to make personal communication channels work in their favor. They may put in extraordinary effort to sell their products to well-known people or companies, who in turn will influence others to buy. They can create opinion leaders (people whose opinion weighs on third parties) by providing the product to certain people, on attractive terms. For example, companies may work through members of a community such as disc jockeys, presidents of student societies, and presidents of local organizations. They can also include influencers in their ads or create ads that have great "conversation value." Finally, companies can make an effort to handle word of mouth communication,finding out what consumers are saying and correcting problems and helping consumers find information about the company and its products.
Non-personal communication channels are means that carry the message, without personal contact or feedback. They include the mass media, environments and events. Mass media consist of print media (newspapers, magazines, direct mail), broadcast media (radio, television), and display media (posters, signs, boards). Environments are environments designed to create or reinforce the buyer's propensity to purchase a product. For example, law firms and banks are designed to communicate trust and other aspects that may be of value to their clients. Events are situations set up to communicate messages to target audiences. For example, public relations departments arrange press conferences, grand openings,public tours and other events to communicate with specific audiences.
Non-personal communication affects buyers directly. In addition, the mass media often affect buyers indirectly because they produce more personal communication. Mass communications affect attitudes and behavior.
7.) Indicate and briefly explain what the so-called Lambín FUNCTIONS OF DISTRIBUTION consist of.
The functions of distribution.
More precisely, the distribution functions involve the exercise of six different types of activities:
• Transport: it is all the activity necessary to transport the products from the place of manufacture to the place of consumption.
• Splitting: any activity aimed at putting manufactured products into portions and in conditions that correspond to the needs of customers or users.
• Store: is all the activity that ensures the link between the time of manufacture and the time of purchase or use.
• Supply: is all the activity that allows the constitution of sets of specialized and / or complementary products adapted to certain situations of consumption or use.
• Contact: any activity that facilitates the accessibility of groups of buyers, both large and dispersed.
• Inform: any activity that improves knowledge of market needs and the terms of competitive exchange.
In addition to these six basic functions, intermediaries add services to the products they sell, due to their proximity, their opening hours, the speed of delivery, maintenance, the guarantees agreed, etc.
In general, the role of distribution in a market economy is to “eliminate disparities” that exist between the supply and demand of goods and services.
8.) Make a demonstration chart of the STRATEGIC DECISIONS OF THE DISTRIBUTION.
From the manufacturer's point of view, the choice of a distribution channel is therefore a decision of strategic importance, which must be compatible not only with the wishes of the selected target segment, but also with the objectives of the company.
9.) Indicate how to configure a DISTRIBUTION CHANNEL.
Make a demonstration chart of it. Point out the differences between a direct channel and an indirect channel. Make a demonstration chart of the structures of the distribution channels in the industrial sector and in the consumer sector.
Configuration of a distribution channel.
The vertical structure of a distribution channel is characterized by the number of levels that separate the producer from the end user. Thus it is possible to distinguish the direct channel from the indirect channel. The different distribution channels that are presented to a producer, be it an industrial or consumer goods company.
_In the direct channel there is no intermediary who takes the property title, the producer sells directly to the consumer or end user.
_In an indirect channel one or more intermediaries take the property title. An indirect channel is called "long or short" according to the number of intermediate levels between producer and end user.
10.) Conceptualize and explain the rationale for a DIRECT or INTERACTIVE exchange management philosophy.
Interactive or indirect marketing.
Direct sales without intermediaries is a common practice, as has been seen in industrial markets where potential customers are generally few in number and in any case well identified, with complex and often custom-made products with a high unit value. The surprising change in recent years is the development of this type of distribution where it was least expected, that is, in the market for consumer goods and services, the great development of the new media, is what has done possible this evolution.
Direct marketing is defined by the Direct Marketing Association as follows: an interactive system that uses one or more advertising media to obtain a measurable or measurable response and / or a transaction anywhere.
According to this definition, direct marketing is not necessarily identified with sales without a warehouse, that is, with a marketing system that will not resort to intermediaries. To clarify the field, a distinction must be made between a direct selling system and a relationship marketing system.
_ In a direct sales system, purchases are made at home and served at home and the company distributes directly without resorting to intermediaries.
This is the window without warehouses and the techniques are mail order and e-commerce, letterboxing, telemarketing, television sales, etc.
_In a relationship marketing system, the objective is not necessarily direct sales. It is primarily about establishing direct contact with prospects or clients in order to create or maintain an ongoing relationship.
A relationship marketing system can exist in a conventional vertical marketing system. This is the reason why it seems to us that the expression "interactive marketing" defines the two fields better than the expression "direct marketing" which essentially designates the practice of sales without a warehouse.
In reality, the development of interactive marketing in its two modalities reveals more profound changes than simply technological ones; it enshrines the emergence of a new type of communication and exchange relationship between producers and consumers that leads to a growing personalization of this relationship. From this perspective, interactive marketing tries to replace the monologue of traditional mass marketing with an authentic dialogue with the market. At the limit it tends towards personalized marketing.
