Research and discuss the fundamentals of marketing. Research and discuss target marketing and the successful application of target marketing. As you discuss the topics remember to ide

25 Jun Research and discuss the fundamentals of marketing. Research and discuss target marketing and the successful application of target marketing. As you discuss the topics remember to ide

Posted at 18:47h in Finance / Management by

Research and discuss the fundamentals of marketing.

Research and discuss target marketing and the successful application of target marketing.
As you discuss the topics remember to identify your sources by name and explain why each one has expertise regarding the topic. Please use well respected business sources for you research. For these topics you should consider several sources to ensure that you have a thorough understanding of the topics. If your source does not identify the author your will not be able to verify expertise regarding the topic. Continue your research until you find an identifiable source. Go beyond the text and avoid the use of links as a discussion of your sources. Your goal is to convince your readers that you have become knowledgeable of the topics and that your sources are reliable. Make sure your comments to other students add something to their submissions.
I will comment on your submission and will expect responses to my comments.
Answer the following questions from this week's video titled Marketing a Business. You might find that reviewing last week's video has application to this week's topic.
- How does O'Neill define marketing?
- Who does O'Neill define as his target market?

Marketing:

Building Profitable

Customer Connections

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Learning Objectives

By the end of this chapter, you should be able to:

11-1 Discuss the objectives, the process, and the scope of marketing

11-2 Identify the role of the customer in marketing

11-3 Explain each element of marketing strategy

11-4 Describe the consumer and business decision-making process

11-5 Discuss the key elements of marketing research

11-6 Explain the roles of social responsibility and technology in marketing

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Encourage students to look for answers to these learning objectives as you move through the lecture.

11-1

Marketing: Getting Value by Giving Value

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11-1 Marketing: Getting Value by Giving Value (1 of 3)

Marketing*: An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

Utility*: The ability of goods and services to satisfy consumer “wants”

* Words accompanied by an asterisk are key terms from the chapter.

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The American Marketing Association defines marketing as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Long-term profitability is the ultimate benefit that most businesses seek from marketing.

This benefit can be attained only when value is delivered to customers and other stakeholders.

As customers have a number of wants, different products provide various utilities.

11-1 Marketing: Getting Value by Giving Value (2 of 3)

Types of Utility

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The vast majority of products provide some kind of form utility.

Virtually every product provides some degree of ownership utility, but some offer more than others.

Form

utility

Satisfies wants by converting inputs into a finished form

Time

utility

Satisfies wants by providing goods and services at a convenient time for customers

Place

utility

Satisfies wants by providing goods and services at a convenient place for customers

Ownership

utility

Satisfies wants by smoothly transferring ownership of goods and services from seller to buyer

11-1 Marketing: Getting Value by Giving Value (3 of 3)

The Scope of Marketing: It’s Everywhere!

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Sports, politics, and art dominate people marketing, but even some businesspeople merit mentioning.

Consider, for example, Paris Hilton, who appeared to build her early career on promotion alone, eventually parlaying the media attention into a successful line of perfumes and fashion items.

Cities and states use place marketing to attract businesses.

Partnerships between the public and private sectors are increasingly common in event marketing.

In idea marketing, a whole range of public and private organizations market ideas that are meant to change how people think or act.

People Marketing

Place Marketing

Event Marketing

Idea Marketing

Exhibit 11.1 The Evolution of Marketing

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This slide shows the evolution of marketing and the number of overlaps that have taken place through the years.

Despite these changes, a few fundamental ones have remained constant.

The marketing concept emerged in the 1950s.

Marketing concept*: A business philosophy that makes customer satisfaction—now and in the future—the central focus of the entire organization

Discussion Activity 1

What are the four different kinds of utility that marketers can provide? Give an example (not from the book) of a product that delivers each type of utility.

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Answers will vary.

Form utility

Example: IKEA transforms lumber into furniture

Time utility

Example: Costco offers one-hour photo service

Place utility

Example: Starbucks has stores on virtually every corner

Ownership utility

Example: Ford offers a low-cost car financing program

Discussion Activity 1 Debrief

In what ways do you think about utility when you are consuming goods?

