Download Chapter 7

Customer-Driven
Marketing
McGraw-Hill/Irwin
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Nature of Marketing
To create value by allowing people and
organizations to obtain what they need and
want
12-3
The Exchange Relationship
Exchange:
The act of giving up something
(money, credit, labor, goods)
in return for something else
(goods, services, or ideas)
12-4
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
The Exchange Process: Giving Up
One Thing in Return for Another
12-5
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Marketing Creates Utility
Utility--a product’s ability to satisfy human
needs and wants
Place
Time
Ownership/Possession
Form
Information
12-6
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Functions of Marketing
Selling
Pricing
Channel Management
Product Service
Management
Marketing
Information
Management
Promotion
Market Planning
12-7
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
The Marketing Concept
The idea that an organization should try to
satisfy customer’s needs through
coordinated activities that allow it to
achieve its own goals (profit)
Did You Know?
Trying to determine a customer’s true needs
is difficult because no one fully understands
what motivates people to buy.
12-8
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Evolution of the Marketing Concept
The production orientation
During the second half of the 19th century
The sales orientation
By the early part of the 20th century
The marketing orientation
By the 1950s
12-9
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Marketing Orientation
Requires organizations to:
Gather information about customer needs
Share that information throughout the entire
firm
Use that information to help build long-term
relationships with customers
12-10
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Developing Marketing Strategy
Marketing strategy:
A plan of action for developing pricing,
distributing and promoting products that meet
the needs of specific customers
Two major components:
Selecting a target market
Developing the appropriate marketing mix
12-11
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Selecting a Target Market
Market
A group of people who have a need,
purchasing power, and the desire and authority
to spend money on goods, services, and ideas
Target market
A more specific group of consumers on whose
needs and wants a company focuses its
marketing effort
12-12
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Total-Market Approach
The marketer tries to appeal to
everyone and assumes that all buyers
have the same needs
12-13
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Market Segmentation
Market Segmentation:
A strategy to divide the total market into
groups of people who have relatively similar
product needs
12-14
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Market Segment
A collection of individuals, groups, or
organizations who share one or more
characteristics and have similar product
needs and desires
12-15
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Niche Market
Narrow market segment focus when efforts
are on one small, well-defined segment
that has a unique, specific set of needs
12-16
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Bases for Segmenting Markets
Demographic
Geographic
Psychographic
Product Usage
Did You Know?
During its first year of operation, sales of Coca-Cola averaged
just nine drinks per day for total first-year sales of $50. Today,
Coca-Cola products are consumed at the rate of one billion
drinks per day.
12-17
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Developing the Marketing Mix
12-18
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Product
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
12-19
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Price
A value placed on a product or service that
is exchanged between a buyer and seller
12-20
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Distribution
Making products available to consumers in
the quantities and locations desired
12-21
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Promotion
A persuasive form of
communication that attempts
to expedite a marketing
exchange by influencing
individuals and organizations
to accept goods, services, and
ideas
12-22
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Marketing Research &
Information Systems
Marketing research
A systematic, objective process of getting
customer information to guide marketing
decisions
Marketing information system
A framework for assessing information about
customers from internal and external sources
12-23
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Collecting Data
Primary data
Marketing information that is observed,
recorded, or collected directly from
respondents
Secondary data
Information that is compiled inside or outside
an organization for some purpose other than
changing the current situation
12-24
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Buying Behavior
The decision processes and
actions of people who
purchase and use products
12-25
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Motives of Buying Behavior
Rational
Emotional
12-26
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Social Variables of Buying
Behavior
Social roles
Reference groups
Social classes
Culture
12-27
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
The Marketing Mix and the
Marketing Environment
12-28
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Review Questions
1. When a business segments markets on the basis of
personality characteristics, motives, and lifestyles, that
segmentation is based on
a.
b.
c.
d.
demographics
geographic factors
psychographics
behavioristic characteristics
2. The act of giving up one thing in return for something
else is
a.
b.
c.
d.
marketing
utility
an exchange
promotion
12-29
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
Review Questions
3.
The psychological factors such as love and affection,
often affect buying decisions. This is an example of
what type of buying motive.
a. Emotional
b. Rational
4. In developing a marketing mix, what should be the
central focus of all marketing activities?
a.
b.
c.
d.
Price
buyer or target market
Product
promotion
12-30
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved