Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning

What is Marketing Chapter 1

Marketing and Exchange Marketing is an exchange between a firm and customer Customer The company offers benefits to its customers, and seeks profits. The customer seeks benefits from the company, and expects to pay. Company

Orientations Product/Production Selling Orientation Marketing/Customer Build a better mousetrap Selling Orientation Let’s make a Deal Marketing/Customer Building relationships with the customer

Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results Quantify results when possible

Marketing Framework Customers Company Who are they? What are they like? Do we want to draw different customers? Company What are our strengths and weaknesses? What customer benefits can we provide?

Marketing Framework Context Collaborators What is happening in our industry that might reshape our future business? Collaborators Can we address our customers’ needs while strengthening our B2B partnerships?

Marketing Framework Competitors Who are the competitors we must consider? What are their likely actions and reactions?

Marketing Framework Segmentation Targeting Positioning Customers aren’t all the same; they vary in their preferences, needs, and resources Targeting Attracting some of those customers makes better sense than going after others Positioning Communicate your benefits clearly to your intended customers

Marketing Framework Product Price Will customers want what your company is prepared to produce? Price Will customers pay what you’d like to charge?

Marketing Framework Place Promotion Where and how will customers purchase your market offering? Promotion What can you tell your customers or do for them to entice them to purchase?

Framework Considerations 5 Cs, STP and 4 Ps are interdependent Marketers must understand how one decision impacts other decisions The 5 Cs are in flux Marketers must consistently monitor and adjust strategy accordingly

Types of Shopping

Purchase Decision Making

Models for How Buyers Decide Lexicographic method Compare brands by most important attribute; brands that make the cut go into consideration set; then compare on next important attribute, etc. Average method One attribute can’t make or break a brand Use attribute importance Assists with segmentation

B2B Customers Classifications Installations Accessories Raw materials Components Business services Most important classification is whether a business cares about a purchase

B2B Customers More complex decision making due to different roles within a business: Initiators Users Influencers Buyers Each role may sleek slightly different attributes