Which of the types of utility discussed is most annoying if it is absent from your shopping/consuming experience?

Consider one product or service (e.g., Tide laundry detergent, Netflix). How does it provide utility?

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Answers will vary.

11-2

The Customer: Front and Center

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11-2 The Customer: Front and Center (1 of 2)

Customer Relationship Management (CRM)

Customer relationship management (CRM)*: The ongoing process of acquiring, maintaining, and growing profitable customer relationships by delivering unmatched value

Value*: A customer perception that a product has a better relationship than its competitors between the cost and the benefits

Companies can either have limited relationships or pursue full partnerships with clients

* Words accompanied by an asterisk are key terms from the chapter.

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The most important aspect of marketing these days is customer relationship management.

When products are able to deliver perceived value above or beyond the customers’ expectations, customer satisfaction is achieved.

11-2 The Customer: Front and Center (2 of 2)

Perceived Value versus Actual Value

Helping customers believe that your product is uniquely qualified to meet their needs

Customer Satisfaction

Customer satisfaction*: When customers perceive that a good or service delivers value above and beyond their expectations

Customer Loyalty

Customer loyalty*: When customers buy a product from the same supplier again and again—sometimes paying even more for it than they would for a competitive product

* Words accompanied by an asterisk are key terms from the chapter.

‹#›

Achieving customer satisfaction is tricky, and less savvy marketers tend to fall into two traps—overpromising and underpromising.

Customer loyalty is the payoff for delivering value and generating satisfaction.

A loyal customer is the one who buys from a particular brand again and again, forgives the brand’s mistakes, and provides valuable feedback.

Lecture Booster: Sam Walton, founder of Walmart, once said, “The goal as a company is to have customer service that is not just the best, but legendary.” Discuss with students how companies today should focus on achieving the highest levels of customer satisfaction and loyalty. Go on to give some interesting examples of companies striving to achieve the same.

Source: customerthink.com/12_customer_service_quotes_to_inspire_you_in_2013/ (accessed October 5, 2017).

Polling Activity

Which of the following scenarios do you see as the most convincing example of customer loyalty?

Santana drives an extra five miles every day to pick up a customized cup of coffee from a specific Starbucks.

Taylor only buys Ford trucks—four of them in the past 20 years.

Lee vacations every year at Ocean Key Resort in Key West, Florida.

Rahel will use no other soap than Ivory.

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Answers will vary.

All answers are equally valid; discussion could focus on what made these consumers so loyal to a given brand and what competing marketers could do to change their minds.

11-3

Marketing Strategy: Where Are You Going,

and How Will You Get There?

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11-3 Marketing Strategy (1 of 8)

Marketing plan*: A formal document that defines marketing objectives and the specific strategies for achieving those objectives

Market segmentation*: Dividing potential customers into groups of similar people, or segments

Determining strategies to reach the target market

Anticipating and responding to changes in the external environment

* Words accompanied by an asterisk are key terms from the chapter.

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A successful marketing strategy aims at developing a marketing plan that identifies the target audience and a way to reach out to them.

Once the target market has been identified, the next step is to determine how one can make the best use of the marketing tools to reach them.

Exhibit 11.2 Marketing Strategy

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This exhibit shows the different elements that help in shaping an effective marketing strategy.

11-3 Marketing Strategy (2 of 8)

Target Market

Target market*: The group of people who are most likely to buy a particular product

Characteristics of a well-chosen target market

Size

Profitability

Accessibility

Limited competition

* Words accompanied by an asterisk are key terms from the chapter.

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Size: Enough people in your target group to support a business.

Profitability: Consumers must be willing and able to spend more than the cost of producing and marketing your product.

Accessibility: Your target must be reachable through channels your business can afford.

Limited competition: Look for markets with limited competition; a crowded market is much tougher to crack.

