Chapter 12 Customer-Driven Marketing

Summary

 

Objectives:

 

 

Chapter Outline:

  1. Define marketing and describe the exchange process.
    1. Marketing is a vital part of any business. It involves a group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas.
      1. Not just selling and advertising; it is a systematic approach to satisfying customers.
    2. Exchange is at the heart of all business. It is the act of giving up one thing in return for something else.
    3. Central focus of marketing is to create utility – product’s ability to satisfy human needs and wants.
      1. Four kinds of utility
        1. Place utility
        2. Time utility
        3. Ownership utility
        4. Form utility

  2. Specify the functions of marketing
    1. Functions of marketing – focuses on a set of activities that must be performed to accomplish objectives and generate exchanges.
      1. Buying
        1. Understand buyers’ needs and desires
      2. Selling
        1. Persuasive activity
      3. Transporting
        1. Moving products from seller to buyer
      4. Storing
        1. Physical distribution of products
      5. Grading
        1. Standardizing products and displaying and labeling so that consumers understand their nature and quality
      6. Financing
        1. Provide credit to expedite purchases
      7. Marketing research
        1. Information on changes in trends and consumer tastes
      8. Risk taking
        1. Chance of loss associated with marketing decisions

  3. Explain the marketing concept and its implications for developing marketing strategies.
    1. Marketing concept – basic philosophy that guides all marketing activities
      1. Idea that an organization should try to satisfy customers’ needs through coordinated activities that allow it to achieve its own goals.
      2. Need to determine true needs of buyers
      3. Firm must have good information about what consumers want.
        1. Firm must:
          1. Adopt a consumer orientation
          2. Coordinate its efforts throughout the organization
    2. Relationship marketing – process of building intimate customer interactions to maximize customer satisfaction.

  4. Examine the development of a marketing strategy, including market segmentation and marketing mix
    1. Marketing strategy – plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers.
      1. Component of marketing strategy – Target Market
        1. Market – group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas.
        2. Target Market – more specific group of consumers on whose needs and wants a company focuses its marketing efforts.
        3. Target Market Strategies:
          1. Total market approach
          2. Market segmentation
          3. Concentration approach
          4. Multisegment approach
        4. Marketing segmentation -- based on several variables:
          1. Demographic
          2. Geographic
          3. Psychographic
          4. Behavioristic
      2. Component of marketing strategy – Marketing mix
        1. Marketing mix – involves four activities
          1. Product
          2. Price
          3. Distribution
          4. Promotion

  5. Investigate how marketers conduct marketing research and study buying behavior.
    1. Marketing research – systematic and objective effort to get information about potential customers to guide marketing decisions.
      1. Marketing information system
        1. Primary data (directly observed)
        2. Secondary data (already available)
    2. Buying behavior – refers to the decision processes and actions of people who purchase and use products.
      1. Psychological variables of buying behavior:
        1. Perception
        2. Learning
        3. Attitude
        4. Personality
      2. Social variables of buying behavior:
        1. Social roles
        2. Reference groups
        3. Social classes
        4. Culture

  6. Summarize the environmental forces that influence marketing decisions
    1. External forces
      1. Political, legal and regulatory forces
      2. Social forces
      3. Competitive and economic forces
      4. Technological forces