1. Review MKT 101
HHU Spring 2013

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. Building Customer Relationships
Customer Relationship Management (CRM)
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

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

7. 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

8. 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.

9. 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

10. 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.

11. 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

12. Developing Marketing Information
Marketing Research
Developing the Research Plan
Secondary data consists of information that already exists somewhere, having been collected for another purpose
Primary data consists of information gathered for the special research plan

13. 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.

14. Characteristics Affecting Consumer Behavior
Maslow’s
Hierarchy of Needs

15. 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

16. 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

17. Business Buyer Behavior
The Buying Process

18. Business Buyer Behavior
The Buying Process
Problem recognition occurs when someone in the company recognizes a problem or need
Internal stimuli
Need for new product or production equipment
External stimuli
Idea from a trade show or advertising

19. Business Buyer Behavior
The Buying Process
General need description describes the characteristics and quantity of the needed item
Product specification describes the technical criteria
Value analysis is an approach to cost reduction where components are studied to determine if they can be redesigned, standardized, or made with less costly methods of production

20. Business Buyer Behavior
The Buying Process
Supplier search involves compiling a list of qualified suppliers
Proposal solicitation is the process of requesting proposals from qualified suppliers
Note to Instructor
This Web link brings the class to IDES which is a search engine for suppliers. The current page shows the vast number of plastics suppliers.

21. Business Buyer Behavior
The Buying Process
Supplier selection is the process when the buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions
Order-routine specifications is the final order with the chosen supplier and lists all of the specifications and terms of the purchase
Note to Instructor
This Web link brings you to staples.com. A leading supplier of office supplies for business and end consumers. It would be interesting to ask students what Staples can do to market themselves more effectively to businesses so they become the sole supplier of office products.

22. Business Buyer Behavior
The Buying Process
Performance review involves a critique of supplier performance to the purchase terms

23. Segmenting Consumer Markets
Market Segmentation
Segmenting Consumer Markets
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Behavioral segmentation

24. 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
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.

25. Characteristics Affecting Consumer Behavior
Groups and Social Networks
Word-of-mouth influence and buzz marketing
Opinion leaders are people within a reference group who exert social influence on others
Also called influentials or leading adopters
Marketers identify them to use as brand ambassadors
Note to Instructor
It is a great idea to click through to the Tremor Web site. It is an excellent example of Buzz marketing. Ask students if they tend to have a “go to” person when they want to purchase. Would they consider themselves opinion leaders? A great group to ask about is middle school aged kids. Who are the opinion leaders here? What qualities do they possess?