BIBLIOGRAPHY
- Philipp Kotler "Marketing" Editorial Cultural "Marketing and sales management"
I. DEFINITIONS
Marketing: Marketing is a human activity whose purpose is to satisfy the needs and desires of the human being through exchange processes
1. Need: State of deprivation that a person feels or the lack of a specific good
Mustauf pyramid
2. Desire: Lack of something specific that meets these basic needs.
3. Demand: How many can really demand the product, desire for a specific product based on a certain purchasing power.
4. Product: Everything that can be offered to satisfy a need or desire.
Tangible: It is produced, then consumed.
Intangible: It is consumed when it is produced.
Marketing myopia: concentrating only on the product and not on the needs it will satisfy.
5. Exchange: Act of obtaining an object that belongs to a person by offering him something in exchange
Unit of measure of exchange: transaction, monetary transaction
Transaction: Exchange of values between two parties
6. Market: Set of potential consumers who share a need or desire and who may be willing to satisfy them through the exchange of other elements of value.
II. HISTORICAL DEVELOPMENT OF THE MARKETING
During the feudal economies, everyone produced what they needed, there was a self-sufficient population. When the groups began to divide according to what they did best, the exchange was born. Later the agrarian economies concentrated in the production arose.
Marketing as such was born with the industrial revolution, through the growth of urban centers mass marketing develops, since companies concentrated on their products. (Everything that is produced is sold).
In the late nineteenth early twentieth century, demand exceeded supply, so marketing was based on product orientation.
In 1920, as a result of the great crisis in the United States that caused an oversupply, marketing was oriented towards selling, thus a series of concerns arose about sales techniques and the concept of modern marketing by Teodoro Levit was born.
Marketing Orientation: Orientation theories, sales techniques, wish satisfaction, etc. are developed. In 1950 the conceptualization of marketing arose, concepts such as target markets, how to provide the product, etc. were born at Harvard.
Since 1990, there is talk of relationship marketing or one-to-one, because markets are different and must be segmented. By satisfying specific needs and desires, the target market is reached.
III. TEN TRUTHS ABOUT MARKETING
1. Marketing is constantly changing, it is not static
2. People forget very quickly, marketing allows you to remind your consumer that you are present.
3. The competition is not asleep, marketing allows you to face the competition: react or anticipate
4. Marketing establishes a position for the company
5. Marketing helps you keep your customers
6. Marketing increases internal motivation
7. If marketing is applied it allows you to establish an advantage over the competition
8. If marketing is applied it allows you to be current
9. Marketing tools are essential to are essential to survive in the market and improve.
10. Every entrepreneur invests money that cannot be lost.
IV. PHILOSOPHY OF MARKETING
"To be able to specify the objectives of the organization as marketing objectives, it must be taken into account all the time in satisfying the needs of the market better than the competition"
"Do what you can sell, don't sell what you can do"
"Love the customer not the provider"
"Look for needs all the time and satisfy them"
The product must be made based on what the market needs. You have to see what the customer needs, otherwise you enter the marketing myopia Through market research.
MARKETING SYSTEM
BIBLIOGRAPHY
- "Marketing" Mauricio Lerner and Alberto Arana Reyes Universidad del Pacífico "Marketing Manual" Philip Kotler
OBJECTIVES
- Understand what a marketing system is Know what are the components of this system Understand why it is important to establish our marketing system Learn to establish a situational analysis based on our marketing system
I. DEFINITIONS
System: A set of things that are related to each other in an orderly fashion and contribute to a certain object. Set of components that interact to achieve a result.
Marketing system: Diverse organisms that participate in the exchange processes, either as demand or supply, are also part of the marketing system the environmental forces that influence these organizations and their interactions.
II. FUNCTIONS
- Being able to diagram a situational analysis on which the marketing executive must establish his action plan, whether operational or strategic. It helps you to locate where you are and according to this establish a plan. To be able to identify the changes that may exist because the system is not static, there are constant changes that we must be able to identify. To establish according to the marketing system what are the strengths, weaknesses, opportunities and threats.
III. COMPONENTS
- Internal Environment:
It is the company itself, this environment can be controlled.
- External Micro Environment
The external micro environment is semi controllable
- Suppliers: All those organizations that provide you to develop your product, whether they are goods or services, sometimes have a negotiating nature, there are several types of suppliers according to their position in the market. These can establish the price of the product or if they are monopolists, or they cannot if there are several, this will also determine how strong or weak they are and who has control. Intermediaries: All those organizations or people through which we can reach our target market. (most used in goods).
- Wholesalers - Retailers
When there are few intermediaries, their level of negotiation is high, when there are many, their level of negotiation is low.
- Market: Final sense: Set of potential consumers who can purchase our good.
- Consumer market -–> Individuals or families
- Industrial market -–> Clients are companies that turn to our company to buy a good or service to use in their product.
- Government market -–> Mayor's Office, Prefecture and other institutions.
- Resale market -–> There are organizations that deal with buying finished products in order to resell them.
- Competitors: They are those entities that can offer a similar product to the one that one offers, it can provide the same benefits as one, they must be constantly evaluated in order to keep up.
- Competing wishes -–> The consumer may have different types of wishes.
- Generic Competitors -–> (substitutes) There may be different types of generic consumer products.
- Forms of Competitors
- Competing Brands -–> All those companies with their respective brands that have a product similar to ours.
- Macro External Environment
Composed of external forces that can have a direct or indirect influence on the company. This is not controllable
- Economic factor: Macroeconomic variables such as inflation, GDP, unemployment are evaluated. What is the level of income and expenditure of the market.
- Technological factor: The advancement of technology puts us in a new scenario.
- Legal political factor: Political influences of the state imposed on the environment that can affect us.
- Demographic factors: All those types of variables that are part of our market: Sex, age, occupation, etc.
- Sociocultural factors: Type of culture on which the company is.
- Physical geographical factors: Environment, climate, on which the company operates.
IV. SITUATIONAL ANALYSIS
It is based on the marketing system, this will allow us to establish our strengths and weaknesses. Strengths and weaknesses are internal to the company. Determine opportunities and threats that are in the micro and macro environment, they are not controllable for us.
THE MARKETING INFORMATION SYSTEM (SIM)
BIBLIOGRAPHY:
- Kotler Marketing Marketing and Sales Director Bruno Prujol
OBJECTIVES:
- Determine what a marketing information system is Know the process that must be followed to establish an information system Understand or assess the importance of a marketing operation system.
INTRODUCTION
Every day, companies face new challenges: they must achieve maximum levels of quality and customer satisfaction, launch new products, position and consolidate existing ones, seek greater market share, etc.
Facing each of these challenges implies meeting greater information needs day by day and, although statistics, computing and engineering are highly developed, all the information that is needed to make marketing decisions is almost never possessed, this is due in largely because the economy and people are highly variable. This dynamic, linked to the need to obtain profits, forces companies to require more and better information and to design systems that allow them to obtain and manage it in the best way possible.
