Slide 1Slide 2Slide 3David’s Bridal: Captured 30% of the wedding dress market.The Importance of MarketingThe Nature of MarketingSlide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Implementing the Marketing ConceptThe Marketing ConceptSlide 16Slide 17Marketing OrientationDeveloping a Marketing StrategySlide 20Slide 21Slide 22Slide 23Slide 24Market Segmentation ApproachesSlide 26Bases for Market SegmentationDeveloping the Marketing MixSlide 29Slide 30Slide 31Slide 32Slide 33Collecting DataBuying BehaviorSlide 36Slide 37Social Variables of Buying BehaviorSlide 39What Does Green Marketing Mean for Marketers?The Marketing Mix and the Marketing Environment12-1Business in aChanging WorldMcGraw-Hill/IrwinCopyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.Chapter 12Customer-Driven Marketing12-312-4David’s Bridal: Captured 30% of the wedding dress market.In the past 60 years, the bridal industry has reinvented itself numerous times. David’s Bridal enters the market in the 1990’s and has never looked back.12-5The Importance of MarketingPlanning & execution to satisfy customer goals –•Product development•Product pricing•Product promotion•Distribution of goods, ideas, services12-6The group of activities that add value and designed to expedite transactions by creating, distributing, pricing, and promoting goods, services and ideas.The Nature of MarketingMARKETING12-7•Marketing is NOT –•Manipulating consumers•Selling & advertising•Marketing IS –•Satisfying consumersThe Nature of Marketing12-8The Exchange Relationship – act of giving up one thing (money, credit, labor, goods) in return (exchange) for something else (goods, services, or ideas)Marketing12-9The Exchange Process: Giving Up One Thing in Return for AnotherMarketing – The Exchange Relationship12-10Industry groups use marketing to increase demand for the industry’s product. America’s Beef Producers Functions of Marketing12-11•Buying•Selling•Transporting•Storing•Grading •Financing•Marketing research•Risk takingFunctions of Marketing12-12The idea that an organization should try to satisfy customers’ needs through coordinated activities that also allow it to achieve its own goals.The Marketing Concept12-13•Marketing Goal –•Customer satisfaction•Achieve business objectives•Boost productivity•Reduce costs•Capture market shareThe Marketing Concept12-14Implementing the Marketing Concept•Good information re: customer wants•Consumer orientation•Coordinate organizational effortsCustomer’s perception of value = measure of success12-15The Marketing Concept•46% executives believe firm is customer focused•67% executives frequently meet with customersMarketing is more important as markets are more competitive12-16The Marketing ConceptProduction Orientation – 19th century •manufacturing efficiencySales Orientation – early 20th century •Supply exceeds demand – need to “sell” productsMarketing Orientation – 1950’s •First determine what customers want12-17The Marketing ConceptMarketing Orientation – approach requiring organizations to gather information about customer needs, share information across firm, use information to build long-term relationships with customers.12-18Marketing OrientationWrigley’s sells products in 180 countries. Continues to reinvent itself; in 2008, merger with candy maker Mars.12-19Developing a Marketing StrategyMarketing strategy – plan of action for developing, pricing, distributing, and promoting products meeting the needs of specific customers.12-20Developing a Marketing StrategyTarget Market – very specific group of consumers that a company focuses its marketing efforts to(e.g. Nike – golf clubs for recreational golfers).12-21Developing a Marketing StrategyTotal-market approach – firm tries to appeal to everyone and assumes that all buyers have similar needs.(e.g. Salt, sugar, agricultural products).12-22Developing a Marketing StrategyMarket segmentation – strategy to divide the total market into groups of people with relatively similar product needs.Market segment – collection of individuals, groups or organizations sharing one or more characteristics thus having relatively similar needs and desires for products.12-23Market SegmentationMinority Buying Power by Race, 1990 versus 2003 & 200512-24Total-Market Approach12-25Market Segmentation ApproachesConcentration – company develops one marketing strategy for a single market segment. Specialization (e.g. Porsche’s focus on high-income individuals)Multi-segment – aims at two or more segments with strategy for each. (e.g. Raleigh bicycles for racers, commuters, and children)12-26Market Segmentation ApproachesNiche marketing – narrow segment focus usually on one small well-defined group with a unique and specific set of needs. (IceCreamSource.com)12-27Bases for Market Segmentation•Demographic •Geographic•Psychographic•Behavioristic12-28Developing the Marketing Mix12-29ProductA good, service, or idea that has tangible and intangible attributes that provide satisfaction and benefit to consumersProducts should be sold at a profit12-30PriceA value placed on a product or service that is exchanged between a buyer and seller12-31DistributionMaking products available to consumers in the quantities and locations desired12-32PromotionA persuasive form of communication that attempts to expedite a marketing exchange by influencing individuals and organizations to accept goods, services, and ideas12-33Marketing ResearchSystematic and objective process to collect information about potential customers. Guides marketing decisions.12-34Collecting DataPrimary data – marketing information that is observed, recorded or collected directly from respondents (consumers).Secondary data – information compiled inside or outside the organization for some purpose other than changing the current situation12-35Buying BehaviorBuying behavior – decision processes and actions of people who purchase and use products.•Consumers personal and household•Organizations for business use12-36Buying BehaviorPerception – process by which a person selects, organizes, and interprets information received from one’s senses. (hearing a radio ad, touching a product)12-37Buying BehaviorLearning – brings changes in behavior based on information and experience. Attitude – positive or negative feelings about something.Personality –