1. Australia's largest member owned retailer | 1,820,015 Members
Marketing
‘The Human activity directed at
satisfying needs and wants through the
exchange process’
An iterative process
(end-to-end marketing)
The co-op bookshop works with and
adapts to the market to facilitate
profitable exchange relationships with
customers, channel partners and
society to meet financial objectives.
What markets to enter?
What products to offer?
What pricing strategies to adopt?
How to communicate value to
customers, staff and channel partners?
A Marketing Philosophy:
Customer centric
How a particular organisation goes
to market; the organisations belief
system. A marketing philosophy
takes into consideration
(situational factors) the
characteristics of the organisation,
the market, the customer, the
product and the organisational
objectives. A marketing philosophy
outline the principles and practices
an organisation will apply to
achieve satisfaction for a customer
and the organisation. Therefore a
marketing philosophy is a
framework for achieving the
marketing concept.
Four profit outcomes:
profitable exchange
relationships
Co-create value
profits for
the
customer,
organisation,
channel
partners
and society.
maintains sustainability,
attraction (potential buyers:
suspects and prospects) and
retention (actual buyers: first
time customers and repeat
customers) of the right customers
(internal and external),
employees and channel partners
RELATIONSHIPS:
Synergistic
Symbiotic
Strategic
& Sustainable
Founded in 1958 by students, the Co-op has grown to become the largest provider of
educational, professional and lifelong learning resources in Australia. With a store
network of over 50 stores and more than 1.8 million members 2014 they returned more
than $8 million to their Members through scholarships, member pricing and support for
many university campus activities and organisations through sponsorships and donations.
The Co-op organisation is Australian-owned, membership-based not-for-profit organisation,
dedicated to providing the widest range of products, services and learning resources for
their Members at the best possible price. The Co-Op Vision is to be Australia's leading
campus retailer.
A co-operative is an autonomous association of persons united voluntarily to meet their
common economic, social, and cultural needs and aspirations through a jointly-owned and
democratically-controlled enterprise. In Australia there are approximately 2,800 co-
operatives.
The Co-op stores are located across Australia. There are 1.8 million Co-op stores with
many on University and TAFE campuses, therefore highlighting the target market to be
academic and professional communities. Both the online and physical stores stock a wide
range of educational books and learning resources as well as software, technology,
games, stationery, clothing, lifestyle products, travel accessories and other goods.
Self-Actualisation
Esteem
Social
Safety
Physiological
Maslow's
Hierarchy
Kayla Brown:
10181214
B2B: B2B processes facilitate the B2C process.
- The Co-op bookshop involves educational businesses in their
marketing strategy
- Logistics
- Products and services bought from other businesses such as
embroidering of clothing- wholesalers.
- Printing organisations
- Australia post services: within Australia and international
- Eftpos facilities/ banking
- Business partnerships (student discounts with co-op membership)
ExchangeRelationships
(Marketingchannelpartners)
..
Influences
organisational
culture and
behaviour
“marketers do not create needs,
but respond to existing needs”
Consumers must perceive a
particular product as a vehicle to
fulfil a consumption need
(biogenic or psychogenic). Needs
may be recognised via internal
stimuli (need to get good grades-
ambition) or external stimuli (a
bad mark on an assessment),
therefore the buyer commits' to
the purchasing of the unit
textbook.
Consumers purchase books from
the co-op bookshop to avoid the
negative outcome of failing a unit,
and the purchase of a text-book is
a consequence to buying another
product, such as the enrolment
into a unit.
The purchase of textbooks
satisfies a need with utilitarian
benefits.
Marketing Strategy
Edith Cowan University
Graduate: People
(Kayla Brown)
Co-op bookshop
membership- services
Co-Op Bookshop
3 Marketing Success
Factors
1. Product leadership
2. Customer intimacy
3. Operational excellence
1. To increase sales revenue
2. To reduce costs as a
percentage of sales, and
3. To build the value of the
business
3 Financial Objectives
of Marketing
‘Meaning Transference’
The meaning attached to a
product (hedonic or utilitarian)
The process of consumers
searching (estimating),
experiencing (assessing), and
reflecting (evaluating)
Affect
Behaviour
Cognition
Product Attitude
Product Expectations
- Enter a exchange with product expectations; value for money, time and effort.
- Anticipated scenarios: adequate, predictive, equitable, ideal.
- Post purchase stage: customers evaluate a post-purchase evaluation
(satisfaction) of expectations with the product performance.
Emotional Stages
Dissatisfaction- expectations are not met
Indifference – expectations met, but mot exceeded
Satisfaction- expectations are exceeded
•Consumption patterns vary according to marketing characteristics
(market, customer, situation, product and the organisation)
•The nature of the product and the customers familiarity and ability
to purchase a product determines the speed at which consumers
progress through the buyer decision process determining the
degree of customer and organisational involvement. For example,
purchasing textbooks from the co-op bookshop is a faster buyer
decision process as the product being purchased is a consequence
of buying another product such as a university degree, customers
are familiar with the process of purchasing the product and are
familiar with the business and there is an ability to purchase the
product as the service is available on campus of tertiary education
campuses.
•80% focused on the customer and 20% focused on the organisation
The buyer
decision process
•PODUCT CONCEPT: organisations that offer products that best satisfy their customers
needs, will achieve greater demand.
•Total organisational offering
•Total exchange value: total of what is received and the total costs (objective and
subjective)
•Product considerations- greater value when considered holistically.
•Product consideration- the nature of the product.
•Product layers- core, expected/actual, augmented and potential.
•Product components- goods, services, ideas, experiences, people and places.
•A product is the sum of its qualities and quality is the sum of the embedded qualities.
Qualities help satisfy a customers need.
•Product qualities are evaluated against the customers expectations/ product
specifications provided by the organisation. If the perception of quality decreases, the
perception of value also decreases determining how much a consumer is willing to pay.
•From an organisations perspective, every part of a product has a cost to produce.
•80% focused on the organisation and 20% focused on the customer.
The Total product
concept
• The Bridge that links the
buyer decision process and
the total product concept
•Interactions between the
organisation and the customer and
outlines the steps to achieving a
competitive advantage.
•The premise behind the circle of
satisfaction is the idea of achieving
organisational satisfaction, therefore
the organisation must increase sales,
reduce costs of doing business, and
build the value of the business.
•The circle of satisfaction relates to
the buyers decision process as well as
the total product concept and
highlights the marketing concept.
The circle of
satisfaction
The Three
mega
Marketing
concepts
Need recognition
- Awareness of need
- The motivational strength to attend to a need
- The desire and direction (a want)
Marketers employ a communication mix to create
awareness, strengthen, and provide a direction to satisfy the
need.
The three
time
zones
1. Purchasing Behaviour- searching and estimating
- The recognition of an unmet need with a sufficient strength to
require attention
- The search for information (search internal and externally in order
to make informed decisions)
- Assessing Alternatives
- Determining product qualities (material qualities and cues)
-Estimating risks
- Situational involvement
- Forming expectations- probability of a satisfactory outcome
Product selection
Purchasing from the co-op bookshop: recognising that there is a need
to purchase the required textbook to assist with achieving good
grades, the searching for which textbooks are required for each
enrolled unit and assessing alternative options such as looking online
for cheaper books , downloading a digital copy, buying second-hand
or borrowing from the library.
3. Post Purchase Behaviour- reflecting and evaluating
- Post-purchase evaluation [got/gave/expected]
- Post-evaluation behaviour
-enduring involvement
Reflecting on consumption experience and evaluating the
value for money and satisfaction. Products which are high in
credence qualities, low in search qualities and high in
experience qualities such as academic textbooks, are difficult
to assess in the post purchase process and require different
marketing strategies. Therefore the post purchase decision of
purchasing a textbook is made regarding satisfaction.
2. Product Delivery- experiencing and assessing
- The delivery experience
- Response involvement
- Experience qualities (appropriate customer
experience)
- Organisational perspective: potential customers
(suspects and prospects) are becoming customers
Consumers calculate weather to proceed with the
purchase of products or to exit the buyer decision
process. If the consumer concludes that the benefits
outweigh the costs and risks, the consumer will
proceed with the buyer decision process confirming
that the product is considered to be of value to the
buyer.
The Three Time
Zones
Product
considerations
Potential- the future
product qualities
- Modifications and
improvements to the
quality of a product is the
process of engineering the
potential product.
- Strategic competitive
advantage.
Augmented-
differentiating qualities
-
Expected- industry
standard qualities
-supplementary product
components
Core- minimal threshold
qualities
- Basic product that
meets the basic needs
of the consumer.
The minimum the a
customer would expect
from the co-op
bookshop is that the
product (textbook) will
be available for
purchase and contain
current literature.
Before the current findings, research of theories, research results and statistics are sourced, or hypothesis
tested, the contribution to the textbook is a potential product component, then after their introduction they
become an augment product component (new edition), and with time an expected product (current literature),
and therefore a core product.
“The perception or difference
the desired state of affairs and
the actual situation sufficient to
arouse and activate the decision
process”.
The co-op bookshop has a product mix available to consumers to suit the different
consumers needs and therefore have a portfolio of products. The co-op bookshop
adopts a low cost strategy, promising the consumer lower prices for members of the
organisation (up to 50% off for members, membership cost $25 initially and lasts a
lifetime). The co-op bookshops products may be classified as a consequence of
purchasing a seminal product, a university degree. Product modifications also occur
as academic texts are modified to a new edition, product planned obsolescence is also
evident. Textbooks are an unsought product (product desirability) , although
necessary. The purchase of a textbook may be the outcome of the motivation to avoid
the negative outcome of failing a unit or to approach the positive outcome of passing
a unit. The purchase of a textbook has both a degree of product visibility (tangible)
and social visibility as the textbook includes objective and subjective meanings.