To make the information process efficient, get it, analyze it and make decisions based on it, it is developed in companies, generally in the marketing department, which is known as MARKETING INFORMATION SYSTEM or MARKETING.
II DEFINITIONS
A Marketing Information System (SIM) is a permanent and interactive structure composed of people, equipment and procedures, whose purpose is to collect, classify, analyze, evaluate and distribute pertinent, timely and precise information that will serve those who make marketing decisions to improve planning, execution and control.
A. Functions of the Marketing Information System:
- Assess the information needs that are needed. Develop this information, that is, generate it. Distribute and analyze it.
B. Marketing Information System Process
1) Information needs assessment
The first station or function of the system consists of evaluating the information needs, with this it seeks to know what the information needs of the people in charge of marketing decisions have. What the SIM must carry out is the reconciliation between what these people want to know, what they need and what can be achieved, since surely there will be cases in which a manager asks for a lot of information that it may not be possible to obtain or if is achieved will not be useful for making decisions, of course, the opposite case can also be presented in which a manager does not ask for information that will be useful and can be obtained.
a Information we want to have
b Information we really need
c Information we may obtain
What kind of information do we collect regularly?
What information do we need to make decisions?
What information is currently being obtained?
What information would you like to have that you don't have now?
What information do you need to be able to do your job: every day, every week, every month, etc.?
III DEVELOPMENT OR GENERATION OF THIS INFORMATION
A. Internal Marketing Reports or Records
The first step consists of searching for information in the company's internal records and reports, for example in the financial statements or in the detailed records of sales, orders, inventories, accounts receivable and costs. This type of information is obtained quickly and at low costs, it is also not adapted to the requirements of the marketing department and there is extensive information that probably will not be required.
B. Marketing Reports
After looking at the internal information, you must proceed to look for information about the environment, this is achieved through the so-called marketing reports that consist of information related to events, events and all kinds of daily information about the environment (new regulations, demographic and social trends, technological developments, macroeconomic environment, behavior of competitors) that can help decision makers to prepare and adjust the marketing plan of the firm.
There are two kinds of reports:
1) Defensive: Helps the plans follow their normal course without being affected by the environment
2) Offensive: Seeks to detect new market opportunities
The information obtained through marketing reports can be collected from various sources, suppliers and customers, the same employees, the sales force, purchasing managers and even the government, can become allies of information from the environment and the competition.
C. Market research
Market research is the systematic design, collection, analysis, and communication of data and results relevant to a specific marketing situation facing the company.
- The measurement of market potentials Market share analysis Determining the characteristics of a market Sales analysis Business trend studies Short-term forecasts Competitive product studies Long-term forecast SIM studies Existing product tests
D. Research alternatives
1) Conduct market research themselves through their sales and marketing department
2) Ask a university for help.
3) Hire a third person to do market research, hire external companies to do it, these market research firms are divided into three groups:
a Research agency services firms: collect regular consumer and market information to sell to companies or other clients.
b Market research firms by request: they are hired to carry out specific projects, the report belongs to the client.
c Specialized market research firms: provide a specialized service to other research firms or to the marketing departments of companies.
E. Definition of the problem
This is usually the most difficult step in the process, since you can know that there is something wrong, but the specific causes are not determined. For example, when the sales of a dairy drinks manufacturer decline, how to determine what is happening in the market, how to know if it is the advertising that is failing, the product or the price. It is common to make mistakes, therefore, the problem must be defined in a concrete way and must be related to specific decisions. »A well-defined problem has been solved in half»
F. Objectives
Once the problem is defined, the objectives of the investigation are established. There are basically three types of objectives for a research project:
- Exploratory objective: seeks to collect preliminary information that will help define the problem and recommend hypotheses in a more optimal way Descriptive objective: seeks to describe aspects such as market potential or consumer demographics Casual objective: seeks to test hypotheses of cause-effect relationships. Eg: if investment in television advertising is increased, how much does the product's sales increase
Investigations usually begin with exploratory objectives to develop descriptive and casual objectives later.
G. Information Sources:
To obtain the information, secondary and primary data can be collected:
1) Secondary s are existing and available information that has been obtained for another purpose
2) Primary s are those that are collected for the purpose of the moment either from consumers, intermediaries, retailers, etc.
H. Methodology
The descriptive method is generally used
I. Sampling
The Sampling Plan consists of making decisions about three factors, the sampling unit, the sample size, and the sampling procedure.
J. Resources
What resources are needed in terms of: Money, people, material, programs
K. Data collection
Operational part of marketing.
PROBE
- Direct observation: It consists of collecting primary data from the observation of pertinent people, actions and situations. For example, looking at your competitor's advertisements to gain insight into their ad spend and their promotion strategies and new products. Another example could be the visit to the points of sale of the competition to observe prices, physical distribution, product models, etc. Brand barometers: Focuses on consumption, through consumer surveys. By means of questions about the last purchase made, it is possible to quantify the consumption by brands and the frequency of purchase, thus obtaining the quantification of the market and the participation in it of the brands that supply it.
Its main drawbacks lie in basing all quantification on the memory and sincerity of the consumer, qualities that do not always accompany the components of the sample. Shop audit: As its name suggests it is a shop audit. It consists of the selection of a representative sample of the stores in the market where this research is carried out. The sample is fixed and chosen based on a store census.
The audit inspectors, with a determined frequency, visit the chosen stores, where they carry out inventories of the stocks and control the purchases, by products, that were carried out in the period under investigation.
Once the shop-audit is done, the report is presented to the clients, where the market incidents, the recommended policy and where the tables and graphs of the data obtained are provided are discussed.
By this method we obtain the most perfect quantification. However, it is not complete. Consumption is known, but why it is consumed is unknown. Therefore, it is recommended to complete the information with a consumer survey
IV INFORMATION ANALYSIS
To deepen the information collected, even
A. Statistical bank: group of advanced statistical procedures, regression analysis, correlation analysis, discriminable factorial, etc. This serves to answer questions such as: what variables affect my sales?
B. Model bank: Collection of already designed mathematical models that have a set of interrelated variables that represent some system that will help make better marketing decisions. Answer What if…? Which is better?
V DISTRIBUTION OF INFORMATION
Information must be able to be distributed at the right time and to the right people.
| Determinants | Sources | Indicators |
| Consumers and demand |
|
Who consumes
What consumes Where consumes it How consumes it |
| Market |
|
Buyers
Sellers Products that exist Trends |
| Competition |
|
Who they are
What market share they have What evolution has the competition been having |
| Business |
|
Who are our clients
What resources do we have What are our sales What is our level of investment What are our profits Client satisfaction |
MANAGEMENT IN THE MARKETING
OBJECTIVES:
- Understand what is the basic outline of our work as commercial engineers Determine the profile of a Marketing manager Understand what is meant by marketing management or direction Understand the marketing management process
BIBLIOGRAPHY
- "Marketing" Kotler "Marketing and Sales Management" Prujol Bruno
I. THE MARKETING ADMINISTRATION
Analysis, planning, implementation and control of programs aimed at creating, establishing and maintaining useful exchanges with target buyers in order to achieve organizational objectives.
