Rethinking some of the

Marketing Management Units

FURTHER
DIMENSIONS
The Relationship between providers and
users in non-commercial organisation
Do public service Supplying
organisations have Organisation
“Customers”? • “Business”?
1 Pro arguments – Pros
2 Anti arguments – Cons
3 Proactive • Is based upon
Customers? providing Services?
4 Reactive • Should be
Customers? “Proactive” or
“Reactive”?
 ORIENTATIONS?
• CUSTOMER?
– Customer is always right
– We can accommodate the problems of individual users
– People in organisation have direct contact with customer
• PRODUCTION OR SERVICE ORIENTATION?
– Deliver methods are set by management without taking user
needs into account
– Design and production of service involves costs that are
unjustified
– Service is seen as more important than the benefits it gives to
users
 ORIENTATIONS Continued
• SYSTEM ORIENTATION?
– All our activities are rules by standardised procedures
– All staff have no autonomy to be flexible in responding to the
users/customers
– A hierarchical system of control and line management
– Creation of a “bureaucratic culture”
• MARKETING ORIENTATION?
– Managers identify those areas and activities where its interests
are consistent with its customers
– A continual search for better ways of satisfying customers and
monitoring effectiveness and customer satisfaction
– Every in the University “own” the marketing approach!
 Universities
Passive Buyer…Passive Seller or…?

REACTIVE
PROACTIVE REACTIVE
SELLER SELLER

PRACTIVE ACCOMMODATION
MARKETING
CUSTOMER

REACTIVE FOOT IN
CUSTOMERS THE DOOR NO BUSINESS
 4 Ps FOR A UNIVERSITY IS…?
• PRODUCT……....? – a Service
• PLACE…………...? – crucial, physical
and electronic “Market Place”
– Online Shopping parallel?
• PRICE…………….? – money, entry
points; who choosing WHO?
• PROMOTIONS…..?
• SHOULD WE ADD “PEOPLE”?
• SHOULD WE ADD “PLANNING”?
THREE FUNDAMENTAL QUESTIONS
IN PUBLIC SECTOR MARKETING
• Who are our clients?
• How can we respond to them?
• How can we resource our activities?

• Should public service organisations

strive to desire to have a “User
Charter”, e.g. do you remember the
Patient’s Charter?
 Driving Forces of Public Sector
Marketing
• Social considerations and aspirations
– Meeting social need – a Right?
– Access and Widening participation
– Limited choice as to what is available
– State and/or client may be buying/paying the cost of meeting the
need
– Distress purchasing - NHS
• Economic Realities and necessities: who pays?
– Resources and budgeting
• Political guidance
– Lip service to increasing power of individual – schools
– Encouraging increasing competition
 UNIT 3 – BUYER DECISION
MODELS
• Customers, Consumers, buyers and Users
• Market = group of similar customers who
decide what needs are to be satisfied.
• Buyer = a consumer who pays for a unit of
the product/service on offer and probably
consumes it
• User: Buyers and User – terms used
synonymously in the private sector
• User: Public sector – buyer and user are
different agents
 Which way to think of this….?
• Buyer Behaviour or User Behaviour?
• Customer Behaviour: “how consumers think and
act in buying and consuming products and
services from both profit and non-profit
organisations” (Howard – 1989)
• In public org’s a high proportion of transactions
are free at the point of delivery
• In public sector you have a “Governmental
Market” – national, local and at individual level
or mediated through a system, e.g. HEFC &
QAA via DfES
 Tangibles and Intangibles
Tangibles:
• Services to People: Surgery, Transport
• Services to things: House maintenance, road
repairs
Intangibles:
• Services to People: Education, Citizen’s
Advice
• Services to things: Building Regulations
approval
 COMPETITION
• PRIVATE SECTOR?
• PUBLIC SECTOR?
• CHARITY ORGANISATIONS?
• VOLUNTARY ORGANISATIONS?
 What is the relationship between
the provider and the customer?
• Providers are?
– University
– QAA
– HEFC
– PROFESSIONAL BODIES
– ORGANISATION MANAGEMENT
– LECTURERS AND TEACHERS
– SUPPORT SERVICES
• Beneficiaries? students, parents, employers,
future spouses etc
 Do non-private orgs. Still need to
do a Market Audit?
1. Yes or No? Back up your Answer
2. What is involved in a Market Audit?
• The Environment
• Nature of Market
• Our Organisation and its Systems
• The Marketing Function
 Key Questions
• What services should a University provide? – the
Total Product
• What are the mechanisms by which the
customer has “user experiences”?
– Interpersonal with people in the organisation
– The environment of the organisation
– The organisation’s procedures – The System
orientation v market orientations?
• What kind of data do we need about the
customer experience?
 MARKETING OF SERVICES
Do you remember the five ways that these
can be distinguished from tangible goods?
 ANSWER
• INTANGIBILITY – Not Physical
• INSEPARABILIT – hard to separate from the person or
people who deliver the services
• HETEROGENEITY (lack of uniformity): hard to
standardise the “service experience or quality of it” over
time or from different providers of the same organisation
• PERISHABILITY: cannot be saved/stored for later use
• SYNCHRONICITY: Matching level of demand to the
level of capacity/provision
• OWNERSHIP: easier to think of “hiring a service” but not
owning (in the sense that I own a packet of fish fingers)
ISSUES RELATING TO SERVICE,
CONTROL AND QUALITY
• The Transaction or “service package”
• Importance of customers and marketing
• Customers and expectations
• Issues of response
• Issues of resources, control and quality
• Performance measurement
• Positioning and strategy
Concepts of Control and Quality
Control Systems:
– Quality Management - technical and relating to efficiency
Quality Control – seeks to maintain standards by continuous
inspection
– Quality Assurance – the use of precise procedures to achieve
clearly defined objectives, e.g. BS 5750
• Total Quality Management (TQM)
– Tries to achieve customer orientation by building in at all levels
in an organisation by looking a “Total Customer
Responsiveness” via: search, arrival, pre-contact, withdrawal
and follow-up stage model of customer experience.
– Points of Focus: Customer Satisfaction; Zero defects; On-time
performance; Nil defections; Cycle times
• Performance Measures: “three Es”: Economy, Efficiency
and Effectiveness
 Problems with CUSTOMER
EXPECTATIONS
• Assumes the Power of the Buyer
• Assumes User Choice
• More power to the User and thus the increased
importance of the user’s perceptions of quality
• Assumes competition (therefore strengthening
the User and their power of Choice)
• Source of Expectation levels
• Hard to experience the Service before becoming
a user
• Perceptual, attitudinal and informational drivers
 DO PROSPECTIVE STUDENTS GO
THROUGH THE BUYER PROCESS

• What is the “Buyer Process”?

• What are the “Buyer Roles”
 COMMUNICTION AND PROMOTION

• Draw an Simple model of the

communication process
• Has it: Sender/decoding: Channel:
Receiver/encoding
• Formal and Informal Communications
• Types of Communication Channels and
the Sender and Receiver “match”?
• Problems: Apathy, Lack of understanding
and Competition (also vying for attention)
 ADVERTISING and Promotion
• AKLPP = Awareness, Knowledge, Liking, Preference – culminating
in Purchase and Use
• Other Forms of Promotion: personal selling, Sales Literature &
demonstrations, and Public Relations
• Public Sector: traditionally used promotion to develop awareness
and use of services, almost like a commercial tool
• Increasing Competition and Choice, Increased participation rates in
HE = need to attract student numbers = raise Image
• Generic Competition: in some sectors – transport but none for
Health (NHS)
• Internal: within the sector, e.g. HE, local schools, between bus
companies
• Does Promotion objectives vary according to: Generic or Internal
Competition?..........Tell me NOW!
Special considerations for Non-for-
Profit Sector Promotion
• The political dimension – need to be aware of the
political sensitive “public interest” issues, e.g. Foundation
degrees
• Different Target Markets: may have many; some are
harder to reach, e.g. with the “Widening Participation
segment”
• Inability to pay: most users do not pay but some pay “full
cost”….?
• User Resistance: may not be wanted because alien to
own cultures and value systems
• Limited Resources may lead to “Demarketing or
rationing”
Should we remember…..
Selective Communication in Non-for-profit
Organisations and Common Sense?
• Performing: using some
activity
– Open Day
• Pleading: asking people to
become “Our Neighbours”
– Pilot Schemes with local
Schools and Colleges
• Petitioning: seeking
sponsorship
– Funding sources, Research
Grants, Business Firm links;
Bursary Schemes with some
of Above
• Objectives of Promotion:
which customers: Which
needs we can serve; How we
aim to satisfy these needs;
awareness and information
passing; persuasion; USP;
• Resources
• Message
• Co-ordinating ALL the
promotional activities
• Monitoring promotional
effectiveness
 WHAT MR do we need in a
University and……
• What is the MR process?
• Discuss this in your groups
and present
• Types of Data?
• Where from?
• Impact of IT on MR process?
• What are you using MR to do
for you in a University?
– Patterns of recruitment
and placement per
course
– Perceptions of Services
– Attitude to our Services
– Motivations for using our
Services
– Repeat Business
– Types of Users
– Competition
– Others
How do we evaluate a web site?
• Let us use the External Links button and
see
• You will all need to go to a pc and come
back with floppies ready to put on the pc in
this room
• Then do a group 5 minute presentation