Transcript marketing

WEEK 6
MARKETING:
AN INTRODUCTION
BUSN 102 – Özge Can
Marketing in a Changing World
13-3

Marketing:
 The
process of creating value for customers
and building relationships with those
customers in order to capture value back from
them
 Applies
to: not only good and services but also:
for-profit organizations, people, places, and
causes
Marketing in a Changing World
13-4

Place Marketing:
 Marketing
efforts to
attract people and
organizations to a
particular
geographical area

Cause-Related
Marketing:
 Identification
and
marketing of a social
issue, cause, or idea
to selected target
markets
The Role of Marketing in Society
13-5
Needs and wants
 Exchanges and transactions
 Four utilities

The Role of Marketing in Society
13-6

Needs
 Differences
between a person’s actual state and
his or her ideal state; they provide the basic
motivation to make a purchase

Wants
 Specific
goods, services, experiences, or other
entities that are desirable in light of a person’s
experiences, culture, and personality
The Role of Marketing in Society
13-7

Exchange Process
 The act of obtaining a desired object or service
from another party by offering something of value
in return

Transaction
 An exchange of value between parties
The Role of Marketing in Society
13-8

Utility
 The power of a good or service to satisfy a
human need
 Four
aspects of utility:
 Form
 Time
 Place
 Possession
Examples of the Four Utilities
13-9
Different Views of Marketing Function:
13-10

Product concept: Focusing on the production of
goods, not satisfying customers

Selling concept: Generating as many sales
transactions as possible; customers are only a
target to be sold to
Different Views of Marketing Function:
13-11

Marketing concept: An approach to business
management that stresses customer needs and
wants, seeks long-term profitability, and integrates
marketing with other functional units within the
organization
Selling Concept vs. Marketing Concept
13-12
The Marketing Concept Involves:
13-13

Relationship Marketing
 A focus on developing and maintaining long-term
relationships with customers, suppliers, and
distribution partners for mutual benefit

Customer Loyalty
 The degree to which customers continue to buy
from a particular retailer or buy the products of a
particular manufacturer or service provider
Challenges in Contemporary Marketing
13-14
1) Involving the customer in the marketing
process
2) Making data-driven decisions
3) Conducting marketing activities with
greater concern for ethics and etiquette
1) Involving the Customer
13-15

Customer Relationship Management (CRM)
 A type of information system that captures,
organizes, and capitalizes on all the interactions
that a company has with its customers

Social Commerce
 The creation and sharing of product-related
information among customers and potential
customers
2) Making Data-Driven Decisions
13-16

Marketing Research
 The
collection and analysis of information for
making marketing decisions
 Tracking each aspect of marketing effectiveness

Key marketing research techniques:

Observation, surveys, interviews and focus
groups, process data collection, ethnographic
research, neuromarketing studies
3) Greater Concern for Ethics and
Etiquette
13-17


Permission-Based Marketing
 Firms first ask permission to deliver messages to
an audience and then promise to restrict their
communication efforts to those subject areas in
which audience members have expressed
interest
Stealth Marketing
 The delivery of marketing messages to people
who are not aware that they are being marketed
to
Understanding Today’s Customers
13-18
I. Consumer Market:
 Individuals
or households that buy goods and
services for personal use
II. Organizational Market:
 Companies,
government agencies, and other
organizations that buy goods and services either
to resell or to use in the creation of their own
goods and services
The Consumer
Decision Process
13-19
The Organizational
Customer Decision
Process
Consumer Decision Process
13-21

Rational model of customer buying
behavior:
Need
recognition
Information
research
Evaluation of
alternatives
Purchase
Postpurchase
evaluation
The Consumer Decision Process
13-22

Consumer behavior is less logical and far
more complicated:
 Subconscious
decision-making, gut feelings and
emotional responses

Cognitive Dissonance
 Tension
that exists when a person’s beliefs don’t
match his or her behaviors; a common example is
buyer’s remorse, when someone regrets a
purchase immediately after making it
23
Major Purchase Influences:
13-24
Culture
Socioeconomic
level
Situational
factors
Reference
groups
Self-image
Organizational Customer Decision
Process:
13-25
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An emphasis on economic payback and other
rational factors
A formal buying process
Greater complexity in product usage
The participation and influence of multiple people
Close relationships between buyers and sellers
Strategic Marketing Planning
13-26

