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PNG Ins(tute of Banking and Business Management Unit 401 Sweta Sud Chifley Adjunct Faculty Marketing Management

CBS MBA Workshop 1 @ IBBM

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Page 1: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Unit 401

Sweta Sud Chifley Adjunct Faculty

Marketing Management

Page 2: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

MBA

What Business are you in?

Why MBA?

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PNG  Ins(tute  of  Banking  and  Business  Management    

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PNG  Ins(tute  of  Banking  and  Business  Management    

Know your facilitator •  Instrumentation and Controls Engineer •  MBA in Systems and Marketing •  from Symbiosis International University •  Master Project Manager •  Post Graduate Diploma in IT Management •  Certified Information Systems Auditor •  Management experience in India, Singapore, Dubai,

Malaysia, Sydney and 4 years in PNG

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PNG  Ins(tute  of  Banking  and  Business  Management    

In this Unit.. Week  1  

• First  workshop  • 31st  Jan,  Friday  

Week  2  • Read  the  Study  guide  • Read  the  book  –  Fee  Refund  

Week  3  • 2nd  workshop  •  14th  Feb,  Friday  

Week  4  • Do  the  assignment  –  17th  Feb  • Due  on  24th  Feb  

Week  5  •  3rd  workshop  • 28  Feb,  Friday  

Week  6  • Exam  on  6th  March  –  return  7th  March  

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PNG  Ins(tute  of  Banking  and  Business  Management    

Today’s Agenda

1  •  The  Discipline  of  Marke8ng  •  Morning  tea@10:00  

2  •  Marke(ng  Environment  and  Marke(ng  Analysis  •  Lunch  @  12:30pm  

3  

•  Marke(ng  Strategy  and  Marke(ng  Planning  •  Evening  Tea@  2:30pm  •  Ac(vi(es,  Cases  and  discussions  

Unit-401, Workshop1, 31st Jan 2014

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PNG  Ins(tute  of  Banking  and  Business  Management    

Rules for the Workshop

1  • Mobile  phones  off  

2   • No  emails  on  ipads  

3  

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PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng  Chapter  1  

Discipline  of  Marke8ng    

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PNG  Ins(tute  of  Banking  and  Business  Management    

What the hell is Marketing?

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PNG  Ins(tute  of  Banking  and  Business  Management    

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PNG  Ins(tute  of  Banking  and  Business  Management    

What the hell is Marketing?

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PNG  Ins(tute  of  Banking  and  Business  Management    

What the hell is Marketing?

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PNG  Ins(tute  of  Banking  and  Business  Management    

What Marketing is NOT...

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PNG  Ins(tute  of  Banking  and  Business  Management    

Marketing is NOT COLD CALLING

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PNG  Ins(tute  of  Banking  and  Business  Management    

Marketing is NOT ADVERTISING

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PNG  Ins(tute  of  Banking  and  Business  Management    

Marketing is NOT BROCHURES

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PNG  Ins(tute  of  Banking  and  Business  Management    

Marketing is NOT A WEBSITE

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PNG  Ins(tute  of  Banking  and  Business  Management    

Marketing is NOT SOCIAL MEDIA

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PNG  Ins(tute  of  Banking  and  Business  Management    

Marketing is NOT MAGIC

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PNG  Ins(tute  of  Banking  and  Business  Management    

Marketing is NOT OVERNIGHT

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PNG  Ins(tute  of  Banking  and  Business  Management    

Marketing is NOT COMPLICATED

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PNG  Ins(tute  of  Banking  and  Business  Management    

Marketing is a process of: l  Education l  Communication l  Capturing leads l  Measuring and adjusting l  Building long-term

relationships

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PNG  Ins(tute  of  Banking  and  Business  Management    

What the hell is Marketing?

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PNG  Ins(tute  of  Banking  and  Business  Management    

DEFINITION…….

Marketing is a system of business activities designed to plan, price, promote, and distribute want-satisfying products, services and ideas to target markets in order to achieve organizational objectives.

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PNG  Ins(tute  of  Banking  and  Business  Management    

Marketing Definition Dissected

MARKETING IS

a system: of business activities

designed to: plan, price, promote, distribute

something of value: want-satisfying products, services, and ideas

for the benefit of: the target market – present and potential users

to achieve: the organization’s objectives.

