Review MKT 101

1. Review MKT 101 HHU Spring 2013

3. Designing a Customer-Driven Marketing Strategy Marketing Management Orientations

4. Designing a Customer-Driven Marketing Strategy Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Organization should therefore devote its energy to making continuous product improvements. Marketing Management Orientations

5. Building Customer Relationships The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Customer Relationship Management (CRM)

6. Companywide Strategic Planning Developing Strategies for Growth and Downsizing Product/market expansion grid strategies

7. Companywide Strategic Planning Market penetration is a growth strategy increasing sales to current market segments without changing the product Market development is a growth strategy that identifies and develops new market segments for current products Developing Strategies for Growth and Downsizing

8. Companywide Strategic Planning Product development is a growth strategy that offers new or modified products to existing market segments Diversification is a growth strategy through starting up or acquiring businesses outside the company’s current products and markets Developing Strategies for Growth and Downsizing

9. Marketing Information and Customer Insights Marketing information system(MIS) consists of people and procedures for: • Assessing the information needs • Developing needed information • Helping decision makers use the information for customer Marketing Information Systems (MIS)

10. Developing Marketing Information Marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketplace Marketing Intelligence

11. Developing Marketing Information Marketing Research Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization

12. Developing Marketing Information Secondary data consists of information that already exists somewhere, having been collected for another purpose Primary data consists of information gathered for the special research plan Marketing Research Developing the Research Plan

13. Developing Marketing Information Internal databases are electronic collections of consumer and market information obtained from data sources within the company network Internal Data

14. Characteristics Affecting Consumer Behavior Maslow’s Hierarchy of Needs

15. Business Buyer Behavior Straight rebuy is a routine purchase decision such as reorder without any modification Modified rebuy is a purchase decision that requires some research where the buyer wants to modify the product specification, price, terms, or suppliers New task is a purchase decision that requires thorough research such as a new product Major Types of Buying Situations

16. Business Buyer Behavior Users are those that will use the product or service Influencers help define specifications and provide information for evaluating alternatives Buyers have formal authority to select the supplier and arrange terms of purchase Deciders have formal or informal power to select and approve final suppliers Gatekeepers control the flow of information Participants in the Business Buying Process

17. Business Buyer Behavior The Buying Process

18. Business Buyer Behavior Problem recognition occurs when someone in the company recognizes a problem or need Internal stimuli • Need for new product or production equipment External stimuli • Idea from a trade show or advertising The Buying Process

19. Business Buyer Behavior General need description describes the characteristics and quantity of the needed item Product specification describes the technical criteria Value analysis is an approach to cost reduction where components are studied to determine if they can be redesigned, standardized, or made with less costly methods of production The Buying Process

20. Business Buyer Behavior Supplier search involves compiling a list of qualified suppliers Proposal solicitation is the process of requesting proposals from qualified suppliers The Buying Process

21. Business Buyer Behavior Supplier selection is the process when the buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions Order-routine specifications is the final order with the chosen supplier and lists all of the specifications and terms of the purchase The Buying Process

22. Business Buyer Behavior Performance review involves a critique of supplier performance to the purchase terms The Buying Process

23. Market Segmentation Segmenting Consumer Markets

24. Market Segmentation Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product Occasions Benefits sought User status Usage rate Loyalty status Segmenting Consumer Markets

25. Characteristics Affecting Consumer Behavior Word-of-mouth influence and buzz marketing • Opinion leaders are people within a reference group who exert social influence on others • Also called influentials or leading adopters • Marketers identify them to use as brand ambassadors Groups and Social Networks