Marketing - ►In the factory we make cosmetics but in my...

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Unformatted text preview: ►In the factory we make cosmetics, but in my stores we sell hope. Charles Revson, founder of Revlon Cosmetics BADM101 BADM101 Marketing Fundamentals Overview Overview ► Definition ► What is a market ► Steps in a marketing system ► Researching consumer buying behavior ► Product life cycle ► Distribution Definition Definition ► Formal: Marketing is a total system of business activities designed to plan, price, promote and distribute “want­satisfying” goods and services to present and potential customers ► Informal: Marketing involves: ►finding out what people want ►then planning and developing a product or service which will satisfy those wants ►and then determine the best way to price, Stanton: Fundamentals of Marketing Steps in Marketing Steps in Marketing Determine the wants Develop the Product/Service Price & Promote Marketing is a System Marketing is a System product & services communication with market Company feedback payments Target Market Marketing is Consumer Marketing is Consumer Oriented ► What business does the company think it is in? Company Production oriented Marketing oriented Universal Studios Lennox Head Ski Chico Outlaws make movies make furnaces make skis baseball Entertainment Climate Control Recreation Family Entertainment Which answer targets customers? What is a Market? What is a Market? ► A set of potential consumers with needs and the wherewithal to satisfy those needs ► Usually, companies define specific characteristics which their products or services will satisfy thereby segmenting the market. Benefits to Segmenting Benefits to Segmenting ► Channel more profitable markets ► Designing products for that segment ► More specific promotional appeals ► Better understand the consumer Ways to Segment Ways to Segment ► Demographics region of country age sex ► Disposable Income ► Expenditure Patterns ► Sociological Groups Consumer Buying Behavior Consumer Buying Behavior ► Marketing must acknowledge the changes occurring in the consumer market Cultural change Quality of life: attitudes toward work and pleasure Role of women Home and family life Impulse buying Desire for convenience How Consumers Adopt How Consumers Adopt New Products 34% Early Adopters Innovators 2.5% 34% Early Late Majority Majority Laggards 16% 13.5% Time to adoption Model for Buying Behavior Model for Buying Behavior ► Recognition of unsatisfied need ► Identify alternative means to satisfy need ► Evaluate alternatives ► Purchase decision ► Post purchase behavior Influences on Buying Behavior Influences on Buying Behavior ► Personality ► Past Experiences ► Attitudes ► Beliefs ► Perception of Self One Model One Model Identify Need Identify Alternatives Evaluate Alternatives Purchase Influences Post purchase Behavior Marketing Research: Marketing Research: Major Steps in Determining the Wants ► Determine problem to research ► Select sources of information ► Select methods for gathering data ► Prepare data gathering ► Collect data ► Analyze data One Method to Gather Data: One Method to Gather Data: Questionnaires ► The role of questionnaires is to identify the wants (desires, preferences, needs) of a market or market segment. ► A questionnaire is a series of questions designed to obtain unambiguous information. ► The data should provide information by which to develop market segments Questions Questions ► Topics Demographics Wants Benefits Preferences ► Wording prejudicial wording ambiguous ► Order Types of Questions Types of Questions ► Open ended ► Multiple Choice ► Yes/No : True/False ► Liker (Strongly Agree Agree Neutral Disagree Strongly ) ► Scale ( 1­ 10) ► Allocation ► Rank Order ► Pair wise Comparison Disagree Develop the Product/Service Develop the Product/Service (end here) ► Once the wants are defined, you must develop the product or service to satisfy that want. ► Companies usually look to add similar products making a product line add new products creating a product mix Product Lines Product Lines ► Companies using product differentiation ask customers to choose between like products usually supplied from different companies (Red Bull & Rock Star) ► Companies using product segmentation try to provide consumers products matched to their demand (Diet Pepsi) Product Life Cycle Product Life Cycle Products have a life cycle. They grow, mature and phase out over time. Marketing must be aware of and plan for the removal of declining products Introduction Growth Maturity Saturation Decline Managing the Life Cycle Managing the Life Cycle ► Planned Obsolescence/Creative Destruction Technological ►jet engines make propeller planes obsolete ►Apple’s IPOD Postponed ►technological improvements wait for predecessors to decline Style ►fad: make market feel out of date Managing the Life Cycle Managing the Life Cycle ► Innovate Innovate Innovate! To what end? ►Is it innovation or because they meet a desired need that drives new (or improved) products to growth? ►IPOD vs. Purple Ketchup ►TiVo vs. Crystal Pepsi Innovation for innovations sake isn’t a cure all Product Features Product Features ► Brand names ► Trademarks ► Packaging ► Design ► Warranty ► Color ► Quality Price & Promote Price & Promote ► The main objectives are: achieve ROI stabilize prices maintain and improve market share ►Toyota: $300 million on TUNDRA meet or prevent competition maximize profits Wal­Mart’s Failure Wal­Mart’s Failure ►Tried to upscale via: Vogue The Hub (a social networking site) RV Bloggers Maximize Profits Maximize Profits ► Forces constraining prices: competition substitute products government public outrage ►Again: Toyota market strategy Wholesalers vs. Retailers Distribution of Products Distribution of Products ► A path or route taken by a product as it moves from producer to ultimate end­user is a distribution or trade channel. Producer Wholesaler Retailer End User Some Distribution Channels Some Distribution Channels ► Manufacturer agents salespeople hired directly by producer ► Brokers traditional real estate sales ► Value Added Retailers take a product and add value to it by customizing Customer Service Customer Service ► Understanding the experience Encompasses every aspect of an offering ►Customer Care ►Advertising ►Packaging ►Features ►Ease of use ►Reliability Customer Service Customer Service ► Majority of companies believe they offer superior experiences to customers Most customers disagree Customer Service Customer Service ► Suggestions for improvement Monitor: ► Past Patterns Evaluate completed transactions ► Present Patterns Current relationships ► Potential Patterns Conduct inquiries in the hope of finding new opportunities Customer Service Customer Service ► Collect Data at various “touch­points” Surveys Interviews Focus Groups Online Forums Customer Service Customer Service ► Why all the focus and attention? To some people customer service is everything! Customer Service Customer Service Best Practices: The Customer Service Elite Business Week 3/5/2007 USAA: Insurance Four Seasons Hotels Cadillac Nordstrom Lexus UPS Enterprise Rent­A­Car Southwest Airlines T­Mobile Customer Service Customer Service ► Best Practices: The Customer Service Elite Business Week 3/5/2007 Starbucks! JetBlue Current Marketing News Current Marketing News ► The rotating door of the CMO Coca­Cola Wal­Mart Best Buy Gap Verizon They’ve all replaced numerous CMO in recent years Current Marketing News Current Marketing News ► Marketing as a job enrichment tool McDonald’s ►It’s not just a job….. Summary Summary ► Marketing is a total system of business activities designed to plan, price, promote and distribute “want­satisfying” goods and services to present and potential customers ► Identify wants through market research ► Deliver product allowing for price adoption process product life cycle distribution channels Suggested Reading Suggested Reading ► “Made to Stick” Chip & Dan Heath Book is about what makes a message work ...
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This note was uploaded on 11/02/2011 for the course BUSINESS 101 taught by Professor Helen during the Spring '11 term at CSU Chico.

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