Download CH. 13 - Bakersfield College

Business in
Action 7e
Bovée/Thill
The Art and
Science of
Marketing
Chapter 13
Business in
Action 7e
Bovée/Thill
Learning Objectives
1. Define marketing and explain its role in society
2. Identify three trends that help define
3.
contemporary marketing
Differentiate between consumer buying
behavior and organizational buying behavior
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Learning Objectives
4. Define strategic marketing planning and identify
5.
6.
the four basic options for pursuing new
marketing opportunities
Identify the four steps in crafting a marketing
strategy
Describe the four main components of the
marketing mix
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Marketing in a Changing World
• Marketing
 The process of creating value for customers
and building relationships with those
customers in order to capture value back from
them
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Marketing in a Changing World
• Place Marketing
 Marketing efforts to
attract people and
organizations to a
particular
geographical area
• Cause-Related
Marketing
 Identification and
marketing of a
social issue, cause,
or idea to selected
target markets
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The Role of Marketing in Society
• Needs
 Differences between a person’s actual state
and his or her ideal state; they provide the
basic motivation to make a purchase
• Wants
 Specific goods, services, experiences, or
other entities that are desirable in light of a
person’s experiences, culture, and personality
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The Role of Marketing in Society (cont.)
• Exchange Process
 The act of obtaining a desired object or
service from another party by offering
something of value in return
• Transaction
 An exchange of value between parties
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The Role of Marketing in Society (cont.)
• Utility
 The power of a good or service to satisfy a
human need
 Form, time, place, possession (Satisfaction
after possession of product.)
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Exhibit 13.1
Examples of the Four Utilities
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The Marketing Concept
• Marketing Concept
 An approach to business management that
stresses customer needs and wants, seeks
long-term profitability, and integrates
marketing with other functional units within
the organization
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The Marketing Concept (cont.)
• Relationship Marketing
 A focus on developing and maintaining longterm relationships with customers, suppliers,
and distribution partners for mutual benefit
• Customer Loyalty
 The degree to which customers continue to
buy from a particular retailer or buy the
products of a particular manufacturer or
service provider
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Challenges in Contemporary
Marketing
• Involving the customer in the marketing
process
• Making data-driven decisions
• Conducting marketing activities with
greater concern for ethics and etiquette
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Involving the Customer
• Customer Relationship Management
(CRM)
 A type of information system that captures,
organizes, and capitalizes on all the interactions
that a company has with its customers
• Social Commerce
 The creation and sharing of product-related
information among customers and potential
customers
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Making Data-Driven Decisions
• Marketing Research
 The collection and analysis of information for
making marketing decisions
 Observation, surveys, interviews, focus
groups
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Marketing with Greater Concern for
Ethics and Etiquette
• Permission-Based Marketing
 A marketing approach in which firms first ask
permission to deliver messages to an
audience and then promise to restrict their
communication efforts to those subject areas
in which audience members have expressed
interest
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Marketing with Greater Concern for
Ethics and Etiquette (cont.)
• Stealth Marketing
 The delivery of marketing messages to
people who are not aware that they are being
marketed to; these messages can be
delivered by either acquaintances or
strangers, depending on the technique
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Understanding Today’s Customers
• Consumer Market
 Individuals or households that buy goods and
services for personal use
• Organizational Market
 Companies, government agencies, and other
organizations that buy goods and services
either to resell or to use in the creation of their
own goods and services
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The Consumer Decision Process
• Cognitive Dissonance
 Tension that exists when a person’s beliefs
don’t match his or her behaviors; a common
example is buyer’s remorse, when someone
regrets a purchase immediately after making
it
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Purchase Influences
Culture
Socioeconomic
level
Situational
factors
Reference
groups
Self-image
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The Organizational Customer
Decision Process
• An emphasis on economic payback and
•
•
•
•
other rational factors
A formal buying process
Greater complexity in product usage
The participation and influence of multiple
people
Close relationships between buyers and
sellers
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Identifying Market Opportunities
• Strategic Marketing Planning
 The process of examining an organization’s
current marketing situation, assessing
opportunities and setting objectives, and then
developing a marketing strategy to reach
those objectives
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Exhibit 13.6
The Strategic Marketing
Planning Process
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Crafting a Marketing Strategy
• Marketing Strategy
 An overall plan for marketing a product;
includes the identification of target market
segments, a positioning strategy, and a
marketing mix
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Dividing Markets into Segments
• Market
 A group of customers who need or want a
particular product and have the money to buy
it
• Market Segmentation
 The division of a diverse market into smaller,
relatively homogeneous groups with similar
needs, wants, and purchase behaviors
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Dividing Markets into Segments
• Demographics
 The study of
statistical
characteristics of a
population
• Psychographics
 Classification of
customers on the
basis of their
psychological
makeup, interests,
and lifestyles
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Dividing Markets into Segments
• Geographic
• Behavioral
Segmentation
Segmentation
 Categorization of
customers
according to their
geographical
location
 Categorization of
customers
according to their
relationship with
products or
response to product
characteristics
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Choosing Your Target Markets
• Target Markets
 Specific customer groups or segments to
whom a company wants to sell a particular
product
 Undifferentiated, differentiated, concentrated,
and individualized
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Staking Out a Position in
Your Target Markets
• Positioning
 Managing a business in a way designed to
occupy a particular place in the minds of
target customers
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The Marketing Mix
• Marketing Mix
 The four key elements of marketing strategy:
product, price, distribution, and customer
communication
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Exhibit 13.9
The Marketing Mix
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The Marketing Mix (cont.)
• Product
• Price
 A bundle of value
that satisfies a
customer need or
want
 The amount of
money charged for
a product or service
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The Marketing Mix (cont.)
• Distribution Channels
 Systems for moving goods and services from
producers to customers
 Also known as marketing channels
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The Marketing Mix (cont.)
• Promotion
 A wide variety of persuasive techniques used
by companies to communicate with their
target markets and the general public
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