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Review MKT 101 HAUT Spring 2015.

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Presentation on theme: "Review MKT 101 HAUT Spring 2015."— Presentation transcript:

1 Review MKT 101 HAUT Spring 2015


3 Designing a Customer-Driven Marketing Strategy
Marketing Management Orientations Production concept Product concept Selling concept Marketing concept Societal concept

4 Designing a Customer-Driven Marketing Strategy
Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Organization should therefore devote its energy to making continuous product improvements. Marketing Management Orientations

5 Companywide Strategic Planning
Developing Strategies for Growth and Downsizing Product/market expansion grid strategies

6 Companywide Strategic Planning
Developing Strategies for Growth and Downsizing Market penetration is a growth strategy increasing sales to current market segments without changing the product Market development is a growth strategy that identifies and develops new market segments for current products

7 Companywide Strategic Planning
Developing Strategies for Growth and Downsizing Product development is a growth strategy that offers new or modified products to existing market segments Diversification is a growth strategy through starting up or acquiring businesses outside the company’s current products and markets Note to Instructor This Web link leads to the hompage for Virgin. This is a great company to discuss as they provide examples of market development, product development and diversification. Their homepage lists all their industries and products including tourism, leisure, shopping, media, finance, and healthcare.

8 Marketing Information and Customer Insights
Marketing Information Systems (MIS) Marketing information system (MIS) consists of people and procedures for: Assessing the information needs Developing needed information Helping decision makers use the information for customer

9 Developing Marketing Information
Marketing Intelligence Marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketplace Note to Instructor This Web link brings you to AC Nielsen’s homepage. This includes not just their online division but their entire company. It is very interesting to explore the area called trends an insights. In slideshow view, click on movie icon to launch Meredith video snippet. See accompanying DVD for full video segment. Discussion Question Ask students what Nielsen might have learned about customers in these insights.

10 Developing Marketing Information
Marketing Research Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization

11 Developing Marketing Information
Internal Data Internal databases are electronic collections of consumer and market information obtained from data sources within the company network Note to Instructor Pizza Hut’s database is highlighted in the text. They have: Detailed customer data on 40 million U.S. households, gleaned from phone orders, online orders, and point-of-sale transactions at its more than 7,500 restaurants. The company can organize the data by order details to enhance customer relationships such as the Pizza Hut designed VIP (Very Into Pizza) program to retain its best customers. It invites these customers to join the VIP program for $14.95 and receive a free large pizza. Then, for every two pizzas ordered each month, VIP customers automatically earn a coupon for another free large pizza.

12 Business Buyer Behavior
Major Types of Buying Situations Straight rebuy is a routine purchase decision such as reorder without any modification Modified rebuy is a purchase decision that requires some research where the buyer wants to modify the product specification, price, terms, or suppliers New task is a purchase decision that requires thorough research such as a new product

13 Boston Consulting Group Growth-Share Matrix
Note to Instructor Stars are high-growth, high-share businesses or products requiring heavy investment to finance rapid growth. They will eventually turn into cash cows. Cash cows are low-growth, high-share businesses or products that are established and successful SBUs requiring less investment to maintain market share. Question marks are low-share business units in high-growth markets requiring a lot of cash to hold their share. Dogs are low-growth, low-share businesses and products that may generate enough cash to maintain themselves but do not promise to be large sources of cash.

14 The Marketing Environment
The marketing environment includes the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with customers

15 The Marketing Environment
Microenvironment consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

16 The Company’s Microenvironment
Actors in the Microenvironment

17 The Company’s Microenvironment
Suppliers Provide the resources to produce goods and services Treated as partners to provide customer value

18 The Company’s Microenvironment
Marketing Intermediaries Help the company to promote, sell and distribute its products to final buyers Note to Instructor The text explains how Coke delivers value for their marketing intermediaries: They understand each retailer partner’s business The conduct consumer research and share with partners They develop marketing programs and merchandising for partners

19 Types of Buying Decision Behavior
Four Types of Buying Behavior Buying behavior varies greatly for different types of products. For example, someone buying an expensive new PC might undertake a full information gathering and brand evaluation process.

20 The Buyer Decision Process
Buyer Decision Making Process The actual purchase decision is part of a much larger buying process—starting with need recognition through how you feel after making the purchase. Marketers want to be involved throughout the entire buyer decision process.

21 Business Buyer Behavior
Participants in the Business Buying Process Users are those that will use the product or service Influencers help define specifications and provide information for evaluating alternatives Buyers have formal authority to select the supplier and arrange terms of purchase Deciders have formal or informal power to select and approve final suppliers Gatekeepers control the flow of information

22 Segmenting Consumer Markets
Market Segmentation Segmenting Consumer Markets Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation

23 Segmenting Consumer Markets
Market Segmentation Segmenting Consumer Markets Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities

24 Segmenting Consumer Markets
Market Segmentation Segmenting Consumer Markets Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality

25 Segmenting Consumer Markets
Market Segmentation Segmenting Consumer Markets Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality traits Note to Instructor There are a whole group of products which are targeted to the affluent including hotels like Four Seasons, which is mentioned in the book. Their products offerings are deluxe: Kids in the City package for $520 a night and, among other things, enjoy a visit in their room from the Ice Cream Man, who arrives with all the fixings to make any concoction they desire. The Benjamin Hotel in New York City provides dog beds in a variety of styles and doggie bathrobes, as well as canine room service and DVDs for dogs. At the Ritz-Carlton, Lake Las Vegas in Henderson, Nevada, the Love at Lake Las Vegas weekend package includes two nights in the 2,400 square foot presidential suite, helicopter and gondola rides, a champagne-tasting party on a yacht complete with rose petals strewn about and a string trio, use of a luxury car throughout the stay, in-room couples spa treatment, a $5,000 casino line of credit, a $50,000 shopping spree at Neiman Marcus, 14 dozen roses, and a butler-drawn Cristal champagne bath.

26 Segmenting Consumer Markets
Market Segmentation Segmenting Consumer Markets Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product Occasions Benefits sought User status Usage rate Loyalty status Note to Instructor Occasion segmentation Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item. Benefit segmentation according to the different benefits that consumers seek from the product. Students often get confused with the difference between behavioral and psychographic segmentation. Behavior is more tied into how consumers use the product. A good illustration is greeting cards—ask students how their purchasing would be different when buying a birthday card for their mother versus one for a new boyfriend. In addition, ask them how people might look for different benefits when purchasing a car? Some might look for safety while others will look for the best gas mileage.

27 4 Major Steps in Designing a Customer-Drive Marketing Strategy
In concept, marketing boils down to two questions: (1) Which customers will we serve? and (2) How will we serve them? Of course, the tough part is coming up with good answers to these simple-sounding yet difficult questions. The goal is to create more value for the customers we serve than competitors do

28 Target Market Strategies
Market Targeting Target Market Strategies Concentrated marketing targets a small share of a large market Limited company resources Knowledge of the market More effective and efficient

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