Building Customer Relationships Through Effective Marketing Chapter Twelve Building Customer Relationships Through Effective Marketing

Learning Objectives Understand the meaning of marketing and the importance of management of customer relationships. Explain how marketing adds value by creating several forms of utility. Trace the development of the marketing concept and understand how it is implemented. Understand what markets are and how they are classified. Identify the four elements of the marketing mix and be aware of their importance in developing a marketing strategy. Copyright © Cengage Learning. All rights reserved.

Learning Objectives (cont’d) Explain how the marketing environment affects strategic market planning. Understand the major components of a marketing plan. Describe how market measurement and sales forecasting are used. Distinguish between a marketing information system and marketing research. Identify the major steps in the consumer buying decision process and the sets of factors that may influence this process. Copyright © Cengage Learning. All rights reserved.

Chapter 12 Outline Managing Customer Relationships Utility: The Value Added by Marketing The Marketing Concept Evolution of the Marketing Concept Implementing the Marketing Concept Markets and Their Classification Developing Marketing Strategies Target Market Selection and Evaluation Creating a Marketing Mix Marketing Strategy and the Marketing Environment Developing a Marketing Plan Copyright © Cengage Learning. All rights reserved. 12 | 4

Chapter 12 Outline (cont’d) Market Measurement and Sales Forecasting Marketing Information Marketing Information Systems Marketing Research Using Technology to Gather and Analyze Marketing Information Types of Buying Behavior Consumer Buying Behavior Business Buying Behavior Copyright © Cengage Learning. All rights reserved. 12 | 5

Marketing The activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large Copyright © Cengage Learning. All rights reserved.

Managing Customer Relationships Relationship marketing Customer relationship management (CRM) Customer lifetime value Copyright © Cengage Learning. All rights reserved.

Utility: The Value Added by Marketing The ability of a good or service to satisfy a human need Form utility Place utility Time utility Possession utility Copyright © Cengage Learning. All rights reserved.

The Marketing Concept A business philosophy that involves the entire organization in the process of satisfying customers’ needs while achieving the organization’s goals To achieve success, a business must Talk to its potential customers to assess their needs Develop a good or service to satisfy those needs Continue to seek ways to provide customer satisfaction Copyright © Cengage Learning. All rights reserved.

Implementing the Marketing Concept Obtain information about present and potential customers Their needs; how well those needs are being satisfied; how products might be improved; customer opinions about the firm Pinpoint specific needs and potential customers toward which to direct marketing activities and resources Copyright © Cengage Learning. All rights reserved.

Implementing the Marketing Concept (cont’d) Mobilize marketing resources to Provide a product that will satisfy customers Price the product at an acceptable and profitable level Promote the product to potential customers Ensure distribution for product availability when and where wanted Obtain information on the effectiveness of the marketing effort and modify efforts as necessary Copyright © Cengage Learning. All rights reserved.

Markets and Their Classification Consumer markets Business-to-business (industrial) markets Copyright © Cengage Learning. All rights reserved.

Developing Marketing Strategies Marketing strategy Consists of The selection and analysis of a target market The creation and maintenance of an appropriate marketing mix (a combination of product, price, distribution, and promotion developed to satisfy a particular target market) Copyright © Cengage Learning. All rights reserved.

Developing Marketing Strategies (cont’d) Target market selection and evaluation Target market Market segment Market segmentation Copyright © Cengage Learning. All rights reserved.

Developing a Marketing Plan A written document that specifies an organization’s resources, objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group Elements of a marketing plan Executive summary Environmental analysis Strengths and weaknesses Opportunities and threats Marketing objectives Marketing strategies Marketing implementation Evaluation and control Copyright © Cengage Learning. All rights reserved.

Market Measurement and Sales Forecasting Importance of measuring sales potential Estimates should do several things Copyright © Cengage Learning. All rights reserved.

Marketing Information Marketing information system Internal data sources External data sources Outputs Copyright © Cengage Learning. All rights reserved.

Marketing Information (cont’d) The six steps of marketing research Define the problem Make a preliminary investigation Plan the research Gather factual information Interpret the information Reach a conclusion Copyright © Cengage Learning. All rights reserved.

Types of Buying Behavior The decisions and actions of people involved in buying and using products Consumer buying behavior Business buying behavior Copyright © Cengage Learning. All rights reserved.

The American Consumer Consumer income Personal income Disposable income Discretionary income Copyright © Cengage Learning. All rights reserved.