Transcript Chapter 12

12-1
Business in a
Changing World
Chapter 12
Customer-Driven Marketing
McGraw-Hill/Irwin
Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
12-3
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.
12-4
The Importance of Marketing
Planning & execution to satisfy customer
goals –
•Product development
•Product pricing
•Product promotion
•Distribution of goods, ideas, services
12-5
The Nature of Marketing
MARKETING
The group of activities that add value and
designed to expedite transactions by creating,
distributing, pricing, and promoting goods,
services and ideas.
12-6
The Nature of Marketing
•Marketing is NOT –
•Manipulating consumers
•Selling & advertising
•Marketing IS –
•Satisfying consumers
12-7
Marketing
The Exchange Relationship – act of giving up one thing
(money, credit, labor, goods) in return (exchange) for
something else (goods, services, or ideas)
12-8
Marketing – The Exchange Relationship
The Exchange Process: Giving Up One Thing in Return for Another
12-9
Functions of Marketing
Industry groups use marketing
to increase demand for the
industry’s product.
America’s Beef Producers
12-10
Functions of Marketing
•Buying
•Selling
•Transporting
•Storing
•Grading
•Financing
•Marketing research
•Risk taking
12-11
The Marketing Concept
The idea that an organization should try to satisfy customers’
needs through coordinated activities that also allow it to
achieve its own goals.
12-12
The Marketing Concept
•Marketing Goal –
•Customer satisfaction
•Achieve business objectives
•Boost productivity
•Reduce costs
•Capture market share
12-13
Implementing the Marketing Concept
•Good information re: customer wants
•Consumer orientation
•Coordinate organizational efforts
Customer’s perception of value = measure of success
12-14
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
12-15
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
12-16
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.
12-17
Marketing Orientation
Wrigley’s sells products in 180 countries.
Continues to reinvent itself; in 2008, merger
with candy maker Mars.
12-18
Developing a Marketing Strategy
Marketing strategy – plan of action for developing,
pricing, distributing, and promoting products
meeting the needs of specific customers.
12-19
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).
12-20
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).
12-21
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.
12-22
Market Segmentation
Minority Buying Power by Race, 1990 versus
2003 & 2005
12-23
Total-Market
Approach
12-24
Market Segmentation Approaches
Concentration – company develops one
marketing strategy for a single market segment.
Specialization (e.g. Porsche’s focus on highincome individuals)
Multi-segment – aims at two or more segments
with strategy for each. (e.g. Raleigh bicycles for
racers, commuters, and children)
12-25
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)
12-26
Bases for Market Segmentation
•Demographic
•Geographic
•Psychographic
•Behavioristic
12-27
Developing the Marketing Mix
12-28
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
12-29
Price
A value placed on a product or service
that is exchanged between a buyer
and seller
12-30
Distribution
Making products available to
consumers in the quantities and
locations desired
12-31
Promotion
A persuasive form of communication
that attempts to expedite a marketing
exchange by influencing individuals
and organizations to accept goods,
services, and ideas
12-32
Marketing Research
Systematic and objective process to
collect information about potential
customers. Guides marketing
decisions.
12-33
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
12-34
Buying Behavior
Buying behavior – decision processes and actions
of people who purchase and use products.
•Consumers personal and household
•Organizations for business use
12-35
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)
12-36
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.
12-37
Social Variables of Buying Behavior
Social roles – set of
expectations of individuals
based on some position they
occupy.
12-38
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
12-39
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
12-40
The Marketing Mix and the
Marketing Environment
12-41