Transcript Business 7e - Pride, Hughes, Kapor

Pride I Hughes I Kapoor
Chapter
13
Building Customer
Relationships
Through Effective
Marketing
PowerPoint Presentation by Charlie Cook
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Seventh Edition
The American Consumer
• Consumer income
– Personal income—the income that a person receives from all
sources less the Social Security taxes the individual must pay.
– Disposable income—personal income less all additional
personal taxes.
– Discretionary income—disposable income less savings and
expenditures.
• Why do consumers buy?
1. They have a use for the product.
2. They like the convenience a product offers.
3. They believe the purchase will enhance
their wealth.
4. They take pride in ownership.
5. They buy for safety.
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13–2
Consumer Buying Behavior
• Consumer Buying Decision Process and Possible Influences
POSSIBLE INFLUENCES ON THE DECISION PROCESS
Situational influences
Psychological influences
• Perception
• Motives
• Learning
• Attitudes
• Personality
• Lifestyles
• Physical surroundings
• Social surroundings
• Time
• Purchase reason
• Buyer’s mood and condition
Social influences
•
•
•
•
•
Family
Roles
Peer groups
Social class
Culture and subcultures
CONSUMER BUYING DECISION PROCESS
Recognize
problem
Search for
information
Evaluate
alternatives
Purchase
Evaluate
after
purchase
A buyer goes through some or all of these steps when making a purchase.
Source: William M. Pride and O. C. Ferrell, Marketing: Concepts and Strategies, 2000/ed.
Copyright © 2000 by Houghton Mifflin Company, Adapted with permission.
Copyright © by Houghton Mifflin Company. All rights reserved.
Figure 13.4
13–3
What Do Consumers Buy?
• Consumer spending
Housing (includes
furnishings and utilities)
33.0%
Transportation
18.6%
Miscellaneous
10.4%
Personal insurance
and pensions
9.5%
Food at home
7.8%
Food away from home
5.7%
Health care
5.4%
Entertainment
Apparel and services
What percentage
of disposable
income is spent
on various
categories of
products and
services?
4.9%
4.7%
Source: Bureau of Labor Statistics, Office of
Pricing and Living Conditions,
ftp://ftp.bls.gov/pub/specialrequests, March 2000.
Figure 13.5
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13–4
The Marketing Concept
• Evolution of customer orientation
Business managers recognized they were not primarily producers or sellers but rather were in the business of satisfying
customers’ wants
Production
Orientation
Sales
Orientation
Customer Orientation
Take orders
Distribute goods
Increase advertising
Enlarge sales
force
Intensify sales
techniques
Determine customer
needs
Develop products to fill
these needs
Achieve the organization’s goals
Table 13.2
Copyright © by Houghton Mifflin Company. All rights reserved.
13–5
The Marketing Concept
• Evolution of the marketing concept
– Marketing concept—a business philosophy that
involves the entire organization in the process of
satisfying customers’ needs while achieving the
organization’s goals.
– Relationship marketing—developing mutually
beneficial long-term partnerships with customers to
enhance customer satisfaction and to stimulate
long-term customer loyalty.
Copyright © by Houghton Mifflin Company. All rights reserved.
13–6
Implementing the Marketing Concept
• Implementation steps
– Obtain information about present and potential customers,
their needs, and how well those needs are being satisfied.
– Pinpoint specific needs and potential customers toward which
to direct marketing activities and resources.
– Mobilize marketing resources to:
1.
2.
3.
4.
Provide a product that will satisfy customers.
Price the product at acceptable and profitable levels.
Promote the product to potential customers.
Ensure distribution for product availability when and where
wanted.
– Obtain information on the effectiveness of the marketing effort
and modify efforts as necessary.
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13–7
Markets and Their Classification
• Market
– A group of individuals or organizations, or both, that need
products in a given category and have the ability, willingness,
and authority to purchase such products.
• Classification of markets
– Consumer markets
• Purchasers and/or households members who intend to consume
or benefit from the purchased products and who do not buy the
products to make a profit.
– Business-to-business (industrial markets)
• Producer, reseller, governmental, and institutional markets that
purchase specific kinds of products for use in the making of other
products, for resale, or for day-to-day operations.
