STRATEGIC MARKETING AND CUSTOMER

SERVICE(B6921MS)

April 2024

1
 OUTLINE
Defining Marketing and Customer Service
The Nature of Marketing Strategy & Perspectives of Strategy
Strategic Marketing Planning and Decision-Making process
Marketing Auditing and Analysis of Capabilities: SWOT
analysis
Market and Environmental Analysis: PEST Analysis
Customer Analysis and Competitor Analysis
Missions and Objectives
Market Segmentation, Targeting and Positioning
Product Portfolio analysis
 Outline cont….
Strategies for Leaders, Followers, Challengers and
Nichers
Presentations: Marketing Plan
Product Decision and Strategy
Pricing Policies and Strategies
Promotion and Communication
Place (Distribution) & Channel Management
People, Process and Physical Evidence
Strategic Evaluation
Marketing Control
 What is marketing?
Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas,
goods, services to create exchanges that satisfy individual
and organizational goals (AMA)
Marketing is the management process that identifies,
anticipates and satisfies customer requirements profitably
(CIM)
‘‘Marketing is a social and managerial process by which
individuals and groups obtain what they want and need
through creating, offering and exchanging products of value
with others’( Kotler, 1991)
Take note that marketing is continuously evolving!
Technology is the main driver
 The Evolution of Marketing
Marketing is continuously evolving-driven mainly by
technology, competition and changes in consumer tastes
and preferences.
The conduct of marketing activities during the industrial
era of civilization differs from marketing today
Different Philosophies/Concepts of Marketing are
applied with each phase in the evolution of marketing.
Critique Ford’s thinking……..
 What can be marketed ?
Products
Services
Events
Experiences
People (celebrities e.g. Bill Gates & Trevor Noah)
Information (newspapers)
Places
 What are Services?
 Services are deeds, processes and performances
Broad definition is one that defines services to
include “all economic activities whose output is
not a physical product or construction, is
generally consumed at the time it is produced, and
provides added value in forms (such as
convenience, amusement, timeliness, comfort, or
health) that are essentially intangible concerns of
its first purchaser.”
Industries making up the service sector
Services Industries,
Services as Products,
 Customer Service, and
Derived Service
Why Service Marketing
 Service-Based Economies
 Service as a Business Imperative in Manufacturing and IT
 Services Marketing Is Different
 Service Equals Profits
 But “Service Stinks”
SERVICE AND TECHNOLOGY
New Ways to Deliver Service
Enabling Both Customers and Employees
Extending the Global Reach of Services
The Internet Is a Service
The Paradoxes and Dark Side of Technology and
Service
 CHARACTERISTICS OF SERVICES
COMPARED TO GOODS
GOODS SERVICES RESULTING
IMPLICATIONS
Tangible Intangible Services cannot be
inventoried. Services cannot
be easily patented. Services
cannot be readily displayed
or communicated. Pricing is
difficult.

Standardized Heterogeneous Service delivery and

customer satisfaction depend
on employee and customer
actions. Service quality
depends on many
uncontrollable factors. There
is no sure knowledge that
the service delivered
matches what was planned
and promoted.
 CONTINUATION of
CHARACTERISTICS
GOODS SERVICES RESULTING
IMPLICATIONS
Production Separate from Simultaneous production Customers participate in and
Consumption and consumption affect the transaction.
Customers affect each other.
Employees affect the service
outcome. Decentralization
may be essential. Mass
production is difficult.
Non Perishable Perishable It is difficult to synchronize
supply and demand with
services. Services cannot be
returned or resold.
Challenges and Questions for Service
Marketers
 How can service quality be defined and improved when the product is intangible
 and nonstandardized?
 How can new services be designed and tested effectively when the service is
 essentially an intangible process?
 How can the firm be certain it is communicating a consistent and relevant image
 when so many elements of the marketing mix communicate to customers and
 some of these elements are the service providers themselves?
 How does the firm accommodate fluctuating demand when capacity is fixed and
 the service itself is perishable?
 How can the firm best motivate and select service employees who, because the
 service is delivered in real time, become a critical part of the product itself?
 How should prices be set when it is difficult to determine actual costs of
 production and price may be inextricably intertwined with perceptions of quality?
 How should the firm be organized so that good strategic and tactical decisions are
 made when a decision in any of the functional areas of marketing, operations, and
 human resources may have significant impact on the other two areas?
THEREFORE THE SYNERGY OF MARKETING AND MANAGING
THE TWO FOR A ASTRATEGIC COMPETTIVE ADVANTAGE.
 Traditional Marketing Mix – the 4ps namely:product, place,
promotion and Price
 Expanded Marketing mix for Services – 7PS the services marketing
mix includes; people, physical evidence, and process.
 People All human actors who play a part in service delivery and thus
influence the buyer’s perceptions: namely, the firm’s personnel, the
customer, and other customers in the service environment
 Physical evidence The environment in which the service is delivered
and where the firm and customer interact, and any tangible
components that facilitate performance or communication of the
service.
 Process The actual procedures, mechanisms, and flow of activities by
which the service is delivered—the service delivery and operating
systems
STAYING FOCUSED ON THE
CUSTOMER
 Critical theme is customer focus.
 All strategies are developed with an eye on the customer, and
all implementations are carried out with an understanding of
their impact on the customer. From a practical perspective,
decisions regarding new services and communication plans will
integrate the customer’s point of view; operations and human
resource decisions will be considered in terms of their impact
on customers.
 All the tools, strategies, and frameworks have customers at
their foundation. The 7 services marketing mix tool that
addresses the uniqueness of services, keeping the customer at
the center. Customers as assets to be valued, developed, and
retained.
 The Nature of Marketing Strategy
A strategy is a means to achieving the end. It is a game
plan!
It involves the allocation of resources to achieve the
planned organizational objectives.
This will allow the organization to capture existing
opportunities more efficiently.
It requires the alignment of the marketing mix
elements to the requirements of the target market .
There must be strategic fit or the strategy is regarded as
poor e.g. Charging a low price for a product regarded as
best quality against competition.

 Strategic planning
Five (5) fundamental questions must be asked and answered.
1.Where are we now?-Strategic Analysis
2. Where do we want to go? – Strategic Direction and
formulation
3. How do we get there?- Strategic Choice
4. Which way is the best?-Strategic Evaluation
5. How do we ensure arrival?- Strategy implementation
and control
WHERE ARE WE NOW?
 Marketing audit/Environmental
analysis (& PESTEL)
There are generally two distinct environments in business, the
micro and the macro.
However, also consider the internal environment of the
organization!
This environment is composed of controllable factors (the
organization can manipulate the factors)
Strengths and Weaknesses of the organization emanate from
this environment.
The micro and macro are both external to the organization.
They are a source of Opportunities and Threats.
Kotler (1991) regards the microenvironment as an important
environment in marketing strategy as competitors, customers
 Customer Analysis and Competitor Analysis

 Why analyze them? …Discuss.

