Marketing 4e - Chapter 15 (PDF)

Chapter 15 Marketing in specialised markets Chapter outline Services marketing Sport marketing and marketing through sport Non-business marketing Business-to-business marketing Travel and tourism marketing. Services marketing Services = deeds, performances or efforts that cannot be...

Chapter 15 Marketing in specialised markets Chapter outline Services marketing Sport marketing and marketing through sport Non-business marketing Business-to-business marketing Travel and tourism marketing. Services marketing Services = deeds, performances or efforts that cannot be physically possessed How services differ from physical products: intangibility inseparability heterogeneity perishability. Services marketing Marketing mixes for services: 4 Ps of traditional marketing - product - price - distribution - marketing communication People Process Physical evidence. Sports marketing and marketing through sport Sports marketing = all activities designed to meet the needs and wants of sport consumers through exchange processes Marketing through sport The special characteristics of sport: 4 Ps of traditional marketing (product, price, distribution and marketing communication) People The sports product Distinguishing characteristics of the sports product: playful competition separation from normal space and time regulation by special rules physical prowess and physical training special facilities and special equipment. Licensed and branded sports products Licensed products = allows fans to ‘take the experience home’ after a game; the product is a substitute for experiencing a game Branded products = display only the logo and marks of the manufacturer Marketing through sport Sports are able to draw large crowds and as a result, sponsorships become a tool to communicate with consumers Sponsorship benefits include: flexibility brand equity media exposure cost effectiveness industrial labour relations sponsorship opens doors crosses all frontiers presents new challenges. Non-business marketing Non-business organisation = a firm that exists to achieve some goal other than the usual business goals of profit, market share or return on investment Non-business marketing categories: social (societal) marketing non-profit marketing. Factors contributing to the acceptance of marketing by non-profit organisations increased privatisation decreased support from traditional sources increased competition among non-profit organisations increase in the number of non-profit organisations absence of tax incentives.  The dual role of marketing in non-profit organisations Marketing to Marketing attract inputs outputs Donors Non-profit Beneficiaries organisation Volunteers Direct involvement by the NPO Action/activity hoped for by the NPO Sources of competition faced by non-profit organisations competition with for-profit firms competition with the public sector competition with other non-profit organisations international competition. The unique aspects of non- business marketing strategies Set objectives Discussed Select target markets in the following Develop a marketing mix slides The unique aspects of non- business marketing strategies Set objectives focus on generating enough funds to cover expenses (not to make profit). Select target markets apathetic or strongly opposed targets pressure to adopt undifferentiated segmentation strategies complementary positioning. The unique aspects of non- business marketing strategies Develop a marketing mix Product decisions: benefit complexity benefit strength involvement. Distribution decisions The unique aspects of non- business marketing strategies Develop a marketing mix (cont.) Marketing communication decisions: professional volunteers sales promotion activities. Price decisions: pricing objectives non-financial prices indirect payment separation between payers and users below-cost pricing. Business-to-business marketing Business-to-business marketing = the marketing of goods and services to individuals and organisations for purposes other than personal consumption Business-to-business customer categories: producers resellers governments central government institutions. Classification of business and government markets Based on Standard Industrial Classification (SIC) system SIC system = divides the economy into ten major divisions and assigns two-digit numbers to major industry groups within each division Differences between business-to- business and consumer markets Demand Location of buyers - derived demand Distribution - inelastic demand structure - joint demand Nature of buying and buying influence - fluctuating demand Purchase volume Type of negotiations Use of reciprocity Number of customers Use of leasing Primary promotional method Types of business-to-business products major equipment accessory equipment raw materials component parts processed materials supplies business services. The business-to-business purchase process need recognition product definition development of product specifications search for qualified suppliers acquisition and analysis of products selection of supplier order placement product inspection product performance evaluation. Travel and tourism marketing Main sectors of travel and tourism: accommodation sector transport sector attraction sector destination organisation sector travel organisers’ sector. The special characteristics of travel and tourism services seasonality and demand fluctuations interdependence of tourism products/services high fixed costs of service operation. The marketing mix in travel and tourism product physical evidence price promotion (marketing communication) place (distribution) process people.