Lecture Business: A changing world - Chapter 12: Customer-driven marketing

Chapter Twelve
Customer­Driven
Marketing
 

 

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The Exchange Process: Giving Up 
One Thing in Return for Another
Something of Value (money,

12-1

Buyer
(goods,
services,
ideas)

credit,
labour,
    goods)

Seller

Something of Value
 

 

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Marketing Creates Utility
12-2

 

•
•
•
•

Place utility
Time utility
Ownership utility
Form utility

 

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Functions of Marketing
•
•
•
•

12-3

 

Buying
Selling 
Transporting
Storing

 

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•
•
•
•

Grading
Financing
Marketing research
Risk taking


The Breakdown of the 
Marketing Concept
12-4a

 

 

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The Breakdown of the 
Marketing Concept
12-4b

 

 

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Market/Target Market
A market is a group of people who 
have a need, purchasing power, and the 
desire and authority to spend money on 
goods, services, and ideas.

12-5

A target market is a more specific 
group of consumers on whose needs 
and wants a company focuses its 
marketing efforts.
 

 

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Generational Marketing
Canada’s oldest citizens 

­
­

Baby boomers

­

12-6

­
Gen Xers
­
(born between 1966­1980)
Generation Y

 

­
­

 

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the generation of great hope 
desire products that reward them for hard 
work
the generation born in great economic 
prosperity
desire products that save time or simplify 
living
desire products that fit with the image of 
self they are creating
the most privileged generation
desire products that are high­tech and 
authentic and nontraditional shopping venues


Marketing to Different 
Generations (or target markets)
What’s Cool?

12-7

According to Boomers
Lexus LS 400
Gap
Estee Lauder
Palm Pilot
Coke
Nikes
 

 

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According to Generation Y
Jeep Wrangler
Delia’s
Hard Candy
Motorola Flex Pagers
Mountain Dew
Vans
Source: Ellen Neuborne and Kathleen Kerwin, “Generation Y,”
Business Week, February 15, 1999, pp. 82­83.


Target Market Strategies
Total­Market Approach
Company

12-8

Single Marketing Strategy

Total Target Market

Concentration Approach
Single Marketing Strategy

Company

Single Target Market

Multisegment Approach
Company

 Marketing Strategy 1

Marketing Strategy 2

 

 

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Multiple Target Markets


Bases for Segmenting 
Markets
•
•
•
•

12-9

 

Demographics
Geographic factors
Psychographics
Behavioristic characteristics

 

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The Marketing Mix: Product, Price, 
Promotion, and Distribution
12-10

Product

Promotion

Customer

Distribution
 

 

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Price

Buying Behavior
• Psychological variables

12-11

– perception
– motivation
– learning

• Social variables
–
–
–
–

 

social roles
reference groups
social classes
culture

 

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Trends in Buying Behavior
12-12

 

Arrivals

Departures

One­arm packs/hipsacks
Pink
Krav Maga
Lowriders
Bistros
Tai Bo
Anatomical wrap soles
Scalp jewels
Manic Street Preachers/Air
Ostrich burgers
Floating necklaces

Backpacks
Gray
Pilates
Motorcycles
Clubs
Tai Chi
Platforms
Glitter
The Verve
Turkey burgers
Silver spring bracelets

 

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Source:  />ad/99_ad/9901_ad/ad990106e.htm, March 15, 1999.


Who’s Buying Beetles?
12-13

Age of head of household:
18­24
25­34
35­44
45­54
55­64
65­74
75 and over

 

2%
14%
30%
35%
13%
5%
1%

 

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Source: USA Today, February 2, 1999, p. B­3.


A Marketing Mix and the Marketing 
Environment
Political, Legal, and
Regulatory
Forces

12-14

Product

Promotion

Technological
Forces

 

 

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Social
Forces

Customer
Distribution

Marketing Environment

Price

Competitive
and Economic
Forces


Marketing Environment Trends
Marriage rate dropping
68%

12-15

1998

Decline since 1970:

1970

1

56%

The number of 
adults married and living

with their spouse declined
to an all­time low in 1998
due to increasing levels of
divorced and never
married adults.
1
 White 59%, hispanic 51%,

black 35% (only groups broken out)
Source: Census Bureau

 

24%

19%
10%
3%

Married,
with
spouse

 

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Divorced

Never

married

7% 8%

Married,
separated

3% 1%

Widowed

Source: USA Today, March 3, 1999, p. A­1.


12-16

Technological
Forces

(bluefly.com Online Outlet)

 

 

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Solve the Dilemma
12-17

 

a. What do you think were the main concerns with the 
Olympus 2­door sports coupe? Is there a market for a 
2­seat, $32,000 sports car when the Miata sells for 
significantly less?
b. Evaluate the role of the marketing mix in the 
Olympus introduction.
c. What are some of the marketing strategies auto 
manufacturers use to stimulate sale of certain makes 
of automobiles?
 

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Explore Your Career Options
12-18

How will a career in marketing be 
enhanced by knowledge about customer 
buying behaviour and customer service?

 

 

© 2003 McGraw­Hill Ryerson Limited

Additional Discussion 
Questions and Exercises
12-19

1. Utility is the ability of a product to satisfy human needs and 
wants. What are the four kinds of utility?
2. Why are intermediaries helpful in distribution?
3. What are some different forms of promotion?
4. What is the difference between primary data and secondary 
data?
5. What are some sources for obtaining secondary data?

 

 

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Chapter 12 Quiz
12-20a

1. When a business segments markets on the basis of personality characteristics, 
motives, and life styles, that segmentation is based on
a. demographics.
b. geographic factors.
c. psychographics.
d. behaviouristic characteristics.
2. The act of giving up one thing in return for something else is

a. marketing.
b. utility.
c. an exchange.
d. promotion.

 

 

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Chapter 12 Quiz
12-20b

3. The psychological factor described as “changes in a person’s 
behaviour based on” is termed:
a. perception.
b. motivation.
c. personality.
d. learning.
4. In developing a marketing mix, what should be the central focus of all 
marketing activities?
a. price
b. buyer or customer
c. product
d. promotion

 

 

© 2003 McGraw­Hill Ryerson Limited