 Customer Analysis- consumption patterns, decision making
processes, consumer behavior (when do they buy, who buys,
what do they buy, where do they buy etc).
 SERVICE INNOVATION AND DESIGN- service Blueprints
(read the attached Hand out NotesChapter Service Innovation
and Design)
 Consumer behavior is generally influenced by cultural, personal
, social and psychological factors.
 Competitor Analysis- who are they? , size, market share, their
products, their marketing strategies.
 Competitors classifications- Leaders, challengers, followers or
nichers?
 For a critical analysis of competitors and the extend of
 Analysis of Capabilities: SWOT
analysis
SWOT analysis is a summary of the audit usually
presented in tabular form.
It stands for Strengths, Weaknesses, Opportunities and
Threats.
Strengths and Weaknesses are internal to the
organization while Opportunities and Threats are
external. (See example).
Swot analysis for UPer Crust Pies
WHERE DO WE WANT TO GO?
 Organizational Vision & Mission
The vision statement is a narrower, future-oriented
declaration of the organization's purpose and aspirations.
A mission statement (aka known a purpose statement)
explain the reason for existence of the organization.
 Together, mission and vision guide strategy development,
help communicate the organization's purpose to
stakeholders, and inform the goals and objectives set to
determine whether the strategy is on track.
What is your organization’s vison and mission statements?
 Setting marketing objectives
Strategic and clear marketing objectives are fundamental to
any sound, effective marketing plan.
They are basis upon which strategies are formulated.
Marketing objectives must be aligned to the overall
organizational objectives. (Sketch)
Objectives must be SMART
E.g. “Our goal is to achieve a 10% increase in market
share by the end of 2020”.
Setting goals is easy. Achieving them through strategy is a
daunting task!
In marketing, the effective management of the marketing
mix elements is critical
 Segmentation, targeting and
positioning (STP)
STP takes place in that order and is a crucial process in
marketing
Market segmentation is the art of dividing a heterogenous
market into relatively homogenous sub-segments.
The premise is that it is better to serve a homogenous segment
than a heterogenous one. (Mass market vs Target marketing…
short gun approach vs rifle approach)
E.g. A clothing company which only manufactures baby
clothes. The baby market is its segment.
Consider the classical case of Johnson & Johnson in
formative years!
Note that market segmentation is not physical…i.e does not
 Bases for segmentation
 Demographic segmentation- most popular basis e.g age, gender,
income, social status etc.
 Geographic segmentation- based on location e.g low density vs high
density, northern region vs southern region, Europe vs Asia etc.
 Geo-demographic- based on a combination of factors from the two-
above e.g. location (geographic) and income (demographic) can be
combined to create a geodemographic basis for market segmentation.
 Psychographic: involves an understanding of a consumer’s lifestyle,
interests, and opinions.
 Benefits sought: segments consumers on the basis of specific benefits
they are seeking from the product, such as convenience, or status, or
value, and so on.
 Behavioral: Segmenting the market based on their relationship with
the product or the firm. E.g. heavy or light users, brand loyal or brand
 Target Marketing
The art of selecting one or more segments to serve
with an appropriate marketing mix.
The strategies may include the following:
a). Undifferentiated marketing or mass marketing,
b). Differentiated marketing and
c). Concentrated marketing (niche marketing)
 Positioning
 Does not refer to the physical position of the product!
 Refers to the position occupied by a product in the mind of a
consumer as a result of the company’s marketing efforts.
 E.g. How do you position the following Universities in Namibia
based on the two attributes of quality and price.
 One can create a mental map (aka perceptual map)
 Thus, positioning is regarded as a game of the mind.
 The challenge for marketers is to position their products in strategic
positions in consumers 'minds in order to guarantee favourable
consideration.
 This demands intensive communication and brand positioning
efforts by the company. (Be part of the evoked set !)
 Successful positioning e.g. Colacola; Fedex
 Advice on positioning
Never try to occupy a position occupied by a competitor
unless there are strong compelling reasons. Be prepared
to fight!
Monitor consumer tastes and preferences and revise the
position accordingly. Don’t be statistic!
Reinforce position through aggressive communication
and live the promise (brand authenticity matters!)
 Product Portfolio Analysis
 Portfolio analysis involves identification and evaluation of all
products or service groups offered by company on the market (so
called product mix) and preparing specific strategies for every
group according to its relative market share and actual or
projected sales growth rate.
 Therefore the term “portifolio” is used to refer to a collection of
product ( product mix) offered by a company.
 Effective management of the portifolio requires the classification
of the products into various categories.
 The Boston Consulting Group developed a matrix (called the
BCG matrix) to help analyzing product portifolios and helping
managers craft appropriate strategies.
BCG matrix/ Growth-share
Matrix
Firms Often Make Poor
Allocation Decisions

How do these portfolios differ?

Which is stronger?
Firms Often Make Poor
Allocation Decisions

How do these portfolios differ?

