Module Three Lecture Notes: 238 - B2C Selling and Case Study

Overview

• Module 3 focuses on applying the building blocks of selling.
• The first video in this module covers B2C (Business to Consumer) selling.

B2C Selling

• Understanding the customer:
  • Customers can be anyone who purchases or uses a product.
  • Includes services, goods, FMCG (Fast-Moving Consumer Goods), etc.

Case Study: Dollar Shave Club

• Examines the application of the selling model through Dollar Shave Club.
• Video by T-Mobile presented featuring CEO Michael Dugan.

Key Points from Dollar Shave Club Video

• Concept: Simplified purchasing of razors with a subscription model.
• Product Features: Stainless steel blades, lubricating strip, pivot head.
• Marketing Strategy:
  • Emphasizes simplicity, humor, and transparency.
  • Subscription termed as 'membership' to imply deeper relationships.
• Challenges:
  • Handling unexpected scale in demand.
  • Raising capital and finding investors for scaling.
• Takeaway: Successful entrepreneurs often face skepticism but perseverance pays off.

Selling Strategies in Case Study

• Customer Relationship Management: Subscription model enhances relationships.
• Product Marketing:
  • Advertising and product expansion.
  • Offering different styles and related products.
• Problem Solving: Quick adaptation to unexpected challenges.
• Added Value: Use of humor in marketing to increase product value.
• Customer Retention: Low fees and reliable product to maintain customer base.

Review of Selling Departments

• Revisiting selling departments and their relevance to B2C selling.

Marketing Mix: 7P's Overview

1. Product: Core functional benefit.
2. Place: Distribution channels (online/offline).
3. Price: Value for money.
4. Promotion: Advertising, sales strategy.
5. People: Staff, sales team.
6. Process: Steps from first contact to sale.
7. Physical Evidence: Tangible proof in service settings.

Perception in Marketing

• Concept: Customer perception of brand/service is crucial.
• Example: Sony ad demonstrating unique color features of TVs.

Sensory Marketing Elements

• Exposure, Sensation, Attention: Key Concepts
  • Techniques to grab consumer attention.
  • Use of advertising appeal, road blocking, and episodic advertising.

Sensory Influences

• Eyes, Ears, Nose, Taste, Touch:
  • Visual setups, sounds, smells, sampling, and tactile experiences influence perception.

Customer Perception Model

• Steps from encountering an unfamiliar target to forming a perception.

Examples of Perception in Marketing

• Thai Airways Ad: Smooth as silk for quality.
• Telstra Ad: Speed associated with service quality.
• Price Perception: Higher price often perceived as higher quality (e.g., premium bottled water).

Target Market and Positioning

• Positioning: Where the brand wants to be in the consumer’s mind.
• Point of Parity vs. Point of Difference:
  • Parity: Shared unique features with some competitors.
  • Difference: Unique features exclusive to the brand.

Perceptual Map

• Example with quality vs. price, highlighting how brands position themselves.

Traditional Marketing and Targeting

• Linking 7P's to target market and positioning.
• Consideration of customer needs, budget, and behavior in strategies.

Conclusion

• Recap of key points discussed in the lecture video on B2C selling and Dollar Shave Club example.