The Marketing Machine

Government Technology
Uncontrollables

Competitors Needs

Marketing Concept
Environmental Analysis
Behavior and Segmentation Analysis Marketing
Marketing Research Strategy
Marketing Mix
 The Marketing Machine

If you know how the marketing machine works, and can turn
the crank, you will always produce the correct marketing
strategy.

The machine does not change.

The only thing that changes are the inputs.

Different inputs produce different outputs.

 The Marketing Machine

If the machine never changes, then there is no such thing as:

International Marketing
Industrial Marketing
Services Marketing
eMarketing
Non-Profit Marketing

………..???
 Services Marketing

dinner in a
salt restaurant hair style
tangible intangible

Services are a form of products.

 Services Marketing

…but they have different attributes that affect marketing

strategies:

Perishable
Cannot be stored or shipped

Inseparable
Consumer is present when service is produced.
Cannot separate service from service provider.
 Services Marketing

Service Attributes (cont.)

Heterogeneity
Quality varies over time.
Demand varies over time.

Substitutability
You can always do it yourself.

Postponability
You can always stall.
 Services Marketing

Gap Theory:

Satisfaction is a function of the gap between expected service and

perceived service.

An extension of buyer behavior

What you thought was going to happen versus your perception of what
happened

Key is to minimize the gap

Give the customer what they expect…?
 Services Marketing

Non-profit organizations

Service Sector

IRS tax classification, not an operating strategy

Lack marketing orientation

Equate marketing to advertising
Have non-professional boards
Lack clear marketing objectives
What is the purpose of a charity?…the profit?
 Services Marketing

Marketing strategy is different for services.

Different inputs, different outputs

Pricing
Must be more flexible
Service demand is highly volatile
Use price to shift demand away from peak periods
More negotiated prices
 Services Marketing

Service Strategy (cont.)

Promotion
Must promote the benefits.
…dead bugs versus a safe, pest-free environment
Build a tangible image, personalize the firm.
Personal selling is critical for the professional service provider.
…and they do not want to do it.
 Services Marketing

Service Strategy (cont.)

Distribution
Location/convenience are critical
Cannot store or ship.
Can postpone, substitute
Short, Direct Channels
Intermediaries are agents or brokers
 Services Marketing

Non-profit organizations need two strategies:

Donors versus Clients

Rarely overlap
The people who give the money don’t use the service.
Need one strategy for each.
…but management is frequently less qualified to manage multiple strategies
 Services Marketing

Organization Marketing

“Sell” the organization itself

Public Relations
Perform image assessment
Then shift image toward goal
 Services Marketing

Person Marketing

Create, maintain, alter attitudes toward a particular individual

Similar to organization marketing but with more dramatic life-cycles

Celebrity and sports agents.
 Services Marketing

Place Marketing

“Sell” a general geographic area

Houses, buildings, land, vacation locations

Market segmentation and information flows

Who might be interested?
How do we reach them?
 Services Marketing

Idea Marketing (aka social marketing):

This is the ultimate intangible.

One time action
…vote, get flu shot.
Understanding
…food labels
Change behavior
…wear seat belts
Change a belief
…religion