Which is stronger?
The Ansoff Growth Matrix
 Analysis of the growth strategies
 Market Penetration: the firm increases product usage in the
existing market.
 Can be done through decreasing prices to attract existing or new
customers or increasing promotion and distribution efforts.
 Product development strategy: the firm develops a new product to
cater to the existing market.
 Can be through acquiring competitors' products and merging
resources or through strategic partnerships
 Market development strategy: the firm enters a new market with
their existing product(s).
 Can be through expanding regionally or internationally
Diversification: The firm enters a new market with a new
products.
 Strategies for Leaders, Followers,
Challengers and Nichers
Know your position in the market
 Market leader strategies
Market leaders do attack! They are leading and therefore they
have no one to attack! If they “attack” they do so in the name
of ……
Their major objective is to expand and consolidate position
A market leader should generally adopt a defense strategy
Six commonly used defense strategies
Position Defense
Mobile Defense
Flanking Defense
Contraction Defense
Pre-emptive Defense
Counter-Offensive Defense
 Market Challenger Strategies
Major objective is to attack the leader and eventually
assume leadership position.
Frontal attack- direct attack (should enough resources)
Flank attack (attack weak points. Neglected markets )
Encirclement attack- overwhelm the leader
Bypass attack- do not go direct
Guerrilla attack- harass the leader through intermitted
attacks.
 Market-Follower Strategies
Followers are passive and always try to imitate the
leader
Four broad follower strategies:
Counterfeiter (which is illegal)
Cloner e.g. the IBM PC clones
Imitator e.g. car manufacturers imitate the style of one another
Adapter e.g. many Japanese firms are excellent adapters
initially before developing into challengers and eventually
leaders
 Market-Nicher Strategies
Nichers must create niches, expand the niches and
protect them
e.g. Nike constantly created new niches--cycling,
walking, hiking, cheerleading, etc
What is the major risk faced by nichers?
Market niche may be attacked by larger firms once they
notice the niches are successful
 Generic Competitive Strategies
Porter regards the following strategies as general
(generic) and any company whether big or small can
use them.
Companies need to decide on two key issues:
a). What competitive advantage are we seeking to
achieve (low cost advantage or differentiation?)
b). What will be the scope of our activities (broad or
narrow).
The 3 main generic competitive strategies are: Cost
leadership, Differentiation and Niche/ Focus strategies.
These are depicted in the following slide
 Marketing plans
A marketing plan is a strategic roadmap that businesses
use to organize, execute, and track their marketing
strategy over a given time period, usually a year.
A marketing plan may be part of an overall business plan.
Solid marketing strategy is the foundation of a well-
written marketing plan.
It is the culmination of everything that has been learnt so
far.
The outline is as follows:
 Outline of a marketing plan
 Executive summary: Outlines what the plan seeks to achieve
including the strategies to be used. Not more than a page. Be brief
and to the point. Executives only read this part of the entire plan!
 Situational analysis: Focus on the following: a) Internal
Company environment b) Microenvironment (strong emphasis on
competitor and customer analysis) c) Macroenvironmental
analysis. [2-4 pages]
 SWOT analysis- Summary of the audit above[ 1 page]
 Marketing objectives :List the key objectives the plan seeks to
achieve by the end of your specified timeframe. Let them be
SMART.[ 1 page]
 Marketing strategies: These are the means through which the
above objectives will be achieved. First highlight the segments to
be targeted and then detail the strategies to be used based on the
 Outline of marketing plan cont…..
 Marketing tactics (activity plan): Tactics break down the strategies
into short term activity programmes. This can be prepared in the
form of a Gantt chart. They detail who, what, when. All the
strategies stated must therefore be broken down into activities.
Align the two. [1-2 pages]
 Budget: Provide a snap budget to accomplish the tasks stated
above. (Note: Every activity must be budgeted for)[1-2 page]
 Evaluation and control: State the marketing evaluation and control
measures to be put in place in order to ensure that the stated
objectives are certainly achieved. [1 -2 pages]
 Group Question on Marketing
Plan
QUESTION: Group Project Assignment A- B

Assume you are a Marketing and Customer Service

Strategist you are hired by NBS to develop a
marketing plan/ proposal for Product A and B.

