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©2013 Cengage Learning. All Rights Reserved.
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11
LO1 What are the objectives, processes and scope
of marketing?
Marketing:
LO2 What is the customer’s role in marketing?
Building Profitable
Customer Connections
LO3 What are the elements of the marketing
strategy?
LO4 What is the decision-making process for
consumers? Businesses?
LO5 What are the key elements of marketing
research?
LO6 How have social responsibility and technology
impacted marketing?
2
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© The Studio Dog/Photodisc/Getty Images
American Marketing
Association Definition
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
3
©2013 Cengage Learning. All Rights Reserved. May not
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be scanned,
part.
copied
or
duplicated,
or
Marketing: Getting Value
by Giving Value
Form
Utility
Time
Utility
The ability of goods
and services to
satisfy wants.
Place
Utility
Ownership
Utility
4
©2013 Cengage Learning. All Rights Reserved. May not
posted to a publicly accessible website, in whole or in
be scanned,
part.
copied
or
duplicated,
or
The Scope of Marketing:
It’s Everywhere!
• People Marketing
• Place Marketing
• Event Marketing
• Idea Marketing
5
©2013 Cengage Learning. All Rights Reserved. May not
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part.
copied
or
duplicated,
or
The Evolution of Marketing: From the
Product to the Customer
6
©2013 Cengage Learning. All Rights Reserved. May not
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be scanned,
part.
copied
or
duplicated,
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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.
7
©2013 Cengage Learning. All Rights Reserved. May not
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duplicated,
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The Customer: Front and Center
Customer Relationship
Management (CRM)
Limited
Relationships
Value
Customer
Satisfaction
Full
Partnerships
Customer Loyalty
8
©2013 Cengage Learning. All Rights Reserved. May not
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be scanned,
part.
copied
or
duplicated,
or
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
9
©2013 Cengage Learning. All Rights Reserved. May not
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Customer Satisfaction
You have satisfied customers when you deliver
perceived value above and beyond their
expectations, but
 Don’t overpromise
 Don’t underpromise
10
©2013 Cengage Learning. All Rights Reserved. May not
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part.
copied
or
duplicated,
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Marketing Strategy
• 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)
11
©2013 Cengage Learning. All Rights Reserved. May not
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A Well-Chosen Target Market
Size
Profitability
Accessibility
Limited Competition
12
©2013 Cengage Learning. All Rights Reserved. May not
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part.
copied
or
duplicated,
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© The Studio Dog/Photodisc/Getty Images
Facebook Changes the
Marketing Environment
• Facebook allows marketers to hypertarget
 Identify segments
 Tailor marketing
• Users like to remain in Facebook, more marketers
are using websites less
 Marketing is more social, and viral
 Customers broadcast to friends/network
• Customer loyalty becomes more important
13
Source: How Facebook Changes Marketing And Sales, August 8, 2010, Forbes Website
http://www.forbes.com/2010/08/10/marketing-internet-hypertargeting-technology-facebook_3.html; accessed September 21, 2011
©2013 Cengage Learning. All Rights Reserved. May not
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copied
or
duplicated,
or
Consumer Markets versus Business
Markets
Consumer Markets
Products for
personal
consumption
Business Markets
How will the
buyer use the
product?
Products used
directly or
indirectly to
produce other
products
Different approaches to select target markets.
14
©2013 Cengage Learning. All Rights Reserved. May not
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copied
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duplicated,
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Consumer Market Segmentation
• Demographic
• Geographic
• Psychographic
• Behavioral
© 2012 Zappos.com, Inc. or its affiliates.
• Marketers may select multiple segments to target
15
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Business Market Segmentation
• Geographic
• Customer-based
• Product-use based
16
©2013 Cengage Learning. All Rights Reserved. May not
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The Marketing Mix
17
©2013 Cengage Learning. All Rights Reserved. May not
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The Global Marketing Mix
• Reevaluate marketing mix for each new
country
Should it change?
 How?

• Nike entered the China market by creating a
Nike High School
Most Chinese do not play sports
 The cost of Nike sneakers was twice the average
salary
 As Chinese middle class emerged, the “hip hoop”
campaign paid off

Source: Shoe makers gunning for Olympian feat by Andria Cheng, May 9, 2008, Market Watch website, http://www.marketwatch.com/news/story/story.aspx?guid={781CC2E2-2B3F-4FF5-A0C5-0FB962D7E204}, accessed February 24, 2009; Nike Climbs
to Record as Orders Surge, Profit Rises, by Matt Townsend and Robert Fenne, September 24, 2010, Bloomberg website, http://www.businessweek.com/news/2010-09-24/nike-climbs-to-record-as-orders-surge-profit-rises.html, accessed April 12,
2011
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18
or
The Marketing Environment
• Markets must conduct environmental scanning to
analyze the external environment
• External environment includes competition and
market share analysis
• Key external factors must be considered:
 Economic
 Social/Cultural
 Technological
 Political/Legal
19
©2013 Cengage Learning. All Rights Reserved. May not
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be scanned,
part.
copied
or
duplicated,
or
The Global Marketing Environment
• The world market has become more
accessible to every business
• Understanding the marketing environment
is more important
• Researching opportunities in other
countries is a growing challenge
20
©2013 Cengage Learning. All Rights Reserved. May not
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be scanned,
part.
copied
or
duplicated,
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Customer Behavior: Decisions! Decisions!
Decisions!
Understanding customers is critical
• Why do people buy one
product but not
another?
• How do they use the
products they buy?
©Yuri Arcurs/ Shutterstock.com
©2013 Cengage Learning. All Rights Reserved. May not
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copied
or
21
duplicated,
or
Elements That Influence the Consumer
Decision-Making Process
22
©2013 Cengage Learning. All Rights Reserved. May not
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Consumer Decision Process
Need Recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Postpurchase Behavior
23
©2013 Cengage Learning. All Rights Reserved. May not
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part.
copied
or
duplicated,
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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
24
©2013 Cengage Learning. All Rights Reserved. May not
posted to a publicly accessible website, in whole or in
be scanned,
part.
copied
or
duplicated,
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Primary Research Tools
Observation Research –
the researcher does not
directly interact with the
research subject
• Scanner Data
• Traffic counters
• Garbage Analysis
Survey Research – the
researcher does interact
with the research
subjects
• Questionnaires
• Interviews
• Focus Groups
25
©2013 Cengage Learning. All Rights Reserved. May not
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© The Studio Dog/Photodisc/Getty Images
It Ain’t Easy Being Green
• Consumers around the world plan to spend more
on green products
• Focus varies from country to country
• Successful brands touts green credentials in a
simple, compelling message
• Delivering a valuable product that is honest about its
claims is key
• Activists and intellectuals are credible spokespeople
to create positive “buzz”
26
Source: Sustainable Consumption Facts and Trends from a Business Perspective, World Business Council for Sustainable Development Website, December 2008,
http://www.wbcsd.org/DocRoot/I9Xwhv7X5V8cDIHbHC3G/WBCSD_Sustainable_Consumption_web.pdf, accessed April 22, 2011.
©2013 Cengage Learning. All Rights Reserved. May not
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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
27
©2013 Cengage Learning. All Rights Reserved. May not
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part.
copied
or
duplicated,
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Marketing and Society
Leading-edge marketers have
set high standards in:



A few examples:
Environmentalism
 Starbucks
 Target
Abolishment of sweatshops
 General Electric
Community outreach
28
©2013 Cengage Learning. All Rights Reserved. May not
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part.
copied
or
duplicated,
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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
• 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
©2013 Cengage Learning. All Rights Reserved. May not
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29
or
11
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?
30
©
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