Transcript Chapter 1 - McGraw Hill Higher Education - McGraw

Part 5
Marketing:
Developing
Relationships
© 2015 McGraw-Hill Education.
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CHAPTER 11
Customer-Driven Marketing
CHAPTER 12
Dimensions of Marketing Strategy
CHAPTER 13
Digital Marketing and Social Networking
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Learning Objectives
LO 11-1 Define marketing and describe the exchange process.
LO 11-2 Specify the functions of marketing.
LO 11-3 Explain the marketing concept and its implications for
developing marketing strategies.
LO 11-4 Examine the development of a marketing strategy,
including market segmentation and marketing mix.
LO 11-5 Investigate how marketers conduct marketing research
and study buying behavior.
LO 11-6 Summarize the environmental forces that influence
marketing decisions.
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The Nature of Marketing
Marketing
• A group of activities designed to expedite transactions
by creating, distributing, pricing, and promoting goods,
services, and ideas
Exchange
• The act of giving up one thing (money, credit, labor,
goods) in return for something else (goods, services,
or ideas)
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Creating Value with Marketing
Value
• A customer’s subjective assessment of benefits
relative to costs in determining the worth of a product
Customer
Value
=
Customer
Benefits
–
Customer
Costs
Marketing Concept
• The idea that an organization should try to satisfy
customers’ needs through coordinated activities that
also allow it to achieve its own goal
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Evolution of the Marketing Concept
Market Orientation
• An approach requiring organizations to gather information about
customer needs, share that information throughout the firm, and use that
information to help build long-term relationships with customers
 Began in the 1950s and continues today
 New technologies are helping firms to improve
communication and learn what customers want
Marketing Strategy
• A plan of action for developing, pricing distributing, and promoting
products that meet the needs of specific customers
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Selecting a Target Market
Market
• A group of people who have a need, purchasing power,
and the desire and authority to spend money on goods,
services, and ideas
Target Market
• A specific group of consumers on whose needs and
wants a company focuses its marketing efforts
Total-Market Approach
• An approach whereby a firm tries to appeal to everyone
and assumes that all buyers have similar needs

Sellers of salt, sugar, and many agricultural products use a total-market
approach because everyone is a potential consumer of these products
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Selecting a Target Market
Market Segmentation
• A strategy whereby a firm divides the total market into
groups of people who have relatively similar product
needs
Market Segment
• A collection of individuals, groups, or organizations
who share one or more characteristics and thus have
relatively similar product needs and desires
 Women are the largest market segment, with 51% of
the U.S. population
 Marketers are focusing on the growing Hispanic
population
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Market Segmentation Approaches
Concentration Approach
• A market segmentation approach whereby a company
develops one marketing strategy for a single market
segment
• Porsche directs all its marketing efforts toward high-income
individuals who want to own high-performance vehicles
Multisegment Approach
• A market segmentation approach whereby the marketer
aims its efforts at two or more segments, developing a
marketing strategy for each
• Raleigh bicycles has designed separate marketing
strategies for racers, tourers, commuters, and children
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Market Segmentation Approaches
Niche Marketing
• Is a narrow market segment focus when efforts are on one small, welldefined group that has a unique, specific set of needs
• Companies segment markets on the basis of several variables:
Demographic
Geographic
Psychographic
©
Behavioristic
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Developing a Marketing Mix
Marketing Mix
• The four marketing activities—product, price, promotion, and
distribution—that the firm can control to achieve specific goals within a
dynamic marketing environment
A product whether a

Good – A physical entity you can touch (a car, computer, or adopted
kitten)

Service – The application of human and mechanical efforts to people
or objects to provide intangible benefits to customers (Air travel, dry
cleaning, or haircuts)

Idea – Can be a concept, philosophy, image, or issue (attorney advise
or political parties)
Is a complex mix of tangible and intangible attributes that provide satisfaction
and benefits
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Price, Distribution & Promotion
Price
• A value placed on an object exchanged between a buyer and a seller
Distribution
• Making products available to customers in the quantities desired
Promotion
• A persuasive form of communication that attempts to expedite a marketing
exchange by influencing individuals, groups, and organizations to accept
goods, services, and ideas
.
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Marketing Research and Information Systems
Marketing Research
• A systematic, objective process of getting information about potential
customers to guide marketing decisions
Primary Data
• Marketing information that is observed, recorded, or
collected directly from respondents
• “Mystery shoppers”, surveys, and focus groups
• Passive observation of consumer behavior and openended questions techniques
Secondary
Data
• Information that is compiled inside or outside an
organization for some purpose other than changing
the current situation
• Information compiled by the U.S. Census Bureau and
other government agencies, databases created by
marketing research firms, as well as sales and other
internal reports
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Buying Behavior
Buying Behavior
• The decision processes and actions of people who purchase and use
products
Perception
• The process by which a person selects, organizes, and interprets
information received from his or her senses
Motivation
• Inner drive that directs a person’s behavior toward goals
Learning
• Changes in a person’s behavior based on information and experience
Attitude
• Knowledge and positive or negative feelings about something
Personality
• The organization of an individual’s distinguishing character traits,
attitudes, or habits
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Social Variables of Buying Behavior
Social Roles
• A set of expectations for individuals based on some position
they occupy
Reference Groups
• Groups with whom buyers identify and whose values or
attitudes they adopt
Social Classes
• A ranking of people into higher or lower positions of respect
Culture
• The integrated, accepted pattern of human behavior,
including thought, speech, beliefs, actions, and artifacts