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12-1. Business in a Changing World McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 12 Customer-Driven.

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Presentation on theme: "12-1. Business in a Changing World McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 12 Customer-Driven."— Presentation transcript:

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2 Business in a Changing World McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 12 Customer-Driven Marketing

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4 12-4 David’s BridalDavid’s Bridal: Captured 30% of the wedding dress market. In the past 60 years, the bridal industry has reinvented itself numerous times. David’s Bridal enters the market in the 1990’s and has never looked back.

5 12-5 The Importance of Marketing Planning & execution to satisfy customer goals – Product development Product pricing Product promotion Distribution of goods, ideas, services

6 12-6 The group of activities that add value and designed to expedite transactions by creating, distributing, pricing, and promoting goods, services and ideas. The Nature of Marketing MARKETING

7 12-7 Marketing is NOT – Manipulating consumers Selling & advertising Marketing IS – Satisfying consumers The Nature of Marketing

8 12-8 The Exchange Relationship – act of giving up one thing (money, credit, labor, goods) in return (exchange) for something else (goods, services, or ideas) Marketing

9 12-9 The Exchange Process: Giving Up One Thing in Return for Another Marketing – The Exchange Relationship

10 12-10 Industry groups use marketing to increase demand for the industry’s product. America’s Beef Producers Functions of Marketing

11 12-11 Buying Selling Transporting Storing Grading Financing Marketing research Risk taking Functions of Marketing

12 12-12 The idea that an organization should try to satisfy customers’ needs through coordinated activities that also allow it to achieve its own goals. The Marketing Concept

13 12-13 Marketing Goal – Customer satisfaction Achieve business objectives Boost productivity Reduce costs Capture market share The Marketing Concept

14 12-14 Implementing the Marketing Concept Good information re: customer wants Consumer orientation Coordinate organizational efforts Customer’s perception of value = measure of success

15 12-15 The Marketing Concept 46% executives believe firm is customer focused 67% executives frequently meet with customers Marketing is more important as markets are more competitive

16 12-16 The Marketing Concept Production Orientation – 19 th century manufacturing efficiency Sales Orientation – early 20 th century Supply exceeds demand – need to “sell” products Marketing Orientation – 1950’s First determine what customers want

17 12-17 The Marketing Concept Marketing Orientation – approach requiring organizations to gather information about customer needs, share information across firm, use information to build long-term relationships with customers.

18 12-18 Marketing Orientation Wrigley’sWrigley’s sells products in 180 countries. Continues to reinvent itself; in 2008, merger with candy maker Mars.

19 12-19 Developing a Marketing Strategy Marketing strategy – plan of action for developing, pricing, distributing, and promoting products meeting the needs of specific customers.

20 12-20 Developing a Marketing Strategy Target Market – very specific group of consumers that a company focuses its marketing efforts to (e.g. Nike – golf clubs for recreational golfers).Nike

21 12-21 Developing a Marketing Strategy Total-market approach – firm tries to appeal to everyone and assumes that all buyers have similar needs. (e.g. Salt, sugar, agricultural products).

22 12-22 Developing a Marketing Strategy Market segmentation – strategy to divide the total market into groups of people with relatively similar product needs. Market segment – collection of individuals, groups or organizations sharing one or more characteristics thus having relatively similar needs and desires for products.

23 12-23 Market Segmentation Minority Buying Power by Race, 1990 versus 2003 & 2005

24 12-24 Total-Market Approach

25 12-25 Market Segmentation Approaches Concentration – company develops one marketing strategy for a single market segment. Specialization (e.g. Porsche’s focus on high- income individuals)Porsche’s Multi-segment – aims at two or more segments with strategy for each. (e.g. Raleigh bicycles for racers, commuters, and children)Raleigh

26 12-26 Market Segmentation Approaches Niche marketing – narrow segment focus usually on one small well-defined group with a unique and specific set of needs. (

27 12-27 Bases for Market Segmentation Demographic Geographic Psychographic Behavioristic

28 12-28 Developing the Marketing Mix

29 12-29 Product A good, service, or idea that has tangible and intangible attributes that provide satisfaction and benefit to consumers Products should be sold at a profit

30 12-30 Price A value placed on a product or service that is exchanged between a buyer and seller

31 12-31 Distribution Making products available to consumers in the quantities and locations desired

32 12-32 Promotion A persuasive form of communication that attempts to expedite a marketing exchange by influencing individuals and organizations to accept goods, services, and ideas

33 12-33 Marketing Research Systematic and objective process to collect information about potential customers. Guides marketing decisions.

34 12-34 Collecting Data Primary data – marketing information that is observed, recorded or collected directly from respondents (consumers). Secondary data – information compiled inside or outside the organization for some purpose other than changing the current situation

35 12-35 Buying Behavior Buying behavior – decision processes and actions of people who purchase and use products. Consumers personal and household Organizations for business use

36 12-36 Buying Behavior Perception – process by which a person selects, organizes, and interprets information received from one’s senses. (hearing a radio ad, touching a product)

37 12-37 Buying Behavior Learning – brings changes in behavior based on information and experience. Attitude – positive or negative feelings about something. Personality – individuals distinguishing character traits, attitudes, or habits.

38 12-38 Social Variables of Buying Behavior Social roles – set of expectations of individuals based on some position they occupy.

39 12-39 Buying Behavior Reference groups – groups with whom buyers identify and whose values or attitudes they adopt Social classes – ranking of people into higher or lower positions of respect Culture – integrated, accepted pattern of behavior including thought, speech, beliefs, actions, and artifacts

40 12-40 What Does Green Marketing Mean for Marketers? Entrepreneurial marketers will be leaders – new energy efficient products – changing consumption patterns (3 R’s) Reduce carbon emissions – source locally – eco-friendly transportation – master e-business strategies Green Marketing = Profits

41 12-41 The Marketing Mix and the Marketing Environment

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