11 BUSN Marketing: Building a Profitable Customer Connection ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11 Marketing: Building Profitable Customer Connections • What are the objectives, processes and scope of marketing? • What is the customer’s role in marketing? • What are the elements of the marketing strategy? • What is the decision-making process for consumers? Businesses? • What are the key elements of marketing research? • How have social responsibility and technology impacted marketing? BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11 Marketing: Building a Profitable Customer Connection Marketing: Getting Value by Giving Value Marketing – the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11 Marketing: Building a Profitable Customer Connection Marketing: Getting Value by Giving Value Form Utility Time Utility The ability of goods and services to satisfy wants Place Utility BUSN Ownership Utility ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11 Marketing: Building a Profitable Customer Connection The Scope of Marketing: It’s Everywhere! • People Marketing • Place Marketing • Event Marketing Idea Marketing BUSN â2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11 BUSN Marketing: Building a Profitable Customer Connection The Evolution of Marketing: From the Product to the Customer ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11 Marketing: Building a Profitable Customer Connection The Marketing Concept The marketing concept is a philosophy that makes customer satisfaction—now and in the future—the central focus of the entire organization Unmatched value to customers is the only way to long-term profitability BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11 Marketing: Building a Profitable Customer Connection The Customer: Front and Center Customer Relationship Management (CRM) Limited Relationships Full Partnerships Value Customer Satisfaction Customer Loyalty BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11 • • • • Marketing: Building a Profitable Customer Connection Perceived Value versus Actual Value Low cost does not mean value Value is a relationship between cost and benefits Loyal customers will pay more for their products Creating value is not enough Customers must believe that your product is simply uniquely qualified to meet their needs BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11 Marketing: Building a Profitable Customer Connection Customer Satisfaction You have satisfied customers when you deliver perceived value above and beyond their expectations, but Don’t overpromise Don’t underpromise BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10 11 Marketing: Building a Profitable Customer Connection Without a Map, Charting an Ethical Course: When Less is More… • In 2008, 30% of all packaged goods got smaller, mostly unnoticed by consumers • Skippy peanut butter jars got 10% smaller but the jar looks the same • PepsiCo reduced the size of its orange juice by ounces but touted a “new ergonomic design” • Many argue that this is a distraction from price increases • Food manufacturers state these changes are needed in light of skyrocketing costs • Others say it is a game of deception, what you think? BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 20 11 Marketing: Building a Profitable Customer Connection Customer Behavior: Decisions! Decisions! Decisions! Consumer Behavior How people act when they are buying products BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 21 11 BUSN Marketing: Building a Profitable Customer Connection Consumer Decision Process ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 22 11 Marketing: Building a Profitable Customer Connection Elements that Influence the Consumer DecisionMaking Process Cultural: Values, attitudes, customs, social class Social: Family, friends & reference groups Personal: Demographics, personality Psychological: Motivation, attitudes, perceptions, learning BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 23 11 Marketing: Building a Profitable Customer Connection Business Buyer Behavior  Rationale Criteria  Specific Purchase Criteria  Objective Standards  Input from Multiple Internal Sources  Formal Process  Frequently Seek Customized Goods BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 24 11 Marketing: Building a Profitable Customer Connection Marketing Research: So What Do They REALLY Think? Marketing research involves gathering, interpreting, and applying information to uncover opportunities and challenges • Monitor and predict customer behavior • Evaluate and improve marketing mix • Better marketing decisions • More value for consumers • More profits for business BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 25 11 Marketing: Building a Profitable Customer Connection Research Data Comparison Secondary Data: Existing Data BUSN Primary Data: New Data that is Compiled Lower Cost More Expensive May not be Specific Customized Frequently Outdated Fresh, New Available to Competitors Proprietary ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 26 11 Marketing: Building a Profitable Customer Connection Primary Research Tools Observation Research – the researcher does not directly interact with the research subject Survey Research – the researcher does interact with the research subjects • Scanner Data • Traffic counters • Questionnaires • Garbage Analysis Interviews Focus Groups BUSN â2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 27 11 Marketing: Building a Profitable Customer Connection Oops! “If you can’t be a good example, than you’ll have to serve as a horrible warning” • Nike filmed a commercial in Kenya where the slogan Just Do It translated into “I don’t want these Give me big shoes.” • Just for Feet spent $7 million on a campaign for the Super Bowl where a crowd of white men were tracking down a barefoot black runner • Hershey’s introduced Ice Breakers Pacs in nickel-sized dissolvable pouches but the police thought the products closely resembled powered street drugs • Tropicana introduced new packaging for its orange juice and consumers were outraged They thought the new packaging was stupid, ugly and generic BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 28 11 Marketing: Building a Profitable Customer Connection An International Perspective Market research in other countries can be complicated  Very few home phones in Latin America  In the Middle East, knocking on doors is a crime  Many firms hire local professionals for international market research BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 29 11 Marketing: Building a Profitable Customer Connection Marketing and Society: It’s Not Just About You! Leading-edge marketers have set high standards in: A few examples:  Environmentalism  Starbucks  Abolishment of sweatshops  Target  General Electric  Community outreach BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 30 11 Marketing: Building a Profitable Customer Connection Green Marketing Actively promoting ecological benefits of products •The Toyota Prius •Eco-Fashion is made from organic cotton, bambo dresses, biodegradable umbrellas, solar-powered jackets •The aim is to grow the number of consumers who make purchases based on their convictions •But, green marketing may be challenging in tough economic times BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 31 11 Marketing: Building a Profitable Customer Connection Technology and Marketing: Power to the People! • Technology is shifting power to the consumer • Consumers have 24/7 access to products and information all over the world • Competition has intensified • Consumer expectation has increased • Companies have more opportunities to mass customize products • Data can be used to develop one-to-one relationships with customers • The digital boom has created a variety of promotional opportunities BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 32 11 Marketing: Building a Profitable Customer Connection Innovation Unleased! Your creativity can aid innovation ARREST HISTORY YOU’RE HISTORY You’re under arrest HISTORY Abcdefghjmo TimeTime pqrstuvwxyz Missing Link BUSN History repeats itself Time after Time Chimadena Made in China RIGHT RIGHT Equal Rights BAN ANA Banana Split YYYGuy MEREPEAT BPULSEIANSE Wise Guy Repeat after me USRSE Mixing business with pleasure ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 33 11 Looking Back • What are the objectives, processes and scope of marketing? • What is the customer’s role in marketing? • What are the elements of the marketing strategy? • What is the decision-making process for consumers? Businesses? • What are the key elements of marketing research? • How have social responsibility and technology impacted marketing? BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 34 ... • Idea Marketing BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 11 BUSN Marketing: Building... fun, affordability BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 16 11 BUSN Marketing:... global environment BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 18 11 BUSN Marketing: