Marketing Management

Customer-Driven Marketing

1-1 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

The Marketing Mix

● ● ● ●

Product Price Promotion Distribution

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Market Share

● The percentage of sales in a market or industry that is captured by a business.

– Units or – Dollars ● Examples – Samsung had a 27% share of flat screen TV’s in 2Q 2012 – Apple had a 12% share of PCs in 2Q 2012 – GM had 19% market share in 6/13 1-3 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Market Research

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Reasons for Research

– Identify marketing problems and opportunities – Analyze competitors’ strategies – Evaluate and predict customer behavior – Gauge the performance of existing products and potential for new ones – Develop price, promotion, and distribution plans 1-4 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Market Research

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Obtaining Market Research

– Researchers use both internal and external data 

Internal data

is generated within the researcher’s organization 

External data

is gathered from sources outside their firms 

Primary Data

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The Hawthorne Effect How do you get ‘unobtrusive” research?

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Marketing Research

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Computer-Based Marketing Research Systems

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Universal Product Code

(UPC) —identify the product, its manufacturer, and its price – Marketing research firms store consumer data and commercially available databases

Data Mining

—computer search of massive amounts of customer data to detect pattern and relationships.

– Data Warehouses ● Examples: grocery stores, Walmart, Anh. Bush, Target finding pregnant women, Nordstrom 1-6 tracking customer movements Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Market Segmentation

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Market Segmentation

—process of dividing a total market into several relatively homogeneous groups.

E.g Don’t target all jean wearers, pick a subset – Guinness does not target all beer drinkers – – Ferrari does not target all car buyers Patagonia does not target all clothes buyers 1-7 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Methods of Segmenting Consumer Markets

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Buyer Behavior: Determining What Customers Want

● ● Buyer is not always the consumer (The person who makes it doesn’t use it; the person who buys it doesn’t need it; the person who uses it doesn’t see it. It is found in a home but not a house. What is it?) Other examples of the buyer not being the consumer?

1-9 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Steps in the Consumer Behavior Process One job of marketing is to move customers through the steps.

1-10 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Creating, Maintaining, and Strengthening Marketing Relationships

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Tools for Nurturing Customer Relationships

– Frequency Marketing and Affinity Programs 

Frequency Marketing

—program that rewards purchases with cash, rebates, merchandise, or other premiums 

Affinity Program

—marketing effort sponsored by an organization solicits involvement by individuals who share common interest and activities ● Can you give examples? 1-11 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

Creating, Maintaining, and Strengthening Marketing Relationships

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Tools for Nurturing Customer Relationships

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Co-marketing -

other’s products two businesses jointly market each –

Co-branding -

two or more businesses closely link their names for a single product –

One-on-One Marketing -

customized product offering to individual needs and rapidly deliver good and services to customers.

Can you give examples?

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Discussion

● ● How would you do market research for:  a bank, post office, auto repair ● Market research – – Hawthorne Effect How can you do ‘undetected’ research?

 examples: museums, radio stations, grocery stores How would you do relationship marketing for:  a bank, post office, auto repair, cereal, pharmacy, college fund, Brooklyn Nets 1-13 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved.