Transcript Consumer Behavior: People in the Marketplace

PowerPoint by
Milton M. Pressley
Creative Assistance by
D. Carter and S. Koger
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Copyright © 2003 Prentice-Hall, Inc.
Chapter 1
Defining Marketing for the
st
21 Century
by
PowerPoint by
Milton M. Pressley
University of New Orleans
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Copyright © 2003 Prentice-Hall, Inc.
Kotler on
Marketing
The future is not ahead
of us. It has already
happened.
Unfortunately, it is
unequally distributed
among companies,
industries and nations.
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Chapter Objectives
 In this chapter we will address the following
questions:
 What is the new economy like?
 What are the tasks of marketing?
 What are the major concepts and tools of
marketing?
 What orientations do companies exhibit in the
marketplace?
 How are companies and marketers responding to
the new challenges?
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The New Economy
 Substantial increase in buying power
 A greater variety of goods and services
 A greater amount of information about
practically anything
 A greater ease in interacting and placing
and receiving orders
 An ability to compare notes on products
and services
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The New Economy
 Websites can provide companies with
powerful new information and sales
channels.
 Companies can collect fuller and richer
information about markets, customers,
prospects and competitors.
 Companies can facilitate and speed up
communications among employees.
 Companies can have 2-way
communication with customers and
prospects
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The New Economy
 Companies can send ads, coupons,
samples, information to targeted
customers.
 Companies can customize offerings and
services to individual customers.
 The Internet can be used as a
communication channel for purchasing,
training, and recruiting.
 Companies can improve logistics and
operations for cost savings while
improving accuracy and service quality.
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The three major challenges faced by
businesses today are globalization,
advances in technology, and deregulation.
Which of these affords the greatest
opportunity for established businesses?
Which affords the greatest
opportunities for new
businesses? Why?
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Marketing Task
 Ten rules of radical marketing
 The CEO must own the marketing function.
 Make sure the marketing department starts
small and flat and stays small and flat.
 Get face to face with the people who matter
most – the customers.
 Use market research cautiously.
 Hire only passionate missionaries.
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Marketing Task
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Love and respect your customers.
Create a community of consumers.
Rethink the marketing mix.
Celebrate common sense.
Be true to the brand.
 Three stages of marketing practice
 Entrepreneurial Marketing
 Formulated Marketing
 Intrepreneurial Marketing
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The Scope of Marketing
 Marketing: typically seen as the
task of creating, promoting, and
delivering goods and services to
consumers and businesses.
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Table 1.1
Demand
States and
Marketing
Tasks
1. Negative
demand
A major part of the market dislikes the
product and may even pay a price to
avoid it—vaccinations, dental work,
vasectomies, and gallbladder
operations, for instance. Employers have
a negative demand for ex-convicts and
alcoholics as employees. The marketing
task is to analyze why the market
dislikes the product and whether a
marketing program consisting of
product redesign, lower prices, and
more positive promotion can change
beliefs and attitudes.
2. No demand
Target consumers may be unaware of or
uninterested in the product. Farmers
may not be interested in a new farming
method, and college students may not
be interested in foreign-language
courses. The marketing task is to find
ways to connect the benefits of the
product with people’s natural needs and
interests.
See text for complete table
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Can you name a category of
products for which your negative
feelings have softened?
What precipitated
this change?
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The Scope of Marketing
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Places
Properties
Organizations
Information
Ideas
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Goods
Services
Experiences
Events
Persons
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The Decisions
Marketers Make
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Consumer Markets
Business Markets
Global Markets
Nonprofit and
Governmental Markets
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Marketing Concepts
and Tools
 Defining Marketing
 Marketing
 Marketing management
 Core Marketing Concepts
 Target Markets and
Segmentation
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Figure 1-1: A Simple Marketing System
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Marketing Concepts
and Tools
 Marketplace,
Marketspace,
and
Metamarket
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Figure 1-2: Structure of Flows in a Modern
Exchange Economy
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Marketing Concepts
and Tools
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Marketers and Prospects
Needs, Wants, and Demands
Product, Offering, and Brand
Value and Satisfaction
 Customer value triad
 Value
Value = Benefits / Costs =
(Functional benefits + Emotional benefits) /
(Monetary costs + Time costs + Energy costs +
Psychic costs)
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Marketing Concepts
and Tools
 Exchange and Transactions
 Exchange
 Transaction
 Barter
 Transfer
 Behavioral response
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Figure 1-3: Two-Party Exchange Map Showing
Want Lists of Both Parties
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Marketing Concepts
and Tools
 Relationships and Networks
 Relationship marketing
 Marketing network
 Marketing Channels
 Supply Chain
 Competition
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Figure 1-4: U.S. Steel Radar Screen
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Marketing Concepts
and Tools
 Brand competition
 Industry competition
 Form competition
 Generic competition
 Marketing environment
 Task environment
 Broad environment
 Marketing Program
 Marketing program
 Marketing mix
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Figure 1-5:
The Four P
Components
of the
Marketing Mix
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Figure 1-6: Marketing-Mix Strategy
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Company Orientations
Toward the Marketplace
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Production Concept
Product concept
Selling Concept
Marketing Concept
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Figure 1-7: Contrasts Between the Sales Concept
and the Marketing Concept
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Company Orientations
Toward the Marketplace
 Target Market
 Customer Needs
 Stated needs
 Real needs
 Unstated needs
 Delight needs
 Secret needs
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Company Orientations
Toward the Marketplace
 Integrated Marketing
 External marketing
 Internal marketing
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Figure 1-8: Traditional Organizational Chart
versus Modern Customer-Oriented Company
Organization Chart
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Company Orientations
Toward the Marketplace
 Profitability
 Sales decline
 Slow growth
 Changing buying patterns
 Increasing competition
 Increasing marketing
expenditures
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Company Orientations Toward
the Marketplace
Figure 1-10: The Customer Concept
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Company Orientations
Toward the Marketplace
 Societal Marketing Concept
 Cause-related marketing
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Can you identify the trends that have
made the marketing concept, the
customer concept, and the societal
marketing concept more attractive
models for contemporary
marketing managers?
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How Business and
Marketing are Changing
 Customers
 Brand manufacturers
 Store-based retailers
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How Business and
Marketing are Changing
 Company responses and adjustments
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Reengineering
Outsourcing
E-commerce
Benchmarking
Alliances
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Partner-suppliers
Market-centered
Global and local
Decentralized
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How Business and
Marketing are Changing
 Marketer Responses
and Adjustments
 Customer relationship
marketing
 Customer lifetime value
 Customer share
 Target marketing
 Customization
 Customer database
 Integrated marketing
communications
 Channels as partners
 Every employee a
marketer
 Model-based decision
making
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