chapter 13 the future of business gitman & mcdaniel 5 th edition the future of business gitman...

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THE FUTURE OF BUSINESSGitman & McDaniel

5th Edition

THE FUTURE OF BUSINESSGitman & McDaniel

5th Edition

Chapter

13Understanding the

Customer and CreatingMarketing Strategy

Understanding theCustomer and Creating

Marketing Strategy

Prepared byDeborah Baker

Texas Christian University

Prepared byDeborah Baker

Texas Christian University

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 2Ch

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1 What are the market concept and relationship building?

2 How do managers create a marketing strategy?

3 What is the marketing mix?

4 How do consumers and organizations make buying decisions?

5 What are the five basic forms of market segmentation?

6 How is marketing research used in marketing decision making?

7 What are the trends in understanding the customer?

Learning Goals


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Marketing—The “Right” Principle

GettingThe “Right’ Goods or Services

GettingThe “Right’ Goods or Services

toThe “Right’ People

toThe “Right’ People

atThe “Right’ Place, Time, and Price

atThe “Right’ Place, Time, and Price

using”The “Right’ Promotion Techniques

using”The “Right’ Promotion Techniques


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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

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

MarketingMarketing

The process in which two partiesgive something of value toeach other to satisfy their

respective needs

The process in which two partiesgive something of value toeach other to satisfy their

respective needs

ExchangeExchange


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What are the marketing concept and relationship building?

What are the marketing concept and relationship building?

Learning Goal 11


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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 satisfying customer wants and needs, legally and responsibly.

1


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The Marketing Concept1

CustomerSatisfactionCustomer

SatisfactionThe customer’s feeling that a product has met or exceeded

expectations.

The customer’s feeling that a product has met or exceeded

expectations.

CustomerValue

CustomerValue

The ratio of benefits to the sacrifice necessary to obtain those benefits,

as determined by the customer.

The ratio of benefits to the sacrifice necessary to obtain those benefits,

as determined by the customer.

RelationshipMarketing

RelationshipMarketing

A strategy that focuses on forging long-term partnerships with

customers by offering value and providing customer satisfaction.

A strategy that focuses on forging long-term partnerships with

customers by offering value and providing customer satisfaction.


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2 Learning Goal 2

How do managers create amarketing strategy?


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2 Creating a Marketing Strategy

1. Understanding the External Environment

2. Defining the Target Market

3. Creating a Competitive Advantage

4. Developing a Marketing Mix


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2 The External Environment

EnvironmentalEnvironmentalScanningScanning

EnvironmentalEnvironmentalScanningScanning

Demographic ForcesDemographic Forces

Economic ForcesEconomic Forces

Technological ForcesTechnological Forces

Political & Legal ForcesPolitical & Legal Forces

Competitive ForcesCompetitive Forces

Social ForcesSocial Forces


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2 The Target Market

The specific group of consumers toward which a firm directs

its marketing efforts.

The specific group of consumers toward which a firm directs

its marketing efforts.Target MarketTarget Market


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2 Competitive Advantage

Differential CompetitiveAdvantage

Differential CompetitiveAdvantage

A firm’s ability to provide a unique product or service that offers something of value besides a

lower price.

A firm’s ability to provide a unique product or service that offers something of value besides a

lower price.

CostCompetitiveAdvantage

CostCompetitiveAdvantage

A firm’s ability to produce a product or service at

a lower cost than its competitors.

A firm’s ability to produce a product or service at

a lower cost than its competitors.

NicheCompetitiveAdvantage

NicheCompetitiveAdvantage

A firm’s ability to target and effectively serve a single segment of

the market within a limited geographic area.

A firm’s ability to target and effectively serve a single segment of

the market within a limited geographic area.


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3 Learning Goal 3

What is the marketing mix?


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3 The Marketing Mix

Elements of Elements of thethe

Marketing MixMarketing Mix

““The Four Ps”The Four Ps”

Elements of Elements of thethe

Marketing MixMarketing Mix

““The Four Ps”The Four Ps”

Product

Price

Promotion

Place


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3 Product Strategy

Brand name

Packaging

Colors

Warranty

Accessories

Service program

““Product” --Product” --The “Heart” of The “Heart” of

thetheMarketing MixMarketing Mix


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3 Promotion Strategy

Personal selling

Advertising

Public relations

Sales promotion


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3 Not-for-Profit Marketing

Goals ofGoals ofSocialSocial

Marketing Marketing

Goals ofGoals ofSocialSocial

Marketing Marketing

Evaluate the relationship Evaluate the relationship between marketing between marketing

and societyand society

Evaluate the relationship Evaluate the relationship between marketing between marketing

and societyand society

Effect social changeEffect social changeEffect social changeEffect social change

Further social causesFurther social causesFurther social causesFurther social causes


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4

How do consumers andorganizations make buying decisions?

