1. Week 6 MARKETING: AN INTRODUCTION
BUSN 102 – Özge Can

3. Marketing in a Changing World
The process of creating value for customers and building relationships with those customers in order to capture value back from them
Applies to: not only good and services but also: for-profit organizations, people, places, and causes

4. 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

5. The Role of Marketing in Society
Needs and wants
Exchanges and transactions
Four utilities

6. 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

7. The Role of Marketing in Society
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

8. The Role of Marketing in Society
Utility
The power of a good or service to satisfy a human need
Four aspects of utility:
Form
Time
Place
Possession

9. Examples of the Four Utilities

10. Different Views of Marketing Function:
Product concept: Focusing on the production of goods, not satisfying customers
Selling concept: Generating as many sales transactions as possible; customers are only a target to be sold to

11. Different Views of Marketing Function:
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

12. Selling Concept vs. Marketing Concept

13. The Marketing Concept Involves:
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

14. Challenges in Contemporary Marketing
1) Involving the customer in the marketing process 2) Making data-driven decisions 3) Conducting marketing activities with greater concern for ethics and etiquette

15. 1) Involving the Customer
Customer Relationship Management (CRM)
A type of information system that captures, organizes, and capitalizes on all the interactions that a company has with its customers
Social Commerce
The creation and sharing of product-related information among customers and potential customers

16. 2) Making Data-Driven Decisions
Marketing Research
The collection and analysis of information for making marketing decisions
Tracking each aspect of marketing effectiveness
Key marketing research techniques:
Observation, surveys, interviews and focus groups, process data collection, ethnographic research, neuromarketing studies

17. 3) Greater Concern for Ethics and Etiquette
Permission-Based Marketing
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
Stealth Marketing
The delivery of marketing messages to people who are not aware that they are being marketed to

18. Understanding Today’s Customers
I. Consumer Market:
Individuals or households that buy goods and services for personal use
II. Organizational Market:
Companies, government agencies, and other organizations that buy goods and services either to resell or to use in the creation of their own goods and services

19. The Consumer Decision Process
Think about several purchase decisions you’ve made recently. Classical economics suggests that your behavior would follow a rational process of first recognizing a need and then gathering information, identifying alternative solutions, and finally making your choice from those alternatives. But how often do you really make decisions in this way? Researchers now understand that consumer behavior tends to be far less logical and far more complicated—and more interesting—than this model suggests. In fact, some research suggests that as much as 95 percent of the decision-making process is subconscious and that sensory cues can play a much larger role than objective information.
You can start to understand why so many decisions seem mysterious from a rational point of view if you consider all the influences that affect purchases:
Culture
Socioeconomic level
Reference groups
Situational factors
Self-image

20. The Organizational Customer Decision Process
The purchasing behavior of organizations is easier to understand than the purchasing behavior of consumers because it’s more clearly driven by economics and influenced less by subconscious and emotional factors. Here are some of the significant ways in which organizational purchasing differs from consumer purchasing:
An emphasis on economic payback and other rational factors
A formal buying process
Greater complexity in product usage
The participation and influence of multiple people
Close relationships between buyers and sellers

21. Consumer Decision Process
Rational model of customer buying behavior:
Need recognition
Information research
Evaluation of alternatives
Purchase
Postpurchase evaluation

22. The Consumer Decision Process
Consumer behavior is less logical and far more complicated:
Subconscious decision-making, gut feelings and emotional responses
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

24. Major Purchase Influences:
Culture
Socioeconomic level
Reference groups
Situational factors
Self-image

25. Organizational Customer Decision Process:
An emphasis on economic payback and other rational factors
A formal buying process
Greater complexity in product usage
The participation and influence of multiple people
Close relationships between buyers and sellers

26. Strategic Marketing Planning
The process of examining an organization’s current marketing situation, assessing opportunities and setting objectives, and then developing a marketing strategy to reach those objectives
Involves the following steps:
Examining current marketing situation
Asessing opportunities abd setting objectives
Developing marketing strategy

27. Strategic Marketing Planning Process

28. Analyzing External Environment
Environmental factors include:
Economic conditions
Natural enviorenment
Social and cultural trends
Laws and regulations
Technology

29. Pursuing Market Opportunities

30. Crafting a Marketing Strategy
Using the current marketing situation and your objectives as your guide, you’re ready to develop a marketing strategy, which consists of dividing your market into segments, choosing your target markets and the position you’d like to establish in those markets, and then developing a marketing mix to help you get there.

