NETA PowerPoint Presentations to accompany The Future of Business Fourth Edition Adapted by Norm Althouse, University of Calgary Copyright © 2014 by Nelson Education Ltd.

Marketing: The Customer Focus Chapter 13 Copyright © 2014 by Nelson Education Ltd.Chapter 13

Copyright © 2014 by Nelson Education Ltd. Making the Connection

Learning Outcomes 1. Define marketing concept and relationship marketing. 2. Show how managers create a marketing strategy. 3. Explain the marketing mix. 4. Summarize how consumers and organizations make buying decisions. 5. List the five basic forms of market segmentation. 6. Identify how marketing research is used in marketing decision making. 7. List some of the trends in understanding the consumer. Copyright © 2014 by Nelson Education Ltd.4

Basic Terms Copyright © 2014 by Nelson Education Ltd.5  Marketing – The process of discovering the needs and wants of potential buyers and customers and then providing goods and services that meet or exceed their expectations.  Products – In marketing, any good or service, along with its perceived attributes and benefits, that creates value for the customer.  Exchange – The process in which two parties give something of value to each other to satisfy their respective needs.

The “Right” Principle Copyright © 2014 by Nelson Education Ltd.6 Getting the “right” products (goods or services) >>> To the “right” people (customers) >>> At the “right” place, time, and price >>> Using the “right” promotion techniques >>>

Define marketing concept and relationship marketing. Copyright © 2014 by Nelson Education Ltd.7

Core Value Proposition Copyright © 2014 by Nelson Education Ltd.8 A statement of the tangible results a customer receives from using your products. The five value drivers are: 1. Idea – What does your product do for the customer? 2. Benefit – What is the benefit to your customer? 3. Target – How can you segment the various customer groups? How do you reach them? 4. Perception – How do you want to be perceived by your customer, the public, or other stakeholders? 5. Outcome (Reward) – What are the net results for the company?

The Marketing Concept Copyright © 2014 by Nelson Education Ltd.9 Identify consumer needs and produce the goods or services that will satisfy them while make a profit for the organization.

The Marketing Concept Copyright © 2014 by Nelson Education Ltd.10 Focus on customer wants so the organization can distinguish its products from the competition’s products. Integrate all of the organization’s activities to satisfy these wants. Achieve the long-term goals of the organization by satisfying customer wants and needs legally and responsibly.

Copyright © 2014 by Nelson Education Ltd.11 Customer Value Customer Satisfaction Building Relationships Ratio of benefits to the sacrifices necessary to obtain those benefits, as determined by the customer. The customer’s feeling that a product has met or exceeded expectations. A strategy that focuses on forging long- term partnerships with customers by offering value and providing customer satisfaction.

Show how managers create a marketing strategy. Copyright © 2014 by Nelson Education Ltd.12

Creating a Marketing Strategy Copyright © 2014 by Nelson Education Ltd.13 Creating a customer-focused marketing strategy involves four main steps: 1. Understanding the external environment. 2. Defining a target market. 3. Creating a competitive advantage. 4. Developing a marketing mix.

External Environment Copyright © 2014 by Nelson Education Ltd.14

Target Market Copyright © 2014 by Nelson Education Ltd.15 Target Market The specific group of consumers toward which a company directs its marketing efforts. THINKSTOCK/GETTY IMAGES

Competitive Advantage Copyright © 2014 by Nelson Education Ltd.16 A set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition (differential advantage). DifferentialAbility to provide a unique product. Niche Ability to target and serve a single segment. CostAbility to produce a product at a lower cost.

Explain marketing mix. Copyright © 2014 by Nelson Education Ltd.17

Marketing Mix Copyright © 2014 by Nelson Education Ltd.18 Elements of the Marketing Mix “The Four Ps” Elements of the Marketing Mix “The Four Ps” Product Price Place (Distribution) Promotion

Product Strategy Copyright © 2014 by Nelson Education Ltd.19  Brand name  Packaging  Colours  Warranty  Accessories  Services program AP PHOTO/THE CANADIAN PRESS(STEW MILNE)

Pricing Strategy Copyright © 2014 by Nelson Education Ltd.20 Based on the demand for the product and the cost of producing it. $$$$$$$$$$$$$$$$$$$$$$$$$$ Also, special considerations can influence the price.

Distribution Strategy (Place) Copyright © 2014 by Nelson Education Ltd.21 Creating the means (channels) by which a product flows from the producer to the customer.

Promotion Strategy Copyright © 2014 by Nelson Education Ltd.22  Personal selling  Advertising  Public relations  Sales promotion

Summarize how consumers and organizations make buying decisions. Copyright © 2014 by Nelson Education Ltd.23

Exhibit 13.2: Consumer Decision-Making Process Copyright © 2014 by Nelson Education Ltd.24

Decision-Making Influences Copyright © 2014 by Nelson Education Ltd.25 Cultural Factors Social Factors Individual Influences Psychological Influences PIXELLOVER RM 7/GETSTOCK

Exhibit 13.3: Continuum of Consumer Buying Decisions Copyright © 2014 by Nelson Education Ltd.26

Business-to-Business Market Copyright © 2014 by Nelson Education Ltd.27 Characteristics Purchase Volume Number of Customers Location of Buyers Direct Distribution

List the five basic forms of market segmentation. Copyright © 2014 by Nelson Education Ltd.28

Exhibit 13.4: Forms of Consumer Market Segmentation Copyright © 2014 by Nelson Education Ltd.29

Exhibit 13.5: Age Segmentation for Fritos, Doritos, Tostitos Copyright © 2014 by Nelson Education Ltd.30

Identify how marketing research is used in marketing decision making. Copyright © 2014 by Nelson Education Ltd.31

Marketing Research Process Copyright © 2014 by Nelson Education Ltd Define the marketing issue. 2. Choose a method of research. 3. Collect the data. 4. Analyze the research data. 5. Make recommendations.

Define the Opportunity or Issue Copyright © 2014 by Nelson Education Ltd.33 Key Questions

Choose a Method of Research Copyright © 2014 by Nelson Education Ltd.34  Survey – Data is collected from respondents to obtain facts, opinions, and attitudes.  Observation – An investigator monitors respondents’ actions without interacting directly with them.  Experiment – An investigator changes one or more variables while observing the effects of these changes on another variable.

Collect the Data Copyright © 2014 by Nelson Education Ltd.35 Primary Data Secondary Data Information collected directly from the original source. Information that has already been collected for a project other than the current one.

And Finally Copyright © 2014 by Nelson Education Ltd.36 Analyze the data >>>> Make recommendations to management.

List some of the trends in understanding the consumer. Copyright © 2014 by Nelson Education Ltd.37

The Future of Marketing Copyright © 2014 by Nelson Education Ltd.38  Social media and mobile marketing.  Green and social marketing.  Loyalty cards.