BUS203 Study Guide

6a. Analyze and explain customer satisfaction factors that affect marketing efforts

• What is customer empowerment? What are its components?
• What are some strategies for delivering on customer expectations?
• What are some strategies for measuring customer satisfaction?
• What are some strategies for handling customer complaints?

For any organization, the main focus should be on meeting the needs of the customer. Enabling customers to be a part of the marketing function makes it easier for the organization to meet their needs and to develop more meaningful messaging.

Customer empowerment is the process that gives consumers channels for providing feedback about products or services and participating in the design of products.

In addition to empowering customers, it is also important to help set and identify customer expectations. If expectations are at too low a level, consumers won't purchase your product. However, if expectations are set too high, there is the possibility that consumers will be disappointed in your product and not make a repeat purchase. By setting a reasonable level of expectations, and then seeking to exceed those expectations, a company can achieve the reputation of overdelivering.

Another strategy for delivering customer expectations is to empower employees to interact with customers. This demonstrates the company's commitment to the customer, and also provides the employee with a greater sense of satisfaction. The combination is a win-win for everyone.

Offering warranties and guarantees is another strategy for ensuring customer satisfaction. This demonstrates that the company stands behind its promises, giving the consumer a greater sense of confidence.

It is important to note that customers may not always be pleased with a product or service and experience post-purchase dissonance, or buyer's remorse. This occurs when a buyer may feel that they did not make a wise choice in their purchase. Reassuring the customer, showing that the company appreciates their business, and alleviating the customers' feelings can help to mitigate this dissatisfaction.

In order to determine whether customers are truly satisfied, it is important to measure their levels of satisfaction. The two main components for measurement are the customer's actual expectations and whether the organization met those expectations. An additional element is the level that the customer says they have been delighted.

When asking survey questions to determine satisfaction levels, it is important to give each question and answer choice a certain level of "weight" to determine the value of each factor. For example, if an airline knows that on-time departure and quick access to luggage are the most important measures of satisfaction for passengers, they may give more emphasis to these elements when seeking passenger feedback.

In spite of all efforts to keep customers happy, there are sure to be complaints along the way. The manner that a company handles those complaints can be the difference between retaining a loyal customer and having a dissatisfied customer share their views with everyone they know.

Strategies for addressing these complaints include:

• Listening to the complaint
• Acknowledging the customer's feelings
• Determining the root cause of the problem
• Offering a solution
• Gaining agreement on the solution and communicating the process of resolution
• Following- up, if appropriate
• Recording the complaint and resolution

Consider a situation where you had a complaint with a company. Did they handle it to your satisfaction? Did they keep you as a customer? If not, what steps should they have taken to more effectively remedy the situation?

To review, read Customer Satisfaction, Loyalty, and Empowerment.

 

6b. Identify components of global marketing

• Why might a company want a global marketing strategy?
• What are the components of an effective global marketing strategy?

Expanding on a global scale enables a company to accomplish a wide range of organizational goals. First of all, foreign markets each have differing needs. By expanding into these markets a company must seek to find solutions that are unique to these markets and continually innovate and create new products to meet the needs of those consumers. Global expansion also enables an organization to grow and enhance the presence of the brands they offer. Finally, operating on a global scale enables an organization to bring together disparate groups of consumers and company employees and create a greater sense of community.

In order to have an effective global marketing strategy, messages must be customized for each target group. This goes beyond a simple translation of a slogan or tagline. For example, the direct translation of English slogans may not always work in another language. Pepsi's "Come Alive" campaign was translated to mean "Bring Your Ancestors Back From the Dead" in Chinese, and McDonald's original translation for the Big Mac in France came out as "Big Pimp".

Also, imagery for different cultural groups can vary, so companies should be conscious of the images they are projecting. Use technology and other tools that are available to consumers in those markets, and use appropriate music and graphics.

As with all successful strategies, a global strategy should be multifaceted, realistic, and consistent over time. Additionally, goals should be stated, specific marketing activities should be carefully documented, target audiences should be identified, strategies for measuring success should be in place, contingency plans should be noted, and the individuals responsible for carrying out the plans should be selected.

Throughout each of these steps, the cultural and ethnic characteristics of consumers in these markets should be considered throughout. This enables an organization to create a meaningful and effective campaign, while also developing a relationship of trust between the company and its customers.

To review, read Multicultural Marketing.

 

6c. Explain how to adjust to cultural factors that affect marketing efforts

• Which factors define multicultural marketing?
• What are some strategies for a multicultural marketing mix?
• Why might a company implement multicultural advertising efforts?

Multicultural marketing strategies, also known as ethnic marketing and cross-cultural marketing, include the understanding of a culture's traditions, beliefs, values, norms, language, and religion. When addressing the needs of different ethnic groups in a domestic marketplace, it is important to recognize the role these elements play in their lives and how this may impact their purchase decisions. Consider your own background or ethnicity. How is this reflected in the foods you buy, the rituals you participate in, or the way you dress? Now, think about these factors from the standpoint of a marketer who is seeking your business. In what ways does that marketer deliver their message so that your needs are being met?

