11 marketing: building a profitable customer connection · 11 marketing: building a profitable...
TRANSCRIPT
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
1 ©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.
BUSN
11
©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.
Marketing: 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?
2
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Marketing: Getting Value by Giving Value
3
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.
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Marketing: Getting Value by Giving Value
4
The ability of goods and services to
satisfy wants.
Form Utility
Time Utility
Place Utility
Ownership Utility
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
The Scope of Marketing: It’s Everywhere!
5
• People Marketing
• Place Marketing
• Event Marketing
• Idea Marketing
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
The Evolution of Marketing: From the Product to the Customer
6
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
The Marketing Concept
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
7
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
The Customer: Front and Center
8
Limited Relationships
Full Partnerships
Customer Relationship Management (CRM) Value
Customer Satisfaction
Customer Loyalty
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Customers must believe that your product is simply uniquely qualified to meet
their needs
Perceived Value versus Actual Value
9
• 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
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Customer Satisfaction
You have satisfied customers when you deliver perceived value above and beyond their expectations, but
Don’t overpromise
Don’t underpromise
10
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Marketing Strategy: Where Are You Going And How Will You Get There?
11
• 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)
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Marketing Strategy: Where Are You Going And How Will You Get There?
12
A Well Chosen Target Market:
Size
Profitability
Accessibility
Limited Competition
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Consumer Markets versus Business Markets
13
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.
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Consumer Market Segmentation
14
• Demographic
• Geographic
• Psychographic
• Behavioral
• Marketers may select multiple segments to target
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Business Market Segmentation
15
• Geographic
• Customer-based
• Product-use based
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Color Me…Hungry?!
16
•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.
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
The Marketing Mix
17
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
The Global Marketing Mix
Change and growth in the world market requires understanding the global environment
18
• 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
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
The Marketing Environment
19
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Without a Map, Charting an Ethical Course: When Less is More…
20
• In 2008, 30% of all packaged goods got smaller, mostly unnoticed by consumers
• Food manufacturers state these changes are needed in light of skyrocketing costs
• 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
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Customer Behavior: Decisions! Decisions! Decisions!
21
Consumer Behavior
How people act when they are buying
products.
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Consumer Decision Process
22
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Elements that Influence the Consumer Decision-Making Process
23
Cultural: Values, attitudes, customs, social class
Social: Family, friends & reference groups
Personal: Demographics, personality
Psychological: Motivation, attitudes, perceptions, learning
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Business Buyer Behavior
24
Rationale Criteria
Specific Purchase Criteria
Objective Standards
Input from Multiple Internal Sources
Formal Process
Frequently Seek Customized Goods
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Marketing Research: So What Do They REALLY Think?
25
• 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
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Research Data Comparison
26
Secondary Data: Existing Data
Primary Data: New Data that is Compiled
Lower Cost More Expensive
May not be Specific Customized
Frequently Outdated Fresh, New
Available to Competitors Proprietary
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Primary Research Tools
27
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
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Oops! “If you can’t be a good example, than you’ll 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.
28
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
An International Perspective
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
29
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Marketing and Society: It’s Not Just About You!
Leading-edge marketers have set high standards in: Environmentalism
Abolishment of sweatshops
Community outreach
30
A few examples: Starbucks Target General Electric
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Green Marketing
31
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
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Technology and Marketing: Power to the People!
• 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
32
BUSN
11 Marketing: Building a Profitable Customer Connection
©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.
Innovation Unleased!
33
Your creativity can aid innovation
ARREST
YOU’RE
HISTORY
HISTORY
HISTORY
Chimadena RIGHT RIGHT BAN ANA
Abcdefghjmo
pqrstuvwxyz
TimeTime
YYYGuy MEREPEAT BPULSEIANSE
USRSE
You’re under arrest
History repeats
itself
Made in China
Missing Link
Time after Time
Wise Guy
Equal Rights
Repeat after me
Banana Split
Mixing business
with pleasure
BUSN
11
©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.
Looking Back
• 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?
34