We are continuing with Module 4 Marketing of your Business. The primary reading is Chapter 11, which we went over last week.
This week, re-read the three secondary readings a couple of which you have read before
The 5 Ps of Marketing
Who is Your Customer?
Customer Pain PointComplete DQs 1 & 2 by Friday, October 23 Respond to your peers by Sat, October 24.DQ1: Based on Chapter 11 and Secondary Reading on Who Is Your Customer?
Yes, we have heard that customers are always right. Rita who bought the chips last week deserved to be better treated, and many of you said that it was important not to ignore the 1% who were dissatisfied but here is another way marketers look at their customers.http://www.entrepreneur.com/article/229294
After reading this, let us rethink which 1% should Ritz Carlton focus if they were not satisfied, or should the store focus on Rita who spends $75 every week?
DQ2: Based on Chapter 11 and Secondary Reading 5Ps of Marketing
As discussed in the secondary reading 5 Ps of Marketing positioning is the way your customers perceive you relative to competition. It becomes your brand identity. Positioning is not your ranking among your customers it is the image that customers have about your brand (relative to competition) And a positioning map can show how you are viewed relative to competitors. Here is an example of a positioning map. If you were an entrepreneur planning to enter the automobile market, where would you like to be positioned relative to the others on this map? Can you capture the positioning in one sentence?
SDQ1: After considering the article on the 80/20 Rule, I would have to say that if Rita were actually a problem customer who caused a scene each and every time she shops at the store, I would side in favor of the store clerk and manager in their decision to fire her as a customer. Some people are truly not worth the effort. I understand that the difference between $.99 and $2.39 wouldnt necessarily break the bank for the store for that one time, however, the cost of dealing with a difficult customer over and over again certainly reduces the stores ability to sell to their top 20%. I dont believe that at $75 that Rita is the highest paying customer nor do I think she is the most frequent as a weekly shopper since most people buy groceries each week. Sure, her $75 each week adds up to a big number over that 10 year period. And over that 10 years her situation could change in terms of being married or having children which could greatly add to that number. It is also true that we cannot easily quantify the negative effects of her bad-mouthing the store. However, if she wasnt in their 20% then so be it.
In regards to Ritz Carlton, I still believe they should figure out where the dissatisfaction lies because that 1% could consist of some of their top 20% customers. Due to their market position I would not expect less than 100% satisfaction from Ritz Carlton and nor should any one else. Customers choose them over competitors for that reason. They must work to maintain their competitive advantage. If that 1% of dissatisfied customers comes from their least recent, frequent, and lowest paying customers then I would not be so deeply concerned. I believe that it is in their best interest to find out who this 1% is and why.
SDQ2: Before positioning the company, it is important to analyze the customers you would like to reach, as well as highlight the benefits of your products and differentiate the quality from the other sellers; and finally, be able to command a just value for our products. In order to make decisions regarding target audience, a marketer needs to analyze the marketing environment as the first step. The marketing environment is influenced by internal and external factors. Next step is to determine suitable target group(s) who would be interested in buying the product.While there are many potential customers for a product not all can provide us a suitable remuneration for the product.
To determine the positioning of the product in the mind of the target audience relative to competitive products. Positioning is simply concentrating on an idea or even a word that defines the company in the minds of consumers. In order for this focused image to be clearly perceived, positioning needs to be supported by the four elements of the marketing mix price, product, promotion and place. As an entrepreneur entering the automobile market I would like to be positioned on practical affordable. Entering the market using the price as a marketing for my company would most likely attract costumers from the middle class. This target audience is vastand loyal as well, being worth working for. The classy distinctive position is limited and this fact would be a high risk for a new entrepreneur. Offering affordable as well as quality cars would be safer for an entrepreneur who is entering the market.