For any marketing strategy, the goal is to increase sales and gain a competitive advantage in the marketplace. An effective strategy hinges on the proper marketing mix, also known as the 4 Ps (product, price, place, promotion). When developing a multicultural marketing mix, it is essential to not only understand the demographics and lifestyles of your target market but also the cultural factors that differentiate these consumers from others in the marketplace.

Cultural tastes and preferences impact product choices. The ways people shop may depend on their culture and background. Promotional messages may need to be translated into different languages (keeping in mind that slogans don't always translate directly), and the price consumers are willing to pay for a product or service may also relate to their backgrounds.

Since the overall composition of society includes a diverse group of consumers, marketing efforts to meet the needs of these consumers are essential. However, it is important to recognize that the strategies and messages delivered to these various segments of the population must be specific to their backgrounds, culture, language, and preferences. One size does not fit all, and ads must be relevant and appealing to their target groups. Once marketers understand the lifestyles and psychological factors that impact the purchase behavior of various ethnicities, only then will they be able to create products and services, along with marketing messages, that will be attractive to those consumer groups.

To review, read Multicultural Marketing.

 

6d. Describe and prepare a comprehensive marketing plan

• Why is the marketing plan important?
• What is the role of the executive summary?
• What is contained in the Market section of a marketing plan?
• What is contained in the Strategy section of a marketing plan?
• What is contained in the Budget section of a marketing plan?

A marketing plan enables executives to set marketing goals for the organization and present an organized strategy for achieving those goals. An effective plan includes realistic expectations for the company and their stakeholders, and seeks to influence others to take steps to ensure the plan's success. A well-written plan will detail specific activities, those who are responsible for carrying out those tasks, and how success will be measured.

An Executive Summary appears at the beginning of the Marketing Plan. It includes a brief paragraph for each section of the report and includes highlights from those sections. This enables the reader to gain an overview of the contents of the complete report and be able to focus on specific areas of interest. While this is the first section to appear, it is the last part of the paper that is written since elements from each section can be placed into the document as they are completed.

In order to ensure that effective strategies are developed, it is important to first understand the market the organization operates in. This includes an evaluation of the industry, in general, the competition the company is facing, the target group of consumers who are most attractive to the organization, and the overall business climate. Within this section, the organization should develop a SWOT analysis, which highlights the company's internal strengths and weaknesses as well as the external threats and opportunities that exist.

Once internal and external factors have been evaluated, the organization can then begin to develop the strategy that will enable them to develop their product, bring it to market, and develop effective marketing messages. This is where the marketing mix (product, price, place, promotion) will be prominent, with an in-depth evaluation of the product itself, the price of the product, the locations where the product will be sold, and the ways the product's features and benefits will be communicated to the public.

When determining a budget in a Marketing Plan, it is important to recognize that this includes more than the money needed to develop a product or service. Budgets should also consider the manpower needed, equipment, manufacturing and office facilities, and the actual resources needed for creating the product or service. Additionally, an examination of the budget might require that company resources be redistributed to enable a new product to be launched or an existing product to be taken to the next level.

A comprehensive Marketing Plan should also include a brief Conclusion that supports the content within the report. This section should clarify the purpose of the report and seek to support the strategies and goals presented.

To review, read The Marketing Plan.

 

6e. Explain ethical considerations impacting marketers

• Which elements should be in a code of ethics for marketers?
• How can companies gain public trust?

There are many philosophies on what it means to be ethical in life and in business. Generally, ethical behavior means doing what is right. However, this is not always plain or evident, so companies have developed Codes of Ethics describing the behavior that the organization and their employees should follow. When it comes to marketing, these same kinds of ethical behaviors should also be followed. Some of the factors included in this kind of directive include:

• Doing no harm
• Fostering trust in the marketing system.
• Seeking to be honest and truthful at all times
• Supporting product claims
• Seeking to meet the needs of customers
• Being a good corporate citizen

In addition to setting levels of behavior on the part of marketers and their organizations, the public has also made known their thoughts about what it takes for a company to gain their trust.

These include:

• Being open and honest in their business practices
• Exhibiting industry leadership
• Demonstrating quality management
• Showing concern for employees
• Offering quality goods and services
• Demonstrating community involvement

While the advertising and marketing industries have been seen as not always being the most honest and ethical, it is these very methods that communicate ethical practices to the public.

To review, read Business and Marketing Ethics.

 

Unit 6 Vocabulary

This vocabulary list includes terms that might help you with the review items above and some terms you should be familiar with to be successful in completing the final exam for the course.

Try to think of the reason why each term is included.

• buyer's remorse
• code of ethics
• competition
• customer complaints
• customer empowerment
• customer satisfaction
• ethical behavior
• executive summary
• global marketing strategies
• industry analysis
• marketing plan
• marketing plan budget
• multicultural marketing factors
• multicultural marketing mix
• multicultural marketing strategies
• post-purchase dissonance
• satisfaction measurement
• strategy
• SWOT analysis
• the 4Ps (the marketing mix)
• the market