The highest scoring group in the group will be awarded

a cash prize!
HOW DO GET THERE?
 The marketing mix elements
The marketing mix simply refers to the planned mix of
the controllable elements of a product's marketing plan.
 These elements are usually referred to as the traditional
4Ps or now the extended marketing mix elements, 7Ps.
They must be well-blended (mixed) together for an
effective marketing campaign.
The 7Ps of marketing are: Product, Price , Promotion,
Place, People Physical evidence and Process.
The popularity and adoption of the 7Ps is as a result of the
growth of the service industry in the 21st century.
They also apply in the marketing of physical products.
 The Marketing Mix elements
An assortment of controllable variables which are at the
disposal of the marketer in pursuit of satisfying consumer needs
and wants profitably.
The elements must be well crafted and aligned to the
requirements of the target market in order to achieve the best
results.
They form the basis upon which marketing strategies are
formulated.
Marketing strategy=Marketing Mix elements + Target
Market
The above simple narration emphasize the importance of
blending/ mixing the elements in their correct proportions in
order to meet the requirements of the target market.
The 7Ps and 7 Cs of Marketing
Each of the mix elements has a corresponding benefit
which it must fulfil to the consumer.
E.g. The main purpose of a Product/service to provide
Customer satisfaction.
See diagram overleaf for all the elements.
7Ps & 7 Cs of marketing
 Product & classifications
 Product refers to a physical product or a service or an idea which
a consumer needs and for which they are ready to pay.
 Services are intangible products which are offered and purchased
by consumers.
 There are many classifications of consumer goods which largely
depend on how consumers buy them (.e.g. amount of shopping
time spend, consumers 'willingness to do so and buying patterns).
 E.g. Consider the degree of involvement in buying a newspaper
and buying a car.
 Some products are highly involving while others demand less
shopping time.
 The following are the 4 classifications of consumer goods:
 Primary Vs Derived demand-
Ordinary Vs Industrial consumers
Consumers buy goods for consumption while
industrial consumers buy goods to produce other
products.
Therefore, the demand for goods by ordinary
consumers is called primary demand.
 Primary demand is the demand by the final user
(consumer) for the product. ... Derived demand only
exists because there is a primary demand from the
consumer.
In other words, demand for goods by industrial
consumers is regarded as derived demand.
 Product Strategies
Key question is, how do we design a product which
provides the best satisfaction to the consumer?
The strategies should address the following:
a). Product design (aesthetically correct)
b).Product form (solid, liquid, powder)
c). Product width (How many lines should we have?
d). Product length
e). Product mix/range
f). Packaging, labelling & the question of color.
g). Branding (identity matters)
h). Product quality? What does it mean to you? (Veblen vs
giffen)
Product life cycle (PLC) and
marketing strategies
Products go through a life-cycle do not live forever!
They are introduced, grow, mature and “die”!
Practically, the product life cycle (PLC) contains
four distinct stages: introduction, growth, maturity and
decline.
Each stage is associated with changes in the
product's marketing position.
The role of marketing is to develop appropriate
strategies at each level.
 The diffusion of innovation
 Adoption of new products in a social setting takes place in
phases.
 Some consumers adopt products much earlier than others
 Based on Evert Rogers’ theory which identifies five categories that
define a person’s propensity to accept or adopt the innovation
 These innovative consumers are not bound by tradition and are
willing to try new products despite the risks of doing so.
 Once innovators have accepted the products, others (the majority)
follow.
 Innovators are used as a reference group (opinion leaders)
 Based on research, the adopter categories are as shown on the
diagram below:
 Note the link with the PLC
 The chasm and tipping point
The chasm is the gap that is found between the early
adopters and the early majority.
Tipping point is the point where the mainstream market
starts to adopt the idea and the sales go through the roof.
If successful, product sales will increase dramatically after
reaching the 'Tipping Point.' If not, the product will most
likely not reach the mainstream consumer
The chasm and tipping point
 Analysis of the adopter categories
Based on Evert Rogers’ theory the five categories are:
Innovators: the quickest to adopt an innovation.
Early adopters: more mainstream within the community and are
characterized by acceptance of innovation and some
personal/financial resources to be able to adopt the innovation.
Early majority: amenable to change and persuaded of the
benefits of the innovation by observing.
Late majority: skeptical and reluctant to adopt new ideas until
the benefits are clearly established.
Laggards: these are most conservative and resistant to change;
sometimes, they may never change.
 Factors influencing rate of
diffusion
Relative advantage: does the product offer an advantage over
the current products?
Compatibility: is the product compatible with prevailing social
and cultural values? (For example, is it culturally acceptable for
one to drink or smoke )
Complexity: how complex are the product benefits to explain?
 Trialability: Can the product be first tried on a limited scale to
reduce risk?
Link between PLC and Diffusion
of innovation
 Pricing policies & strategies
Pricing is a critical “P” of the marketing mix.
Some of the more common pricing objectives are:
maximize long-run profit.
maximize short-run profit.
increase sales volume (quantity)
increase market share.
obtain a target rate of return on investment (ROI)
For survival ( in times of low demand)
 Pricing strategies
 A business can use a variety of pricing strategies when selling a
product or service and these may include the following:
 Penetration Pricing. The price is set artificially low in order to
gain market share. ...
 Price Skimming. ...
 Economy Pricing. This is a no-frills low price. ..
 Psychological Pricing.(e.g. 499.99 is viewed as being far less than
500)
 Cost-plus pricing (Cost plus 25% mark up)
 Marginal pricing (pricing on the margin!)
 Product Bundle Pricing.
 Price discrimination strategy (discrimination by location/time)
 Loss leader pricing (store traffic matters!)