Copyright © by Houghton Mifflin Company. All rights reserved.
13–8
Developing Marketing Strategies
• Marketing strategy
– A plan that will enable an organization to make the best use of
its resources and advantages to meet its objectives through:
• The selection and analysis of a target market.
• The creation and maintenance of an appropriate marketing mix,
a combination of product, price, distribution, and promotion
developed to satisfy a particular target market.
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13–9
Developing Marketing Strategies (cont’d)
• Target market selection and evaluation
– Target market—a group of individuals, organizations, or both for
which the firm develops and maintains a marketing mix suitable
for the specific needs and preferences of that group.
– Market segment—a group of individuals or organizations within
a market that shares one or more common characteristics.
– Market segmentation—The process of dividing a market into
segments and directing a marketing mix at a particular segment
or segments rather than at the total market.
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13–10
Market Measurement and Sales Forecasting
• Sales forecast
– An estimate of the amount of a product that an organization
expects to sell during a certain period of time, based on a
specified level of marketing effort.
• Evaluating the feasibility of a new market
– Identify the relevant time frame covered by the forecast.
– Define the geographic boundaries of the forecast.
– Indicate for which products the
forecasts are relevant.
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13–11
Approaches for Selecting Target Markets
• Undifferentiated Approach
– Directing a single marketing mix at the entire market for a
particular product.
Product
Price
Distribution
Promotion
Organization
Single marketing mix
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Target market
NOTE: The letters in each target market represent potential customers. Customers that have the same
letters have similar characteristics and similar product needs.
Source: William M. Pride and O. C. Ferrell, Marketing: Concepts and Strategies, 2000/ed.
Copyright © 2000 by Houghton Mifflin Company, Adapted with permission.
Copyright © by Houghton Mifflin Company. All rights reserved.
Figure 13.2a
13–12
Approaches for Selecting Target Markets (cont’d)
• Concentrated Market Segmentation Approach
– A single marketing mix is directed at a single market segment.
Product
Price
Distribution
Promotion
Organization
Single marketing mix
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BBBBBBBB
BBBBBBBB
BBBBBBBB
CCCCCCCC
CCCCCCCC
CCCCCCCC
Target market
NOTE: The letters in each target market represent potential customers. Customers that have the same
letters have similar characteristics and similar product needs.
Source: William M. Pride and O. C. Ferrell, Marketing: Concepts and Strategies, 2000/ed.
Copyright © 2000 by Houghton Mifflin Company, Adapted with permission.
Copyright © by Houghton Mifflin Company. All rights reserved.
Figure 13.2b
13–13
Approaches
for Selecting
Target
Markets
(cont’d)
Product
Price
Distribution
Promotion
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Marketing mix I
BBBBBBBB
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Product
CCCCCCCC
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Organization
Price
Distribution
Target markets
Promotion
Marketing mix II
• Differentiated
Market
Segmentation
Approach
– Multiple
marketing
mixes focused
on multiple
market
segments.
NOTE: The letters in each target market represent potential customers. Customers that have the
same letters have similar characteristics and similar product needs.
Source: William M. Pride and O. C. Ferrell, Marketing: Concepts and Strategies, 2000/ed.
Copyright © 2000 by Houghton Mifflin Company, Adapted with permission.
Copyright © by Houghton Mifflin Company. All rights reserved.
Figure 13.2c
13–14
Creating a Marketing Mix
The Marketing Mix
and the Marketing
Environment
– The marketing mix
consists of elements
that the firm
controls—product,
price, distribution,
and promotion. The
firm generally has no
control over forces in
the marketing
environment.
Economic
forces
Competitive
forces
Political
forces
Product
Price
Sociocultural
forces
Customer Distribution
Promotion
Legal and
regulatory
forces
Marketing mix
Marketing environment
Source: William M. Pride and O. C. Ferrell, Marketing: Concepts and Strategies,
2000/ed. Copyright © 2000 by Houghton Mifflin Company, Adapted with permission.
Copyright © by Houghton Mifflin Company. All rights reserved.
Technological
forces
Figure 13.3
13–15