Class 4 - Marketing 4 Ps & Service - Winter 2014 Bb

877 477-8787 Foundation Tech Support
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Business Activities
Marketing
The activities designed to provide goods and services that provide value and satisfy customers.
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Consumer Behavior
Consumer Behavior
Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and the product use.
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Price
Monthly Customer Survey Score • Low Tech: • High Tech: $15.00 - $35.00 $25.00 - $45.00
(The lower the price, the more attractive)
41% 25%
Attractiveness
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The Impact of Service
The service element can be particularly influential for “commodity” products – those products that are similar to each
other without meaningful differentiation.
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Cost versus Price
Cost of Goods
The expense of obtaining materials for making the products sold.
Price
Price is that which is given up in an exchange to acquire a good or service.
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Marketing
• Who are your (potential) customers?
• How big is the market? • How fast is it growing? • Can you usefully group your customers? • What do they want from you? The 4 Ps + Service - Product: What are the product characteristics? - Price: How much will they pay? - Place: Where do they buy my product? - Promotion: How do they learn about my product? - Service: What level of service will I experience?
(The higher MTBF, the more attractive)
21% 13%
Attractiveness
Score
12
Mean Time Before Failure - MTBF
ABLE (Low Tech) = 20,000; score = 100
Attractiveness
100 21
Today
• Foundation
Class 4
• Marketing Strategy & Decisions Product and Product “aging” Price Place Promotion Service
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Student Resource Center
Tutors will be available beginning next week • 155 Lillis Hall • Monday – Thursday: 4:00 to 7:00 • Friday: Noon until 5:00
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Product
- What do they want?
What are the characteristics of the product that are important to customers?
Electronic sensors - Size Position - Performance (processing speed) - Reliability (MTBF) - Age: how recently has it been updated
Subject: BA 101 12 - Foundation Question _______ Prof. Engel, Thanks to you, my day sucks. How is yours? Chris
• Being complete and clear with your question or information.
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Let’s talk about cars …
Toyota: High end – Lexus
Moderate –
Low end –
Toyota
Scion
Why do they do this?
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Product Questions:
What do they want?
1. What are the characteristics of the product that are important to customers? 2. What is the most important product characteristic in the low tech segment? In the high tech segment? 3. What is “perceived age” of a product? 4. How is reliability measured? 5. What will increase material costs?
100 21
5 2.1
96 27.8
10 .9
21
Customer Survey Score
100 21
Max 21
5 2.1
41
96 27.8
29
10 .9
9
51.8
100
Lost points
0
38.9
1.2
8.1
48.2
22
Customer Survey Score
100 21
Max 21
9
Low Tech
Appendix II
in the Text
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High Tech
Appendix II
in the Text
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Mean Time Before Failure or MTBF
Monthly Customer Survey Score • Low Tech: • High Tech: 14,000-20,000 hours 17,000-23,000 hours
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FastTrack, page 5 & 6
1. 2. 3. 4. Price Age Reliability Positioning Customer Buying Criteria Expectations Importance $15.00 - 35.00 41% Ideal Age = 3.0 29% MTBF 14000-20000 21% Pfmn 5.3 Size14.7 9%
(The closer to the ideal, the more attractive)
29% 29%
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Age
96
Able’s age: 3.1 Score: 96
100 21
4 1.6
96 27.8
18
Able’s position…
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Position
Monthly Customer Survey Score
5 2.1
41
96 27.8
29
10 .9
9
51.8
100
Lost points
0
38.9
1.28.1Fra bibliotek48.223
Profit Maximization
Profit Maximization
Setting prices so that total revenue is as large as possible relative to total costs.
877 477-8787 Foundation Tech Support
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155 Lillis Hall
Our Classroom
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Thanks for …
• Using BA 101 and your class time in the subject line. • Including my name and yours in your email.
Expectations 1. Positioning 2. Age 3. Price 4. Reliability Pfmn12.3 Size 7.7 Ideal Age = 0.0 $25.00 - 45.00 MTBF 17000-23000
Importance 33% 29% 25% 13%
Score
15