Strategic Marketing Planning

The process of examining an organization’s current
marketing situation, assessing opportunities and
setting objectives, and then developing a marketing
strategy to reach those objectives
Involves the following steps:
 Examining current marketing situation
 Asessing opportunities abd setting objectives
 Developing marketing strategy
Strategic Marketing Planning Process
13-27
Analyzing External Environment
13-28

Environmental factors include:
 Economic
conditions
 Natural enviorenment
 Social and cultural trends
 Laws and regulations
 Technology
Pursuing Market Opportunities
13-29
Crafting a Marketing Strategy
Crafting a Marketing Strategy
13-31

Marketing Strategy:
 An overall plan for marketing a product;
includes:
1) identification of target market segments
2) choosing the target markets
3) positioning in the target market
4) developing the marketing mix
Dividing Markets into Segments
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
13-32
1) Dividing Markets into Segments
13-33

Market
A
group of customers who need or want a
particular product and have the money to buy it

Market Segmentation
 The
division of a diverse market into smaller,
relatively homogeneous groups with similar
needs, wants, and purchase behaviors
1) Dividing Markets into Segments
13-34


Demographics:
 The study of statistical
characteristics of a
population

Psychographics:
 Classification of customers
on the basis of their
psychological makeup,
interests, and lifestyles
Geographic Segmentation  Behavioral Segmentation:
 Categorization of
 Categorization of
customers according to
customers according to
their relationship with
their geographical
products or response to
location
product characteristics
Choosing Your Target Markets
13-35
2) Choosing Your Target Markets
13-36

Target Markets
 Specific
customer groups or segments to whom a
company wants to sell a particular product
 Undifferentiated
(mass) marketing
 Differentiated marketing
 Concentrated marketing
 Individualized marketing (micromarketing)
Market-Coverage Strategies:
13-37
Staking Out a Position
in Your Target Markets
13-38
3) Positioning in Your Target Markets
13-39

Positioning
 Managing
a business in a way designed to
occupy a particular place in the minds of target
customers
 Such
variables emphasized: product attributes,
customer service, brand image, price or category
leadership
 Customers ultimately decide on the positioning
The Marketing Mix
13-40
4) The Marketing Mix
13-41

Marketing Mix
 The
four key elements of marketing strategy:
product, price, distribution, and customer
communication
4) The Marketing Mix
13-42
4) The Marketing Mix
13-43

Product
A
bundle of value that
satisfies a customer need
or want
 Holistic view to the
offering:
 Brand
name, design,
packaging, support services,
warranty, ownership
experience, and etc.
4) The Marketing Mix
13-44

Price
 The
amount of money
charged for a product or
service
 Factors on pricing:
 Marketing
objectives,
government regulations,
production costs,
customer perceptions,
competition, customer
demand
4) The Marketing Mix
13-45

Distribution
(marketing) channels
 Systems
for moving
goods and services from
producers to customers
 Key factors:
 customer
needs, product
support requirements,
market coverage,
distribution costs,
competition, positioning
4) The Marketing Mix
13-46

Promotion
 Persuasive
techniques
used by companies to
communicate with their
target markets and the
general public
 Direct and indirect
communication:
 Face-to-face,
media,
direct mail, billboards,
social media and etc.
Mid-Term Exam
47
Format:
 Multiple-choice questions (%60)
 Short essays (%40)
Content:
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Motivation (Chp.10)
HRM concepts (Chp.11)
Labor relations (Chp.12)
Marketing (Chp.13)
Exam: Key Topics
48
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Four indicators of motivation
Classical theories of motivation
 Maslow’s hierarchy of needs, Theory X, Y and Z,
Herzberg’s two factors, McClelland’s three needs
Modern theories of motivation
 Expectancy, equity, goal-setting theories, job
characteristics model
Core job dimensions to consider in motivation
Reinforcing high-performance
Exam: Key Topics
49
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Human resource (HR) planning
Managing the employee life-cycle (recruiting,
terminating retiring)
Evaluating employees: Performance appraisal
Training and development
Employee compensation
 Salary, wage, incentives, benefits
Unionization: employee and management perspectives
Collective bargaining process
Exam: Key Topics
50
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The role of marketing
Product, sales and marketing concepts
Challenges in contemporary marketing
Customer decision process & buying behavior
Consumer market vs. organizational market
Steps in stratetigc marketing planning
Marketing strategy and its dimensions
Marketing mix: product, price, distribution, promotion
Example Questions:
51
In the workplace, motivation can be assessed by
measuring four indicators: satisfaction, engagement,
rootedness, and ________.
A) intelligence
B) commitment
C) creativity
D) work performance
Example Questions:
52
Workplace factors such as health insurance, pension
plans, and retirement benefits would satisfy which
of the following needs in Maslow's hierarchy?
A) safety needs
B) social needs
C) esteem needs
D) physiological needs
Example Questions:
53
________ suggests that employee satisfaction
depends on the perceived ratio of inputs to outputs.
A) Herzberg's two-factor theory
B) David McClelland's three needs theory
C) Expectancy theory
D) Equity theory
Example Questions:
54
Carrey works as a bank teller who handles deposits and
disbursement. In an attempt to improve her motivation,
Carrie's manager asks her to distribute traveler's checks
and sell certificates of deposit as well. Though the
additional tasks are not more challenging than what
Carrey has been doing, they give her more to do. This is
an example of ________.
A) job enrichment
B) cross-training
C) job enlargement
D) benchmarking
Example Questions:
55
John stayed late in order to finish up a project. When his
manager found the completed project on her desk, she
immediately sent John an email praising his good work
and thanking him for going the extra mile. In this example,
John's manager uses ________.
A) transactional analysis
B) cognitive restructuring
C) negative reinforcement
D) positive reinforcement
Example Questions:
56
________ refers to a statement of the tasks involved
in a given job and the conditions under which the
holder of a job will work.
A) Job specification
B) Job description
C) Succession planning
D) Job analysis
Example Questions:
57
Quality of hire measures ________.
A) the amount of money spent in hiring and training new
employees
B) the level of productivity of employees in the probationary
period
C) how closely incoming employees meet the company's
needs
D) the percentage of the workforce that leaves every year
Example Questions:
58
Salary differs from wages in that the salary
________.
A) falls under the purview of a certain law
B) is based on a fixed amount per year
C) relates to exempt employees
D) is paid by the unit of time
Example Questions:
59
________ refers to an incentive program that
rewards employees for meeting specific, individual
goals.
A) Pay for performance
B) Knowledge-based pay
C) Salary
D) Commission
Example Questions:
60
________ refers to a company-sponsored counseling
or referral plan for employees with personal
problems.
A) Health savings accounts
B) Employee assistance program
C) High-deductible insurance
D) Retirement plans
Example Questions:
61
ACZ Pharmaceuticals, an American multinational
pharmaceutical corporation, conducts "HIV/AIDS
Awareness" camps in various cities across the United States.
The firm also uses this campaign to promote its latest range
of drugs. In this example, ACZ Pharmaceuticals uses
________.
A) place marketing
B) social commerce
C) stealth marketing
D) cause-related marketing
Example Questions:
62
________ utility is the benefit provided by making
the company's products available where customers
want to purchase them.
A) Form
B) Possession
C) Place
D) Time
Example Questions:
63
Creating new goods and services for a firm's current
markets is called ________.
A) market penetration
B) product development
C) market development
D) diversification
Example Questions:
64
Majestic Shoes Inc., an international shoes and footwear
manufacturing firm, groups its customers according to
the region in which they live. The firm markets its range
of waterproof, cold-weather footwear in mountainous
regions. In this example, Majestic Shoes Inc. uses which
of the following targeting strategies?
A) demographic segmentation
B) psychographic segmentation
C) horizontal integration
D) geographic segmentation
Example Questions:
65
Which of the following is true about concentrated
marketing?
A) It ignores differences among buyers.
B) It refers to firms that use the same marketing mix for
the entire market.
C) It allows a firm to focus all its time and resources on a
single type of customer.
D) It refers to firms that use a different marketing mix for
each marketing segment.