II. THE MARKETING MANAGER
- CompetitiveEfficientSet your goalsObserverSelf imageTeamworkLeaderVision and creative
III. THE MARKETING ADMINISTRATION PROCESS
It consists of organizing the marketing planning process, analyzing market opportunities, selecting target markets, developing the marketing mix, and finally managing the marketing effort.
A. Organization
Determine specific strategies for different businesses.
1 Strategic planning: (how far you want to go) These are general long-term guidelines that will be followed on the business portfolio.
2 Operational planning: (How to get there) In the short term, how to act on the business portfolio.
B. Analysis of market opportunities
There is talk of being able to identify new opportunities that may exist in the market.
| PRODUCT-MARKET EXPANSION GRID | ||
| Existing Products | New products | |
| Existing Markets | 1. Market Penetration (that those who already buy, buy more, more advertising, lower prices) | 3. Product development |
| New Markets | 2. Market Development (Search for new market segments) | 4. Diversification (Direct action to a totally new field) ENTEL-Entelmovil |
Marketing opportunity: An attractive area for marketing action in which the firm will enjoy a competitive advantage.
When identifying opportunities they must match the resources and overall objectives.
C. Selection of target markets
It is segmented by different demographic and geographic variables, type of behavior.
Each segment has a characteristic in common and is different from the other segments.
A target market is chosen from the different types of segments
D. Develop a Marketing Mix
Once the segment is identified, a stimulus must be created to obtain a response through a marketing mix.
Marketing mix: A set of controllable variables of marketing that the company combines to elicit the response it wants to obtain from the target market.
4 variables are conjugated, also called the 4 P's:
1 Product: How should our product be for this market segment?
2 Price: must have a positive perceived value. To set this value, take into account:
- Competition Ability to acquire the demand How much you want to win
3 Plaza: o distribution How will the product reach that consumer segment?
If it is a product of mass consumption, there must be more intermediaries.
4 Promotion:
- Advertising (Radio, TV, newspaper, pamphlet) Specific sales promotions: cause an immediate response at a certain time Public Relations Indirect promotion
E. Managing the Marketing Effort
Execute as planned but check that it is executed as planned.
1 MARKET LEADER STRATEGY:
The leader has the largest share of the market, leads the other companies in terms of price changes, introduction of new products, distribution coverage and spending for promotions. The leader is the focal point of the competition.
The existence of a leading company is not easy at all, you must always be vigilant, other companies are always challenging your strengths or trying to take advantage of your weaknesses. Sometimes the leader can fall into second or third place. In addition, the leading company can grow fat, become clumsy and lose ground to new rivals.
For a company to remain a leader it must:
- Increase total demand
- New users: Each class of product attracts buyers who do not know the product, who resist it because of the price or the absence of certain characteristics. The seller can find new users in many places. New uses: The marketer can expand markets by finding and promoting new uses for the product. Like Dupont nylon, each time it became a well-made product, a new use was discovered, first parachutes, then women's stockings, shirts, tires, etc. Increased use: Convincing people to use the product more frequently or to use more of it each time of use.
- How to protect the market share: First, you must prevent or make adjustments in those weaknesses that offer opportunities to competitors. You must keep your costs low and your prices in line with the value that customers find in the brand. The leader must cover the holes in such a way that the competitors cannot enter. The best defense is a good offense and the best response is constant innovation. The leader is not content with the current state of affairs and leads the industry when it comes to new products, customer service, distribution efficiency and cost reduction. You are always increasing your competition effectiveness and customer value. Take the offense, set the pace, and exploit your competition's weaknesses
- The defensive position: The basic defense is the defensive position, whereby the company builds fortifications around its present position. Yet simply defending one's position or current products rarely works. Flank defense: The market leader, in caring for her global position, must closely monitor her weak flanks. Smart competitors often attack the weaknesses of the company. The company. To defend their flanks. She watches over them carefully and protects the most vulnerable. Preventive defense: The leader can initiate a more aggressive preventive defense, attacking her competitors before they move against her. Preventive defense presupposes that prevention is better than regret.Counteroffensive defense: When a market leader is under attack, despite her preventive measures and defending her flanks, she can initiate a counteroffensive defense. Sometimes companies hold out for a while before fighting back. This can be a dangerous “wait and see” game, but there are often compelling reasons not to shoot yourself. The company, when it waits, can fully understand the competitor's offense and perhaps even find a niche to sneak in and succeed with the counteroffensive. Mobile defense: Mobile defense does not consist of only aggressively defending the current position in the market. The leader extends to other markets that can serve as a base, in the future, to launch offenses and defenses. By expanding the market. The company shifts the focal point from the present product to the basic general consumer need. Market diversification into disjointed industries is another alternative to generate "strategic depth." Contraction defense:Sometimes large companies cannot defend all their positions. Scattering greatly thins your resources and competitors are nibbling on several fronts. In such a case, the best measure would be retraction defense (or strategic withdrawal). The company abandons the weakest positions and concentrates its resources on the strongest.
- How to expand market share: Market leaders can also grow by further increasing their market share. In many markets, a small increase in market share can mean a very large increase in sales. Many studies have shown that profitability increases as market share grows. Businesses with a relatively large share of the market produced a significantly higher return on investment. Due to these results, many companies have sought to expand their market share to improve their profitability. Other studies have found that many industries contain one or a few very profitable large companies, several profitable and more focused companies, and a large number of midsize companies with poor earnings results.
However, companies should not think that if they manage to increase their market share, their profitability will automatically improve. Much of it depends on the strategy they use to increase their engagement. There are many companies that have large participation and low profitability and many companies that have low participation and high profitability. The cost of buying a larger share of the market may well outweigh its rewards. Higher share tends to produce more profits only when costs per unit fall as market share increases or when the company offers a higher quality product and charges an extra price that more than covers the cost of offering higher quality.
Example: General Motors, Kodak, IBM, Caterpillar, Coca-Cola, Campbell, Wal-Mart, McDonalds, Gillette.
2 MARKET COMPETITOR STRATEGY:
- How to define the objective of the strategy and the competitor: You must first define the objective of your strategy, most of the challengers intend to increase their profitability by increasing their market share. But the strategic objective depends on who is the competitor. Most of the company can choose its competitors.
The challenger can attack the market leader, there is a lot of risk but there can be great profits, when the leader is not properly serving her market. To succeed, a company must have a sustainable competitive advantage over the leader: better costs to offer better prices or to be able to provide more value at a premium price. When a challenger attacks a leader, she must also find a way to minimize the leader's response so as not to lose her gain.
