Chapter Twelve
Building Customer
Relationships
Through Effective
Marketing
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 1
Learning Objectives
1. Understand the meaning of marketing and the
2.
3.
4.
5.
importance of management of customer
relationships
Explain how marketing adds value by creating
several forms of utility
Trace the development of the marketing concept
and understand how it is implemented
Understand what markets are and how they are
classified
Identify the four elements of the marketing mix and
be aware of their importance in developing a
marketing strategy
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 2
Learning Objectives (cont’d)
6. Explain how the marketing environment affects
7.
8.
9.
10.
strategic market planning
Understand the major components of a
marketing plan
Describe how market measurement and sales
forecasting are used
Distinguish between a marketing information
system and marketing research
Identify the major steps in the consumer buying
decision process and the sets of factors that
may influence this process
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 3
Marketing

Define Marketing

Know the Major Marketing Functions
• Exchange Functions
• Physical Distribution Functions
• Facilitating Functions
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 4
Managing Customer Relationships

Define
• Relationship Marketing
• Customer Relationship Management
(CRM)
• Customer Lifetime Value
• Utility
- Know the types of utility: Form, Place,
Time, and Possession Utility
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 5
The Marketing Concept

What is the Marketing Concept?

When seeking to utilize the marketing concept, what
must businesses do to achieve success?

Be prepared to discuss the Evolution of the
Marketing Concept
• What were its origins?
• Before the development and widespread adoption of
the marketing concept, what orientations prevailed
in businesses?

Be familiar with how businesses implement
the marketing concept
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 6
Classifying Markets

Define
• Market
• Consumer Markets
• Business-to-Business (Industrial) Markets
• Producer Markets
• Reseller Markets
• Governmental Markets
• Institutional Markets
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 7
Developing Marketing Strategies

Define
• Marketing Strategy
- What are the components of a marketing strategy?
• Target Market
• Market Segment
• Market Segmentation
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 8
General Approaches for Selecting
Target Markets

Be familiar with the different approaches for
selecting target markets
• Undifferentiated Approach
• Concentrated Market Segmentation Approach
• Differentiated Market Segmentation Approach

Know the common bases of market
segmentation
•
•
•
•
Demographic
Psychographic
Geographic
Behavioristic
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 9
The Marketing Mix and the
Marketing Environment

Know the variables of the Marketing Mix and
the Marketing Environment

Which of these variables are controllable?

Which are uncontrollable?
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 10
Developing a Marketing Plan

Define Marketing Plan

Be prepared to list and explain the Elements of a
Marketing Plan
•
•
•
•
•
•
•
•
Executive Summary
Environmental Analysis
Strengths and Weaknesses
Opportunities and Threats
Marketing Objectives
Marketing Strategies
Marketing Implementation
Evaluation and Control
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 11
Market Measurement and
Sales Forecasting

What is a Sales Forecast?
• What is involved in developing a sales
forecast?

Why is it important to measure sales potential?

What should sales estimates do?
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 12
Marketing Information

Define Marketing Information System
• What are examples of internal and external data
sources?

What are Outputs?

Be able to list and discuss the Six Steps of
Marketing Research
1. Define the problem
2. Make a preliminary investigation
3. Plan the research
4. Gather factual information
5. Interpret the information
6. Reach a conclusion
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 13
Technology

Know how businesses utilize technology to
gather and analyze marketing information

What are other sources of secondary data?
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 14
Types of Buying Behavior

Define
• Buying Behavior
• Consumer Buying Behavior
• Business Buying Behavior
•
Be prepared to discuss the consumer buying
decision process and possible influences on
the process
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 15
Types of Buying Behavior (cont’d)

What is Consumer Income?
• Be able to distinguish between
- Personal Income
- Disposable Income
- Discretionary Income
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12 | 16