NETA PowerPoint
Presentations to accompany
The Future of
Business
Fourth Edition
Adapted by
Norm Althouse,
University of Calgary
Copyright © 2014 by Nelson Education Ltd.
Marketing: The Customer Focus
Chapter 13
Chapter 13
Copyright © 2014 by Nelson Education Ltd.
Making the Connection
Copyright © 2014 by Nelson Education Ltd.
Learning Outcomes
1.
2.
3.
4.
5.
6.
7.
4
Define marketing concept and relationship marketing.
Show how managers create a marketing strategy.
Explain the marketing mix.
Summarize how consumers and organizations make
buying decisions.
List the five basic forms of market segmentation.
Identify how marketing research is used in marketing
decision making.
List some of the trends in understanding the consumer.
Copyright © 2014 by Nelson Education Ltd.
Basic Terms

Marketing – The process of discovering the needs and
wants of potential buyers and customers and then
providing goods and services that meet or exceed their
expectations.

Products – In marketing, any good or service, along with
its perceived attributes and benefits, that creates value for
the customer.

Exchange – The process in which two parties give
something of value to each other to satisfy their
respective needs.
5
Copyright © 2014 by Nelson Education Ltd.
The “Right” Principle
Getting the “right” products (goods or services) >>>
To the “right” people (customers) >>>
At the “right” place, time, and price >>>
Using the “right” promotion techniques >>>
6
Copyright © 2014 by Nelson Education Ltd.
Define marketing concept and relationship
marketing.
7
Copyright © 2014 by Nelson Education Ltd.
Core Value Proposition
A statement of the tangible results a customer receives
from using your products.The five value drivers are:
1.
2.
3.
4.
5.
8
Idea – What does your product do for the customer?
Benefit – What is the benefit to your customer?
Target – How can you segment the various customer
groups? How do you reach them?
Perception – How do you want to be perceived by your
customer, the public, or other stakeholders?
Outcome (Reward) – What are the net results for the
company?
Copyright © 2014 by Nelson Education Ltd.
The Marketing Concept
Identify consumer needs and produce the goods
or services that will satisfy them while make a
profit for the organization.
9
Copyright © 2014 by Nelson Education Ltd.
The Marketing Concept
Focus on customer wants so the organization can
distinguish its products from the competition’s products.
Integrate all of the organization’s activities to satisfy these
wants.
Achieve the long-term goals of the organization
by satisfying customer wants and needs legally
and responsibly.
10
Copyright © 2014 by Nelson Education Ltd.
Customer Value
Ratio of benefits to the sacrifices
necessary to obtain those benefits, as
determined by the customer.
Customer
Satisfaction
The customer’s feeling that a product
has met or exceeded expectations.
Building
Relationships
A strategy that focuses on forging longterm partnerships with customers by
offering value and providing customer
satisfaction.
11
Copyright © 2014 by Nelson Education Ltd.
Show how managers create a marketing
strategy.
12
Copyright © 2014 by Nelson Education Ltd.
Creating a Marketing Strategy
Creating a customer-focused marketing strategy
involves four main steps:
1.
Understanding the external environment.
2.
Defining a target market.
3.
Creating a competitive advantage.
4.
Developing a marketing mix.
13
Copyright © 2014 by Nelson Education Ltd.
External Environment
14
Copyright © 2014 by Nelson Education Ltd.
Target Market
The specific group of
consumers toward which a
company directs its
marketing efforts.
15
Copyright © 2014 by Nelson Education Ltd.
THINKSTOCK/GETTY IMAGES
Target
Market
Competitive Advantage
A set of unique features of a company and its
products that are perceived by the target market as
significant and superior to those of the competition
(differential advantage).
Cost
Ability to produce a product at a lower cost.
Differential Ability to provide a unique product.
Niche
16
Ability to target and serve a single
segment.
Copyright © 2014 by Nelson Education Ltd.
Explain marketing mix.
17
Copyright © 2014 by Nelson Education Ltd.
Marketing Mix
Product
Elements of the
Marketing Mix
Price
“The Four Ps”
Place (Distribution)
Promotion
18
Copyright © 2014 by Nelson Education Ltd.
Product Strategy





Brand name
Packaging
Colours
Warranty
Accessories
Services
program
19
AP PHOTO/THE CANADIAN PRESS(STEW MILNE)

Copyright © 2014 by Nelson Education Ltd.
Pricing Strategy
Based on the demand for the product
and the cost of producing it.
$$$$$$$$$$$$$$$$$$$$$$$$$$
Also, special considerations can influence the price.
20
Copyright © 2014 by Nelson Education Ltd.
Distribution Strategy (Place)
Creating the means (channels) by which a product
flows from the producer to the customer.
21
Copyright © 2014 by Nelson Education Ltd.
Promotion Strategy




Personal selling
Advertising
Public relations
Sales promotion
22
Copyright © 2014 by Nelson Education Ltd.
Summarize how consumers and organizations
make buying decisions.
23
Copyright © 2014 by Nelson Education Ltd.
Exhibit 13.2: Consumer Decision-Making
Process
24
Copyright © 2014 by Nelson Education Ltd.
Decision-Making Influences
Social Factors
Individual Influences
Psychological Influences
25
Copyright © 2014 by Nelson Education Ltd.
PIXELLOVER RM 7/GETSTOCK
Cultural Factors
Exhibit 13.3: Continuum of Consumer
Buying Decisions
26
Copyright © 2014 by Nelson Education Ltd.
Business-to-Business Market
Purchase Volume
Number of Customers
Characteristics
Location of Buyers
Direct Distribution
27
Copyright © 2014 by Nelson Education Ltd.
List the five basic forms of market
segmentation.
28
Copyright © 2014 by Nelson Education Ltd.
Exhibit 13.4:
Forms of Consumer Market Segmentation
29
Copyright © 2014 by Nelson Education Ltd.
Exhibit 13.5:
Age Segmentation for Fritos, Doritos, Tostitos
30
Copyright © 2014 by Nelson Education Ltd.
Identify how marketing research is used in
marketing decision making.
31
Copyright © 2014 by Nelson Education Ltd.
Marketing Research Process
1. Define the marketing issue.
2. Choose a method of research.
3. Collect the data.
4. Analyze the research data.
5. Make recommendations.
32
Copyright © 2014 by Nelson Education Ltd.
Define the Opportunity or Issue
Key Questions
33
Copyright © 2014 by Nelson Education Ltd.
Choose a Method of Research

Survey – Data is collected from respondents to obtain
facts, opinions, and attitudes.

Observation – An investigator monitors respondents’
actions without interacting directly with them.

Experiment – An investigator changes one or more
variables while observing the effects of these changes on
another variable.
34
Copyright © 2014 by Nelson Education Ltd.
Collect the Data
Primary Data
Information collected directly from
the original source.
Information that has already been
Secondary Data collected for a project other than the
current one.
35
Copyright © 2014 by Nelson Education Ltd.
And Finally
Analyze the data >>>>
Make recommendations to management.
36
Copyright © 2014 by Nelson Education Ltd.
List some of the trends in understanding
the consumer.
37
Copyright © 2014 by Nelson Education Ltd.
The Future of Marketing

Social media and mobile marketing.

Green and social marketing.

Loyalty cards.
38
Copyright © 2014 by Nelson Education Ltd.