The challenger can avoid the leader and attack companies of its size or smaller regional or local ones. Many of these companies are underfunded and do not serve their clients well.
- How to choose a strategy for the attack
- The frontal attack: The challenger matches the competitor's product, advertising, price and distribution. Attack the competitor's strengths and not weaknesses. The result depends on which one has more strength and endurance. Even size and strength may not be enough to successfully challenge a well-entrenched and resourceful competitor. A frontal attack makes no sense when the challenger has fewer resources than the competitor. The attack from the flanks. The competitor concentrates her resources to protect her strongest positions, but there are always some weaker flanks. By attacking these weak points the challenger can direct her forces with the weaknesses of the competitor. This is when the challenger has fewer resources than the competitor. Another strategy is to find gaps that have not been filled by industry products, fill them, and turn them into strong segments. The encirclement attack: advancing from all directions, the competitor protects his fronts, his flanks and his rear at the same time. This is when the challenger is very resourceful and thinks she can quickly break the competitor's dominance in the market. The Evasion Attack:Indirect strategy. The challenger avoids the competitor by focusing her sights on easier markets. Evasion may involve diversifying into unrelated products, targeting other geographic markets, or leapfrogging by applying new technologies to replace existing products. The technological leap is an evasion strategy used very often in high-tech industries. The challenger is patiently developing the following technology. When she's satisfied with her superiority, she launches her attack where she has the advantage. The guerrilla attack:For little ones with little money. The challenger undertakes small, periodic attacks to annoy and demoralize the competitor, hoping to establish permanent outposts. It can happen to selective price cuts, executive challenges, explosions of intense promotions or various legal acts. The small companies are the ones that launch the guerrilla attacks against the big ones. But a constant guerrilla campaign can be very expensive.
3 MARKET IMITATOR STRATEGY:
The market follower is an upstream company that chooses not to make waves, because it thinks it may lose more than it could gain. But the follower also has strategies and applies her specific abilities to achieve growth in the market. The rate of return of some followers is higher than that of the leaders in their industry.
What does it consist of? Not all upstream companies choose to take on the market leader. The leader never takes efforts to remove clients lightly.
A follower can have many advantages. The market leader often bears huge expenses in developing new products and markets, expanding distribution channels, providing information and educating the market. The reward for all this work and risk is usually market leadership. The market follower on the other hand can take advantage of the leader's experience and copy or improve the leader's products and marketing programs, as a rule, with a much lower investment, although the follower is unlikely to unseat the leader. A leader can often be as profitable as she is.It seeks a peaceful coexistence in the market and focuses on the segments in which it has a greater position through greater specialization in order to achieve greater profitability by reducing diversification. It is a strategy that is developed, through a behavior of adaptation to the leader, by a competitor with a low market share. Therefore, this is summarized in 3 principles:
- Adaptive behavior to the leader Peaceful coexistence No retaliation from the leader
A follower strategy does not imply passivity in the director of the company, but rather implies a development strategy that does not elicit retaliation from the leader. A company introducing a new copycat product must decide how it will position its product against the competition in terms of quality and price. There are four strategies for this:
- Top-notch strategy: introduce a high quality product at a high price Good value strategy: introduce a high quality product at an affordable price Overcharge strategy: products with a quality that does not justify their price Economy strategy: medium quality products at prices accessible.
Market-following companies fall into one of three general types:
1. The clone: exactly copies the products, distribution, advertising and other marketing measures of the leader. The clone does not originate anything, it simply tries to live by thriving on the investments of the market leader.
2. The copycat: copies some things from the leader, but keeps certain differences in terms of packaging, advertising, prices and other factors. The leader is not affected by the copycat, as long as she does not undertake aggressive attacks. The copycat can even serve the leader to avoid charges of monopoly.
3. The adapter: it is based on the products and marketing programs of the leader, but usually improves them. The adapter may choose to sell in other markets in order to avoid a direct confrontation with the leader. However, the adapter often becomes a future challenger, as would be the case with many Japanese companies after adapting and improving improved products in other countries.
Example: Some Japanese companies that copy products from Sony, GL…
4 MARKET NICHE STRATEGY:
Instead of targeting the entire market, or even large market segments, these companies target segments within segments, or niches. This is frequent in the case of small companies, because they have few resources. But small divisions of large companies also apply strategies to fill niches. The important thing here is to note that companies that cover a small part of the total market can be very profitable if they occupy niches intelligently. A study of successful midsize companies found that, in almost all cases, they occupied niches within a larger market, rather than targeting the entire market. Why is a niche profitable? The company that occupies the niche ends up knowing so much the clients it has in its sights,That meets your needs better than the other companies that, coincidentally, sell to this niche. The company occupying the niche may charge a substantial surcharge on its costs due to the added value. Just as the mass marketer manages to achieve a large volume, the company that occupies a niche obtains very large margins. The ideal niche in the market is large enough to be profitable, but it must also have the potential for growth. It is one that the company can serve effectively and that does not attract much interest from major competitors. The core concept of niches is in specialization, it must be established based on the market, the client, the product or the marketing mix:The company occupying the niche may charge a substantial surcharge on its costs due to the added value. Just as the mass marketer manages to achieve a large volume, the company that occupies a niche obtains very large margins. The ideal niche in the market is large enough to be profitable, but it must also have the potential for growth. It is one that the company can serve effectively and that does not attract much interest from major competitors. The core concept of niches is in specialization, it must be established based on the market, the client, the product or the marketing mix:The company occupying the niche may charge a substantial surcharge on its costs due to the added value. Just as the mass marketer manages to achieve a large volume, the company that occupies a niche obtains very large margins. The ideal niche in the market is large enough to be profitable, but it must also have the potential for growth. It is one that the company can serve effectively and that does not attract much interest from major competitors. The core concept of niches is in specialization, it must be established based on the market, the client, the product or the marketing mix:The ideal niche in the market is large enough to be profitable, but it must also have the potential for growth. It is one that the company can serve effectively and that does not attract much interest from major competitors. The core concept of niches is in specialization, it must be established based on the market, the client, the product or the marketing mix:The ideal niche in the market is large enough to be profitable, but it must also have the potential for growth. It is one that the company can serve effectively and that does not attract much interest from major competitors. The core concept of niches is in specialization, it must be established based on the market, the client, the product or the marketing mix:
- End user specialist: serving a type of end user (special criminal law firm) Vertical level specialist: at some level of the production-distribution cycle. A copper company that specializes in making copper sheet Customer Size Specialist - Sell large, medium or small customers Specific Customer Specialist - Limit sales to a few major customers (Sears-General Motors) Geographic Specialist - Sell only in a place, region or area of the world Specialist in the product or a characteristic: production of a product, product line or product characteristics. (companies that only manufacture microscopes or lenses)Price-quality specialist: operating at the lower or upper end of the market. Hewlet Packard sells fine but very expensive calculators. Service Specialist: Offer one or more services not provided by other companies
The risk of niches is that they can be depleted or targeted. This is why many companies occupy various niches. If you have two or more niches there is a better chance of survival. Some large companies prefer a multi-niche strategy to cover the entire market.