The product textbook is classified as an instrumental product as the consumer is
purchasing the product as a means to the end. Customers value changes through the
product life-cycle at different stages influenced by the different product adopter
groups. For example a textbook at the beginning of a semester is valued for its
benefits, at the end of the semester the textbook may be sold second-hand with a
focus on price as a cheaper option to the buyer instead of purchasing the new edition
of the textbook. Product considerations highlight the idea that all products are unique
which influences the consumers assessment of uniqueness determining the product
value proposition and the product choice.
Product Layers
B2C: The Co-op bookshop targets individual consumers by providing
services and products that meet the consumers need.
- The co-op organisation tailor their goods and services to meet the
needs of the consumers in a particular market, for example the Co-
op bookshop on the Edith Cowan University campus provides
goods and services to satisfy the continually evolving needs of the
academics on this campus specifically.
15%
30%
15%
10%
20%
10%
6 INTERACTIVE PRODUCT COMPONENTS
goods services ideas experiences places people
Goods: [noun]
durable (can be
resold and
reused)
Services:[verb] economic activities, a service provides a
consumer benefit, retail services, internet/mail ordering,
facilitating services (services that enable exchange to happen),
supporting services (services that make the buyer decision
process more efficient) initial services, enabling services and
peripheral service elements (after sales product support-
contributing to a students studies).
Ideas: Organisations can be involved in the marketing of ideas or the marketing through ideas, the co-op bookshop preforms marketing through ideas as the ideas are imbedded within the product.
Ideas are the basis for product differentiation. The idea that the co-op bookshop is Australia's largest member owned retailer, positions the product and communicates value to the target market
(predominantly tertiary students) ; also providing the benefit of discounts to members. The addition of literature to a textbook to produce a new edition adds to the value of the product.
Experiences: the anticipation, feeling and emotions of a product (affect); organisations enhance
customer value through the ‘total experience’, impressions a customer gains after an interaction
or a series of interactions with a product or organisation, assessed against a customers
expectations. The purchase of a textbook may evoke the response if indifference, although the
studying of the textbook may evoke the response of anxiousness.
Places: The co-op bookshop s
conveniently located on tertiary
campuses, such as Edith Cowan
University which provides quality cues
to the target market.
People: ‘Organisations function through people and business success is about creating
profitable relationships’. Internet shopping (automation), such as purchasing tertiary
textbooks online from the co-op bookshop, reduces the dependence on people. People
give a product value in the way they utilise the product.
CORE
PRODUCT
Retailers buy in bulk and sell to individual
consumers. Retail goods are sourced to meet
the needs of the customer they serve,
therefore providing a service. Value adding is
evident as the product progresses downstream
towards the customer, although the goods
component remains unchanged; adding
services, ideas, experiences, places and people
components to facilitate and support the
exchange as well as contributing to the total
value of the product- the total exchange value.
Product components are the
differentiating/determinant factors when a
customer engages in market choice decisions.
Product
Qualities
Value
Transactional
Satisfaction
Cumulative
Satisfaction
Trust
Loyal
Behaviour
Competitive
Advantage
Increased
Profitability
Organisational
Satisfaction
Edith Cowan University:
place
The Circle of
Satisfaction
Buyer Decision Process
Textbook: goods/ product
Student studying:
experience
Perceived risks: risk is generally presented as a consumers pre-purchase subjective estimation of probable
and possible scenarios which may turn out to be a quality of value in the post-purchase evaluation. The way
risk is perceived is dependent on personal and product considerations (product intangibility/ tangibility,
importance, familiarity, knowledge and complexity as well as the confidence of the buyer, possibility of loss
of face and the decisions making ability of the buyer), which influence the degree of adoption and diffusion
of the product. Marketers need to recognise how the nature of their product, product visibility and the level
of involvement associated with the product and how this influences the customers market choice behaviour.
All product have some degree of risk. Organisations manage the customers perception of risks, consequently increasing the percentage of consumers that make a favourable product decision. The co-op bookshop manage
perception of risk by only printing a certain number of a certain textbook. Situational factors/ variables considered through the buyer decision process include the type of product (product considerations), the customer
(personal factors), the market (the health of the market place at a particular time), and the organisation (degree of trust). These situational factors are important from both the organisations and the customers perspective.
- Functional risk- performance outcomes
- Financial risk- monetary (will I fail the unit if I don’t purchase this textbook and have to pay to repeat the unit. Will i use the book enough to get my moneys worth.
- Social risk- acceptance by others (will I be as smart accepted).
- Epistemic risk- novelty and variety
- Psychological risk- personal fears (will I fail the unit if I don’t purchase the textbook?)
- Temporal risk- time involved (will there be a queue?)
- As well as spiritual risk, physical risk and sensory risks.
Costs/benefit/risks analysis