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BUSN
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.
©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.
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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?
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
Marketing: Getting Value by Giving Value
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
©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.
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Marketing: Building a Profitable Customer Connection
Marketing: Getting Value by Giving Value
Form
Utility
Time
Utility
The ability of
goods and
services to
satisfy wants.
Place
Utility
BUSN
Ownership
Utility
©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.
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Marketing: Building a Profitable Customer Connection
The Scope of Marketing: It’s Everywhere!
• People Marketing
• Place Marketing
• Event Marketing
• Idea Marketing
BUSN
©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.
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BUSN
Marketing: Building a Profitable Customer Connection
The Evolution of Marketing:
From the Product to the Customer
©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.
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Marketing: Building a Profitable Customer Connection
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
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
The Customer: Front and Center
Customer Relationship
Management (CRM)
Limited
Relationships
Full
Partnerships
Value
Customer
Satisfaction
Customer Loyalty
BUSN
©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.
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•
•
•
•
Marketing: Building a Profitable Customer Connection
Perceived Value versus Actual Value
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
Customers must believe
that your product is simply
uniquely qualified to meet
their needs
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
Customer Satisfaction
You have satisfied customers when you deliver
perceived value above and beyond their
expectations, but
Don’t overpromise
Don’t underpromise
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
Marketing Strategy: Where Are You Going And
How 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)
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
Marketing Strategy: Where Are You Going And
How Will You Get There?
A Well Chosen Target Market:
 Size
 Profitability
 Accessibility
 Limited Competition
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
Consumer Markets versus Business Markets
Consumer
Markets
Products for
personal
consumption.
How will the
buyer use the
product?
Business
Markets
Products used
directly or
indirectly to
produce other
products.
Different approaches to select target markets.
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
Consumer Market Segmentation
• Demographic
• Geographic
• Psychographic
• Behavioral
• Marketers may select multiple
segments to target
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
Business Market Segmentation
• Geographic
• Customer-based
• Product-use based
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
Color Me…Hungry?!
Surrounding customers with red, yellow, and orange
encourages them to eat a lot quickly and leave.
• Marketing researchers found that
American consumers associate red with
energy, passion, speed, and hunger.
• Yellow suggests happiness and warmth;
orange suggests playfulness, fun,
affordability.
BUSN
©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.
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BUSN
Marketing: Building a Profitable Customer Connection
The Marketing Mix
©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.
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Marketing: Building a Profitable Customer Connection
The Global Marketing Mix
• 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
Change and growth in the world market requires
understanding the global environment
BUSN
©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.
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BUSN
Marketing: Building a Profitable Customer Connection
The Marketing Environment
©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.
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Marketing: Building a Profitable Customer Connection
Without a Map, Charting an Ethical Course:
When Less is More…
• In 2008, 30% of all packaged goods got smaller, mostly unnoticed by
consumers
•
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
• Food manufacturers state these changes are needed in light of
skyrocketing costs
• Others say it is a game of deception, what do you think?
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
Customer Behavior:
Decisions! Decisions! Decisions!
Consumer Behavior
How people act when
they are buying
products.
BUSN
©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.
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BUSN
Marketing: Building a Profitable Customer Connection
Consumer Decision Process
©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.
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Marketing: Building a Profitable Customer Connection
Elements that Influence the Consumer DecisionMaking Process
Cultural: Values, attitudes, customs,
social class
Social: Family, friends & reference
groups
Personal: Demographics, personality
Psychological: Motivation, attitudes,
perceptions, learning
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
Business Buyer Behavior
Rationale Criteria
Specific Purchase Criteria
Objective Standards
Input from Multiple Internal Sources
Formal Process
Frequently Seek Customized Goods
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
Marketing Research:
So What Do They REALLY Think?
Marketing research involves gathering,
interpreting, and applying information to
uncover opportunities and challenges
• Monitor and predict customer behavior
• Evaluate and improve marketing mix
• Better marketing decisions
• More value for consumers
• More profits for business
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
Research Data Comparison
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
©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.
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Marketing: Building a Profitable Customer Connection
Primary Research Tools
Observation Research – the
researcher does not directly
interact with the research
subject
Survey Research – the
researcher does interact
with the research subjects
• Scanner Data
• Traffic counters
• Questionnaires
• Garbage Analysis
• Interviews
• Focus Groups
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
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.
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
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
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
Marketing and Society: It’s Not Just About You!
Leading-edge marketers have set
high standards in:
A few examples:
 Environmentalism
 Starbucks
 Abolishment of
 Target
sweatshops
 General Electric
 Community outreach
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
Green Marketing
Actively promoting ecological benefits of
products
• The Toyota Prius
• Eco-Fashion is made from organic cotton,
bambo dresses, biodegradable umbrellas, solarpowered 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
©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.
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Marketing: Building a Profitable Customer Connection
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
BUSN
©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.
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Marketing: Building a Profitable Customer Connection
Innovation Unleased!
Your creativity can aid innovation
ARREST
HISTORY
YOU’RE
HISTORY
You’re
under
arrest
HISTORY
Abcdefghjmo
TimeTime
pqrstuvwxyz
Missing
Link
BUSN
History
repeats
itself
Time after
Time
Chimadena
Made in
China
RIGHT RIGHT
Equal
Rights
BAN ANA
Banana
Split
YYYGuy
MEREPEAT
BPULSEIANSE
Wise Guy
Repeat
after me
USRSE
Mixing
business
with
pleasure
©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.
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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?
BUSN
©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.
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