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Business in Business in Action 6e Action 6e Bovée/ThillBovée/Thill
The Art and The Art and Science of Science of MarketingMarketing
Chapter 13Chapter 13
Learning Objectives
1. Define marketing and explain its role in society
2. Identify three trends that help define contemporary marketing
3. Differentiate between consumer buying behavior and organizational buying behavior
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-2
Learning Objectives (cont.)
4. Define strategic marketing planning and identify the four basic options for pursuing new marketing opportunities
5. Identify the four steps in crafting a marketing strategy
6. Describe the four main components of the marketing mix
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-3
Marketing in a Changing World
Marketing The process of creating value for customers
and building relationships with those customers in order to capture value back from them
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-4
Marketing in a Changing World
Place Marketing Marketing efforts to
attract people and organizations to a particular geographical area
Cause-Related Marketing Identification and
marketing of a social issue, cause, or idea to selected target markets
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-5
The Role of Marketing in Society
Needs Differences between a person’s actual state
and his or her ideal state; they provide the basic motivation to make a purchase
Wants Specific goods, services, experiences, or
other entities that are desirable in light of a person’s experiences, culture, and personality
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-6
The Role of Marketing in Society (cont.)
Exchange Process The act of obtaining a desired object or
service from another party by offering something of value in return
Transaction An exchange of value between parties
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-7
The Role of Marketing in Society (cont.)
Utility The power of a good or service to satisfy a
human need Form, time, place, possession
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Examples of the Four Utilities
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The Marketing Concept
Marketing Concept An approach to business management that
stresses customer needs and wants, seeks long-term profitability, and integrates marketing with other functional units within the organization
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-10
The Marketing Concept (cont.)
Relationship Marketing A focus on developing and maintaining long-
term relationships with customers, suppliers, and distribution partners for mutual benefit
Customer Loyalty The degree to which customers continue to
buy from a particular retailer or buy the products of a particular manufacturer or service provider
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-11
The Selling Concept Versus the Marketing Concept
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Challenges in Contemporary Marketing
Involving the customer in the marketing process
Making data-driven decisions Conducting marketing activities with
greater concern for ethics and etiquette
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-13
Involving the Customer
Customer Relationship Management (CRM) A type of information system that captures,
organizes, and capitalizes on all the interactions that a company has with its customers
Social Commerce The creation and sharing of product-related
information among customers and potential customers
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-14
Making Data-Driven Decisions
Marketing Research The collection and analysis of information for
making marketing decisions
Observation, surveys, interviews, focus groups
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-15
Marketing with Greater Concern for Ethics and Etiquette
Permission-Based Marketing A marketing approach in which firms first ask
permission to deliver messages to an audience and then promise to restrict their communication efforts to those subject areas in which audience members have expressed interest
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-16
Marketing with Greater Concern for Ethics and Etiquette (cont.)
Stealth Marketing The delivery of marketing messages to
people who are not aware that they are being marketed to; these messages can be delivered by either acquaintances or strangers, depending on the technique
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-17
Understanding Today’s Customers
Consumer Market Individuals or households that buy goods and
services for personal use
Organizational Market Companies, government agencies, and other
organizations that buy goods and services either to resell or to use in the creation of their own goods and services
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-18
The Consumer Decision Process
Cognitive Dissonance Tension that exists when a person’s beliefs
don’t match his or her behaviors; a common example is buyer’s remorse, when someone regrets a purchase immediately after making it
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-20
The Organizational Customer Decision Process
An emphasis on economic payback and other rational factors
A formal buying processGreater complexity in product usageThe participation and influence of multiple
peopleClose relationships between buyers and
sellers
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-22
Identifying Market Opportunities
Strategic Marketing Planning The process of examining an organization’s
current marketing situation, assessing opportunities and setting objectives, and then developing a marketing strategy to reach those objectives
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-23
The Strategic Marketing Planning Process
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Pursuing Market Opportunities
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Crafting a Marketing Strategy
Marketing Strategy An overall plan for marketing a product;
includes the identification of target market segments, a positioning strategy, and a marketing mix
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-26
Dividing Markets into Segments
Market A group of customers who need or want a
particular product and have the money to buy it
Market Segmentation The division of a diverse market into smaller,
relatively homogeneous groups with similar needs, wants, and purchase behaviors
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-27
Dividing Markets into Segments
Demographics The study of
statistical characteristics of a population
Psychographics Classification of
customers on the basis of their psychological makeup, interests, and lifestyles
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-28
Dividing Markets into Segments
Geographic Segmentation Categorization of
customers according to their geographical location
Behavioral Segmentation Categorization of
customers according to their relationship with products or response to product characteristics
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-29
Choosing Your Target Markets
Target Markets Specific customer groups or segments to
whom a company wants to sell a particular product
Undifferentiated, differentiated, concentrated, and individualized
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-30
Market-Coverage Strategies
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Staking Out a Position in Your Target Markets
Positioning Managing a business in a way designed to
occupy a particular place in the minds of target customers
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The Marketing Mix
Marketing Mix The four key elements of marketing strategy:
product, price, distribution, and customer communication
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The Marketing Mix (cont.)
Product A bundle of value
that satisfies a customer need or want
Price The amount of
money charged for a product or service
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The Marketing Mix (cont.)
Distribution Channels Systems for moving goods and services from
producers to customers
Also known as marketing channels
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The Marketing Mix (cont.)
Promotion A wide variety of persuasive techniques used
by companies to communicate with their target markets and the general public
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-37
Applying What You’ve Learned
1. Define marketing and explain its role in society
2. Identify three trends that help define contemporary marketing
3. Differentiate between consumer buying behavior and organizational buying behavior
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-38
Applying What You’ve Learned (cont.)
4. Define strategic marketing planning and identify the four basic options for pursuing new marketing opportunities
5. Identify the four steps in crafting a marketing strategy
6. Describe the four main components of the marketing mix
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall13-39