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PNG  Ins(tute  of  Banking  and  Business  Management    

A SMART DEFINITION

IDENTIFYING Needs and Wants and FULFILL those Needs and Wants

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PNG  Ins(tute  of  Banking  and  Business  Management    

What the hell is Marketing?

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PNG  Ins(tute  of  Banking  and  Business  Management    

{  Commercial  Break  }  

Last  week  review…  

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PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng  Chapter  2  

The  Marke8ng  Environment  

OK,  We’re  back  

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PNG  Ins(tute  of  Banking  and  Business  Management    

What gets marketed

• Goods • Service • Events • Experiences • People • Places • Properties • Organizations •  Information •  Ideas

Exercise 1: Identify the leader

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PNG  Ins(tute  of  Banking  and  Business  Management    

BROAD DIMENSION OF MARKETING Marketing is not limited to profit making businesses only Whenever you try to persuade somebody to do something, you are involved in the act of marketing You are marketing when you ask someone to …………….

……stay quiet because you are preparing for exams.

……fasten seat belt because it can save one’s life.

……vote for a candidate in the next election.

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PNG  Ins(tute  of  Banking  and  Business  Management    

Creating Value

Needs  Wants  

Demands  

For the customer

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PNG  Ins(tute  of  Banking  and  Business  Management    

Nature and Scope of Marketing

Organiza(on  

Consumers   Products  

Nature    

of    

Marke(ng  

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PNG  Ins(tute  of  Banking  and  Business  Management    

NATURE AND SCOPE OF MARKETING Organizations are the entities that produce and sell products for profits. • Engro Ltd • Dell Corp • Pepsi Co • UN

Products refer to commodities that we purchase from markets to satisfy personal needs. • Grocery • Computers • Beverages • Peace and Security

A consumer is the one for whom the product is made and marketed. • Families • Personal users and organizations • Families, students ets. • Governments or countries

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PNG  Ins(tute  of  Banking  and  Business  Management    

BROAD DIMENSION OF MARKETING

Broadly,   scope  of  marke(ng   is  not   limited   to  tradi(onal  organiza(ons.    If  a  woman  ask  her  daughter  to  fasten  the  seatbelt,  the  woman  would   be   the   seller  who   is   selling   an  idea.  

 The   idea   of   safety   in   this   example   is   the  product  that  is  being  offered.  

 The  daughter  is  the  consumer  to  whom  the  idea  is  being  communicated.  

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PNG  Ins(tute  of  Banking  and  Business  Management    

EVOLUTION OF MARKETING

• Production Concept

• Selling Concept

• Marketing Concept

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PNG  Ins(tute  of  Banking  and  Business  Management    

Evolution of the Marketing Concept

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PNG  Ins(tute  of  Banking  and  Business  Management    

1. Product Orientation A concept… •  focused on quality products that could

be produced efficiently

•  believed that supply creates its own demand

•  Intensive Distribution Strategy and Economies of Scale

•  Key Questions • 1. Can we produce the product efficiently? • 2. Can we produce enough of it ?

PRODUCTION MARKETS/

CONSUMERS

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PNG  Ins(tute  of  Banking  and  Business  Management    

2. Sales Orientation A concept… •  focused to sell the resulting output

•  based on the belief that if consumers are left to themselves, they will not make the effort to buy a company's products.

•  substantial post-production effort is required

•  Key Questions •  Can we sell the product? •  Can we charge enough for it?

MARKETS/

CONSUMERS PRODUCTION

SALES/ PROMOTION

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PNG  Ins(tute  of  Banking  and  Business  Management    

3. Market Orientation

A concept…. • customer’s want satisfaction is

the sole justification for the existence of any enterprise.

• make what people demand • Key Questions

•  What do customers want? •  How can we keep our customers

satisfied and create long-term relationships

MARKETS/

CONSUMERS PRODUCTION SALES/

PROMOTION MARKETING

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PNG  Ins(tute  of  Banking  and  Business  Management    

BUSINESS DIMENSIONS OF MARKETING

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PNG  Ins(tute  of  Banking  and  Business  Management    

{  Commercial  Break  }  

Last  week  review…  

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PNG  Ins(tute  of  Banking  and  Business  Management    

IMPORTANCE OF MARKETING

Consumers get an opportunity to know about various products that are available in the market.

