1. Business in Action 6e Bovée/Thill The Art and Science of Marketing Chapter 13

2. Marketing in a Changing World  Marketing  The process of creating value for customers and building relationships with those customers in order to capture value back from them Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-2

3. Marketing in a Changing World  Place Marketing  Marketing efforts to attract people and organizations to a particular geographical area  Cause-Related Marketing  Identification and marketing of a social issue, cause, or idea to selected target markets Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-3

4. The Role of Marketing in Society  Needs  Differences between a person’s actual state and his or her ideal state; they provide the basic motivation to make a purchase  Wants  Specific goods, services, experiences, or other entities that are desirable in light of a person’s experiences, culture, and personality Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-4

5. The Role of Marketing in Society (cont.)  Exchange Process  The act of obtaining a desired object or service from another party by offering something of value in return  Transaction  An exchange of value between parties Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-5

6. The Role of Marketing in Society (cont.)  Utility  The power of a good or service to satisfy a human need  Form, time, place, possession Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-6

7. The Marketing Concept  Marketing Concept  An approach to business management that stresses customer needs and wants, seeks long-term profitability, and integrates marketing with other functional units within the organization Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-7

8. The Marketing Concept (cont.)  Relationship Marketing  A focus on developing and maintaining long- term relationships with customers, suppliers, and distribution partners for mutual benefit  Customer Loyalty  The degree to which customers continue to buy from a particular retailer or buy the products of a particular manufacturer or service provider Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-8

9. Challenges in Contemporary Marketing  Involving the customer in the marketing process  Making data-driven decisions  Conducting marketing activities with greater concern for ethics and etiquette Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-9

10. Making Data-Driven Decisions  Marketing Research  The collection and analysis of information for making marketing decisions  Observation, surveys, interviews, focus groups Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-10

11. Marketing with Greater Concern for Ethics and Etiquette  Permission-Based Marketing  A marketing approach in which firms first ask permission to deliver messages to an audience and then promise to restrict their communication efforts to those subject areas in which audience members have expressed interest Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-11

12. The Consumer Decision Process  Cognitive Dissonance  Tension that exists when a person’s beliefs don’t match his or her behaviors; a common example is buyer’s remorse, when someone regrets a purchase immediately after making it Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-12

13. Purchase InfluencesCulture Socioeconomic level Reference groups Situational factors Self-image Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-13

14. Crafting a Marketing Strategy  Marketing Strategy  An overall plan for marketing a product; includes the identification of target market segments, a positioning strategy, and a marketing mix Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-14

15. Dividing Markets into Segments  Market  A group of customers who need or want a particular product and have the money to buy it  Market Segmentation  The division of a diverse market into smaller, relatively homogeneous groups with similar needs, wants, and purchase behaviors Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-15

16. Dividing Markets into Segments  Demographics  The study of statistical characteristics of a population  Psychographics  Classification of customers on the basis of their psychological makeup, interests, and lifestyles Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-16

17. Dividing Markets into Segments  Geographic Segmentation  Categorization of customers according to their geographical location  Behavioral Segmentation  Categorization of customers according to their relationship with products or response to product characteristics Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-17

18. Choosing Your Target Markets  Target Markets  Specific customer groups or segments to whom a company wants to sell a particular product  Undifferentiated, differentiated, concentrated, and individualized Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-18

19. The Marketing Mix  Marketing Mix  The four key elements of marketing strategy: product, price, distribution, and customer communication Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-19

20. The Marketing Mix (cont.) Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-20

21. The Marketing Mix (cont.)  Product  A bundle of value that satisfies a customer need or want  Price  The amount of money charged for a product or service Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-21

22. The Marketing Mix (cont.)  Distribution Channels  Systems for moving goods and services from producers to customers  Also known as marketing channels Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-22

23. The Marketing Mix (cont.)  Promotion  A wide variety of persuasive techniques used by companies to communicate with their target markets and the general public Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-23