Business a changing world 7e by ferrell chap012

12-1


Business in a
Changing World

Chapter 12

Customer-Driven Marketing

McGraw-Hill/Irwin

Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights


12-3


David’s Bridal: Captured 30%
of the wedding dress market.

In the past 60 years, the bridal industry has
reinvented itself numerous times. David’s Bridal
enters the market in the 1990’s and has never
looked back.
12-4


The Importance of Marketing

Planning & execution to satisfy customer

goals –
•Product development
•Product pricing
•Product promotion
•Distribution of goods, ideas, services
12-5


The Nature of Marketing
MARKETING

The group of activities that add value and
designed to expedite transactions by creating,
distributing, pricing, and promoting goods,
services and ideas.
12-6


The Nature of Marketing

•Marketing is NOT –
•Manipulating consumers
•Selling & advertising
•Marketing IS –
•Satisfying consumers
12-7


Marketing

The Exchange Relationship – act of giving up one thing
(money, credit, labor, goods) in return (exchange) for
something else (goods, services, or ideas)

12-8


Marketing – The Exchange Relationship

The Exchange Process: Giving Up One Thing in Return for Another
12-9


Functions of Marketing

Industry groups use
marketing to increase
demand for the industry’s
product.
America’s Beef Producers

12-10


Functions of Marketing
•Buying
•Selling
•Transporting
•Storing
•Grading

•Financing
•Marketing research
•Risk taking
12-11


The Marketing Concept

The idea that an organization should try to satisfy customers’
needs through coordinated activities that also allow it to
achieve its own goals.
12-12


The Marketing Concept
•Marketing Goal –
•Customer satisfaction
•Achieve business objectives
•Boost productivity
•Reduce costs
•Capture market share

12-13


Implementing the Marketing Concept

•Good information re: customer wants
•Consumer orientation
•Coordinate organizational efforts

Customer’s perception of value = measure of success
12-14


The Marketing Concept

•46% executives believe firm is customer focused
•67% executives frequently meet with customers
Marketing is more important as markets are more competitive

12-15


The Marketing Concept

Production Orientation – 19th century
•manufacturing efficiency

Sales Orientation – early 20th century
•Supply exceeds demand – need to “sell” products

Marketing Orientation – 1950’s
•First determine what customers want
12-16


The Marketing Concept

Marketing Orientation – approach requiring
organizations to gather information about

customer needs, share information across firm,
use information to build long-term relationships
with customers.
12-17


Marketing Orientation

Wrigley’s sells products in 180 countries.
Continues to reinvent itself; in 2008, merger
with candy maker Mars.
12-18


Developing a Marketing Strategy

Marketing strategy – plan of action for
developing, pricing, distributing, and promoting
products meeting the needs of specific customers.

12-19


Developing a Marketing Strategy

Target Market – very specific group of consumers
that a company focuses its marketing efforts to
(e.g. Nike – golf clubs for recreational golfers).
12-20

Developing a Marketing Strategy

Total-market approach – firm tries to appeal to
everyone and assumes that all buyers have similar
needs.
(e.g. Salt, sugar, agricultural products).
12-21


Developing a Marketing Strategy

Market segmentation – strategy to divide the total
market into groups of people with relatively similar
product needs.
Market segment – collection of individuals, groups or
organizations sharing one or more characteristics
thus having relatively similar needs and desires for
products.
12-22


Market Segmentation

Minority Buying Power by Race, 1990 versus
2003 & 2005
12-23


Total-Market

Approach

12-24


Market Segmentation Approaches
Concentration – company develops one
marketing strategy for a single market segment.
Specialization (e.g. Porsche’s focus on highincome individuals)

Multi-segment – aims at two or more segments
with strategy for each. (e.g. Raleigh bicycles for
racers, commuters, and children)
12-25