Learning Goal 4


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4Consumer Decision-Making

Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps


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4Influences on Consumer Decision

Making

Psychological InfluencesPsychological Influences

Individual Influences Individual Influences

Social FactorsSocial Factors

Cultural FactorsCultural Factors


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4Types of Consumer Buying

Decisions

Low InvolvementShort Decision TimeLow CostInternal Information SearchOne Alternative

RoutineResponseBehavior

RoutineResponseBehavior

LimitedDecisionMaking

LimitedDecisionMaking

ExtensiveDecisionMaking

ExtensiveDecisionMaking

More InvolvementLong Decision TimeHigh CostInternal/External SearchMany Alternatives


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4 The Business-to-Business Market

CharacteristicsCharacteristicsof theof the

Business-Business-to-Business to-Business

MarketMarket

CharacteristicsCharacteristicsof theof the

Business-Business-to-Business to-Business

MarketMarket Location of BuyersLocation of BuyersLocation of BuyersLocation of Buyers

Purchase VolumePurchase VolumePurchase VolumePurchase Volume

Number of CustomersNumber of CustomersNumber of CustomersNumber of Customers

Direct DistributionDirect DistributionDirect DistributionDirect Distribution


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What are the five basic formsWhat are the five basic formsof market segmentation?of market segmentation?

What are the five basic formsWhat are the five basic formsof market segmentation?of market segmentation?

5 Learning Goal 5


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5

VolumeVolume

BenefitBenefit

PsychographicPsychographic

GeographicGeographic

DemographicDemographic

Amount of use (light versus heavy)Amount of use (light versus heavy)

Benefits provided by the good or service Benefits provided by the good or service

Lifestyle, personality, interests, values, attitudesLifestyle, personality, interests, values, attitudes

Regional location, population density, city/county size, climateRegional location, population density, city/county size, climate

Derived from individual’s positionin an organization

Derived from individual’s positionin an organization

Age, education, gender, income, race, social class, household sizeAge, education, gender, income, race, social class, household size

Forms of Market Segmentation


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5

Frito-LayProduct

Frito-LayProduct DemographicDemographic Snack NicheSnack Niche

FritoFrito 33-51 yearsmales

33-51 yearsmales

Hunger satisfaction

Hunger satisfaction

DoritosDoritos Teensmostly males

Teensmostly males

Bold and daringsnacking

Bold and daringsnacking

TostitosTostitos Upscale, bornfrom 1946-1964Upscale, born

from 1946-1964Casual interaction,

social foodCasual interaction,

social food

Example of Age Segmentation


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6

How is marketing research used inHow is marketing research used inmarketing decision making?marketing decision making?

How is marketing research used inHow is marketing research used inmarketing decision making?marketing decision making?

Learning Goal 6


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6

3. Collect the data3. Collect the data3. Collect the data3. Collect the data

2. Choose a method of research2. Choose a method of research2. Choose a method of research2. Choose a method of research

1. Define the Marketing Problem1. Define the Marketing Problem1. Define the Marketing Problem1. Define the Marketing Problem

4. Analyze the research data4. Analyze the research data4. Analyze the research data4. Analyze the research data

5. Make recommendations5. Make recommendations5. Make recommendations5. Make recommendations

The Marketing Research Process


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6

1. Why is the information being sought?

2. Does the information already exist?

Key QuestionsKey QuestionsKey QuestionsKey Questions

Define the Marketing Problem


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6

ObservationObservationAn investigator monitors

respondents’ actions without interacting directly with

respondents.

An investigator monitors respondents’ actions without

interacting directly with respondents.

ExperimentExperimentAn investigator changes one or more variables while observing the effects of these changes on

another variable.

An investigator changes one or more variables while observing the effects of these changes on

another variable.

SurveySurveyData is gathered from

respondents to obtain facts, opinions, and attitudes.

Data is gathered fromrespondents to obtain facts,

opinions, and attitudes.

Choose a Method of Research


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6

Secondary DataSecondary DataInformation that has already been

collected for a project other than the current one, but may be used to solve

the problem.

Information that has already been collected for a project other than the

current one, but may be used to solve the problem.

Primary DataPrimary DataInformation collected directly

from the original source to solve a problem.

Information collected directly from the original source to

solve a problem.

Marketing Research Data


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7

What are the trends What are the trends in understandingin understandingthe consumer?the consumer?

What are the trends What are the trends in understandingin understandingthe consumer?the consumer?

Learning Goal 7


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7

One-to-one marketing One-to-one marketing

Shopper loyalty cardsShopper loyalty cards

Scanner-based researchScanner-based research

Trends

chapter 13 the future of business gitman & mcdaniel 5 th edition the future of business gitman...

Documents

marketing strategy

division of thomson

marketing concept

marketing research

marketing mix

customer value

learning goals

customer satisfaction