Public Sector Marketing: Department of Public Administration Fatima Jinnah Women University Instructor: Sana Mukarram

Public Sector Marketing
Department of Public Administration

Fatima Jinnah Women University
Instructor: Sana mukarram
UNDERSTANDING
THE
MARKETING
MINDSET
Book Reference:
Marketing in the Public Sector: A Roadmap for Improved Performance by Philip Kotler
Nancy Lee
Presentation By Sana Mukarram
Principle #1
“Adopt a Customer-Centered
Focus”
• One quick way for you to get a sense
of a customer-centered focus is to
assume your customer (target
audience) is constantly asking the
question “What’s in it for me?”
• Often referred to as the WIFM
phenomenon
What’s in it For Me?
Alternative Philosophies
• This customer-centered focus didn’t emerge as a strong marketing
management philosophy until the 1950s: Kotler and Keller had some
alternative philosophies which were used in past
1. The Production Concept
2. The Selling Concept
3. The Marketing Concept
4. Societal Marketing Concept
Why customer-centered Focus?
• Marketers manage this process with the Exchange Theory in mind,
which states that what we offer the target market (benefits) has to be
perceived as equal to or greater than what they will have to give
(costs)
customer-centered strategies
• To develop customer-centered strategies, you need information to
answer fundamental questions.
 What costs* and barriers do target markets perceive to purchasing
a product, utilizing your programs and services, or performing a
desired behavior?
Buying Decision Process
Principle #2: Segment and Target Markets
• Markets are groups of your existing and potential buyers (e.g., mass
transit users), and a fundamental premise is that buyers most often
differ from each other in one or more ways.
Market Segmentation
• Through market segmentation, organizations divide large,
heterogeneous markets into smaller, more homogeneous segments that
can be reached more efficiently and effectively with products and
services that match their unique needs
Market Segmentation
• Major variables used to segment consumer markets include those that
are descriptive, benefit-related, or behavioral in nature.
• Descriptive factors include geographic such as nations, regions, states,
counties, cities, neighborhoods, or worksites.
• Demographic variables such as age, gender, family size, family life
cycle, income, occupation, education, religion, race, and nationality.
• Psychographic factors based on social class, value, lifestyle, or
personality characteristics.
• Benefit segmentation is an effort to distinguish prospects on the basis of
different benefits that they might be seeking from a specific purchase.
• Behavioral segmentation divides a market into groups based on past
purchasing or other related behaviors.
Diffusion of Innovations Theory
• The theory that people differ greatly in their readiness to try
new products.
Types Of Buyers
1. Innovators are the most venturesome and adopt new ideas first.
2. Early adopters are motivated by opinion leaders and adopt new
ideas early but carefully.
3. Early majority are deliberate in their adoption of a new product,
acting before the average person.
4. Late majority are skeptical and adopt a new product only after a
majority of people have tried it.
5. Laggards are suspicious of changes and adopt them only when they
have become something of a tradition or cultural norm before the
average person.
Organizational Strategies for Segments
• After segmenting the market, the organization evaluates and selects
segments. Kotler and Armstrong describe major options:
1. Undifferentiated
2. Differentiated
3. Concentrated
Principle #3: Identify the Competition
• At the narrowest level, you can define your competitors as
organizations offering similar products and services to the same
customers, often at similar prices. These are considered direct
competitors.
• A wider definition would include indirect competitors—those
organizations or activities that customers and potential customers use
to fulfill the same need.
Example
Competitive strategies
• The Drag Race Play—The simplest of the plays, it involves direct
competition with one competitor and focuses on “outrunning” them
(e.g., Microsoft vs. WordPerfect, and the U.S. Postal System vs.
FedEx).
• The Platform Play—In this play, you get others to stand with you,
defending against common competitors.
• n the Drag Race play, single out a single competitor and attack them
directly along a single set of product attributes. The first one to the
finish line wins. Choose a single product and a single competitor and
commit your resources, but make sure the market is right for this play.
• The Stealth Play—Where you “survive by avoiding direct
confrontation” (e.g., Enterprise Rent-A-Car deciding not to compete
with the travel-related business but rather focusing on capturing and
dominating the insurance temporary replacement market.)
• The Best of Both Play—In this more complicated play, you “run up the
middle between opposing alternatives” (e.g., Lexus capturing the
“Japanese” as well as “luxury” car seekers, and a program in South
Africa called “Toot-n-Scoot” where customers who have drunk too
much to drive safely are driven home in their car by someone who
arrives at the restaurant or bar on a collapsible scooter that fits in the
trunk of the drinker’s car).
• The High-Low Play—Offers the market a high-end as well as mass
market option (e.g., Sheraton’s premium-priced Hotels and Resorts
and Sheraton’s mass market offer: Four Points and a public hospital
offering single, double, and dormitory rooms).

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