WEEK 6

MARKETING: AN INTRODUCTION

BUSN 102 – Özge Can

Marketing in a Changing World Marketing:

The process of creating value for customers and building relationships with those customers in order to capture value back from them

Applies to: not only good and services but also: for-profit organizations, people, places, and causes

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Marketing in a Changing World Place Marketing:

Marketing efforts to attract people and organizations to a particular geographical area

Cause-Related Marketing: Identification and

marketing of a social issue, cause, or idea to selected target markets

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The Role of Marketing in Society Needs and wants Exchanges and transactions Four utilities

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The Role of Marketing in Society Needs

Differences between a person’s actual state and his or her ideal state; they provide the basic motivation to make a purchase

Wants Specific goods, services, experiences, or other

entities that are desirable in light of a person’s experiences, culture, and personality

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The Role of Marketing in Society Exchange Process

The act of obtaining a desired object or service from another party by offering something of value in return

Transaction An exchange of value between parties

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The Role of Marketing in Society Utility

The power of a good or service to satisfy a human need

Four aspects of utility: Form Time Place Possession

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Examples of the Four Utilities

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Different Views of Marketing Function:

Product concept: Focusing on the production of goods, not satisfying customers

Selling concept: Generating as many sales transactions as possible; customers are only a target to be sold to

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Different Views of Marketing Function:

Marketing concept: An approach to business management that stresses customer needs and wants, seeks long-term profitability, and integrates marketing with other functional units within the organization

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Selling Concept vs. Marketing Concept

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The Marketing Concept Involves: Relationship Marketing

A focus on developing and maintaining long-term relationships with customers, suppliers, and distribution partners for mutual benefit

Customer Loyalty The degree to which customers continue to buy

from a particular retailer or buy the products of a particular manufacturer or service provider

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Challenges in Contemporary Marketing

1) Involving the customer in the marketing process

2) Making data-driven decisions 3) Conducting marketing activities

with greater concern for ethics and etiquette

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1) Involving the Customer

Customer Relationship Management (CRM) A type of information system that captures,

organizes, and capitalizes on all the interactions that a company has with its customers

Social Commerce The creation and sharing of product-related

information among customers and potential customers

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2) Making Data-Driven Decisions Marketing Research

The collection and analysis of information for making marketing decisions

Tracking each aspect of marketing effectiveness

Key marketing research techniques: Observation, surveys, interviews and focus

groups, process data collection, ethnographic research, neuromarketing studies

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3) Greater Concern for Ethics and Etiquette Permission-Based Marketing

Firms first ask permission to deliver messages to an audience and then promise to restrict their communication efforts to those subject areas in which audience members have expressed interest

Stealth Marketing The delivery of marketing messages to people

who are not aware that they are being marketed to

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Understanding Today’s Customers

I. Consumer Market: Individuals or households that buy goods and

services for personal use

II. Organizational Market: Companies, government agencies, and other

organizations that buy goods and services either to resell or to use in the creation of their own goods and services

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The Consumer Decision Process

The Organizational Customer Decision

Process

Consumer Decision Process

Rational model of customer buying behavior:

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Need recognitio

n

Information research

Evaluation of

alternatives

PurchasePostpurcha

se evaluation

The Consumer Decision Process Consumer behavior is less logical and far

more complicated: Subconscious decision-making, gut feelings and

emotional responses

Cognitive Dissonance Tension that exists when a person’s beliefs don’t

match his or her behaviors; a common example is buyer’s remorse, when someone regrets a purchase immediately after making it

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Major Purchase Influences:

Culture Socioeconomic level

Reference groups

Situational factors Self-image

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Organizational Customer Decision Process: An emphasis on economic payback and

other rational factors A formal buying process Greater complexity in product usage The participation and influence of

multiple people Close relationships between buyers and

sellers

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Strategic Marketing Planning Strategic Marketing Planning

The process of examining an organization’s current marketing situation, assessing opportunities and setting objectives, and then developing a marketing strategy to reach those objectives

Involves the following steps: Examining current marketing situation Asessing opportunities abd setting objectives Developing marketing strategy

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Strategic Marketing Planning Process

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Analyzing External Environment Environmental factors include:

Economic conditions Natural enviorenment Social and cultural trends Laws and regulations Technology

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Pursuing Market Opportunities

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Crafting a Marketing Strategy

Crafting a Marketing Strategy

Marketing Strategy: An overall plan for marketing a product;

includes:

1) identification of target market segments 2) choosing the target markets3) positioning in the target market4) developing the marketing mix

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Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

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Dividing Markets into Segments

1) Dividing Markets into Segments Market

A group of customers who need or want a particular product and have the money to buy it

Market Segmentation The division of a diverse market into smaller,

relatively homogeneous groups with similar needs, wants, and purchase behaviors

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1) Dividing Markets into Segments

Demographics: The study of statistical

characteristics of a population

Psychographics: Classification of customers

on the basis of their psychological makeup, interests, and lifestyles

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Geographic Segmentation Categorization of

customers according to their geographical location

Behavioral Segmentation: Categorization of

customers according to their relationship with products or response to product characteristics

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Choosing Your Target Markets

2) Choosing Your Target Markets Target Markets

Specific customer groups or segments to whom a company wants to sell a particular product

Undifferentiated (mass) marketing Differentiated marketing Concentrated marketing Individualized marketing (micromarketing)

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Market-Coverage Strategies:

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Staking Out a Position in Your Target Markets

3) Positioning in Your Target Markets Positioning

Managing a business in a way designed to occupy a particular place in the minds of target customers

Such variables emphasized: product attributes, customer service, brand image, price or category leadership

Customers ultimately decide on the positioning

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The Marketing Mix

4) The Marketing Mix

Marketing Mix The four key elements of marketing strategy:

product, price, distribution, and customer communication

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4) The Marketing Mix13-42

4) The Marketing Mix

Product A bundle of value that

satisfies a customer need or want

Holistic view to the offering: Brand name, design,

packaging, support services, warranty, ownership experience, and etc.