MARKET SEGMENTATION
OBJECTIVES
- Know a method of market segmentation that is generally applied Understand the importance of a target market selection approach Describe the variables in both macrosegmentation and microsegmentation Describe the variables in both macrosegmentation and microsegmentation on which market segmentation can be established.
BIBLIOGRAPHY
- Sales and Marketing Management Prujo Bruno Kotler Marketing William Stanton Marketing
TARGET MARKET SELECTION MARKETING
Currently there is a marketing to select the target market this can help us to make our resources efficient and to know what our objectives are.
Market segmentation is a process that consists of dividing the total market for a good or service into several smaller and internally homogeneous groups. The essence of segmentation is really knowing your consumers. One of the decisive elements of a company's success is its ability to properly segment its market.
The target market selection approach follows 3 steps
I) SEGMENT THE MARKET
II) SELECT WHAT IS ATTRACTIVE IN THE MARKET
III) DESIGN A POSITIONING STRATEGY
I) SEGMENT THE MARKET
Definition: It means dividing the Market into more or less homogeneous groups of consumers, in their degree of intensity of need. More specific we can say that it is the division of the market into diverse groups of consumers with different needs, characteristics or behaviors, which could require different products or marketing mixes.
A. MACROSEGMENTATION:
It gives us a general parameter that helps us divide the market.
1) Define the reference market
First you must define:
What is our scope of activity?
In what field of activity should we be?
In what area of activity should we not be?
SCOPE OF ACTIVITY:
What is our market and what needs do we satisfy with our product?
This must be done must be done in a narrow way (clear) and at the same time broad (let the imagination run)
2) Conceptualize our reference market
a Functions: Determine from the buyer's point of view what needs we meet.
The what: What are the functional needs or combinations of functions to satisfy?
b Buyer groups: Those who buy the product.
The who: Who are the different groups of buyers potentially interested in the product?
c Technologies: Everything that makes it possible to satisfy the functions detected.
The how: What are the existing technologies or materials capable of producing these functions?
Based on this information, a
SEGMENTATION MATRIX:
The next step is to intercept these three axes
Objective: Evaluate the potential or attractiveness of all these segments used for our company. What is the growth rate in each segment. What is our penetration rate in each segment. Where are our most important clients. Where are our most important competitors. What are the expectations based on the service, quality, product.
B. MICROSEGMENTATION:
Once the macro-segment has been identified, more detail must be entered with a micro-segmentation:
1 Geographical Segmentation: subdivision of markets based on their location. It has measurable and accessible characteristics: city, region, zones, municipalities, provinces
2 Demographic Segmentation: It is used very frequently and is closely related to demand and is relatively easy to measure. Among the best known demographic characteristics are: age, gender, income, education, occupation, family size, race, religion, nationality, etc.
3 Psychographic Segmentation: Consists of examining attributes related to thoughts, feelings and behaviors of a person. Using dimensions of personality, lifestyle characteristics and values: Social class (high, middle, low), lifestyles (conservative, successful, extroverted), personality characteristics (impulsive, ambitious, authoritarian, shy)
4 Behavioral targeting: refers to the behavior related to the product, uses variables such as the desired benefits of a product and the rate at which the consumer uses the product.
| SEGMENTATION CRITERIA | TYPICAL MARKET SEGMENTS |
|
GEOGRAPHIC |
|
| Region | Nuevo León, northern region, southern region, eastern region |
| Size of the city or metropolitan statistical area | Less than 25000, 25000-100000, 100001-500000, etc… |
| Urban-rural | Urban, suburban, rural |
| Weather | Hot, cold, dry, rainy. |
| Entry | Less than 10,000, 10,000 - 25,000 |
| Age | 6-10years, 10-15, 15-20. 20-25, etc… |
| Gender | Male Female |
| Family life cycle | Young, single, married, with children, divorced, widowed |
| Social class | High low average. |
| Scholarship | Primary, Secondary, etc… |
| Occupation | Professional, office worker, home… |
| Ethnic origin | African, Asian, Hispanic… |
|
PSYCHOLOGICAL |
|
| Personality | Ambitious, self-confident… |
| Lifestyle | Activities, opinions and interests |
| Values | Values and lifestyles (VALS2) |
|
BEHAVIORAL |
|
| Desired Benefits | Depends on the product |
| Usage rate | Non-user, small user, etc…. |
This micro-segmentation is used in each of the macrosegments.
How to determine if a segment is attractive?
- Measurability: Degree to which the purchasing power of segments can be measured. Accessibility: Degree to which these segments can be reached and served. Sustainability: Degree to which the segments are large and profitable enough. Actionability: Degree to which marketing actions can be carried out in the identified segments.
SELECT SOME MARKET SEGMENT:
Select to which indicated segments we can carry out marketing actions.
Depending on our resources or how attractive this segment can be for us
Criteria to define whether actions will be developed in one or more segments
- What is the growth rate of demand? What is the current degree of penetration in each segment? Where are our most important customers? What are the expectations of each segment in terms of quality, price and service techniques?
I. MARKET COVERAGE STRATEGY
A. Undifferentiated Marketing: Attacking the total market without any distinction. Develop the marketing mix globally.
DESIGN A POSITIONING STRATEGY
Take a position in the mind of the consumer in relation to the products of the competition. Define the best strategy to define how you want the market to remember you.
Strategies for positioning based on:
A. Product attributes
B. Benefits offered
C. Consumption occasions
D. User Classes
E. Against the competitor
CONSUMER MARKET ANALYSIS AND CONSUMER CONDUCT
OBJECTIVES:
- Understand what we mean when we talk about buyer behavior Know what is the relationship between marketing and consumer behavior Know what are the psychological, sociocultural and personal variables that influence the consumer Know the purchase decision process that follows a consumer.
BIBLIOGRAPHY
- Consumer Behavior David Loudon Kotler Marketing Kotler Marketing Manual
INTRODUCTION
Consumer markets: individuals and families whose consumption depends on internal and external factors
Consumer analysis:
- What are the factors that lead the consumer to decide one or another purchase? How do consumers react to certain marketing stimuli that we use? Who buys? When do they buy? How do they buy? Where do they buy? Why do they buy? ?
These questions begin to be answered from a basic model.
I. MODEL OF CONDUCT
(Simple model of response stimulus)
II. MAIN INFLUENCE FACTORS
A. Psychological Factors:
1 Learning: Describes the changes in an individual's behavior that are the result of experience (those that are learned from family, work, friends)
2 Perception: Process by which people select, organize and interpret stimuli, whether internal or external, in order to assign meanings to them: perception depends on three perceptual processes:
- Selective exposure: Not all advertisements and advertisements cause the same stimulus to the consumer. Selective distortion: The consumer always tends to distort the information to match the preconceptions they have. Selective retention: What attracts the most attention, or caused a better impression or positioning, is retained.
