1 / 39

Chapter Twelve

Chapter Twelve. Customer-Driven Marketing. The nature of marketing is to create value by allowing people and organizations to obtain what they need and want. Marketing is an Exchange Relationship. Exchange:

mirari
Download Presentation

Chapter Twelve

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter Twelve Customer-DrivenMarketing

  2. The nature of marketing is to create value by allowing people and organizations to obtain what they need and want.

  3. Marketing is an Exchange Relationship • Exchange: • The act of giving up something (money, credit, labor, goods) in return for something else (goods, services, or ideas).

  4. The Exchange Process: Giving Up One Thing in Return for Another Something of Value (money,credit,labor, goods) Buyer Seller (goods,services,ideas) Something of Value

  5. Marketing Creates Utility • Utility:A product’s ability to satisfy human needs and wants. • Place Utility • Time Utility • Ownership Utility • Form Utility

  6. Buying Selling Transporting Storing Grading Financing Marketing Research Risk Taking Functions of Marketing

  7. The Marketing Concept • The idea that an organization should try to satisfy customer’s needs through coordinated activities that allow it to achieve its own goals (profit). FAST FACT: Trying to determine a customer’s true needs is difficult because no one fully understands what motivates people to buy.

  8. Developing Marketing Strategy • Marketing Strategy: • A plan of action for developing pricing, distributing and promoting products that meet the needs of specific customers. • The Two Major Components: • Selecting a Target Market • Developing the Appropriate Marketing Mix

  9. A market is a group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas. A target market is a more specific group of consumers on whose needs and wants a company focuses its marketing efforts. Market / Target Market

  10. Customer Relationship Management (CRM) • Using information about customers to create marketing strategies that develop and sustain desirable customer relationships.

  11. Total-Market Approach • The marketer tries to appeal to everyone and assumes that all buyers have the same needs.

  12. Market Segmentation • Market Segmentation: • A strategy to divide the total market into groups of people who have relatively similar product needs.

  13. Market Segment • A Market Segment: • A collection of individuals, groups, or organizations who share one or more characteristics and have similar product needs and desires.

  14. Niche Market • Narrow market segment focus when efforts are on one small, well-defined segment that has a unique, specific set of needs.

  15. Bases for Segmenting Markets • Demographic • Geographic • Psychographic • Behavioristic

  16. Total-Market Approach Total Target Market Company Single Marketing Strategy Concentration Approach Single Target Market Single Marketing Strategy Company Multisegment Approach Multiple Target Markets Company Marketing Strategy 1 Marketing Strategy 2 Target Market Strategies

  17. How AmericaSpends MINORITY BUYING POWER By Race, 1990 vs. 2001 Buying Power*% Market Share Category: 1990200119902001 Total minority $439.9 $860.0 10.6% 12.2% Black 307.8 572.1 7.4% 8.1% Hispanic 207.5 452.4 5.0% 6.4% Asian 112.9 253.8 2.7 % 3.6% Native American 19.2 34.8 0.5% 0.5% *in billions Source: Jeffery M. Humphreys, Selig Center for Economic Growth, University of Georgia in “Ethnic,” Marketing News, July 2, 2001, p. 17.

  18. The Keys to Successful Market Segmentation • Consumers’ product needs must be heterogeneous. • Segments must be identifiable and divisible. • The market must be divided so segment sales, cost, and profit can be compared. • One segment must have enough profit potential to justify a special marketing strategy. • The chosen segment must be reached by the firm with a particular marketing strategy.

  19. Product Customer Price Promotion Distribution Developing the Marketing Mix: Product, Price, Promotion, and Distribution

  20. Product • A good, service, or idea that has tangible and intangible attributes that provide satisfaction and benefit to consumers. • Products should be sold at a profit.

  21. Price • A value placed on a product or service that is exchanged between a buyer and seller.

  22. Distribution • Making products available to consumers in the quantities and locations desired.

  23. Promotion • A persuasive form of communication that attempts to expedite a marketing exchange by influencing individuals and organizations to accept goods, services, and ideas.

  24. Marketing Research & Information Systems • Marketing Research: • A systematic, objective process of getting customer information to guide marketing decisions. • Marketing Information System: • A framework for assessing information about customers from internal and external sources.

  25. Research Collects Data • Primary Data • Secondary Data

  26. Buying BehaviorThe decision processes and actions of people who purchase and use products.

  27. Psychological Variables of Buying Behavior • Perception • Motivation • Learning • Attitude • Personality

  28. Social Variables of Buying Behavior • Social Roles • Reference Groups • Social Classes • Culture

  29. How AmericaSpends Food and Beverage Sales in the US are Increasing $345 billion $326 billion $309 billion 2000 1999 1998 Source: “Food and drink sales up,” USA Today, October 1, 2001, p. 1B.

  30. How AmericaSpends If Americans were to reduce household spending, where would they cut back? Eat out less 48% Forgo vacations 47% Fewer movies at theaters 41% Electronics purchases 40% Buy less clothing 37% Fewer concerts 36% Fewer cell & phone calls 28% Buy fewer books 24% Source: “Staking out a comfort zone,” USA Today, October 1, 2001, p. 2D.

  31. The Marketing Environment • The external forces that directly influence the development of marketing strategies.

  32. Political, Legal, andRegulatoryForces SocialForces Product Customer Price Promotion Competitiveand EconomicForces Distribution TechnologicalForces Marketing Environment The Marketing Mix and the Marketing Environment

  33. How AmericaSpends Fraud On the Internet: Buyer Beware 36% Yes, Internet fraud occurs 25% Significant problem, but not severe 23% Occasionally, but not that often 11% Fraud is a severe problem 4% Internet fraud is not a problem Source: “On the Internet: Buyer beware,” USA Today, April 24, 2001.

  34. Solve the Dilemma 1. What do you think were the main concerns with the Olympus 2-door sports coupe? Is there a market for a 2-seat, $32,000 sports car when the Miata sells for significantly less? 2. Evaluate the role of the marketing mix in the Olympus introduction. 3. What are some of the marketing strategies auto manufacturers use to stimulate sale of certain makes of automobiles?

  35. Explore Your Career Options How will a career in marketing be enhanced by knowledge about customer buying behavior and customer service?

  36. Additional Discussion Questions and Exercises 1. Utility is the ability of a product to satisfy human needs and wants. What are the four kinds of utility? 2. Why are intermediaries helpful in distribution? 3. What are some different forms of promotion? • What is the difference between primary data and secondary data? 5. What are some sources for obtaining secondary data?

  37. Chapter 12 Quiz 1. When a business segments markets on the basis of personality characteristics, motives, and lifestyles, that segmentation is based on a. demographics. b. geographic factors. c. psychographics. d. behavioristic characteristics. 2. The act of giving up one thing in return for something else is a. marketing. b. utility. c. an exchange. d. promotion.

  38. Chapter 12 Quiz 3. The psychological factor described as “changes in a person’s behavior based on information and experience” is termed: a. perception. b. motivation. c. personality. d. learning. 4. In developing a marketing mix, what should be the central focus of all marketing activities? a. price b. buyer or target market c. product d. promotion

  39. Multiple Choice Questions about the Video 1. A(n) _______ is a network for internal communications and includes firewalls to protect information from outside viewers. a. extranet b. intranet c. World Wide Web d. virtual marketing system 2. Which of the following is included in the infrastructure for virtual marketing? a. intranet b. extranet c. Internet d. all of the above

More Related