1. The Art and Science of Marketing
Chapter 13

2. 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
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3. 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
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4. 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
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5. 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
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6. 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
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7. 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
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8. 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.
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9. Examples of the Four Utilities
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10. 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
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11. 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
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12. The Selling Concept Versus the Marketing Concept
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13. 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
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14. 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
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15. Making Data-Driven Decisions
Marketing Research
The collection and analysis of information for making marketing decisions
Observation, surveys, interviews, focus groups
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16. 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
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17. 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
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18. 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
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19. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Buyer Decision Making
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20. 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
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21. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Purchase Influences
Culture
Socioeconomic level
Reference groups
Situational factors
Self-image
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22. 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
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23. 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
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24. The Strategic Marketing Planning Process
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25. Pursuing Market Opportunities
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26. 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
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27. 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
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28. 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
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29. 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
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30. Choosing Your Target Markets
Specific customer groups or segments to whom a company wants to sell a particular product
Undifferentiated, differentiated, concentrated, and individualized
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31. Market-Coverage Strategies
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32. 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
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33. 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
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34. The Marketing Mix (cont.)
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35. 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
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36. The Marketing Mix (cont.)
Distribution Channels
Systems for moving goods and services from producers to customers
Also known as marketing channels
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37. The Marketing Mix (cont.)
Promotion
A wide variety of persuasive techniques used by companies to communicate with their target markets and the general public
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38. 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
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39. 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
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