Transcript Chapter 14 Notes - Old

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CHAPTER 14
MARKETING: BUILDING CUSTOMER AND
STAKEHOLDER RELATIONSHIPS
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LEARNING OBJECTIVES
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Define marketing
Application of marketing concept to both forprofit and non-profit organizations.
List and describe the four Ps of marketing.
Describe the marketing research process.
Explain market segmentation and relationship
marketing.
Differentiate between the business-tobusiness and the consumer market.
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WHAT IS MARKETING?
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Marketing: The process of determining customer needs
and wants and then developing goods and services that
meet or exceed those expectations.
Green marketing: Marketing efforts to produce, promote,
and reclaim environmentally-sensitive products.
Customer relationship management (CRM): The process
of learning as much as possible about customers and
doing everything you can to satisfy them—or even
exceed their expectations– with goods and services over
time.
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NON-PROFIT ORGANIZATIONS AND MARKETING
Marketing concepts emphasize a profit
orientation, but non-profit organizations
prosper from marketing too.
 Canadian Blood Services used marketing to
recruit 80,000 new blood donors.
 Churches use marking to attract new members
and to raise funds.
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THE MARKETING MIX
There are four “Ps” involved in marketing:
1. Product
2. Price
3. Place
4. Promotion
 Marketing mix: The ingredients that go into a
marketing program: product, price, place and
promotion.
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MARKETING MANAGERS AND THE MARKETING
MIX
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THE MARKETING RESEARCH PROCESS
Marketing research: The analysis of markets to
determine opportunities and challenges, and to
find the information needed to make good
decisions.
 The simplified marketing research process
consists of four steps:
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Defining the question and determining the current
situation
Collecting data
Analyzing the research data
Choosing the best solution and implementing it
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THE MARKETING ENVIRONMENT
Environmental scanning: The process of identifying
the factors that can affect marketing success.
 We discussed the marketing environment in
chapter 1, but lets review them:
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Global factors
Technological factors
Sociocultural factors
Competitive factors
Economic factors
Legal and regulatory factors
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THE MARKETING ENVIRONEMENT
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TWO DIFFERENT MARKETS: CONSUMER AND
BUSINESS-TO-BUSINESS (B2B)
Consumer market: All individuals or households
that want goods and services for personal
consumption or use.
 Business-to-business market: All individuals
and organizations that want goods and
services to use in producing other goods and
services or to sell, rent, or supply goods to
others.
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THE CONSUMER MARKET
Market segmentation: The process of dividing
the total market into groups whose members
have similar characteristics.
 Target marketing: Marketing directed toward
those groups (market segments) an
organization decides it can serve profitably.
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SEGMENTING THE CONSUMER MARKET
Geographic segmentation: Dividing the market by
geographic area.
 Demographic segmentation: Dividing the market
by age, income, and education level.
 Psychographic segmentation: Dividing the market
according to personality or lifestyle (activities,
interests, and opinions).
 Behavioural segmentation: Dividing the market
based on behaviour with or toward a product.
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REACHING SMALLER MARKET SEGMENTS
Niche marketing: the process of finding small
but profitable market segments and designing
or finding products for them.
 One-to-one marketing: Developing a unique mix
of goods and services for each individual
customer.
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MOVING TOWARD RELATIONSHIP MARKETING
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Mass marketing: Developing products and
promotions to please large groups of people.
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Relationship marketing: Marketing strategy with
the goal of keeping individual customers over
time by offering them products that exactly
meet their requirements.
 Example:
AirRewards program
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THE CONSUMER DECISION-MAKING PROCESS
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THE CONSUMER DECISION-MAKING PROCESS
Other important factors in the consumer
decision-making process are:
 Learning
(previous experiences)
 Reference group (reference group for image)
 Culture (changes that require different decisions)
 Subculture (certain ethnic or religious group)
 Cognitive dissonance (major decisions)
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THE BUSINESS-TO-BUSINESS MARKETING
The more important factors of B2B marketing are:
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The number of customers in the B2B market is
relatively few.
The size of business customers is relatively large.
B2B markets tend to be geographically concentrated.
Business buyers are generally thought to the more
rational than ultimate consumers in their selection of
goods and services.
B2B sales tend to be direct.
There is much more emphasis on personal selling in
B2B markets than in consumer markets.
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COMPARING B2B AND CONSUMER BUYING
BEHAVIOUR
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NEXT CLASS – CHAPTER 15
Managing the Marketing Mix
Product
Price
Place
Promotion