31. Crafting a Marketing Strategy
An overall plan for marketing a product; includes:
1) identification of target market segments
2) choosing the target markets
3) positioning in the target market
4) developing the marketing mix

32. Dividing Markets into Segments
A market contains all the customers who might be interested in a product and can pay for it. However, most markets contain subgroups of potential customers with different interests, values, and behaviors. To maximize their effectiveness in reaching these subgroups, many companies subdivide the total market through market segmentation, grouping customers with similar characteristics, behaviors, and needs. Each of these market segments can then be approached by offering products that are priced, distributed, and promoted in a unique way that is most likely to appeal to that segment. The overall goal of market segmentation is to understand why and how certain customers buy what they buy so that you use your finite resources to create and market products in the most efficient manner possible.
Four fundamental factors marketers use to identify market segments are demographics, psychographics, geography, and behavior.
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

33. 1) Dividing Markets into Segments
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

34. 1) 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
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

35. Choosing Your Target Markets
After you have segmented your market, the next step is to find appropriate target segments, or target markets, on which to focus your efforts. Marketers use a variety of criteria to narrow their focus to a few suitable market segments, including the magnitude of potential sales within each segment, the cost of reaching those customers, fit with a firm’s core competencies, and any risks in the business environment.

36. 2) Choosing Your Target Markets
Specific customer groups or segments to whom a company wants to sell a particular product
Undifferentiated (mass) marketing
Differentiated marketing
Concentrated marketing
Individualized marketing (micromarketing)

37. Market-Coverage Strategies:

38. Staking Out a Position in Your Target Markets
After you have decided which segments of the market to enter, your next step is to decide what position you want to occupy in those segments. Positioning is the process of designing a company’s offerings, messages, and operating policies so that both the company and its products occupy distinct and desirable competitive positions in your target customers’ minds.

39. 3) Positioning in Your Target Markets
Managing a business in a way designed to occupy a particular place in the minds of target customers
Such variables emphasized: product attributes, customer service, brand image, price or category leadership
Customers ultimately decide on the positioning

40. The Marketing Mix
After you’ve segmented your market, selected your target market, and taken steps to position your product, your next task is to develop a marketing mix. A firm’s marketing mix consists of product, price, distribution, and customer communication.

41. 4) The Marketing Mix Marketing Mix
The four key elements of marketing strategy: product, price, distribution, and customer communication

42. 4) The Marketing Mix

43. 4) The Marketing Mix Product
A bundle of value that satisfies a customer need or want
Holistic view to the offering:
Brand name, design, packaging, support services, warranty, ownership experience, and etc.

44. 4) The Marketing Mix Price
The amount of money charged for a product or service
Factors on pricing:
Marketing objectives, government regulations, production costs, customer perceptions, competition, customer demand

45. 4) The Marketing Mix Distribution (marketing) channels
Systems for moving goods and services from producers to customers
Key factors:
customer needs, product support requirements, market coverage, distribution costs, competition, positioning

46. 4) The Marketing Mix Promotion
Persuasive techniques used by companies to communicate with their target markets and the general public
Direct and indirect communication:
Face-to-face, media, direct mail, billboards, social media and etc.

47. Mid-Term Exam Format: Multiple-choice questions (%60)
Short essays (%40)
Content:
Motivation (Chp.10)
HRM concepts (Chp.11)
Labor relations (Chp.12)
Marketing (Chp.13)

48. Exam: Key Topics Four indicators of motivation
Classical theories of motivation
Maslow’s hierarchy of needs, Theory X, Y and Z, Herzberg’s two factors, McClelland’s three needs
Modern theories of motivation
Expectancy, equity, goal-setting theories, job characteristics model
Core job dimensions to consider in motivation
Reinforcing high-performance

49. Exam: Key Topics Human resource (HR) planning
Managing the employee life-cycle (recruiting, terminating retiring)
Evaluating employees: Performance appraisal
Training and development
Employee compensation
Salary, wage, incentives, benefits
Unionization: employee and management perspectives
Collective bargaining process

50. Exam: Key Topics The role of marketing
Product, sales and marketing concepts
Challenges in contemporary marketing
Customer decision process & buying behavior
Consumer market vs. organizational market
Steps in stratetigc marketing planning
Marketing strategy and its dimensions
Marketing mix: product, price, distribution, promotion

51. Example Questions:
In the workplace, motivation can be assessed by measuring four indicators: satisfaction, engagement, rootedness, and ________. A) intelligence B) commitment C) creativity D) work performance
Answer: B

52. Example Questions:
Workplace factors such as health insurance, pension plans, and retirement benefits would satisfy which of the following needs in Maslow's hierarchy? A) safety needs B) social needs C) esteem needs D) physiological needs
Answer: A

53. Example Questions:
________ suggests that employee satisfaction depends on the perceived ratio of inputs to outputs. A) Herzberg's two-factor theory B) David McClelland's three needs theory C) Expectancy theory D) Equity theory
Answer: D

54. Example Questions:
Carrey works as a bank teller who handles deposits and disbursement. In an attempt to improve her motivation, Carrie's manager asks her to distribute traveler's checks and sell certificates of deposit as well. Though the additional tasks are not more challenging than what Carrey has been doing, they give her more to do. This is an example of ________. A) job enrichment B) cross-training C) job enlargement D) benchmarking
Answer: C

55. Example Questions:
John stayed late in order to finish up a project. When his manager found the completed project on her desk, she immediately sent John an praising his good work and thanking him for going the extra mile. In this example, John's manager uses ________.
A) transactional analysis
B) cognitive restructuring
C) negative reinforcement
D) positive reinforcement
Answer: D

56. Example Questions:
________ refers to a statement of the tasks involved in a given job and the conditions under which the holder of a job will work. A) Job specification B) Job description C) Succession planning D) Job analysis
Answer: B

57. Example Questions:
Quality of hire measures ________. A) the amount of money spent in hiring and training new employees B) the level of productivity of employees in the probationary period C) how closely incoming employees meet the company's needs D) the percentage of the workforce that leaves every year
Answer: C

58. Example Questions:
Salary differs from wages in that the salary ________. A) falls under the purview of a certain law B) is based on a fixed amount per year C) relates to exempt employees D) is paid by the unit of time
Answer: B

59. Example Questions:
________ refers to an incentive program that rewards employees for meeting specific, individual goals. A) Pay for performance B) Knowledge-based pay C) Salary D) Commission
Answer: A

60. Example Questions:
________ refers to a company-sponsored counseling or referral plan for employees with personal problems. A) Health savings accounts B) Employee assistance program C) High-deductible insurance D) Retirement plans
Answer: B

61. Example Questions:
ACZ Pharmaceuticals, an American multinational pharmaceutical corporation, conducts "HIV/AIDS Awareness" camps in various cities across the United States. The firm also uses this campaign to promote its latest range of drugs. In this example, ACZ Pharmaceuticals uses ________. A) place marketing B) social commerce C) stealth marketing D) cause-related marketing
Answer: B

62. Example Questions:
________ utility is the benefit provided by making the company's products available where customers want to purchase them. A) Form B) Possession C) Place D) Time
Answer: C

63. Example Questions:
Creating new goods and services for a firm's current markets is called ________. A) market penetration B) product development C) market development D) diversification
Answer: B

64. Example Questions:
Majestic Shoes Inc., an international shoes and footwear manufacturing firm, groups its customers according to the region in which they live. The firm markets its range of waterproof, cold-weather footwear in mountainous regions. In this example, Majestic Shoes Inc. uses which of the following targeting strategies? A) demographic segmentation B) psychographic segmentation C) horizontal integration D) geographic segmentation
Answer: D

65. Example Questions:
Which of the following is true about concentrated marketing? A) It ignores differences among buyers. B) It refers to firms that use the same marketing mix for the entire market. C) It allows a firm to focus all its time and resources on a single type of customer. D) It refers to firms that use a different marketing mix for each marketing segment.
Answer: C