Marketing fosters healthy competition among brands and this increases the level of competence among firms.

Consumers are able to enjoy better products and they are at affordable prices.

Gives chance to companies of all sizes to survive

Precise identification of what consumers demand

Saves cost for organization

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PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng  Chapter  2  

The  Marke8ng  Environment  

OK,  We’re  back  

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PNG  Ins(tute  of  Banking  and  Business  Management    

IMPLEMENTING THE MARKETING CONCEPT

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PNG  Ins(tute  of  Banking  and  Business  Management    

Implementing the Marketing Concept

As managers have come to recognize that marketing is vitally important to the success of an enterprise, they have laid down the basic principles that help them achieve organization success.

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PNG  Ins(tute  of  Banking  and  Business  Management    

Implementing the Marketing Concept

Customer Orientation

Co-ordinated Marketing Activities

Organizational Objectives

Marketing Concept

Successful Business

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PNG  Ins(tute  of  Banking  and  Business  Management    

Implementing the Marketing Concept 1. Customer-Orientation Customer-orientation focuses on meeting the specific wants and building long-term relationships with the customers. A truly customer oriented business takes all their important decisions (not only marketing related) while keeping customer satisfaction in mind. For example: before upgrading the IT software for a company, the executives must consider its implication on customer service and satisfaction. The software might be good for the organization’s internal operation – it might make the data more secure and readily available to managers – but might take long to process information which can cause customer dissatisfaction. Two important components of customer orientation are long term relations and mass customization.

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Implementing the Marketing Concept

a. Long-Term Relationships: Today, organizations are able to build long-term relations with customers because organizations have…

access to a huge quantity of information through research, consumer reports which can keep organizations abreast with changing trends and patterns in the market. Customer Relationship Management System (CRMS) is a software that help organizations store valuable information about customer’s specific wants as their professional relationship progresses. For example: a multinational hotel can store specific data on a valued customer as what type/location of room the customer prefers, the cuisine usually ordered, and specific services that he/she is interested in.

Trust and mutual commitment is also a key in developing strong relationships.

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PNG  Ins(tute  of  Banking  and  Business  Management    

Implementing the Marketing Concept

b. Mass Customization means to develop, produce, and distribute affordable products with enough variety and uniqueness that nearly every potential customer can have exactly what he or she wants. For mass customization, we need the following three key factors:

1. Information on specific customer needs and wants.

2. Communication channels to advertise to specific audience

3. Flexible & cost effective manufacturing capability to make a good variety of products while keeping per unit cost low.

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PNG  Ins(tute  of  Banking  and  Business  Management    

Implementing the Marketing Concept

2. Coordinated Marketing Activities Coordinated marketing is the planning and execution of all your company’s marketing activities (designing product, distribution, research, promotion, web presence etc.) in a way that is consistent across all of your customer contacts and creates more value than when those activities are performed separately.

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PNG  Ins(tute  of  Banking  and  Business  Management    

Implementing the Marketing Concept

3. Organizational Objectives There are three major dimensions of an organizational objectives.

1. Performance objectives refer to the growth and financial success of an organization. It may include increasing profits, market share, presence in several geographic markets, reducing costs etc.

2. Societal Responsibility is another important objective which focuses on an organization’s role in safeguarding and improving the quality of life of the society while satisfying consumer wants. For example: Nike has been criticized for years for its sweatshops in Vietnam and Pakistan where their factories exploit low wage workers and force people to work under unwholesome working conditions.

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■ Value: power of a good or service to satisfy a want or need

■ Create time value by making a good or service available when customers want to purchase it. ■ Create place value by making a product available in a location convenient for customers. ■ Create ownership value through an orderly transfer of goods and services from the seller to the buyer.

How Marketing Creates Value

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PNG  Ins(tute  of  Banking  and  Business  Management    

Creating Value

Create  

Communicate  

Deliver    

Sustain  

For the customer

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PNG  Ins(tute  of  Banking  and  Business  Management    

■ 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.

