© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Twelve Building Customer Relationships Through Effective Marketing 12 | 1

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives 1. Understand the meaning of marketing and the importance of management of customer relationships 2. Explain how marketing adds value by creating several forms of utility 3. Trace the development of the marketing concept and understand how it is implemented 4. Understand what markets are and how they are classified 5. Identify the four elements of the marketing mix and be aware of their importance in developing a marketing strategy 12 | 2

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (cont’d) 6. Explain how the marketing environment affects strategic market planning 7. Understand the major components of a marketing plan 8. Describe how market measurement and sales forecasting are used 9. Distinguish between a marketing information system and marketing research 10. Identify the major steps in the consumer buying decision process and the sets of factors that may influence this process 12 | 3

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing  Define Marketing  Know the Major Marketing Functions Exchange Functions Physical Distribution Functions Facilitating Functions 12 | 4

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Managing Customer Relationships  Define Relationship Marketing Customer Relationship Management (CRM) Customer Lifetime Value Utility -Know the types of utility: Form, Place, Time, and Possession Utility 12 | 5

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Marketing Concept  What is the Marketing Concept?  When seeking to utilize the marketing concept, what must businesses do to achieve success?  Be prepared to discuss the Evolution of the Marketing Concept What were its origins? Before the development and widespread adoption of the marketing concept, what orientations prevailed in businesses?  Be familiar with how businesses implement the marketing concept 12 | 6

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Classifying Markets  Define Market Consumer Markets Business-to-Business (Industrial) Markets Producer Markets Reseller Markets Governmental Markets Institutional Markets 12 | 7

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Developing Marketing Strategies  Define Marketing Strategy -What are the components of a marketing strategy? Target Market Market Segment Market Segmentation 12 | 8

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. General Approaches for Selecting Target Markets  Be familiar with the different approaches for selecting target markets Undifferentiated Approach Concentrated Market Segmentation Approach Differentiated Market Segmentation Approach  Know the common bases of market segmentation Demographic Psychographic Geographic Behavioristic 12 | 9

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Marketing Mix and the Marketing Environment 12 | 10  Know the variables of the Marketing Mix and the Marketing Environment  Which of these variables are controllable?  Which are uncontrollable?

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Developing a Marketing Plan  Define Marketing Plan  Be prepared to list and explain the Elements of a Marketing Plan Executive Summary Environmental Analysis Strengths and Weaknesses Opportunities and Threats Marketing Objectives Marketing Strategies Marketing Implementation Evaluation and Control 12 | 11

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market Measurement and Sales Forecasting  What is a Sales Forecast? What is involved in developing a sales forecast?  Why is it important to measure sales potential?  What should sales estimates do? 12 | 12

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Marketing Information  Define Marketing Information System What are examples of internal and external data sources?  What are Outputs?  Be able to list and discuss the Six Steps of Marketing Research 1.Define the problem 2.Make a preliminary investigation 3.Plan the research 4.Gather factual information 5.Interpret the information 6.Reach a conclusion 12 | 13

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Technology  Know how businesses utilize technology to gather and analyze marketing information  What are other sources of secondary data? 12 | 14

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Buying Behavior  Define Buying Behavior Consumer Buying Behavior Business Buying Behavior Be prepared to discuss the consumer buying decision process and possible influences on the process 12 | 15

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Buying Behavior (cont’d)  What is Consumer Income? Be able to distinguish between -Personal Income -Disposable Income -Discretionary Income 12 | 16