Bus%20Tech%20100%20Ch%2011[1] - Chapter 11 – Chapter...

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Unformatted text preview: Chapter 11 – Chapter Understanding the Customer and Creating Goods and Services that Satisfy Satisfy Chapter 11 Learning Goals What are the marketing concept and relationship building? How do managers create a marketing strategy? What is the marketing mix? How do consumers and organizations make buying decisions? Chapter 11 Learning Goals Chapter (cont’d.) (cont’d.) What are the five basic forms of market segmentation? How is marketing research used in marketing decision making? What are the trends in understanding the consumer? Marketing Creating exchanges by using the “right” principle Marketing Concept • • • • Focus on customer wants Act in order to satisfy customer wants Achieve goals by satisfying customer wants Commitment to Customer value Customer satisfaction Building relationships Understand needs of the agricultural farmer customer Provide good products that rarely fail Quickly repair any problem equipment Develop products based on what farmers want Extend credit to farmers if needed; build trust and loyalty Provide information that increases customer value John Deere’s Customer John Orientation Source: Neff & Citrin, Lessons from the Top, 1999, p. 47-53. Creating a Marketing Strategy 1. 2. 3. 4. How is a marketing strategy created? Understanding the external environment Defining the target market Creating a competitive advantage Developing a marketing mix Understanding the External Understanding Environment Environment Environmental Scanning Environmental data that shape decision making • • • • • • Social forces Demographic forces Economic forces Technological forces Political & legal forces Competitive forces Defining the Target Market The specific consumers a company directs its marketing toward Focuses efforts to those most likely to buy the product or service Creating a Competitive Advantage Unique features that consumers perceive as better than the competition Types of competitive advantage • • • Cost competitive advantage Differential competitive advantage Niche competitive advantage Developing a Marketing Mix The four P’s • • • • Product Price Promotion Place Each target market has an unique marketing mix Product Strategy Deciding what the company is going to market • • • • • • • Good and/or Service Brand name Packaging Color Accessories Warranty Service program Consumers buy products for what they do as well as what they mean Pricing Strategy How much will the company charge for the product? Based on demand for product and the cost to produce it Other considerations also influence price • • • Introductory price Enter low and stay low Enter high and lower over time Distribution Strategy How will the product flow from producer to consumer? • • • How many stores will sell it? Which wholesalers & retailers will sell it? In what geographic area will the product be sold? Promotion Strategy How will consumers find out about the product? • • • • Personal selling Advertising Public relations Sales promotion A good promotion strategy can greatly increase sales 360° Branding 360° branding: making a strong brand impact on the customer every time contact is made Opportunities for 360° branding: Ogilvy & Mather advertising agency applies 360° branding to its clients • showrooms, advertisements, web pages, retail locations, packaging, customer service Source: Neff & Citrin, Lessons from the Top, 1999, p. 221-227. Not for Profit Marketing Same concepts apply Social Marketing • Goals: Effect social change, further social causes, evaluate the relationship between marketing & society Buyer Behavior Must understand how consumers make buying decisions Allows marketers to create a more effective marketing mix Buyer Behavior: Consumer Decision-Making 1. Sense stimulus 2. Recognize problem 3. Search for information Individual & Social factors 4. Evaluate alternatives 5. Purchase product 6. Evaluate outcome 7. Post-purchase behavior Memory Factors that influence consumer Factors decision making decision Individual factors • • Social Factors Within and unique to the consumer Perception, beliefs, attitudes, values, learning, self­concept, personality • Interaction of consumer and external environment • Family, opinion leaders, social class, culture Business to Business Purchases Businesses buy goods for different purposes and reasons Characteristics • • • • • Higher purchase volumes Fewer buyers More concentrated location of buyers Direct distribution Rational purchase decisions Examples of Business-toBusiness Advertisers 1. AT&T Corp. 2. IBM Corp. 3. Microsoft Corp. 4. Compaq Computer Corp. 5. MCI Communications Corp. 6. Hewlett­Packard Co. 7. Sprint Corp. 8. American Express Co. 9. Canon 10. 3Com Corp. Source: Business Marketing, www.businessmarketing.com Market Segmentation Type Demographic Geographic Psychographic Benefit Volume age, education, gender, income, race, family, size regional location (i.e., midwest), population density, city/county size, climate lifestyle, personality, interests, values, attitudes benefits provided by the good or service amount of use (light to heavy) General characteristics Marketing Research The Marketing Research Process • • Define the marketing problem Chose a method of research • Collect the data Survey, observations, experiment Primary, secondary • • Analyze the data Make recommendations Trends in Marketing New Technology • • Database Marketing­­micromarketing Advanced Observation Research Methods Decision Support Systems • A customized & individualized message can be sent to each consumer through direct mail at the same time Review • • • • • • • The Marketing Concept Marketing Strategy Marketing Mix Buyer Behavior Market Segmentation Marketing Research Trends The 4 P’s Looking Ahead • Developing the Marketing Mix ...
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