3 Motivation: It is a sufficiently pressing need to incite the person to seek satisfaction of that need. Everything that is bought was prompted by a force.
B. Sociocultural factors:
1 Culture: A basic set of values, perceptions, preferences and behaviors is learned, behavior influences life habits, preferences, consumption.
2 Subculture: Smaller groups (Eastern, Western, racial groups)
3 Social Class: The products that are bought depend on the social class not only income, but also education, health, occupation, etc.
C. Social Factors:
1 Reference groups: They directly or indirectly influence purchasing attitudes
- Belonging groups: Refers to family, friends. They are the groups to which one belongs, formal or informal, that influence consumer behavior. Aspiring groups: Those to which one wishes to belong through fashion trends. (Youth programs, fashion groups) Dissociative groups: Those to which one is prejudiced or repellent. (Gangs).
2 Family: Specific element, it has a very important role
3 Status and roles: The status is the reflection of the general estimate that society gives to each role. The purchases that are made have a lot to do with the status of a person or the level that a person adds.
D. Personal Factors
1 Age and life cycle: The needs that one has go according to this (baby-milk)
2 Occupation: A manager and a worker have different purchases.
3 Economic circumstances: influence product selection.
4 Lifestyle: life pattern expressed in your activities, interests and opinions
III. BUYER IDENTIFICATION AND THE PURCHASE DECISION PROCESS
When a consumer buys, there are a series of people who have influenced or determined this purchase, as a company it is necessary to know them in order to create targeted marketing.
A. Buyer Identification (Roles)
1 Initiator: That person who awakens in you the interest to consume something (recommends you)
2 Influencer: Person whose opinion at that moment is very important for the decision.
3 Decision maker: Person who decides the purchase.
4 Buyer: Person who buys the product (sometimes one person decides and another buys).
5 User: Receives the product: children do not decide to buy clothes, they simply receive it.
Example: "Buying a cell phone"
Initiator: Friend, freelancer
Influencer: Friend, family
Decision maker: The person himself
Buyer: The person himself
User: The person himself
B. Purchase decision process (Steps)
Everything that is bought follows a conscious or unconscious stage.
1 Identification of a desire or need: Needs and desires arise from the stimuli created. This process can take seconds, minutes, hours, days, months, etc.
2 Information search: It can be conscious (if all offers are analyzed) or unconscious (if the product is already positioned in our mind). It can be through internal sources (psychological phase) external sources.
3 Evaluation of alternatives: offers influence (price, quantity, promotions, discounts)
4 Purchase decision: Buy the product as such, choose one of all the possibilities.
5 Post-purchase sentiment: Product satisfaction and decision of a future purchase.
Marketers work on buyer identification and the purchase decision process.
ANALYSIS OF THE BUSINESS MARKETS AND THE CONDUCT OF THE ORGANIZATIONAL BUYER
OBJECTIVES:
- Understand what an organizational market is. Know the different types of organizational markets. Know the main characteristics of organizational markets. Understand the purchasing behavior of the organizational buyer.
BIBLIOGRAPHY:
- Marketing William StantonKottler MarketingKottler Marketing Management
I. TYPES OF ORGANIZATIONAL MARKETS
Consumers are businesses, organizations, and not families. Eg Goodyear is a part to finish a product. These organizations also have a buyer behavior.
A. Industrial Market
Industrial buyers purchase goods and services that help them produce other goods and services or rent or supply them to others (manufacturing, agriculture, construction, telecommunications). These markets are the ones that move the most money worldwide.
B. Resale market
It consists of the organizations that acquire the goods with the purpose of reselling them or renting them to others with a profit. (BOING rents its planes to LLOYD)
C. Government market
They acquire goods or services to carry out the functions of the government mandate.
II. CHARACTERISTICS OF ORGANIZATIONAL MARKETS
A. Market structure and characteristics of demand
1 Buyers are larger but at the same time they are few: They are larger in volume but smaller in number of organizations. However, it has the advantage that the knowledge of customers is greater than in consumer markets.
2 Organizational markets are geographically concentrated: Organizational buyers are often concentrated in metropolitan areas or large industrial zones. (In Bolivia in Santa Cruz and La Paz).
3 The demand of the organizational market is derived: The demand for a product for companies derives from that of the consumer products in which it is used. Thus, the demand for steel depends in part on the demand for cars and refrigerators by users, but it also depends on the demand for butter, baseball gloves, and CD players. This is because the tools, machines and other equipment necessary to manufacture it are made to do. Consequently, as the demand for baseball gloves increases, the company that makes them will have to buy more sewing machines made of steel and file cabinets.
4 Demand is inelastic in the short term:Another characteristic of the business market is the inelastic demand for these types of products. By elasticity of demand is understood the sensitivity of demand between the change in the price of a commodity. The demand for many industrial products is inelastic relativity, which means that the demand for a product depends little on changes in its price. The demand for industrial products is inelastic because the cost of a part or material usually constitutes a small part of the total cost of the finished product. The cost of the chemical in paint is a small part of the price the consumer pays for it. From a marketing point of view, there are three factors capable of regulating the inelasticity of demand for industrial products:If the supplier lowers the price, Manaco will not buy more this depends on the demand for shoes.
B. The nature of the purchasing unit
To make the decision there are several people, in some cases teams dedicated to this.
C. The nature of the purchasing unit
The decisions are more complicated.
III. ORGANIZATIONAL BUYER'S CONDUCT MODEL
Organizational Purchase: Decision-making process through which formal organizations establish the need for the purchase of products and services and identify, evaluate and select between alternative brands and suppliers.
To better understand the buyer, the following questions must be analyzed:
What kinds of purchasing decisions do organizational buyers make?
How do these industries choose their suppliers?
Who makes the purchase decision in that company?
What is the process you follow to make your purchases?
What factors will influence your purchasing decisions?
Purchasing center: all those individuals or groups that participate in the purchasing decision-making process and that share common objectives and the risks that may arise from the decisions.
IV. INDUSTRIAL BUYER MODEL OF CONDUCT
A. What purchasing decisions do industrial buyers make?
Main types of purchasing situation.
1 Direct buyback: consists of a purchase decision in which the competent department repeats a purchase order on a routine basis. The buyer chooses the suppliers from an «approved list» weighing the situation and satisfaction in the previous purchase supplied by the different suppliers, these in turn make an effort to maintain the good quality of the product and service «within the list from providers". There is an automatic ordering system for the purchasing department to save time "off-list suppliers" try to win over the buyer to obtain a small order in order to expand their purchase quota over time.
