1. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-1 Customer-Driven Marketing Marketing Management

2. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-2 The Marketing Mix ●Product ●Price ●Promotion ●Distribution

3. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Market Share ●The percentage of sales in a market or industry that is captured by a business. –Units or –Dollars ●Examples –Samsung had a 27% share of flat screen TV’s in 2Q 2012 –Apple had a 12% share of PCs in 2Q 2012 –GM had 19% market share in 6/13 1-3

4. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-4 Market Research ●Reasons for Research –Identify marketing problems and opportunities –Analyze competitors’ strategies –Evaluate and predict customer behavior –Gauge the performance of existing products and potential for new ones –Develop price, promotion, and distribution plans

5. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-5 Market Research ●Obtaining Market Research –Researchers use both internal and external data  Internal data is generated within the researcher’s organization  External data is gathered from sources outside their firms  Primary Data ●The Hawthorne Effect ●How do you get ‘unobtrusive” research?

6. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-6 Marketing Research ●Computer-Based Marketing Research Systems –Universal Product Code (UPC)—identify the product, its manufacturer, and its price –Marketing research firms store consumer data and commercially available databases ●Data Mining—computer search of massive amounts of customer data to detect pattern and relationships. –Data Warehouses ●Examples: grocery stores, Walmart, Anh. Bush, Target finding pregnant women, Nordstrom tracking customer movements

7. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-7 Market Segmentation ●Market Segmentation—process of dividing a total market into several relatively homogeneous groups. ●E.g Don’t target all jean wearers, pick a subset –Guinness does not target all beer drinkers –Ferrari does not target all car buyers –Patagonia does not target all clothes buyers

8. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-8 Methods of Segmenting Consumer Markets

9. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-9 Buyer Behavior: Determining What Customers Want ●Buyer is not always the consumer (The person who makes it doesn’t use it; the person who buys it doesn’t need it; the person who uses it doesn’t see it. It is found in a home but not a house. What is it?) ●Other examples of the buyer not being the consumer?

10. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-10 Steps in the Consumer Behavior Process One job of marketing is to move customers through the steps.

11. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-11 Creating, Maintaining, and Strengthening Marketing Relationships ●Tools for Nurturing Customer Relationships –Frequency Marketing and Affinity Programs  Frequency Marketing—program that rewards purchases with cash, rebates, merchandise, or other premiums  Affinity Program—marketing effort sponsored by an organization solicits involvement by individuals who share common interest and activities ●Can you give examples?

12. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-12 Creating, Maintaining, and Strengthening Marketing Relationships ●Tools for Nurturing Customer Relationships –Co-marketing - two businesses jointly market each other’s products –Co-branding - two or more businesses closely link their names for a single product –One-on-One Marketing - customized product offering to individual needs and rapidly deliver good and services to customers. ●Can you give examples?

13. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-13 Discussion ●Market research –Hawthorne Effect –How can you do ‘undetected’ research?  examples: museums, radio stations, grocery stores ●How would you do market research for:  a bank, post office, auto repair ●How would you do relationship marketing for:  a bank, post office, auto repair, cereal, pharmacy, college fund, Brooklyn Nets