 Factors influencing pricing
 The factors can be internal or external
 Internal factors may include the following:
 Product Cost: The most important factor
 Internal company pricing objectives
 The image sought by the firm through pricing (price as a proxy of
Qual)
 The stage of the product on the product life-cycle.
 External factors include the following:
 Consumer Demand
 Nature of competition (perfect vs imperfect)
 Extent of Competition in the Market: ...
 Government and Legal Regulations: ...
Promotion/Marketing communication
Not to be confused with sales promotion (a mix element of
promotion!)
The major objective of promotion in marketing is to
communicate with the target market.
Hence, also known as marketing communication.
Key objectives of promotion are:
a). To create awareness
b). To inform consumers
c). To remind them
d). To persuade
At the center of this is the communication process
 The communication process
A depiction of how markets communicate with the
target market .
 Analysis of the process
Sender: The company promoting the product
Encoding: Putting thoughts, ideas, or information into a
symbolic form.
Message: A message may be verbal or non-verbal, oral,
written, or symbolic. A message contains all the
information or meaning that the sender aims to convey.
Medium: The channel used to convey the encoded
message to the intended receiver. Medium can be a)
personal or non-personal e.g. print or electronic.
Decoding: process of transforming the sender’s message
back into thought.
 Analysis cont….
Receiver: is the target audience or customers who
receive the message by way of reading, hearing, or
seeing.
Noise: The unplanned distortions or interference of
the message
Feedback: In order to assess the effectiveness of the
marketing communication process, feedback from the
customers is crucial.
 Promotional strategies
Just like in marketing, the strategies are premised on the
promotional mix elements.
Promotion can be directed to end users (pull promotion) or
can be directed towards the intermediaries in a distribution
chain (push promotion).
All marketing communication campaigns are based on the
AIDA Model.
Attention – The consumer becomes aware of the product or
brand (usually through advertising)
 AIDA model cont…..
Interest – The consumer becomes interested by learning about
brand benefits & how the brand fits with lifestyle
Desire – The consumer develops a favorable disposition
towards the brand
Action – The consumer forms a purchase intention, shops
around, engages in trial or makes a purchase.
Therefore, ultimate action is driven by a sequence of events
Some texts refer to this sequence as Learning → Feeling →
Doing or C-A-B (cognitive -affective-behavioral) models.
This is linked to how consumers adopt products as a result of
the messages from the marketing firm
The promotional Mix elements /Marketing
communication mix elements
Elements at the disposal of the marketer when
communicating.
Many elements can be used at the same time in PLC
Eg Advertising and Publicity can be used together
during the introduction strategy in order to stimulate
derived demand.
 Place & channel management
Also known as distribution
The objective of distribution is to create place and time
utility to a product
Distribution can be direct or indirect through
intermediaries who collectively form a channel of
distribution.
There are many factors which influence the choice of a
channel of distribution ranging from nature of product to
internal commonly decisions.
Channels of distribution
 Distribution strategies
Intensive distribution strategy-suitable for
commodities
Selective distribution strategy
Exclusive- suitable for specialty goods (hedonic)
Factors influencing channel choice
Cost- the longer the channel the more costly it
becomes to manage
Nature of the product- perishable products require
shorter channels of distribution.
Competition- competition may force one to choose an
alternative channel (Avoid direct competition where
necessary).
Company related factors: company financial strength
and policies dictate choice of channel.
 Physical evidence
Part of the service marketing mix (AKA extended
marketing mix)
Based on the premise “what you see is what you get”.
Physical evidence comprises of the elements which are
incorporated into a service to make it tangible and
somewhat measurable thus helping in positioning of
the brand and for targeting the right kind of customers
An important consideration for both product and services
marketing.
The major objective for positioning is to help in profiling
customer groups .e.g. economy vs business class; 5-star vs
1 star.
 Physical evidence strategies
Customers tend to rely on physical cues to help them
evaluate the product before they buy it.
Can be achieved through:
Ambience (lighting and air conditioning etc.)
Layout-
Furnishings-
Physical surroundings.
 People & internal marketing
People refer to the staff and salespeople who work for your
business, including yourself.
When you provide excellent customer service, you create a
positive experience for your customers, and in doing
so market your brand to them.
In turn, existing customers may spread the word about your
excellent service, and you can win referrals (WOM is key).
The objective is to enhance brand authenticity evidenced
through caring people (employees).
 People Strategies
Give your business a competitive advantage by recruiting
the right people, training your staff to develop their skills,
and retaining good staff.
Company employees must be considered as the as the “
first line of customers” therefore good internal marketing
is vital.
Training help to reduce the variability in services offered
by company employees
Processes & efficiency
Process refers to the processes involved in delivering
your products and services to the customer. It is also
about being 'easy to do business with’.
 Having good process in place ensures that you:
 repeatedly deliver the same standard of service
to your customers
 save time and money by increasing efficiency.
Efficiency matters
 Processes Strategies
The following strategies can used depending on the nature of
business:
Use of scanners in the retail sector helps to quickly process
orders.
Self service kiosks – eg at airports
Navigating from batch to online processing systems through
investing in relevant technologies.
Electronic queue management systems (waiting lines can be
a source of frustration if not management properly).
Use of internet-based processing systems e.g. e-banking.
WHICH WAY IS THE BEST?
 Marketing Metrics- Evaluating
performance
 Metrics are measures of performance
 It is important that all marketing activities are measured…
possibly quantitatively in order to evaluate the effectiveness of
strategy .
 E.g. After a sales promotion campaign, the company can assess
sales promotion effectiveness, return on promotion
(SR/Expenditure in promotion) etc.
 Online adverts can be evaluated in terms of hit rates.
 However, do not focus on vanity metrics! Focus on those which
strategically matter for the company e.g. bounce rate instead of
hit rate.
 Metrics are what marketing a science not superstition!
 The following are some of the metrics in marketing
 Types of Metrics
Marketing Mix Functions
Marketing Terms Close Financial Analogs