Research Work on Marketing Functions in an Organization
Company: Haimovich Hnos. Y Cía. SRL
Contact: Ramiro Reiss
Working Group: Ma. José Bechi; Fabián Bergna, Diego Benencio and Luis Recalde
Teacher: Lilia Calderón de Della Savia
Questions
1) a) Do you communicate to the public about new car models or changes in their attributes? (Advertising)
when they are small modifications, generally there is not a very large promotion or every detail on time, because it would be very cumbersome and perhaps people would not be interested in these small vehicle modifications. We do not go out to promote every change of the vehicle. It is generally made known when a new product (vehicle) comes out b) How is it done and with what means is it handled? (Media) we mostly make it known through the mass media (El Diario) and in specific events such as TC races, in rural exhibitions, sports competitions and we carry out promotion in the park with brochures. We do not go out to drive to the street since what we sell is not a mass distribution product, it is punctual,For this reason we cannot go out on the street as it involves a lot of effort and we do not believe that it is the best. We also advertise on television with overprints, always on sports issues, car races, Argentine matches, the Copa de Libertadores, which we know we won't hurt there.
We do not advertise on radio because we do not know what radio is listened to, or what times, or programs and there are no serious studies in this regard. (sic)
2) Do you know if your customers are satisfied with your products? If so, what methods do you use to find out how satisfied your customer is? (customer satisfaction)
There is a philosophy within the firm of customer service, which over the years has taken greater prominence, we try to ensure that the customer leaves 100% satisfied. We prefer, for example, not to do an operation if we know that we will not be able to comply.
Volkswagen has a customer satisfaction program where there are incentives and they set objectives for the dealerships. They send a survey 45 and 300 days after delivery of the unit. That survey scores many points, there are 30 to 40 questions that are asked to the client. The customer is encouraged to answer it by entering to participate in an annual car raffle. Based on that index that they get from the customers' responses, which goes directly to Volkswagen, it does not go through here, they give a score and give prizes (such as trips and silver incentives).
Since it was implemented in the last three years, we have been among the top three in the country. From a satisfaction of 100 points, today we have 88 points, which are measured by quarters, that is, 4 annual measurements. The objective of the factory is to retain the customer, so that the customer buys a brand product again. In addition to that, we follow up to see if the seller once delivered the unit reconnected with the customer, the seller has to call within 10 days of the unit being sold to see if he had any problems; Service calls the customer to let him know that if he has any problem he approaches the workshop without any inconvenience, there is another call a month from a girl who calls him to verify if the seller called and has had another type of problem. problems,some kind of complaints. Then it comes out eg. Delays in the stationery, to deliver a patent, a radio that was not delivered on time, then some things appear that are solved. (sic)
3) How do you know if a new product will be accepted by the local market? Reference can be made to the new SEAT and ISUZU brands that it recently introduced to the local market. (market study)
In the case of Seat, we knew the product, we know it is good because of the technology they have, they are very nice cars as you can see them, and we believe that it will be accepted by the public. We rely on our intuition.
The Isuzu are pickup that has no competition with Volkswagen that does not have utility vehicles and provided an ideal complement for this type of vehicle. We have data from the province of E. Ríos in which 40% of everything that is patented is utilitarian. So we know that there is a significant demand for these vehicles. There was no specific market study for both brands. (sic)
4) Do you provide any type of additional service or product to your customers? If yes, what are they?
We cannot say that we give any additional, we try to provide the best service we can to all customers. After-sales service such as maintenance after many kilometers, oil changes, etc. comes from the factory. The cars have a one-year factory warranty, the elements and materials are replaced at no cost to the customer. In the case of Volkswagen, they all have a free 24-hour service, which is called 24-hour Assistance, which throughout the country and in neighboring countries and in the event of any light mechanical problem or inconvenience that you have, they will attend to you. Search, if you had an accident, the transfer will cover you, it is a similar service to insurance companies. This is flanked only by buying a Volkswagen, nothing more.
But Haimovich does not provide additional service, we have spoken to do some of that but not at the moment. (Sic)
5) How do you promote your products and what is the sales system used? (promotion)
The promotion through graphic media mainly, exhibitions, also in some club magazines, but it is more like support that we give.
6) Do you have other points of sale in the interior of the province or in other parts of the country? (distribution)
We do not work with other points of sale in the interior, in the interior, above all, there are some resellers who work with us not exclusively, Volkswagen buy from us, Renault buy others and Fiat from others. (sic)
Conclusion: after carefully studying the responses of the interviewed organization, we understood that in the case of communication to inform and promote the attributes of the products in order to promote sales, it coincides with what was studied in the chair, especially when they segment the market to advertise the product (television media, sporting events, rural exhibitions, El Diario, etc.) without incurring unnecessary expenses.
In the case of distribution, this is very scarce and occurs only in the transport of vehicles from the factory to the dealership.
It is noteworthy that this organization did not carry out any market study prior to launching the commercialization of its new Isuzu and Seat brands. Rather, it was guided by intuition; We could define this situation as "Marketing a priori" since we understand that preliminary studies of acceptance of the brand in the local market must be carried out before the launch of a product of this type.
Another point that this organization should take into account to differentiate itself from the competition are additional services, which are not provided by this company. In our opinion, other services could be added, for example, agreements with cell phone companies for the delivery of telephones in the purchase of the car, free fuel for a certain period, artisanal washing, etc. that could be well seen by customers.
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