Download Consumer Needs - McGraw Hill Higher Education

McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All Rights Reserved.
LEARNING OBJECTIVES (LO)
After reading Chapter 1, you should be able to:
LO1
Define marketing and identify the requirements for
marketing to occur..
LO2
Explain how marketing discovers and satisfies
consumer needs.
LO3
Distinguish between marketing mix elements and
environmental forces.
1-2
Introduction – Creating Customer Relationships & Value through Marketing
LEARNING OBJECTIVES (LO)
After reading Chapter 1, you should be able to:
LO4
Explain how organizations build strong customer
relationships and customer value through marketing.
LO5
Describe how today’s customer relationship era
differs from prior eras oriented to production and
selling.
LO6
Explain how marketing creates utilities for
consumers.
1-3
Introduction – Creating Customer Relationships & Value through Marketing
UNIQLO
Unique Clothes, Unique Shopping Experience
1-4
Opening Story – Uniqlo
Discovering Consumer’s Needs
What do customers expect from clothes?
Available
Stylish
Affordable
Casual
?
1-5
Opening Story – Uniqlo
What is Marketing?
Definitions and Examples
LO1

You are already a Marketing Expert

Marketing Is NOT Easy
1-6
Defining Marketing
What is Marketing?
Marketing is about Delivering Benefits

Uniqlo, Marketing and You
 Marketing:
Using Exchanges to Satisfy
Needs

LO1
The Diverse Factors Influencing
Marketing Activities
1-7
Defining Marketing
What is Marketing?
Diverse Factors influence Marketing Activities
LO1

Organization

Society

Environmental Forces
1-8
Defining Marketing
What is Marketing?
How Marketing relates to people, groups and forces
LO1
1-9
Defining Marketing
What is Marketing?
Requirements for ‘Marketing’
LO1

Parties with Unsatisfied Needs

A Desire and Ability to be Satisfied

A Way for the Parties to Communicate

Something to Exchange
1-10
Defining Marketing
Discovering Consumer Needs
How Marketing discovers Consumer Needs

Customers may not know what they
need or want

They may not know how to describe
what they want

We must ask the right questions

LO2
Chapter 9: Market Segmentation
1-11
Consumer Needs
New Product Challenges
How Marketing discovers Consumer Needs
LO2

Most New Products Fail

The Challenge of New Products is to

Learn from the Past

Offer Consumers a New benefit
1-12
Consumer Needs
Benefits & Show-Stoppers
Dr. Care Vanilla Mint Aerosol Toothpaste
LO2
1-13
Consumer Needs
Benefits &Show-Stoppers
Hot Pockets Bite-Sized Microwavable Snack Sensations
LO2
1-14
Consumer Needs
Benefits & Show-Stoppers
A Flying Car!
LO2
1-15
Consumer Needs
Benefits & Show-Stoppers
Diet Cola with Ginseng & Extra Caffeine
LO2
1-16
Consumer Needs
Needs vs Wants
An important distinction

Need

Want

Does Marketing persuade people to
buy the “Wrong” Things?

LO2
Can Marketers create Needs?
1-17
Consumer Needs
What is a Market?
Who is a ‘consumer’?
Potential
consumers
Potential
consumers
Whole population
Potential consumers = People with both the desire
& ability to buy a specific product
LO2
1-18
Consumer Needs
Discovering Consumer Needs
The first task is to discover consumer needs
LO2
1-19
Consumer Needs
The Marketing Mix : 4 P’s
Controllable Market Factors

Target Market : 1 or more specific potential
consumer groups

The 4 P’s: Controllable Marketing Mix
Factors
• Product
• Price
LO3
• Promotion
$399
• Place
1-20
Marketing Mix
Environmental Forces
Uncontrollable Market Factors

Uncontrollable Environmental Forces
(More to be discussed in Chapter 3)
• Social
• Economic
• Technological
• Competitive
• Regulatory
LO3
1-21
Marketing Mix
Customer Relationships
What is Value?
Sheng Siong: Low-priced,
self-service, no-frills concept
LO4
Market Place: PremiumPriced, full-service with a
wide range of international
brand
1-22
Customer Relationships
Relationship Marketing
As a Marketing Program

Global Competition, Customer Value
and Customer Relationships

Relationship Marketing
• Easy to Understand
• Difficult to implement
• Building relationships with consumers

LO4
Marketing Program – integrating marketing mix
to provide a good, services or idea
1-23
Customer Relationships
Creating Value
The second task is to satisfy consumer needs
LO4
1-24
Customer Relationships
UNIQLO’s Marketing Program
Satisfying Consumer Needs
LO4

Knowing Customers and
Understanding their Needs and Wants

Developing Core Strategy and Concept

Assembling Right Mix of Product or
Service, Price, Promotion and Place
1-25
Customer Relationships
UNIQLO’s Marketing Program
3 Distinct Shopper Segments
LO4
1-26
Customer Relationships
Different Segments, Different Needs
Distinct Products for Distinct
● Casual
LO4
● Fashionistas
1-27
Customer Relationships
Evolution of Market Orientation
How Marketing became Important

Production Era

Sales Era

Marketing Concept Era

Customer Relationship Era
• Market Orientation
• Customer Relationship Management (CRM)
LO5
1-28
The Era of Customer Relationship Marketing
Evolution of Market Orientation
How Marketing became Important

Production Era
•
•
•

Sales Era
•
•
LO5
Focused on Production;
goods would ‘sell themselves’
Few products so buyers would accept
anything
E.g. 1910Sanyo – radios, bicycle lamps
More products available; difficult to sell
Hire salespeople to increase sales
1-29
The Era of Customer Relationship Marketing
Evolution of Market Orientation
How Marketing became Important

Marketing Concept Era
•
•
Shift from firm-oriented production
to consumer-orientated research/marketing
‘The Marketing Concept’
1.
2.
•
LO5
Finding out what consumers want
Satisfy their needs by selling them that
Marketing occurs before production, not
after
1-30
The Era of Customer Relationship Marketing
Evolution of Market Orientation
How Marketing became Important

Customer Relationship Era
•
Market Orientation
1.
2.
3.
•
Customer Relationship Management
•
LO5
Continuously determine consumer needs
Share info across departments
Create customer value
Developing favourable long-term relationships
rather than one-off transactional purchases
1-31
The Era of Customer Relationship Marketing
Evolution of Market Orientation
Four eras in the History of American Businesses
LO5
1-32
The Era of Customer Relationship Marketing
Ethics & Social Responsibility
Importance of Marketing

Ethics

Social Responsibility
• Societal Marketing Concept
• Macromarketing
• Micromarketing
LO5
1-33
The Era of Customer Relationship Marketing
Ethics & Social Responsibility
Importance of Marketing

Societal Marketing Concept
•

Macromarketing
•

Satisfy consumer needs without compromising
society, e.g. recycled bottles
Study of how marketing affects a nation/society, e.g.
pollution, advertising
Micromarketing
•
LO5
Study of how organisational marketing activities
benefits consumers
1-34
The Era of Customer Relationship Marketing
Breadth and Depth of Marketing
Who Markets & What is Marketed

Who Markets?

What Is Marketed?
• Goods
LO6
• Services
• Ideas
1-35
Marketing and Utility
Breadth and Depth of Marketing
Who Benefits, and How?

Who Benefits?

Who Buys & Uses What Is Marketed?
• Ultimate Consumers
• Organizational Buyers

How Do Consumers Benefit?
• Utility
LO6
 Form Utility
 Time Utility
 Place Utility
 Possession Utility
1-36
Marketing and Utility