Transcript Chapter 12
Chapter 12 Understanding the Customer Prepared by Norm Althouse University of Calgary Copyright © 2011 by Nelson Education Ltd. 1 Learning Outcomes 1 Define marketing concept, and relationship marketing. 2 Show how managers create a marketing strategy. 3 Explain marketing mix. 4 Summarize how consumers and organizations make buying decisions. 5 List the five basic forms of market segmentation. 6 Identify how marketing research is used in marketing decision making. Chapter 12 7 List some of the trends in understanding the consumer. Copyright © 2011 by Nelson Education Ltd. 2 Marketing—The “Right” Principle Getting The “Right” Goods or Services to The “Right” People Chapter 12 at The “Right” Place, Time, and Price using The “Right” Promotion Techniques Copyright © 2011 by Nelson Education Ltd. 3 Chapter 12 Marketing Marketing The process of discovering the needs and wants of potential buyers and customers and then providing goods and services that meet or exceed their expectations. Exchange The process in which two parties give something of value to each other to satisfy their respective needs. Copyright © 2011 by Nelson Education Ltd. 4 The Marketing Concept Focusing on customer wants so the organization can distinguish its products from competitors’ offerings. Integrating all of the organization’s activities to satisfy these wants. Achieving long-term goals for the organization by Chapter 12 satisfying customer wants and needs, legally and responsibly. Copyright © 2011 by Nelson Education Ltd. 5 Chapter 12 The Marketing Concept Customer Value The ratio of benefits to the sacrifice necessary to obtain those benefits, as determined by the customer. Customer Satisfaction The customer’s feeling that a product has met or exceeded expectations. Building Relationships A strategy that focuses on forging long-term partnerships with customers by offering value and providing customer satisfaction. Copyright © 2011 by Nelson Education Ltd. 6 Creating a Marketing Strategy 1. Understanding the External Environment 2. Defining the Target Market 3. Creating a Competitive Advantage Chapter 12 4. Developing a Marketing Mix Copyright © 2011 by Nelson Education Ltd. 7 The External Environment Social Forces Demographic Forces Economic Forces Technological Forces Chapter 12 Environmental Scanning Political & Legal Forces Competitive Forces Copyright © 2011 by Nelson Education Ltd. 8 The Target Market Chapter 12 Target Market Copyright © 2011 by Nelson Education Ltd. The specific group of consumers toward which a firm directs its marketing efforts. 9 The Product Life Cycle MATURITY DECLINING GROWTH SALES DECLINE CONSTANT GROWTH VOLUME ACCELERATING GROWTH INTRODUCTION Chapter 12 TIME Copyright © 2008 by Nelson, a division of Thomson Canada Limited 10 Chapter 12 Competitive Advantage Cost Competitive Advantage A firm’s ability to produce a product or service at a lower cost than its competitors. Differential Competitive Advantage A firm’s ability to provide a unique product or service that offers something of value besides a lower price. Niche Competitive Advantage A firm’s ability to target and effectively serve a single segment of the market within a limited geographic area. Copyright © 2011 by Nelson Education Ltd. 11 The Marketing Mix Product Elements of the Marketing Mix Chapter 12 “The Four Ps” Price Promotion Place Copyright © 2011 by Nelson Education Ltd. 12 Product Strategy Brand name Packaging Colours Warranty Accessories Chapter 12 Service program “Product” -The “Heart” of the Marketing Mix Copyright © 2008 by Nelson, a division of Thomson Canada Limited 13 Pricing Strategy Based on demand for the product and the cost of producing it. Chapter 12 Also, special considerations can influence the price. Copyright © 2008 by Nelson, a division of Thomson Canada Limited 14 Distribution Strategy (Place) Chapter 12 Creating the means (channels) by which a product flows from the producer to the customer. Copyright © 2008 by Nelson, a division of Thomson Canada Limited 15 Promotion Strategy Personal selling Advertising Public relations Chapter 12 Sales promotion Copyright © 2008 by Nelson, a division of Thomson Canada Limited 16 Not-for-Profit Marketing Effect social change Chapter 12 Goals of Social Marketing Further social causes Evaluate the relationship between marketing and society Copyright © 2011 by Nelson Education Ltd. 17 Chapter 12 Consumer Decision-Making Process Copyright © 2011 by Nelson Education Ltd. 18 Influences on Consumer Decision Making Cultural Factors Social Factors Individual Influences Chapter 12 Psychological Influences Copyright © 2011 by Nelson Education Ltd. 19 Chapter 12 Types of Consumer Buying Decisions Copyright © 2011 by Nelson Education Ltd. 20 The Business-to-Business Market Purchase Volume Chapter 12 Characteristics of the Businessto-Business Market Number of Customers Location of Buyers Direct Distribution Copyright © 2011 by Nelson Education Ltd. 21 Forms of Market Segmentation Demographic Geographic Chapter 12 Psychographic Age, education, gender, income, race, social class, household size Regional location, population density, city/county size, climate Lifestyle, personality, interests, values, attitudes Benefit Benefits provided by the good or service Volume Amount of use (light versus heavy) Copyright © 2011 by Nelson Education Ltd. 22 The Marketing Research Process 1. Define the Marketing Problem 2. Choose a method of research 3. Collect the data Chapter 12 4. Analyze the research data 5. Make recommendations Copyright © 2011 by Nelson Education Ltd. 23 Trends Internet Marketing Research Scanner-Based Research Chapter 12 Loyalty Cards One-to-one Marketing Copyright © 2011 by Nelson Education Ltd. 24