Chapter 4 All About the Customer

Warm up Watch the Bad Customer Service Video below http://www.youtube.com/watch?v=9oywp2qRR yc Be prepared to discuss!

Marketing Concept Marketing Concept – a business keeps the focus of satisfying customer needs. Not focusing on customer needs can hurt you big time! Build and maintain relationships. Make customers want to come back!

Making a Product Productivity – the rate at which companies produce goods or services in relation to the amount of materials and numbers of employees utilized. Doing more with less is crucial! http://www.youtube.com/watch?v=ymT1W- g_FCY

Is Outsourcing Bad? Why or why not? Class discussion! 10 minutes research time. It’s all about lowering costs!

Caution! Be ethical! Doing more with less is great but don’t sacrifice morals! Review the Sweatshop article under Chapter 4. Respond to the following questions: What happened in the article? What can be done to make things right? How can this be avoided in the future? 15 minutes.

Making Money Breakeven point – the minimum attendance and sales required to cover all of the expenses of organizing, promoting, and running the event. What you make after the breakeven point is profit!

Breakeven Example Suzie sells ice cream for $5 per cone. Each cone costs Suzie $3 to make. Suzie’s ice cream shop costs $500 to run. How many cones does Suzie have to sell to breakeven? 250

Opportunity Opportunity cost – The value of the next best alternative that you forgo when making a choice. You can not do everything! Pick what will make you the most money!

Why Does This Matter? Keeping costs down keeps prices down. Keeping prices down keeps customers happy. Keeping customers happy gets customers to come back. Customers seek out the best deal!

Customers First? Recall a bad customer service experience you have had and how it was resolved. Was the solution what you wanted? Why or why not? Be prepared to share. At least one student from each row required!

Closure Create a graphic organizer on ways to increase customer satisfaction. At least 4 ways required. 2 Pictures. Ten Minutes

Warm up Assume you have limitless money Create a list of items, school appropriate, that you would want. At least two pictures required. Be prepared to discuss! SAVE! We will use this list later! Five minutes

Goals of Marketing What do consumers want? How much are they willing to pay? Economic market – includes all of the consumers who will purchase a product or service.

What is an “A” Worth? How much would you be willing to pay for an “A” in this class? Would you be more likely to purchase an “A” on the first day or the last day? Why? Would you pay more for an “A” in a core class? Why?

Spending Habits Benefits derived - refers to the value people believe they receive from a product or service. Comparative advantage – the capability to produce products or services more efficiently and economically than the competition. Creates cheaper prices

Price Check! Select four items you would like to purchase. Look up a picture for each item. Go online and price check the items (use at least two websites). Put the picture and prices in Word document EX Amazon, Wal-Mart, Target, Kmart. 10 minutes

Warm up Watch the Video Is this something customers would want? Why or why not? What are other uses you can think of for this product? How much would you pay for it?

Needs Vs. Wants Needs are things that are required. EX Food, electricity, water, etc. Wants are things that you desire but can survive without. EX Video games, TV, books, candy, sport equipment, etc. Wants and needs can vary!

Needs Vs. Wants 2 Reexamine the list you created at the start of class. Is everything on your list a want? Add three things you feel that you need. Be prepared to share! 5 minutes

Why You Buy Emotional purchases – Consumer spends with little thought during emotional highs or lows. Rational purchases – take place when individuals recognize needs and wants, asses their priorities and budget, conduct research, compare alternatives, and then make purchases based upon careful thought and sound reasoning.

Emotional Purchases http://www.youtube.com/watch?v=oBtkdwCYPk o Do you with that 90% of purchases are emotional? Why or why not? Do you make more emotional or rational purchases?

Another Purchase Type Patronage purchases – based on loyalty to a particular brand or product. Less likely to buy competing brands. This is your first choice, what you prefer to get! EX “I eat Subway all the time when I travel. It’s the best food for traveling!”

Research Know what your customers want and how to get it! Be aware of what competitors offer! Get feedback on what you do and how to improve!

Closure Which purchases are more fun to make: rational or emotional? Why? Three sentences Which purchases are better for your budget? Why? Two sentences Ten minutes

Warm up http://www.youtube.com/watch?v=BQhy0esY7k s What was the customer’s concerns? Be prepared to discuss!

Who Buys? Target market – a specific group of consumers you want to reach. “The Customer” a product was designed for is its target market. Market segment – a group of consumers within a larger market who share one or more characteristics.

Target Market Review the Target Market located under Chapter 4. Create a list of the key points of the article. Be prepared to discuss. 10 minutes.

Market Segment “A market within a market” EX Millions of people like TV but the number of people who like reality TV are less than the number of people who like TV.

Segments http://www.youtube.com/watch?v=pxcNVrwkro U According to the video, why do we segment markets? Why can’t we target all markets?

Warm up Review of yesterday Quiz tomorrow on Chapter 4! Five minutes to study

Ways to Segment Geographic segmentation – divides markets into physical locations. Demographic segmentation – focuses on information that can be measured, such as age, income, profession, gender, education, martial status, and size of households.

Ways to Segment Psychographics – focus on characteristics that cannot be physically measure, such as values, interests, and lifestyle choices. Behavior-based segmentation – focuses on a customer’s attitude toward products and services.

Market Share Market Share – the percentage of total sales of a product or service that a company expects to capture in relation to its competitors. You can’t capture more than total sales.

Market Share Example 1,000,000 widgets are sold. Your company sells 400,000 widgets. What is your market share? How did you come up with that number? Your company has a market share of 40%. 400,000/1,000,000

Closure Page 106 Judgment Call and respond to the Think Critically At least 5 sentences 15 minutes

Warm up Review the “15 Worst Companies” article under Chapter 4. Have you ever had a negative experience with one of these companies? Be prepared to discuss! 10 Minutes.

What do Customers Want? Customer service gap – the difference between customer expectations and the service that is actually received. Try to reduce and eliminate the customer service gap!

Bad Customer Service Ignoring customers waiting in line. “It’s not my department.” Putting customers on hold and transferring the call constantly Yelling at customers Not following up to make sure an issue is resolved

Closing the Gap http://www.youtube.com/watch?v=hRAM5EE5kgg Do you feel this is adequate training? Why or Why not? Be prepared to discuss!

Why Does Service Matter? Review the “Does Customer Service Matter?” under Chapter 4. Create a list of 5 Key Points of the article. Do you agree with the author’s opinion? Why or why not? Be prepared to discuss! 10 Minutes

Creating a Service Culture 1.Demonstrate a values-based culture that is rooted in higher performance and excellent customer service. 2.Follow the “FAST” (Focus, Action, Search, Tenacity) strategy. Focus on the needs, take appropriate action, search for a way to give satisfaction, and persist until the needs are addressed.

Creating a Service Culture 3. Passion results in energy Transactions without energy hurt the business 4. Demonstrate pride in every sale If you’re not proud of what you do, how can you expect customers do be satisfied? 5. Remember the value of long-term positive relationships You want the customer to come back!

“How May I Help You?” Recall the last time you were asked “How may I help you?” Was the experience positive or negative? Why or why not? Look up an example online if you don’t have experience with this. Be prepared to discuss! 5 minute preparation

Role-play Find a partner. I will give you each a scenario. Act out the scenario! DO NOT look at your partner’s scenario! Respond to the questions in your scenario. Once you respond to the questions you may look at your partner’s scenario Be prepared to discuss!

Judgment Call Page 106 Judgment Call and respond to the Think Critically Three Sentences 10 minutes

Closure Create a graphic organizer of bad customer service examples. At least five things required. Five minutes.