Review MKT 101

Review MKT 101HHU Spring 2013Designing a Customer-Driven Marketing StrategyMarketing Management Orientations

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Designing a Customer-Driven Marketing StrategyProduct 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

4Building Customer RelationshipsThe overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

Customer Relationship Management (CRM)

5Companywide Strategic PlanningDeveloping Strategies for Growth and Downsizing Product/market expansion grid strategies

6Companywide Strategic PlanningMarket penetration is a growth strategy increasing sales to current market segments without changing the productMarket development is a growth strategy that identifies and develops new market segments for current products

Developing Strategies for Growth and Downsizing

7Companywide Strategic PlanningProduct development is a growth strategy that offers new or modified products to existing market segmentsDiversification is a growth strategy through starting up or acquiring businesses outside the companys current products and markets

Developing Strategies for Growth and Downsizing

Note to InstructorThis Web link leads to the hompage for Virgin. This is a great company to discuss as they provide examples of market development, product development and diversification. Their homepage lists all their industries and products including tourism, leisure, shopping, media, finance, and healthcare.8Marketing Information and Customer InsightsMarketing information system (MIS) consists of people and procedures for:Assessing the information needsDeveloping needed informationHelping decision makers use the information for customer

Marketing Information Systems (MIS)9Developing Marketing InformationMarketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketplaceMarketing Intelligence

Note to InstructorThis Web link brings you to AC Nielsens homepage. This includes not just their online division but their entire company. It is very interesting to explore the area called trends an insights.

In slideshow view, click on movie icon to launch Meredith video snippet. See accompanying DVD for full video segment.

Discussion Question Ask students what Nielsen might have learned about customers in these insights.

10Developing Marketing InformationMarketing Research

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

11Developing Marketing InformationSecondary 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 ResearchDeveloping the Research Plan

12Developing Marketing InformationInternal databases are electronic collections of consumer and market information obtained from data sources within the company network

Internal Data

Note to InstructorPizza Huts database is highlighted in the text. They have: Detailed customer data on 40 million U.S. households, gleaned from phone orders, online orders, and point-of-sale transactions at its more than 7,500 restaurants.The company can organize the data by order details to enhance customer relationships such as the Pizza Hut designed VIP (Very Into Pizza) program to retain its best customers. It invites these customers to join the VIP program for $14.95 and receive a free large pizza. Then, for every two pizzas ordered each month, VIP customers automatically earn a coupon for another free large pizza.

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Characteristics Affecting Consumer BehaviorMaslowsHierarchy of Needs14

Business Buyer BehaviorStraight 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

15Business Buyer BehaviorUsers 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 Process16Business Buyer BehaviorThe Buying Process

17Business Buyer BehaviorProblem recognition occurs when someone in the company recognizes a problem or needInternal stimuliNeed for new product or production equipmentExternal stimuliIdea from a trade show or advertising

The Buying Process

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Business Buyer BehaviorGeneral need description describes the characteristics and quantity of the needed itemProduct specification describes the technical criteriaValue 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 Process19Business Buyer BehaviorSupplier search involves compiling a list of qualified suppliers

Proposal solicitation is the process of requesting proposals from qualified suppliers

The Buying Process

Note to InstructorThis Web link brings the class to IDES which is a search engine for suppliers. The current page shows the vast number of plastics suppliers.

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Business Buyer BehaviorSupplier 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

Note to InstructorThis Web link brings you to staples.com. A leading supplier of office supplies for business and end consumers. It would be interesting to ask students what Staples can do to market themselves more effectively to businesses so they become the sole supplier of office products.

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Business Buyer BehaviorPerformance review involves a critique of supplier performance to the purchase terms

The Buying Process

22Market SegmentationSegmenting Consumer Markets

23Market SegmentationBehavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a productOccasionsBenefits soughtUser statusUsage rateLoyalty status

Segmenting Consumer MarketsNote to InstructorStudents often get confused with the difference between behavioral and psychographic segmentation. Behavior is more tied into how consumers use the product. A good illustration is greeting cardsask students how their purchasing would be different when buying a birthday card for their mother versus one for a new boyfriend. In addition, ask them how people might look for different benefits when purchasing a car? Some might look for safety while others will look for the best gas mileage.

24Characteristics Affecting Consumer BehaviorWord-of-mouth influence and buzz marketingOpinion leaders are people within a reference group who exert social influence on othersAlso called influentials or leading adoptersMarketers identify them to use as brand ambassadors

Groups and Social Networks

Note to InstructorIt is a great idea to click through to the Tremor Web site. It is an excellent example of Buzz marketing. Ask students if they tend to have a go to person when they want to purchase. Would they consider themselves opinion leaders? A great group to ask about is middle school aged kids. Who are the opinion leaders here? What qualities do they possess?

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