Transcript USSS Basics of Marketing

Marketing issues in
the Czech Republic
Richard Selby
Czech University of Life Sciences, Prague
Orientation: remember the history
• 50 years of communism, before that….
• 5 years of occupation
• In any case it’s a young country:
– Czech republic: 15 years
– Newly independent: 19 years
– Czechoslovakia: 90 years
……..so, have the people changed in any way?
Think about the people
Because marketing is all about people!
Basics of marketing
Content
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Marketing
Sales
The ‘P’s of Marketing
The Product Life Cycle
Market Segmentation
Advertising Agencies
Caring for Customers
Marketing and Sales
• Definition of Marketing
• “Marketing is the identification and profitable
satisfaction of customers’ needs”
• Definition of Sales
• “Sales is the last stage in the marketing
process”
Components of Marketing
• Identifying the needs
• Satisfying them
• Making a profit
“Matching the company’s capabilities to the
wants of the customer”
The Four ‘P’s of Marketing
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The Product
The Price
Place
Promotion
“Often called the marketing mix”
Some more ‘P’s of Marketing
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The Product
The Price
Place
Promotion
People
Planning, and
PROFIT!!!!
Product or Service
• The product is usually a tangible product or
service, associated with an assessment or
beliefs
• The product life cycle
• A product strategy
• A brand name to differentiate it from other
products offered by the same company or by a
competitor
Price
• Quantifiable way of measuring the value
customers place on a product
• Price can be based on costs, what the market
can bear or positioned in relation to the
competition
• A pricing strategy
• Market entry, maturing and withdrawal prices
• Discount price
Place or Distribution
• Selling points such as shops, regional centres,
headquarters or a warehouse
• Retailer, wholesaler, mail order or the internet
• Distribution channels are concerned with
relationships between the producer, the
middleman/woman and the customer
“The name for the way in which a product or
service gets from its point of origin to its final
destination, to the person or the business that
uses it”
Promotion
• Promoting a product or service involves
informing and persuading customers to buy
• Having selected the audience there are many
ways of reaching the audience through the
following media and methods
– television, radio, national newspapers,
regional newspapers, local newspapers,
through the Internet, mail shots (direct mail),
fax shots, email shots, telephone selling and
personal selling
The Product Life Cycle
All products & services have a
Life Cycle
Market Revenues
Introduction
Growth
Maturity
Decline
Revenues
Competition
Mass
market
Early
adopters
Early
majority
Time
Prices
Laggards
Fixed-Line Telephony
Growth
Market Revenues
Introduction
Maturity
Decline?
Mass
market
Laggards
Early
adopters
Privatisation
1998
Early
majority
2000
Time
2020
Market Segmentation
(This is where we really need to find
out about the people!)
Market Segmentation
• Every market can be segmented into groups of
potential customers who have similar
characteristics. The benefit to the marketer in
doing this is that each segment has less
variability than the market as a whole
• The most common bases of segmentation are:
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Demographic
Socio-economic
Buying patterns
Personality, attitudes, values
Life style
Special considerations about the
Czech people
Are people in the Czech Republic the
same as people in our home country?
Cultural considerations - Hofstede
Find out more at: http://www.geert-hofstede.com
Advertising Agencies
Advertising Agencies
Advantages
• One-stop shop for advertising, marketing and
public relations services
• Usually work with one person, the account
representative
• Design and manage a co-ordinated marketing
and advertising campaign
• Access to the media on a regular basis
Advertising Agencies
Disadvantages
• Agencies are very expensive - besides paying
for the final product, you are also paying for
someone to take over the burden of managing
your product
• Agencies generally want long term contracts
and will not work on individual projects
Caring for your Customers
Choice
Given that there is little difference in
Products
Technology
Prices
What makes the difference?
Choice
Customer service
Processes ….
Our relationship with customers
Complaints
In the UK
Dissatisfied customers
Complaints
In the UK
Complaints
Dissatisfied customers
Complaints
In the UK
Complaints (4%)
Dissatisfied customers (100%)
Complaints
In the UK
Complaints (4%)
Dissatisfied customers (100%)
Complaints
In the UK
Complaints (4%)
Dissatisfied customers (100%)
You never get to hear of the 96%!
Complaints
• “We only have about 3 or 4 complaints a
month”
• Means we actually have about 100
dissatisfied customers!
Dealing with Complaints
• Never ignore the customer’s complaints –
refer upwards if necessary
• Involve customers and staff in finding
solutions
• Failing a solution, explain the issues to the
customer – eg: the effect on price
Improving Customer Care
• Find out what your customers want
• Compare what you offer to what your
competitors offer
• Do something extra to attract customers
• Keep abreast of product/service development
Review
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Marketing
Sales
The ‘P’s of Marketing
The Product Life Cycle
Market Segmentation
Advertising Agencies
Caring for Customers
Lost in Translation
The Spanish translation read:
The Spanish translation read:
“Are you lactating?”
The Spanish translation read:
“Are you lactating?”
…..and Schweppes Tonic
Water became
…..and Schweppes Tonic
Water became
Schweppes TOILET Water
……..when translated into Italian!
Barcardi’s new
product in
Germany was
called “Pavian”
Barcardi’s new
product in
Germany was
called “Pavian”
“Pavien” means “Baboon”
in German!
Chevy, Opel and
Vauxhall tried to
sell their “Nova” in
Spain and S.
America…..
Chevy, Opel and
Vauxhall tried to
sell their “Nova” in
Spain and S.
America…..
…..only to find it means
“Won’t go”
in Spanish!
…..and now, some
Czech advertising!
Cabbage
Milk
Mattoni
Beer