Business in aChanging World
McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
Chapter 12Customer-Driven Marketing
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David’s Bridal: Captured 30% of the wedding dress market.
In the past 60 years, the bridal industry has reinvented itself numerous times. David’s Bridal enters the market in the 1990’s and has never looked back.
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The Importance of Marketing
Planning & execution to satisfy customer goals –•Product development•Product pricing•Product promotion•Distribution of goods, ideas, services
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The group of activities that add value and designed to expedite transactions by creating, distributing, pricing, and promoting goods, services and ideas.
The Nature of Marketing
MARKETING
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•Marketing is NOT –•Manipulating consumers•Selling & advertising
•Marketing IS –•Satisfying consumers
The Nature of Marketing
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The Exchange Relationship – act of giving up one thing (money, credit, labor, goods) in return (exchange) for something else (goods, services, or ideas)
Marketing
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The Exchange Process: Giving Up One Thing in Return for Another
Marketing – The Exchange Relationship
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Industry groups use marketing to increase demand for the industry’s product.
America’s Beef Producers
Functions of Marketing
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•Buying•Selling•Transporting•Storing•Grading •Financing•Marketing research•Risk taking
Functions of Marketing
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The idea that an organization should try to satisfy customers’ needs through coordinated activities that also allow it to achieve its own goals.
The Marketing Concept
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•Marketing Goal –•Customer satisfaction•Achieve business objectives•Boost productivity•Reduce costs•Capture market share
The Marketing Concept
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Implementing the Marketing Concept
•Good information re: customer wants•Consumer orientation•Coordinate organizational efforts
Customer’s perception of value = measure of success
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The Marketing Concept
•46% executives believe firm is customer focused•67% executives frequently meet with customers
Marketing is more important as markets are more competitive
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The Marketing Concept
Production Orientation – 19th century •manufacturing efficiency
Sales Orientation – early 20th century •Supply exceeds demand – need to “sell” products
Marketing Orientation – 1950’s •First determine what customers want
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The Marketing Concept
Marketing Orientation – approach requiring organizations to gather information about customer needs, share information across firm, use information to build long-term relationships with customers.
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Marketing Orientation
Wrigley’s sells products in 180 countries. Continues to reinvent itself; in 2008, merger with candy maker Mars.
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Developing a Marketing Strategy
Marketing strategy – plan of action for developing, pricing, distributing, and promoting products meeting the needs of specific customers.
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Developing a Marketing Strategy
Target Market – very specific group of consumers that a company focuses its marketing efforts to
(e.g. Nike – golf clubs for recreational golfers).
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Developing a Marketing Strategy
Total-market approach – firm tries to appeal to everyone and assumes that all buyers have similar needs.
(e.g. Salt, sugar, agricultural products).
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Developing a Marketing Strategy
Market segmentation – strategy to divide the total market into groups of people with relatively similar product needs.
Market segment – collection of individuals, groups or organizations sharing one or more characteristics thus having relatively similar needs and desires for products.
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Market Segmentation ApproachesConcentration – company develops one marketing strategy for a single market segment. Specialization (e.g. Porsche’s focus on high-income individuals)
Multi-segment – aims at two or more segments with strategy for each. (e.g. Raleigh bicycles for racers, commuters, and children)
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Market Segmentation Approaches
Niche marketing – narrow segment focus usually on one small well-defined group with a unique and specific set of needs. (IceCreamSource.com)
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Product
A good, service, or idea that has tangible and intangible attributes that provide satisfaction and benefit to consumersProducts should be sold at a profit
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Promotion
A persuasive form of communication that attempts to expedite a marketing exchange by influencing individuals and organizations to accept goods, services, and ideas
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Marketing Research
Systematic and objective process to collect information about potential customers. Guides marketing decisions.
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Collecting Data
Primary data – marketing information that is observed, recorded or collected directly from respondents (consumers).
Secondary data – information compiled inside or outside the organization for some purpose other than changing the current situation
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Buying Behavior
Buying behavior – decision processes and actions of people who purchase and use products.•Consumers personal and household•Organizations for business use
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Buying Behavior
Perception – process by which a person selects, organizes, and interprets information received from one’s senses. (hearing a radio ad, touching a product)
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Buying Behavior
Learning – brings changes in behavior based on information and experience.
Attitude – positive or negative feelings about something.
Personality – individuals distinguishing character traits, attitudes, or habits.
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Social Variables of Buying Behavior
Social roles – set of expectations of individuals based on some position they occupy.
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Buying Behavior
Reference groups – groups with whom buyers identify and whose values or attitudes they adopt
Social classes – ranking of people into higher or lower positions of respect
Culture – integrated, accepted pattern of behavior including thought, speech, beliefs, actions, and artifacts
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What Does Green Marketing Mean for Marketers?
• Entrepreneurial marketers will be leaders– new energy efficient products– changing consumption patterns (3 R’s)
• Reduce carbon emissions– source locally– eco-friendly transportation– master e-business strategies
• Green Marketing = Profits
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