Emergence of the Marketing Concept

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PNG  Ins(tute  of  Banking  and  Business  Management    

Non-Traditional Marketing

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■ 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.

■ Types of Markets ■  consumer (B2C) product: good or service that is

purchased by end users ■  business (B2B) product: good or service purchased to be

used, either directly or indirectly, in the production of other goods for resale

Selecting a Target Market

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Marketing Mix

Customer  Place  

Promo(on  

Product  

Price  

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PNG  Ins(tute  of  Banking  and  Business  Management    

■ Marketing Mix blends the four strategies to fit the needs and preferences of a specific target market. → 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.

Marketing Mix

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{  Commercial  Break  }  

Last  week  review…  

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PNG  Ins(tute  of  Banking  and  Business  Management    

WHAT DOES A MARKETER DO?

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PNG  Ins(tute  of  Banking  and  Business  Management    

Why Bicycle? Bicycle Type?

Which People? What Quantity?

Where to Sell?

What to Charge?

What and How to Inform?

Who all will compete?

Analyze Wants Product  Plan  

Segment   Demand  Forecas(ng  

Distribute   Price  

Promote   Analyze  Compe(tors  

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TOPIC 2 : Marketing Environment and Analysis:

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Principles  of  Marke8ng  Chapter  2  

The  Marke8ng  Environment  

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PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

Microenvironment  Macroenvironment  Consumer  Markets  Business  Market  

Everybody  has  some  marke(ng  experience  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

Goals  

Concepts  

Key  words  

Case  Studies  

Prac8cal  examples  

Q&A  

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PNG  Ins(tute  of  Banking  and  Business  Management    

{  Commercial  Break  }  

Last  week  review…  

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PNG  Ins(tute  of  Banking  and  Business  Management    

People  need  and/or  want  something  

Marketers  will  charge  them  to  fulfill  that  

People  will  be  happy    

Marketers  will  profit  

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Brand  

Demand  

Need  

U(lity  

Value  

Want  

Promise  

Capacity  

Urgency  

Sa(sfac(on  

Extra  

Desire  

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PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng  Chapter  2  

The  Marke8ng  Environment  

OK,  We’re  back  

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I’ll  Xerox  it  for  you!  

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“One  thing  predictable  about  business  is  that  it  is  fundamentally  unpredictable”  ..in  Annual  Report  of  Xerox  

   

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Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

Microenvironment  Macroenvironment  Consumer  Markets  Business  Market  

Everybody  has  some  marke(ng  experience  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

Goals  

Concepts  

Key  words  

Case  Studies  

Prac8cal  examples  

Q&A  

1.  Understand the interaction between the market components

2.  Differentiate Consumer Markets vs. Business Markets

3.  Variables that affect the markets

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“Two  special  app(tude  to  have  as  marketers.  1.  Market  Research  2.     Market  Intelligence      

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Microenvironment  Macroenvironment  Consumer  Markets  Business  Market  

Goals  

Concepts  

Key  words  

Case  Studies  

Prac8cal  examples  

Q&A  

Microenvironment consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

Everybody  has  some  marke(ng  experience  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

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The forces inside the industry    

Porter’s  5  Forces  

Microenvironment  

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PNG  Ins(tute  of  Banking  and  Business  Management    

Microenvironment  Macroenvironment  Consumer  Markets  Business  Market  

Goals  

Concepts  

Key  words  

Case  Studies  

Prac8cal  examples  

Q&A  

Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

Everybody  has  some  marke(ng  experience  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

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Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

Top  management  Finance  Researck  &  Development  Purchasing  Opera(ons  Accoun(ng  

Resources  providers  

Help  the  company  to  promote,  sell  and  distribute  its  products  to  final  buyers.    

 

Those  companies  or  individuals  offering  the  same  

Any  group  that  has  an  actual  or  poten(al  interest  in  or  impact  on  an  organiza(on’s  ability  to  achieve  its  objec(ves.  Financial  publics,  Media  publics,  Government  publics,  Ci(zen-­‐ac(on  publics,  Local  publics,  General  public,  Internal  publics.  