2 Modified buyback: the buyer wants to modify the product specifications, prices, delivery requirements or other terms. It involves additional people who participate in the decision of both the buyer and the seller. There is an option for "the disregarded supplier" the opportunity for a better offer.
3 New purchase: is the situation in which a product is purchased for the first time. The higher the cost and / or risk, the greater the number of agents participating in the decision, the more options there are, the longer it takes to make a decision, this constitutes for the marketing specialist the greatest challenge and the opportunity to try to achieve The greatest number of influences, key to purchase and provide advice and useful help, in these companies use the so-called MISSIONARY SALES FORCE formed by their best salespeople.
B. Who participates in the industrial purchasing process?
1 Purchase control: All those individuals and groups that participate in the purchase decision-making process, who share some common goals and the risks arising from the decision
2 Users: those who will use the good or service. Users initiate the purchase proposal and help define product specifications. (Production department)
3 Influencers: those who will influence the purchase decision, provide information to evaluate, alternatives. Technical personnel are important. (Dept. of commercialization, marketing or sales)
4 Buyers: they are people with formal authority to select the supplier and mark the purchase terms help to outline the specifications of the product, but play an important role in the selection of sellers in the negotiation. In complex purchases, buyers can initiate certain high-level people to participate in negotiations. Procurement manager, purchasing manager)
5 Decision-makers: formal or informal power to approve or select the final suppliers. They are the ones who decide the requirements and / or suppliers of a product.
6 Approvers: authorize the actions proposed by decision makers or buyers.
7 Gate keepers: these are people who have the power to prevent sellers or information from reaching the shopping center. For example: purchasing agents, receptionists, can prevent sellers from contacting users or decision-makers
C. What are the main influences on industrial buyers?
Some marketers assume that the most important thing is the economy, however they also take into account:
1 Environmental factors
2 Organizational factors
3 Interpersonal factors
4 Individual factors
D. How do you make your purchasing decisions?
1 Recognition of the problem: The purchase process begins with the recognition by one of the organization of a need that can be satisfied with the acquisition of a product or service. The recognition or appearance of the problem may be given by internal factors, such as the launch of a new product that requires the need to purchase new facilities, or by external factors such as customer requirements to improve the quality of the final product that may lead To the need to improve the components or the facilities, this need can also be driven by another supplier company.
2 Overview of needs: Specify the exact need. How should the product be, how much, etc.
3 Product specification: Once the characteristics of the products we need are known, we have to carry out the technical specification of them. This process is usually carried out by technicians through instruments such as "value analysis". This specification will be used throughout the purchasing process so that products that do not meet the specifications will be rejected immediately.
4 Search for suppliers: Once we have defined the product that meets our needs, we have to find the most qualified supplier. The search for suppliers will depend on the type of purchase we make, the greater the importance of it, the greater the time we dedicate to this phase. Vendor marketers need to be vigilant to ensure they are on the wanted vendor list. "We must anticipate the needs"
5 Supplier selection: buyers require the most qualified suppliers to present their proposals for analysis. Suppliers must direct their efforts to present attractive proposals, which show their capabilities and resources. "Create the best stimulus"
6 Order specification: establish technical specifications, quantity, guarantee, payment terms, delivery conditions, return procedure.
7 Performance evaluation: Feedback from those who will use the product. In the event that the evaluation is positive, the relationship with the supplier is maintained for an upcoming need or extension of the order, however, if not, the need to replace it may arise.
THE MARKETING OF SERVICES
BIBLIOGRAPHY:
- Kotler Marketing Director Kotler Marketing William Stanton Marketing
OBJECTIVES:
- Understand why we talk about service marketing Define what a service is Know the main characteristics of a service Know how services are classified Know disontwic aspects of service marketing Main aspects that influence customer service.
SERVICE
“A service is any act or function that one party can offer to another, which is essentially intangible and does not result in any property. Its production may or may not be linked to a physical product. "
"All those identifiable, intangible activities that are the main object of an operation that is designed to satisfy the needs of consumers."
From the foregoing, it can be deduced that service organizations are those that do not have as their main goal the manufacture of tangible products that buyers will permanently own, therefore, the service is the object of marketing, that is, the company is selling the service as the central nucleus of its offer to the market.
I. MARKETING OF SERVICES
It is an extension of traditional marketing. It is also a service that satisfies a need.
II. NATURE AND CHARACTERISTICS OF THE SERVICES
A. Intangibility
Services are essentially intangible. It is often not possible to taste, feel, see, hear, or smell services before purchasing. Opinions and attitudes can be sought in advance; a repeat purchase can rest on previous experiences, the customer can be given something tangible to represent the service, but in the long run the purchase of a service is the acquisition of something intangible. It follows that intangibility is the definitive characteristic that distinguishes products from services and that intangibility means both something palpable and mental. These two aspects explain some of the characteristics that separate product marketing from service marketing.
B. Inseparability
Often times the services cannot be separated from the person of the seller. A consequence of this is that the creation or realization of the service can occur at the same time as its consumption, either partial or total. Services are sold and then generally produced and consumed simultaneously. This has great relevance from the practical and conceptual point of view, in fact, traditionally functions within the company have been clearly distinguished in a well separated way, with certain interrelationships between them, usually at the level of coordination or transfer of information that serves as input for one or the other; However, here we can appreciate more a merger than a coordination, the service production staff, in many cases,It is the one that sells and / or interacts more directly with the client or user while he or she uses the service.
C. Variability or Heterogeneity
It is often difficult to achieve standardization of production in services, because each "unit". Provision of a service may be different from other 'units'. Furthermore, it is not easy to ensure the same level of production from a quality point of view. Likewise, from the customer's point of view, it is also difficult to judge quality prior to purchase. Variability: differentiation between one client and another. Standardization of the service: staff training, staff selection
D. Perishability
Services are liable to perish and cannot be stored. On the other hand, for some services, fluctuating demand can aggravate the perishability characteristics of the service. Key decisions must be made about what maximum level of capacity should be available to meet demand before service sales suffer. Attention must also be paid to periods of low levels of use, reserve capacity or the option of short-term policies that balance fluctuations in demand. Take the case, for example, in the capacity of a hotel versus a manufacturing company, the latter has greater flexibility to cope with increases in the quantity demanded of goods and can, in general, increase production shifts to cope with it., but,What happens in the case of a hotel when the number of passengers increases beyond the number of rooms it has? What happens when there are many fewer who come to the hotel?
E. Property
A customer can only have access to use a specific service. Payment is made for the use, access or rental of certain elements. (You don't buy it and you take it)
III. CLASSIFICATION OF SERVICES
A. Are they people-based or team-based?
If the same person is the one who provides the service or does it through teams.
