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