Marketing Concept A firm will tend to perform well when it: –understands the needs and wants of targeted customers and prospective customers; –delivers.
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Presentation on theme: "Marketing Concept A firm will tend to perform well when it: –understands the needs and wants of targeted customers and prospective customers; –delivers."— Presentation transcript:
Marketing Concept A firm will tend to perform well when it: –understands the needs and wants of targeted customers and prospective customers; –delivers superior value by meeting those needs and wants through coordinated activities –does this while working toward organizational goals
Implications of Marketing Concept Need to target segments Need to understand motivations and behavior of customers and prospects Need to create an integrated package of products, services, communications, channels, and prices Need to manage so that meeting customer needs drives profits
Benefits of Customer Orientation Cost efficiencies Premium prices Insulation in crises Word of mouth Share of customer – “one-stop shopping” Ideas for new products Employee morale Drawbacks??
Types of Customers Individual Consumer Households (consumers) Businesses Non-profit and government organizations Other Distinctions Professionals (consumer & business comb.) Small businesses (businesses similar to consumers) Intermediaries
Porter’s Value Chain Support Activities Direct Activities Offering Target Customers Product Service Image Comm. Channl Utils. Price
INBOUND LOGISTIC OPERATIONS OUTBOUND LOGISTICS SALES & MARKETING SERVICE INFRASTRUCTURE HUMAN RESOURCES & DEVELOPMENT TECHNOLOGY & DEVELOPMENT PROCUREMENT SUPPORT ACTIVITIES DIRECT ACTIVITIES PORTER’S VALUE CHAIN
Value Concepts Value = sum of benefits minus sum of costs –Implication: value can be increased by raising benefits or reducing costs Value is Perceived Value in the eyes of prospects and customers –Implication: vendor’s view of value may be different than prospects’ / customers’ view –A Reality: perceptions may be malleable, but ultimately rely on experienced performance
Implications of Value Chain + Definitions Segments exist Value comes from more than product Markets change concurrently with technology change => uncertainty Marketing must be involved in product design and strategy Best technology does not always “win,” but Technology can be the reason you lose
Customer decision process Problem Recognition Information Search Alternative Evaluation and Selection Outlet Selection and Purchase Post-purchase Processes
Effect of Purchase Involvement Complexity of decision process varies with purchase involvement –Nominal decision making –Limited decision making –Extended decision making Related, but not the same as Product Involvement
Types of Consumer Decisions Purchase involvement Purchase involvement is the level of concern for, or interest in, the purchase process. Triggered by need to consider a particular purchase. A temporary state influenced by the interaction of individual, product, and situational characteristics.
Types of Decision Making 1.Nominal Decision Making Brand Loyal Purchases Repeat Purchases 2.Limited Decision Making 3.Extended Decision Making
Types of Consumer Problems Active Problem active problem An active problem is one the consumer is aware of or will become aware of in normal course of events. Marketing strategy Marketing strategy: Only require marketer to convince consumers that its brand is the superior solution. Inactive Problem inactive problem An inactive problem is one of which the consumer is not aware. Marketing strategy Marketing strategy: Marketer must convince consumers that they have the problem AND that their brand is a superior solution.
Marketing Strategy and Problem Recognition 1.Discovering Consumer Problems 2.Responding to Consumer Problems 3.Helping Consumers Recognize Problems 4.Suppressing Problem Recognition