Through the person himself:
1 Professionals: Doctors, engineers, auditors, etc.
2 Skilled labor: plumbers, technicians, teachers, etc.
3 Unskilled Labor: From Plumber to Private Security
Through team:
1 Automatic equipment: Car wash.
2 Equipment supervised by non-specialized or relatively specialized operators
3 Equipment operated by skilled labor: X-rays, pilot
B. Is the presence of the client necessary for the service or not?
Necessary: Medical services, hotels, beauty salons, etc.
Not required: Security service
C. What about the customer's reason for making the purchase?
The service that is being carried out satisfies the need of a person or an organization, for this a difference must be made in offers, prices, quantity, etc.
D. What about the motive of the service provider? Reasons of a lucrative or non-profit, private or public nature:
Marketing programs are different in different cases: Lucrative, non-profit, private or public, to be able to work on the organization.
IV. DISTINCTIVE ASPECTS OF SERVICE MARKETING
THE MARKETING STRATEGY IN THE SERVICES SECTOR
Some unique aspects of services that guide the formulation of the service marketing strategy and differentiate it from ordinary marketing are:
1 The predominantly intangible nature of a service can make it more difficult to select competitive offerings among consumers.
2 When the producer of the service is inseparable from the service itself, it can locate the service and offer the consumer a more restricted option.
3 The perishable nature of the services prevents the storage of the product itself and can also add risk and uncertainty to the marketing of the service.
The stages of segmentation and positioning (for its benefits) of the marketing strategy are basically the same for both goods and services. Where the differences do occur is in the elements that make up the marketing mix.
Marketing mix:
1 Product: The service seen as a product requires taking into account the range of services offered, their quality and the level at which it is delivered. You will also need to pay attention to aspects such as the use of brands, guarantees and after-sales services. The combination of the service products of these elements can vary considerably according to the type of services provided.
2 Price: The influence of the characteristics of the services varies according to the type of service and the market situation being considered. However, they constitute an additional factor when examining the main traditional forces influencing prices: costs, competition and demand.
- Perishable nature of the service; the fact that services cannot be stored and that fluctuations in demand cannot be met so easily through the use of inventories, has an impact on prices. Special pricing offers and price reductions can be used to deplete available capacity, and fringe pricing may be a more common thing. Consistent use of these pricing forms can lead buyers to deliberately delay purchasing certain services with the expectation that they will be produced. Sellers, for their part, can try to offset this effect by offering advantageous reductions on pre-orders. Customers can delay or postpone the completion or use of many services. They can even perform the services personally.These characteristics lead to stronger competition among service sellers and may even stimulate a greater degree of price stability in certain markets in the short term. Intangibility has numerous consequences for prices. First-time users may have great difficulty understanding what they are getting for their money, which directly influences the perceived risk to the service, the higher the material content, the more the prices will tend to be based on costs and the higher it will be. the trend towards more standard prices. The smaller the material content, the more customer-oriented and the less standard pricing.can stimulate a greater degree of price stability in certain markets, in the short term. Intangibility has numerous consequences for prices. First-time users may have great difficulty understanding what they are getting for their money, which directly influences the perceived risk to the service, the higher the material content, the more the prices will tend to be based on costs and the higher it will be. the trend towards more standard prices. The smaller the material content, the more customer-oriented and the less standard pricing.can stimulate a greater degree of price stability in certain markets, in the short term. Intangibility has numerous consequences for prices. First-time users may have great difficulty understanding what they are getting for their money, which directly influences the perceived risk to the service, the higher the material content, the more the prices will tend to be based on costs and the higher it will be. the trend towards more standard prices. The smaller the material content, the more customer-oriented and the less standard pricing.which directly influences the perceived risk in relation to the service, the higher the material content, the more the prices set will tend to be based on costs and the greater the trend towards more standard prices. The smaller the material content, the more customer-oriented and the less standard pricing.which directly influences the perceived risk in relation to the service, the higher the material content, the more the prices set will tend to be based on costs and the greater the trend towards more standard prices. The smaller the material content, the more customer-oriented and the less standard pricing.
Finally, it is possible to determine prices through negotiation between buyer and seller, since the service can be adjusted to the specific requirements of the client.
- When prices are homogeneous they can be highly competitive. The more exclusive a service, the greater the seller's discretion in setting the price. In such circumstances, it is possible to use prices as a quality indicator; However, this idea is somewhat subjective. The inseparability of the service of the person who offers it can set geographic or time limits to the markets that it is possible to serve. Similarly, service buyers can search for the service within certain geographic or time zones. The degree of competition operating within these limits influences the prices charged.
3 Promotion: Promotion of services can be done through four traditional ways, in such a way as to influence the sales of services as products. These forms are: Advertising: defined as any paid form of non-personal presentation and promotion of services through a specific individual or organization.
- Personal selling: defined as the personal presentation of services in a conversation with one or more prospective buyers for the purpose of making sales Public Relations: defined as the non-personal stimulation of demand for a service by obtaining commercially important news about it, in any medium or obtaining its favorable presentation in any medium that is not paid for by the sponsor of the service Sales Promotion: Marketing activities other than advertising, personal selling and public relations that stimulate customer purchases and the use and improvement of dealer effectiveness.
4 Plaza: Direct selling is the most frequent method and the channels are short, but there are also markets that have many service channels that contain one or more intermediaries. Some of these intermediaries take their own risks; others perform functions that change property and others perform functions that allow physical movement. There are two channel options: direct, and through intermediaries.
Intermediaries: Agents: Frequent in markets such as tourism, travel, hotels, transportation, insurance, credit and employment services and industries. Concessionaires: Intermediaries trained to perform or offer a service and authorized to sell it. Institutional intermediaries: They are in markets where services must be or are traditionally provided by intermediaries such as the Stock Market or Advertising.
Wholesalers: Intermediaries in wholesale markets such as Commercial Banks or laundry services for the industry. Retailer: photo studios and establishments that offer dry cleaning services.
5 Personnel:Service staff is made up of those people who provide the services of an organization to customers. Service personnel are important in all organizations, and it is even more important when, in the absence of evidence of tangible products, the customer forms the impression of the company based on the behavior and attitudes of its personnel. These people can play a 'production' or 'operational' role, but they can also have a customer contact role in service organizations, their behavior can be so important as to influence the perceived quality of a service such as behavior of a sales staff. That is why it is essential that these service personnel carry out their work effectively and efficiently because they constitute,an important marketing element of the company; likewise, that the effectiveness and efficiency measures of an organization include a strong element of customer orientation among its staff. Service staff includes those members of the organization who are in contact with the customer (contact staff) and those members who are not in contact with customers.
6 Physical Evidence: Physical evidence can help create the "environment" and "atmosphere" in which a service is purchased or performed and can help shape customers' perceptions of the service. Customers form impressions of a service business in part through physical evidence such as buildings, fixtures, layout, color, and goods associated with the service such as suitcases, labels, brochures, placards, etc.
7 Process: How does the service delivery process work? Where does it start, where does it end? What is essential for a service company is that the service delivery process is efficient.
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