First Two Marketing Sins - Copy

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    MARKETING SINS

    Signs and Solutions

    Source:

    Ten deadly marketing sins

    Signs and solutions

    Author: Philip Kotler

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    Most handicapping deficiencies in most

    companies are:

    oInsufficient market focus

    oInsufficient Customer orientation

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    y Insufficient market focus:

    Your company has not gain insight into your

    market opportunities.y Insufficient Customer orientation:

    your company is not well organized to serve anddeliver the wants and expectations of your customers.

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    First major handicap

    Insufficient market

    focus

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    Insufficient market focusy Following signs indicate that your marketers have not

    sufficiently analyzed your market:

    Poor identification of market segments

    Insufficient prioritization of market segments

    No market segments managers

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    Sign no. 1

    Poor identification of market segments

    y It indicates that market is not sufficiently focused.

    yWhen it is asked from marketers or company that

    who you are trying to sell?everyone is not acceptable answer.

    Because it is better to establish very strong andsuccessful relationship with a portion of people in a

    market than to only marginally connect witheveryone..

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    Solutiony You need: better market segmentation techniques.

    o Following key points can help better identifying the

    segment:1. Try to segment the members of market by different

    needs or sought benefits.

    2. Try to find demographic descriptors that might

    correlate with these needs and benefits to make thesearch easier.

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    Sign no. 2Insufficient prioritization of market segments

    y In many cases, companies do rightly identify which

    segment to target and prepare offerings for eachchosen segment as well but then questions arise :

    ? Do companies have really measured the relativeattractiveness of each segment?

    ? Do they have estimated the right ROI in differentsegments?

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    SolutionIf company serves more than one segment then :

    y identify all the segments to be served as IBM does

    (example)y By focusing research on all the segments it is serving,

    company will be able to design more compellingofferings than unfocused competitors could present.

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    Sign no. 3No market segments managers

    y The third major sign of insufficient market focus is no

    clear leaders or managers to manage the mostimportant segments.

    y Most important segments should have managers whoare empowered to ask for budgets that will produce

    companys estimated rate of return.y Those managers should also be rewarded accordingly.

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    Solutiony Specialized sales force should be developed for quite

    different customer segments.

    yTry to hire sales persons who know well about thesegment, customers characteristics.

    e.g. you can hire ex-bankers to sell to banks.

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    Insufficient Customer orientation

    Following signs indicate that your company is not

    sufficiently organized to serve and satisfy customers.y It is job of marketing and sales to serve the customers.

    y No training programs to create a customer culture.

    y No incentives to treat the customers especially well.

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    Sign no. 1Job of marketing and sales to serve the customers

    y Companies feel convenient in organizing their

    employees into departments designed to carry outspecific responsibilities.

    yAs different specialists will spend their time inrespective departments, they will naturally assume

    that that another department-sales and marketing-will handle customers.

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    y This can create problems i.e. customers can get angrydue to

    poorly made productlate delivery

    wrong invoice

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    Solution Develop a clear hierarchy of company values with

    customers at the top.

    e.g. as J & J declares that customers come first,employees come second and this will give the investorthe best result.

    In short if companies employees and customers are

    not satisfied, it might close down.

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    Sign no. 2

    No training programs to create a customer

    culture

    In many companies, it is considered expensive to trainpeople in other departments to think customers.

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    Solutiony Undertake activities that will produce a stronger

    customer consciousness.

    y

    As companies follow strong culture, this needs to bechanged.

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    Following activities can be performed:

    y Develop a clear hierarchy of groups and values.

    y Show how each employees behavior can affectcustomers

    y Regularly feature findings on customer satisfaction.

    y sponsor a companywide training program in customerservice and satisfaction.

    y Make sure that all the distributors and dealers also arecustomer obsessed.

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    Sign no. 3

    No incentives to treat the customers especially

    well

    yAs employees know that they are measured by their

    departments, they will just focus on it and behaveaccordingly.

    y They will not pay much attention to customersbecause of absence of clear measures for their actions.

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    Solutiony Make it easy for customers to reach the company

    By phone, fax, mail, e-mail

    Set a high standard for answering quickly.

    The cost of this level of serving is small incomparison with the cost of losing customers.

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    SUMMARY

    Two deficiencies are studied:

    o Insufficient market focus

    o Insufficient Customer orientation

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    Insufficient market focus

    Poor identification of market segments

    Insufficient prioritization of market segments

    No market segments managers

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    Insufficient Customer orientation

    y It is job of marketing and sales to serve the customers.

    y No training programs to create a customer culture.

    y No incentives to treat the customers especially well.

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