Marketing issues in the Czech Republic Richard Selby Czech University of Life Sciences, Prague

Orientation: remember the history 50 years of communism, before that…. 5 years of occupation In any case it’s a young country: –Czech republic: 15 years –Newly independent: 19 years –Czechoslovakia: 90 years ……..so, have the people changed in any way?

Think about the people Because marketing is all about people!

Basics of marketing

Content Marketing Sales The ‘P’s of Marketing The Product Life Cycle Market Segmentation Advertising Agencies Caring for Customers

Marketing and Sales Definition of Marketing “Marketing is the identification and profitable satisfaction of customers’ needs” Definition of Sales “Sales is the last stage in the marketing process”

Components of Marketing Identifying the needs Satisfying them Making a profit “Matching the company’s capabilities to the wants of the customer”

The Four ‘P’s of Marketing The Product The Price Place Promotion “Often called the marketing mix”

Some more ‘P’s of Marketing The Product The Price Place Promotion People Planning, and PROFIT!!!!

Product or Service The product is usually a tangible product or service, associated with an assessment or beliefs The product life cycle A product strategy A brand name to differentiate it from other products offered by the same company or by a competitor

Price Quantifiable way of measuring the value customers place on a product Price can be based on costs, what the market can bear or positioned in relation to the competition A pricing strategy Market entry, maturing and withdrawal prices Discount price

Place or Distribution Selling points such as shops, regional centres, headquarters or a warehouse Retailer, wholesaler, mail order or the internet Distribution channels are concerned with relationships between the producer, the middleman/woman and the customer “The name for the way in which a product or service gets from its point of origin to its final destination, to the person or the business that uses it”

Promotion Promoting a product or service involves informing and persuading customers to buy Having selected the audience there are many ways of reaching the audience through the following media and methods –television, radio, national newspapers, regional newspapers, local newspapers, through the Internet, mail shots (direct mail), fax shots, shots, telephone selling and personal selling

The Product Life Cycle

All products & services have a Life Cycle Time Market Revenues Introduction Growth Maturity Decline Earlyadopters Early majority Mass market Laggards Revenues Prices Competition

Fixed-Line Telephony Early adopters Early majority Mass market Laggards Time2020 Privatisation Market Revenues Introduction Growth Maturity Decline?

Market Segmentation (This is where we really need to find out about the people!)

Market Segmentation Every market can be segmented into groups of potential customers who have similar characteristics. The benefit to the marketer in doing this is that each segment has less variability than the market as a whole The most common bases of segmentation are: –Demographic –Socio-economic –Buying patterns –Personality, attitudes, values –Life style

Special considerations about the Czech people Are people in the Czech Republic the same as people in our home country?

Find out more at: Cultural considerations - Hofstede

Advertising Agencies

Advantages One-stop shop for advertising, marketing and public relations services Usually work with one person, the account representative Design and manage a co-ordinated marketing and advertising campaign Access to the media on a regular basis

Advertising Agencies Disadvantages Agencies are very expensive - besides paying for the final product, you are also paying for someone to take over the burden of managing your product Agencies generally want long term contracts and will not work on individual projects

Caring for your Customers

Choice Given that there is little difference in Products Technology Prices What makes the difference?

Choice Customer service Processes …. Our relationship with customers

Complaints In the UK Dissatisfied customers

Complaints In the UK Dissatisfied customers Complaints

Complaints In the UK Dissatisfied customers (100%) Complaints (4%)

Complaints In the UK Dissatisfied customers (100%) Complaints (4%)

Complaints In the UK Dissatisfied customers (100%) Complaints (4%) You never get to hear of the 96%!

Complaints “We only have about 3 or 4 complaints a month” Means we actually have about 100 dissatisfied customers!

Dealing with Complaints Never ignore the customer’s complaints – refer upwards if necessary Involve customers and staff in finding solutions Failing a solution, explain the issues to the customer – eg: the effect on price

Improving Customer Care Find out what your customers want Compare what you offer to what your competitors offer Do something extra to attract customers Keep abreast of product/service development

Review Marketing Sales The ‘P’s of Marketing The Product Life Cycle Market Segmentation Advertising Agencies Caring for Customers

Lost in Translation

The Spanish translation read:

The Spanish translation read: “Are you lactating?”

The Spanish translation read: “Are you lactating?”

…..and Schweppes Tonic Water became

Schweppes TOILET Water ……..when translated into Italian!

Barcardi’s new product in Germany was called “Pavian”

“Pavien” means “Baboon” in German!

Chevy, Opel and Vauxhall tried to sell their “Nova” in Spain and S. America…..

…..only to find it means “Won’t go” in Spanish!

…..and now, some Czech advertising! Cabbage Milk Mattoni Beer