Transcript C12 Customer-Driven Marketingx

Chapter 12
Adeyl Khan, Faculty, BBA, NSU
What is Marketing?
•
Marketing - set of processes for creating, communicating, and delivering
value to customers and for managing customer relationships in ways that
benefit the organization and its stakeholders.
– Best marketers create a link in consumers’ minds between the
new need and the fulfillment of that need by the product.
•
Exchange process - activity in which two or more parties give something
of value to each other to satisfy perceived needs.
Adeyl Khan, Faculty, BBA, NSU
How Marketing Creates Utility
 Utility - want-satisfying power of a good or service.
 Create time utility by making a good or service
available when customers want to purchase it.
 Create place utility by making a product available
in a location convenient for customers.
 Create ownership utility through an orderly
transfer of goods and services from the seller to the
buyer.
Adeyl Khan, Faculty, BBA, NSU
Evolution of the Marketing Concept
Adeyl Khan, Faculty, BBA, NSU
Emergence of the Marketing Concept
•
Marketing concept - company-wide consumer orientation to promote
long-run success.
•
Firm starts with analysis of customers’ needs and works backward to
offer products that fulfill them.
•
Explained by shift from sellers’ market in which goods and services are
relatively scarce to buyers’ market in which they are relatively plentiful.
Adeyl Khan, Faculty, BBA, NSU
Adeyl Khan, Faculty, BBA, NSU
6
Not-for-Profit Marketing

20 million not-for-profits exist worldwide.

Apply marketing tools to reach audiences,
secure funding, improve their images, and
accomplish their overall missions.

Sometimes partner with a profit-seeking
company to promote a message.
Adeyl Khan, Faculty, BBA, NSU
Non-Traditional Marketing
Adeyl Khan, Faculty, BBA, NSU
Developing a Marketing Strategy
1. Study and analyze
potential target
markets and choose
among them.
2. Create a marketing
mix to satisfy the
chosen market.
Adeyl Khan, Faculty, BBA, NSU
Selecting a Target Market
• Target market - group of people toward whom an organization
markets its goods, services, or ideas with a strategy designed to
satisfy their specific needs and preferences.
→ Product strategy involves the nature of the product and its
package design, brand names, trademarks, and product image.
→ Distribution strategy ensures that customers receive their
purchases in the proper quantities at the right times and
locations.
→ Promotional strategy blends advertising, personal selling, sales
promotion, and public relations to achieve its goals of informing,
persuading, and influencing purchase decisions.
→ Pricing strategy is setting profitable and justifiable prices for the
firm’s product offerings, sometimes subject to government
scrutiny.
Adeyl Khan, Faculty, BBA, NSU
Marketing Mix for International
Markets
• Standardization - offering the same marketing mix
in every market.
• Adaptation - developing a unique marketing mix to
fit each market’s local competitive conditions,
consumer preferences, and government
regulations.
• Mass customization - firms mass produce goods
and services and add unique features to individual
or small groups of orders.
Adeyl Khan, Faculty, BBA, NSU
Marketing Research
• Marketing research – the process of collecting and
evaluating information to support marketing decision
making. AC Nielson – Consumer Research
• Secondary data: Previously published data from trade
associations, advertising agencies, marketing
research firms, and other sources.
• Primary data: Data collected through observation,
surveys, and other forms of observational study.
• Data mining - computer searches of customer data to
detect patterns and relationships.
Adeyl Khan, Faculty, BBA, NSU
Market Segmentation
Market segmentation – the process of dividing a total market into several
relatively homogeneous groups.
Adeyl Khan, Faculty, BBA, NSU
How Market Segmentation Works
Adeyl Khan, Faculty, BBA, NSU
Segmenting Consumer Markets
Geographic Segmentation
• Divides market into homogeneous groups
on the basis of their locations.
Demographic Segmentation
• Divides market on the basis of various demographic or
socioeconomic characteristics: gender, income, age, occupation,
household size, stage in the family life cycle, education, and
ethnic group.
Psychographic Segmentation
• Divides consumer market into groups with similar psychological
characteristics, values, and lifestyles.
Product-Related Segmentation
• Divides market based on buyer’s relationship to the good or
service.
Adeyl Khan, Faculty, BBA, NSU
Segmenting Business Markets
• Geographic segmentation – targets
geographically concentrated industries.
• Demographic, or customer-based,
segmentation – a good or service intended for a
specific organizational market (i.e. healthcare).
• End-use segmentation - focuses on the precise
way a B2B purchaser will use a product.
Adeyl Khan, Faculty, BBA, NSU
Determining What Customers Want
•
Consumer behavior - actions of ultimate consumers directly involved
in obtaining, consuming, and disposing of products and the decision
processes that precede and follow these actions.
– Personal factors: needs and motives, perceptions, attitudes,
self-concept.
– Interpersonal factors: cultural, social, and family influences.
•
Business buying behavior - often includes a variety of influences
from multiple decision makers.
Adeyl Khan, Faculty, BBA, NSU
Steps in Consumer Behavior Process
Adeyl Khan, Faculty, BBA, NSU
Relationship Marketing
• Relationship marketing -
developing and maintaining
long-term, cost-effective
exchange relationships with
partners.
• Consumers enter into
relationships only if there is
some benefit to them.
Adeyl Khan, Faculty, BBA, NSU
Benefits of Relationship Marketing
• Lower costs and higher profits for the business.
• Efficient targeting of best customers increases the
lifetime value of a customer.
• Stronger relationships with business partners and
opportunities to combine capabilities and resources
to better accomplish goals.
Adeyl Khan, Faculty, BBA, NSU
Tools for Nurturing Customer
Relationships
• 80/20 principle: Frequent customers have a higher
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lifetime value, so businesses allocate resources
accordingly.
Frequency marketing: reward purchasers with cash,
rebates, and other premiums.
Affinity programs: solicit involvement based on
common interest.
Comarketing: businesses jointly market each others’
products.
Cobranding: firms link their names in a single product.
Adeyl Khan, Faculty, BBA, NSU
One-to-One Marketing
 Customizing products and marketing and rapidly
delivering goods.
 Customer relationship management software
helps companies gather, sort, and interpret data
about specific customers.
Adeyl Khan, Faculty, BBA, NSU
Adeyl Khan, Faculty, BBA, NSU
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1
Summarize the ways in which
marketing creates utility.
5 Describe the marketing research
2
Discuss the marketing concept.
6 Identify and explain the methods
3
4
Describe not-for-profit marketing,
and identify the five major
categories of nontraditional
marketing.
Outline the basic steps in
developing a marketing strategy.
function.
available for segmenting
consumer and business markets.
7 Outline the determinants
of consumer behavior.
Discuss the benefits and
8 tools for relationship
marketing.
Adeyl Khan, Faculty, BBA, NSU