 

Our  reason  to  exist  

Page 81: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

Bargaining    power  of    suppliers  

Threat  of  New    

entrants  

Threat  of  Subs(tute  products  

Bargaining    power  of    Customers  

Compe((on  

Page 82: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Microenvironment  Macroenvironment  Consumer  Markets  Business  Market  

Goals  

Concepts  

Key  words  

Case  Studies  

Prac8cal  examples  

Q&A  

Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

Everybody  has  some  marke(ng  experience  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

Page 83: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

human  popula(ons  in  terms  of  size,  density,  loca(on,  age,  gender,  race,  occupa(on.  Demographic  trends  include  age,  family  structure,  geographic  popula(on  shims,  educa(onal  characteris(cs,  and  popula(on  diversity.  consists  of  ins(tu(ons  and  other  forces  that  affect  a  society’s  basic  values,  percep(ons,  and  behaviors    

factors  that  affect  consumer  purchasing  power  and  spending  panerns  

involves  the  natural  resources  that  are  needed  as  inputs  by  marketers  or  that  are  affected  by  marke(ng  ac(vi(es.  Shortages  of  raw  materials  

Increased  pollu(on,  Increase  government  interven(on,  Environmentally  sustainable  strategies.  

Those  business,  products  or  individuals  offering  the  same  benefit.    

consists  of  laws,  government  agencies,  and  pressure  groups  that  influence  or  limit  various  organiza(ons  and  individuals  in  a  given  society  

Most  drama(c  force  in  changing  the  marketplace.  Creates  new  products  and  opportuni(es.    

Page 84: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

The forces Outside the industry    

Macroenvironment  

Page 85: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Microenvironment  Macroenvironment  Consumer  Markets  Business  Market  

Goals  

Concepts  

Key  words  

Case  Studies  

Prac8cal  examples  

Q&A  

Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

Everybody  has  some  marke(ng  experience  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

From  inven(ng  the  digital  camera  to  being  the  last  ones  using  it  

Page 86: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

Microenvironment  Macroenvironment  Consumer  Markets  Business  Market  

Everybody  has  some  marke(ng  experience  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

Goals  

Concepts  

Key  words  

Case  Studies  

Prac8cal  examples  

Q&A  

Consumer market consists of those who buy finished products and services. The end user. The buying decision maker.

Page 87: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

Microenvironment  Macroenvironment  Consumer  Markets  Business  Market  

Everybody  has  some  marke(ng  experience  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

Goals  

Concepts  

Key  words  

Case  Studies  

Prac8cal  examples  

Q&A  

Supply  

Surplus  

Buying  power  

Segmenta8on.The  consumer  market  can  be  split  into  age  groups,  ethnic  group,  or  buying  habits.  Each  group  has  needs  that  can  be  iden(fied.    

Reach.  Common  media  modes  are  television,  Internet,  or  print.  A  business  owner  can  determine  the  best  mix  of  media  for  reaching  his  market  by  determining  how  the  target  consumer  receives  his  daily  news  or  what  magazines  the  consumer  is  likely  to  read.  

B2C  

Page 88: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

Microenvironment  Macroenvironment  Consumer  Markets  Business  Market  

Everybody  has  some  marke(ng  experience  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

Goals  

Concepts  

Key  words  

Case  Studies  

Prac8cal  examples  

Q&A  

Services  

Som    goods  

Consumer    durables  

Fast-­‐moving    common    goods  

4  Types    of  Consumer    Products  

$  

$$$   $$$$  

$$  

Page 89: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

{  Commercial  Break  }  

This  (me  is  for  real…  

Page 90: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Who  needs  what  kind  of  adver(sing…  

How  do  I  posi(on  a  brand…    

 

 

Would  Bentley  adver(se  in  direct  mail  in  buildings  that  belong  to  Plan  8…  

Would  Plan  8  be  offered  at  the  exit  of  a  Bentley  dealer…  

Think:  

Page 91: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Brand  

Demand  

Need  

U(lity  

Value  

Want  

Remember?  

Reaching  the  Consumer  Market    

Assignment  

Page 92: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng  Chapter  2  

The  Marke8ng  Environment  

OK,  We’re  back.      Again.  

