1. October 10 New Product

2. The Marketing Process

3. Customer Relationship Management

4. Understanding the Customer Customer Needs and Wants NEEDS: Food Clothing Shelter WANTS: Morton’s filet mignon Gucci Shoes Pottery Barn Couch

5. Understanding the Customer Perceived Value Customers needs and wants impact their perception of “value” and therefore their buying behavior If a consumer believes a Dominos pizza delivers them value to meet their need (food) and wants (pizza delivery) for a worthwhile price, they’ll probably continue purchasing Dominos

6. Understanding the Customer Perceived Value The customer’s understanding of value is based on product/service offered plus an understanding of competitors There is an emotional, psychological and social benefit associated with purchasing the product Dominos Pizza: Fresh Ingredients for my family Is delivered to my home Trusted or well known brand

7. Understanding the Customer Customer Satisfaction All the best marketing efforts will never keep a customer without customer satisfaction A perfect storm of the 4Ps must take place in order to influence the perceived value and the customer satisfaction P – Is it a product that satisfies my wants/needs P – Is it affordable? Or does the price accurately reflect the quality of the product P – Is it accessible? P – Have they communicated properly vs competitors?

8. Strategic Planning Short and long term plans to be successful and continue to be successful as the environment changes Value Proposition - The set of benefits (or values) a company promises to deliver to customers in order to satisfy customer wants and needs Mission Statement - Describes a company’s purpose and what it wants to accomplish with its business Goals and Objectives - Process for achieving and measuring success

9. Competitive Advantage The competitive edge a company has over its competitors Differentiates What makes it special? High Quality? Affordable? Reliable? Distinguishable service?

10. SWOT Analysis

11. Strengths/Weaknesses – Internal Organizational Factors Reputation, budgets, quality of product, position in market (established? New?) Opportunities/Threats – External Factors to the Organization Economy, expansion, competitor specifics

12. Marketing Environment It is essential to understand your environment Industry Markets Customers Competitors 2 main categories of the Marketing Environment Microenvironment Macroenviroment

13. Microenvironment The Company itself Suppliers Intermediaries Customers Competitors Publics

14. Microenvironment – The Company Executives, Management, Staff in most departments (finance, accounting, operations all work with marketing) They establish policies, procedures, strategies Mission Statement Goals and Objectives 4 Ps

15. Microenvironment – Suppliers Provide materials needed to produce goods/services Impact: Delays Price increases Shortages

16. Microenvironment – intermediaries Promotion, Sale or Distribution of a companies product or service to its customers Retailers Wholesalers Shipping companies Advertising Agencies

17. Microenvironment – Customers Consumer Market - Personal Consumption Business Market - Businesses that use your product/service to create their own product Reseller Market – Retailers Government Market- Government agencies that use your product/service to create other public services International Markets – Any buyer from other country

18. Microenvironment – Competitors What is their perceived value Advantages/disadvantages 4 Ps

19. Microenvironment – Publics Any group that may impact a company Financial – loans Media – Newspaper, tv news Government – Legal issues, product safety Citizen-action – consumer or environmental groups General Public – Word of mouth Advantages/disadvantages 4 Ps

20. Macroenvironment Societal forces that affect businesses Demographics Economic Environments Natural Environments Technology

21. Macroenvironment – Demographics Study of Human Population Gender Age Race Location Occupation Income

22. Macroenvironment – Economic Environment Economy affects purchasing power Income Interest rates Unemployment

23. Macroenvironment – Natural Environment Natural Resources Gas prices Pollution risks Recycling Biodegradable

24. Macroenvironment – Technology Advancement Obsolete products/services/distribution Communication Data Collection CRM

25. In Class Assignment Work with your group to refine your SWOT Analysis – keep in mind the macro/micro environments Value Proposition Mission Statement Create the following: 2 - 4 Goals Objective for your goals Create a statement that clearly defines your Competitive Advantage Who is your target market

26. Homework Read Module 5 Work with your group to create finalize and present: SWOT Analysis – keep in mind the macro/micro environments Value Proposition Mission Statement 3 Goals Objective for your goals Create a statement that clearly defines your Competitive Advantage Who is your target market