11 ©2013 Cengage Learning. All Rights Reserved. o re n p o sa tgeed Lteoa ra n p u b .l i A c l y a icgche tsss iRbel se e w e b ds .i t M e , yi n n © 2 0 1 3 ©2013 C Ceng g a g e L e a r n ii n ng g . A ll ll R Rights Reser rv ve ed. Ma ay n p pu po os s tt e ed d tt o o a a p ub b ll ii c c ll y y a ac cc ce es ss s ii b b ll e e w we eb bs s ii tt e e ,, ii n n w wh ho o ll e e o or r May not be scanned, copied or duplicated, w h o lee socra ni nn epda, r ct .o p i e d o r d u p l i c a t e d , o r o o tt b be scanned, copied or duplicated, or ii n n p pa ar r tt .. 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 © ©2 20 01 13 3 C Ce en ng ga ag ge e L Le ea ar rn n ii n ng g .. A A ll ll R R ii g gh h tt s s R Re es se er rv ve ed d .. M Ma ay y n no o tt p pu cc b ll e we o ll e r ii n po os s tt e ed d tt o o a a p ub b ll ii c c ll y y a ac ce es ss s ii b e w eb bs s ii tt e e ,, ii n n w wh ho e o or n b be e s sc ca an nn ne ed d ,, pa r tt .. p ar c co op p ii e ed d o or r d du up p ll ii c ca a tt e ed d ,, o or r © 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 posted to a publicly accessible website, in whole or in 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 posted to a publicly accessible website, in whole or in be scanned, part. copied or duplicated, or The Evolution of Marketing: From the Product to the Customer 6 ©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 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 posted to a publicly accessible website, in whole or in be scanned, part. copied or duplicated, or 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 posted to a publicly accessible website, in whole or in 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 posted to a publicly accessible website, in whole or in be scanned, part. copied or duplicated, or 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 posted to a publicly accessible website, in whole or in be scanned, part. copied or duplicated, or 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 posted to a publicly accessible website, in whole or in be scanned, part. copied or duplicated, or A Well-Chosen Target Market Size Profitability Accessibility Limited Competition 12 ©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 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 posted to a publicly accessible website, in whole or in be scanned, part. 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 posted to a publicly accessible website, in whole or in be scanned, part. copied or duplicated, or Consumer Market Segmentation • Demographic • Geographic • Psychographic • Behavioral © 2012 Zappos.com, Inc. or its affiliates. • Marketers may select multiple segments to target 15 ©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 Business Market Segmentation • Geographic • Customer-based • Product-use based 16 ©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 Marketing Mix 17 ©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 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 ©2013 Cengage Learning. All Rights Reserved. May not posted to a publicly accessible website, in whole or in be scanned, part. copied or duplicated, 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 posted to a publicly accessible website, in whole or in 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 posted to a publicly accessible website, in whole or in be scanned, part. copied or duplicated, or 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 posted to a publicly accessible website, in whole or in be scanned, part. copied or 21 duplicated, or Elements That Influence the Consumer Decision-Making Process 22 ©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 Consumer Decision Process Need Recognition Information Search Evaluation of Alternatives Purchase Decision Postpurchase Behavior 23 ©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 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, or 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 posted to a publicly accessible website, in whole or in be scanned, part. copied or duplicated, or © 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 posted to a publicly accessible website, in whole or in be scanned, part. copied or duplicated, or 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 posted to a publicly accessible website, in whole or in be scanned, part. copied or duplicated, or 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 posted to a publicly accessible website, in whole or in be scanned, part. copied or duplicated, or 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 posted to a publicly accessible website, in whole or in be scanned, part. copied or duplicated, 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 © ©2 20 01 13 3 C Ce en ng ga ag ge e L Le ea ar rn n ii n ng g .. A A ll ll R R ii g gh h tt s s R Re es se er rv ve ed d .. M Ma ay y n no o tt p pu cc b ll e we o ll e r ii n po os s tt e ed d tt o o a a p ub b ll ii c c ll y y a ac ce es ss s ii b e w eb bs s ii tt e e ,, ii n n w wh ho e o or n b be e s sc ca an nn ne ed d ,, pa r tt .. p ar c co op p ii e ed d o or r d du up p ll ii c ca a tt e ed d ,, o or r