Marketing 3250 Magnificent Marketing Casino Example o Example Gary Loveman a professor at Harvard had never been to a casino but modeled his business plan after Harrahs Test track and refine o Betting on a sure thing o Data mining discovering hidden predictive information Market research Ex Kroger and giant eagle using cards to gather information o Investing in customer relationships some people are just more attractive Not all customers are created equally and should not treat all equally Prioritize and invest more than in other Ex The whales at the casinos are given extra privileges 25 million people visit annually and they broke them down into 90 different types categories of customers o total rewards basis for freebies the little rewards given to identify yourself Predictor variables the average relationships that are continuously updated 3 things about new customers to identify a big spender at casino o 1 Age retired hair color o 2 Gender old ladies hit it big at the slots o Proximity to the casino Those within one mile will come more frequently There are exceptions the author of total rewards was 1200 miles away and a frequent customer they recognize these people quickly The best customers are the 30 that spend 100 500 a visit Lines up with 80 20 rule or in this case closer to 80 100 of profits Chapter 1 Evolutions of Organizational orientations o Market segmentation o Target marketing o The 4 P s Product ex M and M marketing and personalization method Place less than 10 of sales actually happen online more for info tell over sell Promotion marketing communication Price o Simplest Definition of Marketing Managing customer relationships profitably Other Definitions the go to Identifying understanding and satisfying buyer demands through exchanges o Sometimes satisfaction is not sufficient o We need VERY satisfied o Ex Raving Fans the idea that you like it so much you go out and tell everyone else about it o 3 types of customers Kind that make you could make you and those who are costing you Use to 80 20 to find where the money is Use demarketing to get rid of the people that are costing you money Best buy TV policy around the super bowl and big games REPEAT customers are crucial they spend more and it gives you word of mouth AMA definition an organizational function and a set of processes for creating communicating capturing and delivering value to customers and managing customer relationships in ways that benefit the organization and its stakeholders Marketing department attempts to anticipate sometimes to change but always to satisfy buyer demands very hard to change demand o Easier to find what they want than try to change what they want o Ex We are exposed to over 3000 marketing messages a day how many of these actually sink in and influence are wants Similarities between all the definitions 1 Satisfying buyers meaning receiving ratings between 9 10 2 Exchange process Misconception advertisement and selling are the tip of the iceberg While they are very visible and dramatic they are only a small part of the whole Ex Walmart vs Kmart o Kmart used 3x as much advertising It may help get first customers but is not the right method to get repeats Our Definition if there is voluntary exchange marketing is taking place Or even having the prospect of exchange with a willing buyer ex Ebay Not limited to monetary exchanges and to for profit organizations o Any organization or individual anyone with a customer competitor Moreover marketing occurs whether or not o 1 It is understood by customers o 2 Is approved of many do not favor for profit motives o 3 Are formally recognized having their own marketing department Many orgs don t understand marketing but they are a part of it even though they will not survive Ex Japanese companies don t have departments buty are great marketers Toyota and Sony customer is god they are some of the most demanding and quality conscience consumers in the world Everyone in the company is responsible for contributing to customer satisfaction Many organizations that in the past could ignore customer s concerns are now speaking of Discovering Beginning Marketing used to have no competition This is the past 10 20 years when before they didn t have to worry about attracting customers This new stage is usually indicated by the first time they try advertising o Ex Kid discovers breathing doesn t mean he just started then o Marketing is as natural to business as breathing is to people o as long as a voluntary exchange is happening so is marketing Questions a business needs to ask Is marketing done well does marketing matter o As competition grows we need to put more effort o Monopolies have less customer satisfaction Ex Cable companies college registration methods o we are said to be in a period of hypercompetition Meaning that marketing is more important than ever How much a company sells is not a good measure of marketing o Just like saying since OSU won the linebackers had a good game o It is better measured by repeat business and customer o Facilitating making it easier and expediting speeding up exchanges satisfaction Ex Honda and GM the deal is made at the dealership who are affiliated but separate from customers Ex Coca cola does not sell straight to the customer Much of marketing is done by a middleman Bring buyers and sellers together Ex A campus bar they are the expensive middle man Student organization computer dating MWRC starts with the manufacturer then to wholesaler then to retailer and finally to the customer Ex Couches the manufacturer does all the work but do not sell directly to the customer o make the most money by focusing on their strengths o the customer is paying for convenience timing and location o selling B2B there is no middleman and is a different ballgame than B2C which is what we know Economist Principle of diminishing margin utility there is less satisfaction from each successive Utility for marketing satisfaction value benefits o From the buyers point of view what the customer is thinking Form utility happens when manufactures make things o Literally physically transform resources o Can see what they did visible tangible obvious So while manufactures impact directly marketing activities affect form utility only indirectly Marketing activities do contribute to making products available o Time utility o Place utility o Possession utility When where and how they want it For example the couch is not the same at the warehouse as it
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