Download Marketing

Chapter Twelve
Building Customer
Relationships Through
Effective Marketing
Learning Objectives
1. Understand the meaning of marketing and the
importance of management of customer
relationships.
2. Explain how marketing adds value by creating
several forms of utility.
3. Trace the development of the marketing
concept and understand how it is
implemented.
4. Understand what markets are and how they
are classified.
5. Identify the four elements of the marketing mix
and be aware of their importance in developing
a marketing strategy.
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Learning Objectives (cont’d)
6. Explain how the marketing environment
affects strategic market planning.
7. Understand the major components of a
marketing plan.
8. Describe how market measurement and
sales forecasting are used.
9. Distinguish between a marketing information
system and marketing research.
10. Identify the major steps in the consumer
buying decision process and the sets of
factors that may influence this process.
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Chapter 12 Outline
– Managing Customer Relationships
– Utility: The Value Added by Marketing
– The Marketing Concept
• Evolution of the Marketing Concept
• Implementing the Marketing Concept
– Markets and Their Classification
– Developing Marketing Strategies
• Target Market Selection and Evaluation
• Creating a Marketing Mix
• Marketing Strategy and the Marketing
Environment
– Developing a Marketing Plan
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Chapter 12 Outline (cont’d)
– Market Measurement and Sales Forecasting
– Marketing Information
• Marketing Information Systems
• Marketing Research
• Using Technology to Gather and Analyze
Marketing Information
– Types of Buying Behavior
• Consumer Buying Behavior
• Business Buying Behavior
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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
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Managing Customer Relationships
• Relationship marketing
• Customer relationship management (CRM)
• Customer lifetime value
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Utility: The Value Added by Marketing
• The ability of a good or service to satisfy a human
need
• Form utility
• Place utility
• Time utility
• Possession utility
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The Marketing Concept
• A business philosophy that involves the entire
organization in the process of satisfying
customers’ needs while achieving the
organization’s goals
• To achieve success, a business must
– Talk to its potential customers to assess their
needs
– Develop a good or service to satisfy those needs
– Continue to seek ways to provide customer
satisfaction
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Implementing the Marketing Concept
• Obtain information about present and potential
customers
– Their needs; how well those needs are being
satisfied; how products might be improved;
customer opinions about the firm
• Pinpoint specific needs and potential customers
toward which to direct marketing activities and
resources
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Implementing the Marketing Concept
(cont’d)
• Mobilize marketing resources to
– Provide a product that will satisfy customers
– Price the product at an acceptable and
profitable level
– Promote the product to potential customers
– Ensure distribution for product availability
when and where wanted
• Obtain information on the effectiveness of the
marketing effort and modify efforts as
necessary
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Markets and Their Classification
• Market
• Consumer markets
• Business-to-business (industrial) markets
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Developing Marketing Strategies
• Marketing strategy
– Consists of
• The selection and analysis of a target market
• The creation and maintenance of an appropriate
marketing mix (a combination of product, price,
distribution, and promotion developed to satisfy a
particular target market)
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Developing Marketing Strategies (cont’d)
• Target market selection and evaluation
– Target market
– Market segment
– Market segmentation
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Developing a Marketing Plan
• A written document that specifies an organization’s
resources, objectives, strategy, and implementation
and control efforts to be used in marketing a specific
product or product group
• Elements of a marketing plan
–
–
–
–
–
–
–
–
Executive summary
Environmental analysis
Strengths and weaknesses
Opportunities and threats
Marketing objectives
Marketing strategies
Marketing implementation
Evaluation and control
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Market Measurement and
Sales Forecasting
• Sales forecast
• Importance of measuring sales potential
• Estimates should do several things
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Marketing Information
• Marketing information system
• Internal data sources
• External data sources
• Outputs
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Marketing Information (cont’d)
The six steps of marketing research
1.
2.
3.
4.
5.
6.
Define the problem
Make a preliminary investigation
Plan the research
Gather factual information
Interpret the information
Reach a conclusion
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Types of Buying Behavior
• The decisions and actions of people involved
in buying and using products
• Consumer buying behavior
• Business buying behavior
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The American Consumer
• Consumer income
– Personal income
– Disposable income
– Discretionary income
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