Marketing Management Dawn Iacobucci © 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.

What is Marketing Chapter 1 © 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.

Marketing and Exchange Marketing is an exchange between a firm and customer Company Customer The customer seeks benefits from the company, and expects to pay. The company offers benefits to its customers, and seeks profits. © 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.

Orientations Product/Production –Build a better mousetrap Selling Orientation –Let’s make a Deal Marketing/Customer –Building relationships with the customer © 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.

Marketing IS the Business Marketing should permeate the entire organization Chief Marketing Officers (CMO) need to show results –Quantify results when possible © 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.

Marketing Framework Customers –Who are they? –What are they like? –Do we want to draw different customers? Company –What are our strengths and weaknesses? –What customer benefits can we provide? © 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.

Marketing Framework Context –What is happening in our industry that might reshape our future business? Collaborators –Can we address our customers’ needs while strengthening our B2B partnerships? © 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.

Marketing Framework Competitors –Who are the competitors we must consider? –What are their likely actions and reactions? © 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.

Marketing Framework Segmentation –Customers aren’t all the same; they vary in their preferences, needs, and resources Targeting –Attracting some of those customers makes better sense than going after others Positioning –Communicate your benefits clearly to your intended customers © 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.

Marketing Framework Product –Will customers want what your company is prepared to produce? Price –Will customers pay what you’d like to charge? © 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.

Marketing Framework Place –Where and how will customers purchase your market offering? Promotion –What can you tell your customers or do for them to entice them to purchase? © 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.

Framework Considerations 5 Cs, STP and 4 Ps are interdependent –Marketers must understand how one decision impacts other decisions The 5 Cs are in flux –Marketers must consistently monitor and adjust strategy accordingly © 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.

Types of Shopping © 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.

Purchase Decision Making © 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.

Models for How Buyers Decide Lexicographic method –Compare brands by most important attribute; brands that make the cut go into consideration set; then compare on next important attribute, etc. Average method –One attribute can’t make or break a brand Use attribute importance –Assists with 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.

B2B Customers Classifications –Installations –Accessories –Raw materials –Components –Business services Most important classification is whether a business cares about a purchase © 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.

B2B Customers More complex decision making due to different roles within a business: –Initiators –Users –Influencers –Buyers Each role may sleek slightly different attributes © 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.