Business a changing world 7e by ferrell chap012

•Capture market shareThe Marketing Concept... Implementing the Marketing Concept•Good information re: customer wants •Consumer orientation •Coordinate organizational efforts... The Marke

Business in a Changing World

Chapter 12

Customer-Driven Marketing

David’s Bridal: Captured 30%

of the wedding dress market.

In the past 60 years, the bridal industry has

reinvented itself numerous times David’s Bridal

enters the market in the 1990’s and has never

looked back.

The Importance of Marketing

Planning & execution to satisfy customer

goals –

•Product development

•Product pricing

•Product promotion

The group of activities that add value and

designed to expedite transactions by creating,

distributing, pricing, and promoting goods,

services and ideas.

The Nature of Marketing

MARKETING

The Exchange Relationship – act of giving up one thing

(money, credit, labor, goods) in return (exchange) for

something else (goods, services, or ideas)

Marketing

The Exchange Process: Giving Up One Thing in Return for Another

Marketing – The Exchange Relationship

Industry groups use

The idea that an organization should try to satisfy customers’ needs through coordinated activities that also allow it to

achieve its own goals.

The Marketing Concept

•Capture market share

The Marketing Concept

Implementing the Marketing Concept

•Good information re: customer wants

•Consumer orientation

•Coordinate organizational efforts

The Marketing Concept

•46% executives believe firm is customer focused

•67% executives frequently meet with customers

Marketing is more important as markets are more competitive

The Marketing Concept

Production Orientation – 19 th century

•manufacturing efficiency

Sales Orientation – early 20 th century

•Supply exceeds demand – need to “sell” products

Marketing Orientation – 1950’s

The Marketing Concept

Marketing Orientation – approach requiring

organizations to gather information about

customer needs, share information across firm,

use information to build long-term relationships

with customers.

Marketing Orientation

Wrigley’s sells products in 180 countries

Continues to reinvent itself; in 2008, merger

with candy maker Mars.

Developing a Marketing Strategy

Marketing strategy – plan of action for

developing, pricing, distributing, and promoting

products meeting the needs of specific customers.

Developing a Marketing Strategy

Target Market – very specific group of consumers

that a company focuses its marketing efforts to

(e.g Nike – golf clubs for recreational golfers).

Developing a Marketing Strategy

Total-market approach – firm tries to appeal to

everyone and assumes that all buyers have similar

needs.

Developing a Marketing Strategy

Market segmentation – strategy to divide the total

market into groups of people with relatively similar

product needs.

Market segment – collection of individuals, groups or

organizations sharing one or more characteristics

thus having relatively similar needs and desires for

products.

Market Segmentation

Minority Buying Power by Race, 1990 versus

2003 & 2005

Total-Market

Approach

Market Segmentation Approaches

Concentration – company develops one

marketing strategy for a single market segment

Specialization (e.g Porsche’s focus on

high-income individuals)

Multi-segment – aims at two or more segments

with strategy for each (e.g Raleigh bicycles for

racers, commuters, and children)

Market Segmentation Approaches

Niche marketing – narrow segment focus

usually on one small well-defined group with a

unique and specific set of needs

Bases for Market Segmentation

•Demographic

•Geographic

•Psychographic

•Behavioristic

Developing the Marketing Mix

A good, service, or idea that has tangible and

intangible attributes that provide satisfaction

and benefit to consumers

Products should be sold at a profit

A value placed on a product or service

that is exchanged between a buyer

and seller

Making products available to

consumers in the quantities and

locations desired

A persuasive form of communication

that attempts to expedite a marketing

exchange by influencing individuals

and organizations to accept goods,

services, and ideas

Marketing Research

Systematic and objective process to

collect information about potential

customers Guides marketing

decisions.

Collecting Data

Primary data – marketing information

that is observed, recorded or collected

directly from respondents

(consumers).

Secondary data – information compiled

inside or outside the organization for

some purpose other than changing the

current situation

Buying Behavior

Buying behavior – decision processes and actions

of people who purchase and use products.

•Consumers personal and household

•Organizations for business use

Buying Behavior

Perception – process by which

a person selects, organizes,

and interprets information

received from one’s senses

(hearing a radio ad, touching

a product)

Buying Behavior

Learning – brings changes in

behavior based on information

and experience

Attitude – positive or negative

feelings about something.

Personality – individuals

distinguishing character traits,

attitudes, or habits.

Social Variables of Buying Behavior

Social roles – set of

expectations of individuals

based on some position they

occupy.

Buying Behavior

Reference groups – groups with whom buyers

identify and whose values or attitudes they adopt

Social classes – ranking of people into higher or

lower positions of respect

Culture – integrated, accepted pattern of behavior

including thought, speech, beliefs, actions, and

artifacts

What Does Green Marketing Mean for

Marketers?

• Entrepreneurial marketers will be leaders

– new energy efficient products

– changing consumption patterns (3 R’s)

• Reduce carbon emissions

– source locally

– eco-friendly transportation

– master e-business strategies

• Green Marketing = Profits

The Marketing Mix and the

Marketing Environment