Page 93: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

Microenvironment  Macroenvironment  Consumer  Markets  Business  Market  

Everybody  has  some  marke(ng  experience  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

Goals  

Concepts  

Key  words  

Case  Studies  

Prac8cal  examples  

Q&A  

Growing  Consumer  Market  Segments  

Two  growing  consumer  market  segments  are  Hispanic  Americans  and  "green"  consumers.  

Hispanic  Americans  have  the  highest  birth  rate  in  the  country.  Green  consumers  choose  products  that  are  environment-­‐

friendly.  

For  adidas,  sustainability  is  not  just  a  response  or  responsibility  –  it’s  an  

opportunity  to  create  new  business  value  for  yourselves  and  your  

consumers!    

Page 94: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

Microenvironment  Macroenvironment  Consumer  Markets  Business  Market  

Everybody  has  some  marke(ng  experience  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

Goals  

Concepts  

Key  words  

Case  Studies  

Prac8cal  examples  

Q&A  

Business market consists of those who buy materials and services to manufacture new products or services. They are not the end user.

Page 95: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

Microenvironment  Macroenvironment  Consumer  Markets  Business  Market  

Everybody  has  some  marke(ng  experience  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

Goals  

Concepts  

Key  words  

Case  Studies  

Prac8cal  examples  

Q&A  

B2B  

Manufacturers  

Demand  

Inventory/Stock  

Buying/Purchasing  

Business  to  business  

Those  suitable  to  finish  a  product.  You  can  buy  wholesale  and  add  your  own  label.  

Forces  that  may  change  quality,  prices,  availability.    

Surplus  or  shortages.    

Purchasing  changes  the  final  result  of  any  transac(on  and  it’s  itself  a  marke(ng  response.  

Page 96: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

Microenvironment  Macroenvironment  Consumer  Markets  Business  Market  

Everybody  has  some  marke(ng  experience  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

Goals  

Concepts  

Key  words  

Case  Studies  

Prac8cal  examples  

Q&A  

Straight  Rebuy  

Modify  Rebuy  

New  Task  

Buying  Classifica8ons  

3  

By  towing  airplanes  between  gates  and  into  maintenance  facili(es,  American  is  saving  3.6  million  gallons  of  fuel.  

Page 97: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng   Chapter  2  The  Marke8ng  Environment  

Microenvironment  Macroenvironment  Consumer  Markets  Business  Market  

Everybody  has  some  marke(ng  experience  

The  marke8ng  environment  is  a  set  of  forces  that  affects  the  ability  to  build  and  maintain  successful  rela(onships  with  customers  

Goals  

Concepts  

Key  words  

Case  Studies  

Prac8cal  examples  

Q&A  

Feed  back  

Order  rou(ne  

Evalua(on  &  Selec(on  

Get  proposals  &  analize  

Search  for  sources  

Descrip(on  &  characteris(cs  

Determina(on  of  quan((es  and  specs  

Recogni(on  of  need  

Page 98: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng  Chapter  2  

The  Marke8ng  Environment  

Macroenvironment  

Microenvironment  

Business  Markets  

Consumer  Markets  

Page 99: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Principles  of  Marke8ng  Chapter  3  

MARKETING  STRATEGY  and  PLANNING    

Page 100: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Companywide Strategic Planning: Defining Marketing’s Role

Strategic planning : Process of developing and maintaining strategic fit between the organization’s goal and capabilities

Page 101: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Step in Strategic Planning

Planning  marke(ng  and  other  func(on  strategies  

Designing  business  poruolio  

Sevng  company  objec(ve  and  goal  

Defining  company  mission  

Corporate  Level  

Business  Unit,  Product,  and  

market  strategies  …

………….………………………  

Page 102: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

i.  Defining a Market-Oriented Mission

Mission statement:

Ø  statement of the organization purpose. Ø  market oriented and defined in terms of satisfying basic customer needs. Ø should be meaningful and specific yet motivating.

Page 103: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

ii. Setting Company Objective and Goals

Business Objectives - To build profitable customer relationships

- Investing heavily in research

- Heavy investment must funded the improved profit

Marketing Objectives - Increase market share

- Increase product availability and promotion

Page 104: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

iii. Designing the Business Portfolio Business Portfolio - Collection of businesses and product that make up the company.

