Chapter 13 Marketing

1
Chapter 13 Marketing

• Marketing Defined
• Determining customers wants and needs
• Marketing research
• Producing products (goods and services) to meet
  those needs
• Distinction between goods and services

2
Utility

• Marketing creates utility(usefulness)
• Types of Utility
• Form Utility- soft drinks in pop top cans
• Time Utility- snow tires in the winter
• Place Utility- snow tires in Northern states
• Ownership Utility- the ability to transfer
  possession and title

3
Sales Era vs. Marketing Era

• Sales Era- large sales forcesmarketing with
  consumer in mind not a dominant theme
• Marketing Era- the Marketing Concept- heavy
  consumer orientation
• Present- From the Marketing Era to Relationship
  Marketing

4
Relationship Marketing

• Long term relationships lead to corporate success
• Focus on keeping existing customers as well as
  finding new customers
• Communicate with customers
• Evaluate your competition
• Share customer feedback

5
Measuring Customer Satisfaction

• Survey your particular customers- primary market
  research
• Rely on other research data- secondary research
• Eg. American Customer Satisfaction Index(ACSI)
  this measures satisfaction in various industries-

6
TQM

• Growth of concept referred to as TQM
• Total Quality Management(TQM)
• Involves employees
• Involves continuous quality improvement focus
• Designed to achieve high customer satisfaction
  and world class company performance

7
Marketing Principles

• Apply to both Profit and Not-for-profit
  organizations
• Development of Marketing Strategy that becomes
  part of a Business Plan

8
Marketing Strategy

• Target Market
• A viable group interested in purchasing the
  companys goods and services
• Consumer products
• Personal and household products
• Business(industrial) Products
• Inventory
• Equipment
• Supplies

9
Marketing Strategy

• Once the target market has been identified, the
  proper Marketing Mix should be defined
• Marketing Mix- also known as 4 Ps of Marketing
• Every company devise a slightly different mix in
  its marketing strategy

10
4 Ps of Marketing

• (P)roduct
• (P)rice
• (P)lace
• (P)romotion

11
Marketing Research

• Collection of information
• Evaluation of information
• Assist marketers in decision-making
• Involves
• reviewing opportunities and threats
• Analyzing competition
• Evaluating consumer interests/attitudes
• Developing an appropriate marketing strategy

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Market Research

• Internal data- develop Marketing Information
  Systems
• External data- see A.C. Nielsen and Data General
• Primary data
• Observations
• Surveys
• Focus groups
• Interviews
• Secondary data

13
Market Segmentation

• Consumer Markets
• Geographic
• Demographic
• Psychographic
• Product-Related

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Geographic Segmentation

• North vs. South
• Convertible BMWs Snow blowers
• Urban vs. Rural
• BMWs Farm Equipment

15
Demographic Segmentation

• Income
• Age
• Occupation
• Family Status/Household Size
• Education
• Ethnic Group
• Gender

16
Psychographic Segmentation

• Deals with Lifestyle
• Attitudes
• Opinions
• Habits
• Preferences

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Collecting Psychographic Information

• AIO- Attitudes, Interests, and Opinions
• VALS 2 (SRI International)- Values and
  Lifestyles
• Orientation (Action,Status,Principles) versus
  Resources (Plentiful versus Minimal)
• See www.future.sri.com

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Product Segmentation

• Divide the consumer market by
• Benefits sought
• Usage rates
• Degrees of loyalty

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Segmenting the Business Market

• The business market can be segmented by
• Geography
• Demographics(customer based)
• End Use

20
Videos on Marketing

• Toronto Blue Jays
• Second Chance