The Art and Science of Marketing Chapter 13

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Learning Objectives Define marketing and explain its role in society Identify three trends that help define contemporary marketing Differentiate between consumer buying behavior and organizational buying behavior Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Learning Objectives (cont.) Define strategic marketing planning and identify the four basic options for pursuing new marketing opportunities Identify the four steps in crafting a marketing strategy Describe the four main components of the marketing mix Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Marketing in a Changing World 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 Hall

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 Hall

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 Hall

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 Hall

The Role of Marketing in Society (cont.) Utility The power of a good or service to satisfy a human need Form, time, place, possession When organizations change raw materials into finished goods, they are creating form utility desired by consumers. In other cases, marketers try to make their products available when and where customers want to buy them, creating time utility and place utility. The final form of utility is possession utility—the satisfaction that buyers get when they actually possess a product, both legally and physically. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Examples of the Four Utilities Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 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 Hall

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 Hall

The Selling Concept Versus the Marketing Concept Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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 Hall

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 Hall

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 Hall

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 Hall

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 Hall

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 Hall

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Buyer Decision Making Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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 Hall

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Purchase Influences Culture Socioeconomic level Reference groups Situational factors Self-image Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

The Organizational Customer Decision Process An emphasis on economic payback and other rational factors A formal buying process Greater complexity in product usage The participation and influence of multiple people Close relationships between buyers and sellers Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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 Hall

The Strategic Marketing Planning Process Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Pursuing Market Opportunities Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Crafting a 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 Hall

Dividing Markets into Segments 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 Hall

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 Hall

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 Hall

Choosing Your 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 Hall

Market-Coverage Strategies Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall The Marketing Mix Marketing Mix The four key elements of marketing strategy: product, price, distribution, and customer communication Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

The Marketing Mix (cont.) Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

The Marketing Mix (cont.) Distribution Channels Systems for moving goods and services from producers to customers Also known as marketing channels Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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 Hall

Applying What You’ve Learned Define marketing and explain its role in society Identify three trends that help define contemporary marketing Differentiate between consumer buying behavior and organizational buying behavior Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Applying What You’ve Learned (cont.) Define strategic marketing planning and identify the four basic options for pursuing new marketing opportunities Identify the four steps in crafting a marketing strategy Describe the four main components of the marketing mix Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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