October 10
New Product
The Marketing Process
Customer Relationship Management
Understanding the Customer
Customer Needs and Wants
NEEDS:
• Food
• Clothing
• Shelter
WANTS:
• Morton’s filet mignon
• Gucci Shoes
• Pottery Barn Couch
Understanding the Customer
Perceived Value
Customers needs and wants impact their perception of
“value” and therefore their buying behavior
If a consumer believes a Dominos pizza delivers them value
to meet their need (food) and wants (pizza delivery) for a
worthwhile price, they’ll probably continue purchasing
Dominos
Understanding the Customer
Perceived Value
The customer’s understanding of value is based on
product/service offered plus an understanding of
competitors
There is an emotional, psychological and social benefit
associated with purchasing the product
Dominos Pizza:
• Fresh Ingredients for my family
• Is delivered to my home
• Trusted or well known brand
Understanding the Customer
Customer Satisfaction
All the best marketing efforts will never keep a customer
without customer satisfaction
A perfect storm of the 4Ps must take place in order to
influence the perceived value and the customer satisfaction
• P – Is it a product that satisfies my wants/needs
• P – Is it affordable? Or does the price accurately reflect
the quality of the product
• P – Is it accessible?
• P – Have they communicated properly vs competitors?
Strategic Planning
Short and long term plans to be successful and continue to
be successful as the environment changes
• Value Proposition - The set of benefits (or values) a
company promises to deliver to customers in order to
satisfy customer wants and needs
• Mission Statement - Describes a company’s purpose and
what it wants to accomplish with its business
• Goals and Objectives - Process for achieving and
measuring success
Competitive Advantage
The competitive edge a company has over its competitors
• Differentiates
• What makes it special?
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High Quality?
Affordable?
Reliable?
Distinguishable service?
SWOT Analysis
SWOT Analysis
Strengths/Weaknesses – Internal Organizational Factors
• Reputation, budgets, quality of product, position in market
(established? New?)
Opportunities/Threats – External Factors to the Organization
• Economy, expansion, competitor specifics
Marketing Environment
• It is essential to understand your environment
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Industry
Markets
Customers
Competitors
• 2 main categories of the Marketing Environment
• Microenvironment
• Macroenviroment
Microenvironment
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The Company itself
Suppliers
Intermediaries
Customers
Competitors
Publics
Microenvironment –
The Company
• Executives, Management, Staff in most departments
(finance, accounting, operations all work with marketing)
• They establish policies, procedures, strategies
• Mission Statement
• Goals and Objectives
• 4 Ps
Microenvironment –
Suppliers
• Provide materials needed to produce goods/services
• Impact:
• Delays
• Price increases
• Shortages
Microenvironment –
intermediaries
• Promotion, Sale or Distribution of a companies product or
service to its customers
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Retailers
Wholesalers
Shipping companies
Advertising Agencies
Microenvironment –
Customers
• Consumer Market - Personal Consumption
• Business Market - Businesses that use your product/service
to create their own product
• Reseller Market – Retailers
• Government Market- Government agencies that use your
product/service to create other public services
• International Markets – Any buyer from other country
Microenvironment –
Competitors
• What is their perceived value
• Advantages/disadvantages
• 4 Ps
Microenvironment –
Publics
• Any group that may impact a company
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Financial – loans
Media – Newspaper, tv news
Government – Legal issues, product safety
Citizen-action – consumer or environmental groups
General Public – Word of mouth
• Advantages/disadvantages
• 4 Ps
Macroenvironment
Societal forces that affect businesses
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Demographics
Economic Environments
Natural Environments
Technology
Macroenvironment –
Demographics
• Study of Human Population
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Gender
Age
Race
Location
Occupation
Income
Macroenvironment –
Economic Environment
• Economy affects purchasing power
• Income
• Interest rates
• Unemployment
Macroenvironment –
Natural Environment
• Natural Resources
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Gas prices
Pollution risks
Recycling
Biodegradable
Macroenvironment –
Technology
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Advancement
Obsolete products/services/distribution
Communication
Data Collection
CRM
In Class Assignment
• Work with your group to refine your
• SWOT Analysis – keep in mind the macro/micro
environments
• Value Proposition
• Mission Statement
• Create the following:
• 2 - 4 Goals
• Objective for your goals
• Create a statement that clearly defines your
Competitive Advantage
• Who is your target market
Homework
• Read Module 5
• Work with your group to create finalize and present:
• SWOT Analysis – keep in mind the macro/micro
environments
• Value Proposition
• Mission Statement
• 3 Goals
• Objective for your goals
• Create a statement that clearly defines your Competitive
Advantage
• Who is your target market