BM 170 Chapter 1-4 Lecture PDF

MARKETING: CREATING AND CAPTURING CUSTOMER VALUE The Changing Marketing Landscape Marketing – managing profitable customer relationships. Economic environment...

MARKETING: CREATING AND CAPTURING CUSTOMER VALUE The Changing Marketing Landscape Marketing – managing profitable customer relationships. Economic environment Digital age Five Steps: Rapid globalization 1. Understand the marketplace and Not-for-profit marketing customer needs and wants. 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior values 4. Build profitable relationships and create customer delights 5. Capture value from customers to create profits and customer equity Market offerings – fulfills customer needs and wants. Marketing management – the art and science of choosing target markets and building profitable relationships with them. Customer Relationship Management – is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Relating with More Carefully Selected Customers Relating More Deeply and Interactively COMPANY AND MARKETING STRATEGY (PARTNERING TO BUILD CUSTOMER RELATIONSHIPS) Return on marketing investment Strategic Planning (marketing ROI) is the net return from a A fit between marketing opportunities marketing investment divided by the costs and organizational goals and of the marketing investment. capabilities. Define company mission Setting company goals and objectives Designing the business portfolio Planning marketing and other functional strategies Business Portfolio – is the collection of businesses and products that make up the company. Strategies for Growth and Downsizing Marketing Strategy and the Marketing Mix Market segmentation – is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs. Market targeting – involves evaluating each market segment’s attractiveness and selecting one or more to enter. Positioning – is arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the customer.  ANALYZING THE MARKETING ENVIRONMENT Economic Environment consists of factors that affect The Microenvironment includes all the consumer purchasing power and actors close to the company that affect, spending patterns. positively or negatively, its ability to create value for and relationships with its Natural Environment customers. A need for Environmental Sustainability due to increased pollution, shortages of raw The Company – Suppliers – Marketing materials, and increased government Intermediaries – Competitors – Publics – intervention. Customers Technological Environment Includes forces that create new The Company – includes Top technologies creating new product Management, Finance, R&D, Purchasing, and market opportunities. Operations, Accounting Political and Social Environment Suppliers - critical in the customer value Increased legislation delivery system Social responsibility and cause-related marketing Marketing Intermediaries A. Resellers Cultural Environment Find and sell to customers made up of institutions and other B. Physical Distribution Firms forces that affect a society’s basic Stock and move goods values, perceptions, preferences, C. Marketing Services Agencies and behaviors. Research, advertising, media, and consulting services D. Financial Intermediaries Core beliefs and values are passed on from parents to children and are reinforced Customers – includes consumers, by schools, churches, business and business, and government agencies. government. Secondary beliefs are more open to The Macroenvironment consist of broader change. forces that affect the actors in the microenvironment. These are also forces that shape opportunities or pose threats to the company. Demographic – Economic – Technological – Natural – Political – Cultural Demography – the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics. Demographic Environment The changing family Geographic shifts Better educated, increased white-collar Increasing diversity  UNDERSTANDING CONSUMER AND BUSINESS BUYER BEHAVIOR Characteristics important in influencing Consumer buying behavior – refers to the innovation rate of adoption… buying behavior of individual customers. Relative advantage (is it superior to Factors Influencing Consumer Behavior existing products?) Cultural - culture, subculture, social Compatibility (fits my values and class experiences?) Social - reference groups, family, Complexity (is it easy to understand or roles and status use?) Personal - age and life cycle stage, Divisibility (may it be tried on a limited occupation, economic situation, basis?) lifestyle, personality and self-concept Communicability (can it be observed and Psychological - motivation, described to others?) perception, learning, beliefs and attitudes Business buying behavior – refers to the buying behavior of the organizations that Culture – the set of basic values, buy goods and services to: perceptions, wants and behaviors learned Use in the production of other by a member of society from family and products and services. other important institutions Resell or rent them to others at a profit. Subculture – a group of people with shared value systems based on common Business Markets life experiences and situations. Straight rebuy Modified rebuy A motive (or drive) is a need that is New task sufficiently pressing to direct the person to seek satisfaction of the need. E-Procurement – purchasing through This is based on Sigmund Freud’s electronic connections between buyers and unconscious motivation and sellers – usually online. Abraham Maslow’s Hierarchy of Needs ○ Physiological needs, Safety needs, Social needs, Esteem needs, Self-actualization needs Perception – a process by which people select, organize, and interpret information to form a meaningful picture of the world. Learning – describes changes in an individual’s behavior arising from experience. Buyer Decision Process: Need recognition – Information search – Evaluation of alternatives – Purchase decision – Postpurchase behavior For New Products: Awareness – Interest – Evaluation – Trial – Adoption