marketing organizational function and set of processes for creating communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and stakeholders exchange process 2 parties give something of value to each other to satisfy needs Chapter 12 Customer Driven Marketing What is Marketing How Marketing Creates Utility utility want satisfying power of a good or service form utility converting raw materials into finished goods time utility making a good available when customers want it place utility making a product available in a convenient location ownership utility orderly transfer of goods from seller to buyer Evolution of the Marketing Concept production era stressed efficiency in producing quality products sales era businesses assumed customers would by as a result of energetic sales efforts marketing era businesses began to adopt a consumer orientation relationship era companies emphasize customer satisfaction and build long term relationships Emergence of the Marketing Concept marketing concept companywide consumer orientation to promote long run success a firm should analyze each customer s needs and then work backward to offer products to fulfill them Not for Profit and Nontraditional Marketing person marketing efforts designed to attract the attention interest and preference of a target market toward a person place marketing attempts to attract people to a particular area tourist destination city country Event marketing marketing or sponsoring short term events sports fund raisers Cause marketing marketing that promotes awareness of a cause issue Organization marketing influences customers to accept the goals contribute to an organization Developing a Marketing Strategy Selecting a Target Market consumer products goods services purchased by end users business products goods services purchased to be used in the production of other goods for resale target market group of people toward whom an organization markets its goods services or ideas with a strategy designed to satisfy their specific needs and preferences marketing mix blending of 4 elements of marketing strategy to satisfy chosen customer segments o product strategy designing a good service decisions about package design trademarks customer service o distribution strategy ensures that customers receive their purchases in proper quantities at the right times locations o promotional strategy blends advertising personal selling sales promotion and public relations o pricing strategy setting profitable and justifiable prices Developing a Marketing mix for International Markets marketing a good service in foreign markets means deciding whether to offer the same marketing mix standardization or develop a unique mix to fit each market adaptation adaptation lets marketers vary marketing mix to suit local competitive conditions consumer preferences gov t regulations mass customization allows a firm to mass produce goods services while adding unique features to individual orders Marketing Research Obtaining Marketing Research Data marketing research collecting and evaluating info to support marketing decision making firms generate internal data financial records and external data from outside sources published data secondary data previously published data that is cheap and easy to obtain gov t consensus data primary data collected firsthand thru observation and surveys focus group 8 to 12 people in a room that discuss a particular topic Applying Marketing Research Data business intelligence uses various activities to gather store analyze data to make better decisions data mining computer searches of customer data to detect patterns and relationships data warehouses databases that allow managers to combine data from several different organizational functions Data Mining Market Segmentation market segmentation process of dividing a total market into several relatively homogeneous groups Segmenting Consumer Markets geographical segmentation dividing market into homogeneous groups on basis of locations region population zip code demographic segmentation distinguished markets on the basis of demographic socioeconomic characteristics age gender income education psychographic segmentation divides consumer markets into groups with similar psychological characteristics values and lifestyles attitudes opinions behavior personality product related segmentation divides consumer market based on buyers relationships to the good comfort durability brand loyalty o benefits sought focuses on the attributes that people seek in a good and benefits they expect from it o product usage rate defines categories as heavy medium and light users o brand loyalty degree to which consumers recognize prefer and insist on a brand Segmenting Business Markets geographical segmentation geographical concentrated industries demographic segmentation sales revenue number of employees number of buyers end use segmentation product design specs for performance design and price consumer behavior actions of ultimate consumer directly involved in obtaining consuming disposing of products and the decision processes that precede and follow these actions Consumer Behavior Determinants of Consumer Behavior Steps in Consumer Behavior Process recognition of problem or opportunity search evaluation of alternatives purchase decision Purchase Act Post purchase evaluation Feedback Relationship Marketing relationship marketing developing and maintaining long term cost effective exchange relationships with partners lifetime value of a customer revenues and intangible benefits from the customer over the life of the relationship minus the amount the company must spend to acquire and serve the customer frequency marketing programs reward purchasers with cash rebates merchandise or other premiums affinity programs solicits involvement by individuals who share common interests and activities comarketing 2 businesses jointly market each other s products cobranding 2 businesses link names to a single product Nike and iPod customer relationship management CRM software technology helps gather sort interpret data about customers
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