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4) The Marketing Mix

Price The amount of money

charged for a product or service

Factors on pricing: Marketing objectives,

government regulations, production costs, customer perceptions, competition, customer demand

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4) The Marketing Mix

Distribution (marketing) channels Systems for moving

goods and services from producers to customers

Key factors: customer needs, product

support requirements, market coverage, distribution costs, competition, positioning

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4) The Marketing Mix

Promotion Persuasive techniques

used by companies to communicate with their target markets and the general public

Direct and indirect communication: Face-to-face, media,

direct mail, billboards, social media and etc.

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Mid-Term Exam

Format: Multiple-choice questions (%60) Short essays (%40)Content: Motivation (Chp.10) HRM concepts (Chp.11) Labor relations (Chp.12) Marketing (Chp.13)

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Exam: Key Topics

Four indicators of motivation Classical theories of motivation

Maslow’s hierarchy of needs, Theory X, Y and Z, Herzberg’s two factors, McClelland’s three needs

Modern theories of motivation Expectancy, equity, goal-setting theories,

job characteristics model Core job dimensions to consider in

motivation Reinforcing high-performance

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Exam: Key Topics

Human resource (HR) planning Managing the employee life-cycle

(recruiting, terminating retiring) Evaluating employees: Performance

appraisal Training and development Employee compensation

Salary, wage, incentives, benefits Unionization: employee and management

perspectives Collective bargaining process

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Exam: Key Topics

The role of marketing Product, sales and marketing concepts Challenges in contemporary marketing Customer decision process & buying

behavior Consumer market vs. organizational market Steps in stratetigc marketing planning Marketing strategy and its dimensions Marketing mix: product, price, distribution,

promotion

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Example Questions:

In the workplace, motivation can be assessed by measuring four indicators: satisfaction, engagement, rootedness, and ________.

A) intelligenceB) commitmentC) creativityD) work performance

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Example Questions:

Workplace factors such as health insurance, pension plans, and retirement benefits would satisfy which of the following needs in Maslow's hierarchy?

A) safety needsB) social needsC) esteem needsD) physiological needs

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Example Questions:

________ suggests that employee satisfaction depends on the perceived ratio of inputs to outputs.

A) Herzberg's two-factor theoryB) David McClelland's three needs theory C) Expectancy theoryD) Equity theory

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Example Questions:

Carrey works as a bank teller who handles deposits and disbursement. In an attempt to improve her motivation, Carrie's manager asks her to distribute traveler's checks and sell certificates of deposit as well. Though the additional tasks are not more challenging than what Carrey has been doing, they give her more to do. This is an example of ________.

A) job enrichment

B) cross-training

C) job enlargement

D) benchmarking

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Example Questions:

John stayed late in order to finish up a project. When his manager found the completed project on her desk, she immediately sent John an email praising his good work and thanking him for going the extra mile. In this example, John's manager uses ________.

A) transactional analysis

B) cognitive restructuring

C) negative reinforcement

D) positive reinforcement

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Example Questions:

________ refers to a statement of the tasks involved in a given job and the conditions under which the holder of a job will work.

A) Job specificationB) Job descriptionC) Succession planningD) Job analysis

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Example Questions:

Quality of hire measures ________.

A) the amount of money spent in hiring and training new employees

B) the level of productivity of employees in the probationary period

C) how closely incoming employees meet the company's needs

D) the percentage of the workforce that leaves every year

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Example Questions:

Salary differs from wages in that the salary ________.

A) falls under the purview of a certain lawB) is based on a fixed amount per yearC) relates to exempt employeesD) is paid by the unit of time

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Example Questions:

________ refers to an incentive program that rewards employees for meeting specific, individual goals.

A) Pay for performanceB) Knowledge-based payC) SalaryD) Commission

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Example Questions:

________ refers to a company-sponsored counseling or referral plan for employees with personal problems.

A) Health savings accountsB) Employee assistance programC) High-deductible insuranceD) Retirement plans

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Example Questions:

ACZ Pharmaceuticals, an American multinational pharmaceutical corporation, conducts "HIV/AIDS Awareness" camps in various cities across the United States. The firm also uses this campaign to promote its latest range of drugs. In this example, ACZ Pharmaceuticals uses ________.

A) place marketing

B) social commerce

C) stealth marketing

D) cause-related marketing

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Example Questions:

________ utility is the benefit provided by making the company's products available where customers want to purchase them.

A) Form B) PossessionC) Place D) Time

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Example Questions:

Creating new goods and services for a firm's current markets is called ________.

A) market penetrationB) product developmentC) market developmentD) diversification

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Example Questions:

Majestic Shoes Inc., an international shoes and footwear manufacturing firm, groups its customers according to the region in which they live. The firm markets its range of waterproof, cold-weather footwear in mountainous regions. In this example, Majestic Shoes Inc. uses which of the following targeting strategies?

A) demographic segmentation

B) psychographic segmentation

C) horizontal integration

D) geographic segmentation

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Example Questions:

Which of the following is true about concentrated marketing?

A) It ignores differences among buyers.

B) It refers to firms that use the same marketing mix for the entire market.

C) It allows a firm to focus all its time and resources on a single type of customer.

D) It refers to firms that use a different marketing mix for each marketing segment.

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