- Is the one that best fits the company strengths and weaknesses to opportunities in the environment.

Portfolio Analysis - Process by which management evaluates the products and businesses that make up the company.

Page 105: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Cont…

Business portfolio involve two steps: 1.  Analyzing the current business portfolio.

2.  Developing strategies for growth and downsizing

Page 106: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Boston Consulting Group Approach

Page 107: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Problem with Matrix Approach ü Difficult to define SBUs and measure market share and grows ü time-consuming ü Costly to implement ü Focus on classifying current business, provide little advise for future planning.

Page 108: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Product / Market Expansion Grid

Market  penetra8on  

Market  development  

Product  development   Diversifica8on  

Page 109: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

 Product  /  market  expansion  grid  :  a  poruolio-­‐  planning  tool  for  iden(fying  company  growth  opportuni(es  through  market  penetra(on,  market  development,  product  development  or  diversifica(on.    Market  penetra8on  :  company  growth  by  increasing  sales  of  current  products  to  current  market  segments  without  changing  the  product.    Market  development:  Company  growth  by  iden(fying  and  developing  new  market  segments'  for  current  company  products.    Product  development:  Company  growth  by  offering  modified  or  new  products  to  current  market  segments.    Diversifica8on  :  Company  growth  through  star(ng  up  or  acquiring  businesses  outside  the  company’s  products  and  markets.  

Page 110: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Planning Marketing: Partnering to Build Customer Relationship

i.  Partnering with Other Company Departments.

ii.  Partnering with Others in the Marketing System

Page 111: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Value Chain : The series of internal departments that carry out value-creating activities to design, produce, market, deliver and support a firm’s products.

Value delivery Network : The network made up of the company, its suppliers, its distributors and ultimately, Its customers who partner with each other to improve the performance of the entire system.

Page 112: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

●  The  marke(ng  logic  by  which  the  company  hopes  to  create  customer  value  and  achieve  profitable  customer  rela(onship.    ●  The  company  designs  an  integrated  marke(ng  mix  made  up  of  factors  under  its  control  such  as  product,  price,  place  and  promo(on.    

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PNG  Ins(tute  of  Banking  and  Business  Management    

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PNG  Ins(tute  of  Banking  and  Business  Management    

 ●    To  succeed  in  today’s  compe((ve  marketplace,    companies  must  first  understand  customer  needs  and    wants.    ●  The  process  involves  :      Ø  Market  segmenta(on  Ø  Market  targe(ng  Ø  Differen(a(on  Ø  Posi(oning  

Page 115: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

MARKET  SEGMENTATION  

ü   Dividing  a  market  into  dis(nct  groups  of  buyers  who    have  different  needs,  characteris(cs,  or  behaviors,  and    might  require  separate  products  or  marke(ng  programs    ü   Market  segment  :  v   a  group  of  consumers  who  respond  in  a  similar  way  to    a  given  set  of  marke(ng  efforts.    

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PNG  Ins(tute  of  Banking  and  Business  Management    

§   Market  targe(ng  :    ü     The  process  of  evalua(ng  each  market  segment’s    anrac(veness  and  selec(ng  one  or  more  segments  to    enter.    §   Posi(oning  :  ü   Arranging  for  a  product  to  occupy  a  clear,  dis(nc(ve  and  desirable  place  rela(ve  to  compe(ng  products  in  the    minds  of  target  consumers.      §   Differen(a(on  :  ü   Actually  differen(a(ng  the  market  offering  to  create    superior  customer  value.  

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PNG  Ins(tute  of  Banking  and  Business  Management    

•   Marke(ng  mix  :  ü   the  set  of  tac(cal  marke(ng  tools  that  the  firm  blends    to  produce  the  response  it  wants  in  the  target  market.    Ø   product  –  the  goods  and  services  combina(on  the    company  offers  to  the  target  market.  Ø   Price  –  the  amount  of  money  customers  must  pay  to    obtain  the  product.  Ø   Place    –  company  ac(vi(es  that  make  the  product    available  to  target  customers.    Ø   Promo(on    –  ac(vi(es  that  communicate  the  merits  of    the  product  and  persuade  target  customers  to  buy  it.  

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PNG  Ins(tute  of  Banking  and  Business  Management    

Page 119: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

MANAGING THE MARKET EFFORT MANAGING MARKETING :

Analysis,Planning,Implementation & Control

Page 120: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Marketing Analysis

Use SWOT Analysis. S = strengths W = weaknesses O = opportunities T = threats

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PNG  Ins(tute  of  Banking  and  Business  Management    

Page 122: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Marketing Planning

Page 123: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Marketing Strategies Ø Specifict strategies for target markets,positioning,the marketing mix and marketing expenditures levels. Marketing Budgets Ø Outlines that used to control monitor progress,measure return on marketing investment and take corrective action.

Page 124: CBS MBA Workshop 1 @ IBBM

PNG  Ins(tute  of  Banking  and  Business  Management    

Marketing Implementation Is the process turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives. Marketing planning addresses the what and why the marketing activities,implementation addresses the who,where,when and how.

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Marketing Department Organization

Design marketing organizatios that can carry out marketing strategies and plans. Example ; Ø Chief marketing officers(CMO) position : head up the company marketing operations & represent marketing on the top management team.

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Ways Of Marketing Department Functional Organization ü Handle different marketing activities by specialities a sale manager,advertising manager,marketing research manager,customer services manager & new product manager.

Geographic Organization ü Sales and marketing people assigned to specifics country,regions and districts.

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Product Management Organization ü Manager of PMO develops and implements a complete strategy and marketing program for a specific product or brand.

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Market / Customer Management Organization ü Market managers are responsible for developing marketing strategies and plans for specifics market or customers

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Marketing Control Measuring & evaluating the results of marketing strategies and plans and taking corrective action to ensures that the objectives are achieved.

Operating Control

Ø Checking ongoing performance against the annual plan and taking corrective action when necessary.

Strategic Control

Ø Looking at wheter the company’s basic strategies are well matched to its opportunity.

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Measuring & Managing Return On Marketing Investment

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For More Information

•  Join E-communities

•  Network

•  Read Marketing journals and suggested reading material

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■  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- allows a firm to mass produce goods and services while adding unique features to individual or small groups of orders.

Marketing Mix for International Markets

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■ 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. ■ Business intelligence– activities and technologies for gathering, storing, and analyzing data to make better competitive decisions

Marketing Research

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Market Segmentation

■  Market segmentation– the process of dividing a total market into several relatively homogeneous groups.

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How Market Segmentation Works

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■ 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. (VALS) ■  AIO statements—people’s verbal descriptions of various attitudes, interests,

and opinions

■ Product-Related Segmentation ■  Divides market based on buyer’s relationship to the good or service.

■  based on benefits sought by buyers, usage rates, and loyalty levels

Segmenting Consumer Markets

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■ 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.

Segmenting Business Markets

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■ 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

■  External factors: economic events

■ Business buying behavior- often includes a variety of influences from multiple decision makers.

Determining What Customers Want

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Steps in Consumer Behavior

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■ 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.

■ Relationship marketing seeks to achieve customer satisfaction.

Relationship Marketing

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■ Lower costs and higher profits for the business. ■ Efficient targeting of best customers increases the lifetime value of a customer.

■  revenues and intangible benefits (referrals and customer feedback) from a customer over the life of the relationship, minus the amount the company must spend to acquire and serve that customer.

■ Stronger relationships with business partners and opportunities to combine capabilities and resources to better accomplish goals.

Benefits of Relationship Marketing

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■ 80/20 principle: frequent customers have a higher lifetime value, so businesses allocate resources accordingly ■ Frequency marketing: reward purchasers with cash, rebates, and other premiums (TGI Fridays reward program) ■ Affinity programs: solicit involvement based on common interest ■ Comarketing: businesses jointly market each others’ products ■ Cobranding: firms link their names in a single product

Tools for Nurturing Customer Relationships

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■ Customizing products and marketing and rapidly delivering goods.

■ Customer relationship management software helps companies gather, sort, and interpret data about specific customers.

One-to-One Marketing