Customer Delight Metrics Awareness Return on marketing spending

Interest Return on marketing spending
Desire Return on marketing spending
Sales Sales return to marketing spending
Loyalty Projected sales
Market share Sales/total SIC sales
Share of wallet Customer sales/customer total SIC sales
Social influence

Advertising Metrics Impressions/visits/page views Cost per lead

Click-through rate Cost per click
Media impressions Cost per impression
Recall Cost per recall
Pricing Metrics Price elasticity Marginal price effort x (price/sales)
Brand equity Revenue premium

Sales Force Leads Cost per lead

Conversions Cost per conversion
Winbacks Cost per winback
Distribution Stock-keeping unit growth Total inventory
Same store sales Sales per store/previous year sales
Passthrough Net margin

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 The marketing dashboard
A marketing dashboard is a reporting tool that
displays marketing analytics, KPIs, and metrics using
data visualizations.
Marketing dashboards are designed to provide teams
with a real-time window into marketing performance.
All important metrics are provided in order to allow quick
management decisions.
Example of a dashboard…..next slide
 MBM6
Effective Marketing Dashboards Capture Chapter
Multiple Views of the Firm Over Time 2

Internal View of Performance External View of Performance

Financial Metrics Performance Financial Metrics Performance
Profit Metrics Market Metrics
• Gross Profits 55.0% • Market Growth Rate 22.5%
• Return on Sales 17.0% • Market Share 8.5%
• Return on Assets 17.8% • Market Development Index 40
Expense Metrics Customer Metrics
• Marketing & Sales Expenses 21.0% • Customer Satisfaction 64
• General & Administrative Expenses 8.0% • Customer Retention 65%
• Other Expenses 12.0% • Customer Lifetime Value $45
Asset Management Metrics Competitiveness Metrics
• Sales-to-Assets Ratio 1.05 • Product Performance 11.0
• Accounts Receivable 15.0% • Service Quality -9.0
• Capacity Utilization 67.0% • Customer Value 8.0
Shareholder Metrics Marketing Profitability Metrics
• Return on Equity 15.0% • Net Marketing Contribution $156
• Return on Capital 13.0% • Marketing ROI 162%
• Earnings per Share $2.00 • Marketing ROS 34.0%

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ARE WE THERE YET?
 Marketing Controls
Marketing control is the process of monitoring the
proposed plans as they proceed and adjusting where
necessary.
The control process is premised on 4 steps, namely a) Set
performance targets/stds b) Measure actual performance c).
Assess the extend of deviation d). Take corrective action
Controls can focus on financial and /or non-financial
measures
The following can used as controls:
a).Cost analysis and comparison with budget
b). Customer opinions and feedback reports
c). Sales reports
Concluding remarks
 Thank YOU
QUESTIONS/ CONTRIBUTIONS

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