BUSN 3rd kelly mcgowen chapter11

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©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part

Building Profitable Customer Connections

• What are the objectives, processes and scope of

marketing?

• What is the customer’s role in marketing?

• What are the elements of the marketing strategy?

• What is the decision-making process for consumers? Businesses?

• What are the key elements of marketing research?

• How have social responsibility and technology impacted marketing?

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Marketing – the activity, set of institutions,

and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and

society at large.

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The ability of goods and services to satisfy wants.

Form Utility

Time Utility

Place Utility

Ownership

Utility

• People Marketing

• Place Marketing

• Event Marketing

• Idea Marketing

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From the Product to the Customer

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The marketing concept is a philosophy that makes

customer satisfaction—now and in the future—the

central focus of the entire organization.

Unmatched value to customers is the only way to

long-term profitability

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Limited

Relationships

Full Partnerships

Customer Relationship

Customer Satisfaction Customer Loyalty

Customers must believe that your product is simply uniquely qualified to meet

their needs

• Low cost does not mean value

• Value is a relationship between cost and benefits

• Loyal customers will pay more for their products

• Creating value is not enough

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You have satisfied customers when

you deliver perceived value above

and beyond their expectations, but

Don’t overpromise

Don’t underpromise

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Will You Get There?

• Marketing Plan – organizations may

have a formal or informal plan that directs their efforts

• Marketing Segmentation – the first

step in planning your marketing strategy.

 Who are the people who will buy the products?

 Divide the market into groups of people and segments to target (target market)

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Will You Get There?

How will the buyer use the product?

Consumer Markets

Business Markets

Products for personal consumption.

Products used directly or indirectly to produce other products.

Different approaches to select target markets.

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• Geographic

• Customer-based

• Product-use based

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• Marketing researchers found that American consumers associate red with energy, passion, speed, and hunger

• Yellow suggests happiness and warmth;

orange suggests playfulness, fun, affordability

Surrounding customers with red, yellow, and orange

encourages them to eat a lot quickly and leave.

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Change and growth in the world market requires understanding the global environment

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• Do you need to change your marketing mix for

every country?

• Most consumer products require a new marketing

mix for each global market while many business products do not

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When Less is More…

• Others say it is a game of deception, what do you think?

• Skippy peanut butter jars got 10% smaller but the jar looks the same

• PepsiCo reduced the size of its orange juice by 7 ounces but touted a “new ergonomic design”

• Many argue that this is a distraction from price increases

Decisions! Decisions! Decisions!

Consumer Behavior

How people act when

they are buying

products.

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So What Do They REALLY Think?

• Monitor and predict customer behavior

• Evaluate and improve marketing mix

• Better marketing decisions

• More value for consumers

• More profits for business

Marketing research involves gathering,

interpreting, and applying information to uncover opportunities and challenges

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Secondary Data:

Existing Data Data that is Compiled Primary Data: New

Lower Cost More Expensive

May not be Specific Customized

Frequently Outdated Fresh, New

Available to Competitors Proprietary

Observation Research – the

researcher does not directly

interact with the research

subject

• Scanner Data

• Traffic counters

• Garbage Analysis

Survey Research – the

researcher does interact with

the research subjects

• Questionnaires

• Interviews

• Focus Groups

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have to serve as a horrible warning”

• Nike filmed a commercial in Kenya where the slogan Just Do It

translated into “I don’t want these Give me big shoes.”

• Just for Feet spent $7 million on a campaign for the Super Bowl where

a crowd of white men were tracking down a barefoot black runner.

• Hershey’s introduced Ice Breakers Pacs in nickel-sized dissolvable

pouches but the police thought the products closely resembled powered street drugs.

• Tropicana introduced new packaging for its orange juice and

consumers were outraged They thought the new packaging was

stupid, ugly and generic.

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Market research in other countries can be

complicated

 Very few home phones in Latin America

 In the Middle East, knocking on doors is a crime

 Many firms hire local professionals for international

market research

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Actively promoting ecological benefits of

products

•The Toyota Prius

•Eco-Fashion is made from organic cotton, bambo

dresses, biodegradable umbrellas, solar-powered jackets

•The aim is to grow the number of consumers who make purchases based on their convictions

•But, green marketing may be challenging in tough

economic times

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• Technology is shifting power to the consumer

• Consumers have 24/7 access to products and information all over the

world

• Competition has intensified

• Consumer expectation has increased

• Companies have more opportunities to mass customize products

• Data can be used to develop one-to-one relationships with customers

• The digital boom has created a variety of promotional

opportunities

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Your creativity can aid innovation

ARREST

YOU’RE

HISTORY HISTORY HISTORY

Made in China

Missing

Link

Time after Time

Wise Guy

Equal Rights

Repeat after me

Banana Split

Mixing business with

• What is the customer’s role in marketing?

• What are the elements of the marketing strategy?

• What is the decision-making process for consumers? Businesses?

• What are the key elements of marketing research?

• How have social responsibility and technology impacted marketing?

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