11-3 Marketing Strategy (3 of 8)

Consumer Markets versus Business Markets

Consumer marketers (also known as business-to-consumer or B2C)*: Marketers who direct their efforts toward people who are buying products for personal consumption

Business marketers (also known as business-to-business or B2B)*: Marketers who direct their efforts toward people who are buying products to use either directly or indirectly to produce other products

* Words accompanied by an asterisk are key terms from the chapter.

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A similarity between business-to-consumer (B2C) and business-to-business (B2B) marketers is that both need to select the best target; however, their approaches to achieve this objective differ slightly.

11-3 Marketing Strategy (4 of 8)

Consumer Market Segmentation

Demographic segmentation*: Dividing the market into smaller groups based on measurable characteristics about people, such as age, income, ethnicity, and gender

Geographic segmentation*: Dividing the market into smaller groups based on where consumers live. This process can incorporate countries, cities, or population density as key factors

Psychographic segmentation*: Dividing the market into smaller groups based on consumer attitudes, interests, values, and lifestyles

Behavioral segmentation*: Dividing the market based on how people behave toward various products. This category includes both the benefits that consumers seek from products and how consumers use the products

* Words accompanied by an asterisk are key terms from the chapter.

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Selecting the target market for products is vital.

The first step is to divide prospective customers into groups based on similarities.

Because people can be similar in a number of different ways, marketers have several options for segmenting potential consumers.

The different ways in which consumers use the product and benefit from using it are included in this process.

11-3 Marketing Strategy (5 of 8)

Business Market Segmentation

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B2B marketers typically follow a similar process in segmenting their markets, but they use slightly different categories.

Lecture Booster: The blog DataCracker claims that the success of Dropbox lies in how the company has focused on customer value segmentation. Discuss the various ways a business can be segmented, and weigh the pros and cons of the various techniques.

Source: “They Say ‘Know Your Target Market,’ but Which Target Market?”

B2B Geographic segmentation

Dividing the market based on concentration of customers

B2B Customer-based segmentation

Dividing the market based on customers’ characteristics

B2B Product-use‒ based segmentation

Dividing the market based on how customers will use the product

11-3 Marketing Strategy (6 of 8)

The Marketing Mix

Marketing mix*: The blend of marketing strategies for product, price, distribution, and promotion

The Global Marketing Mix

Firms need to reevaluate their marketing mix for each new country they enter

* Words accompanied by an asterisk are key terms from the chapter.

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The various elements of a marketing mix include product strategy, pricing strategy, distribution strategy, and promotion strategy.

In the product strategy, the product involves far more than a specific service.

In the pricing strategy, the prices must be fair to deliver customer value relative to the benefits of the product.

In the distribution strategy, the goal is to deliver the product to the right people, in the right quantities, at the right time, and in the right place.

In the promotion strategy, promotion includes all of the ways that marketers communicate about their products.

11-3 Marketing Strategy (7 of 8)

The Marketing Environment

Environmental scanning*: The process of continually collecting information from the external marketing environment

COMPETITIVE

Market share*: The percentage of a market controlled by a given marketer

ECONOMIC

Identify and respond to change as soon as possible

SOCIAL/CULTURAL

Covers a vast array of factors, including lifestyle, customs, language, attitudes, interests, and population shifts

* Words accompanied by an asterisk are key terms from the chapter.

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To avoid ambushes—and to uncover new opportunities—one must continually monitor how both dominant and emerging competitors handle each element of the marketing mix.

One’s goal as a marketer is to identify and respond to changes as soon as possible, keeping in mind that a sharp eye sees opportunity even in economic downturns.

Anticipating and responding to trends can be especially important in industries such as entertainment, fashion, and technology.

11-3 Marketing Strategy (8 of 8)

TECHNOLOGICAL

Often affects marketers in ways that are less directly visible

POLITICAL/LEGAL

Laws, regulations, and political climate

The Global Marketing Environment

The Internet has made the world market virtually accessible to everyone

Understand each element of the marketing mix for each of your markets

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Technology often affects marketers in ways that are less directly visible.

The political climate includes changing levels of governmental support for various business categories.

Clearly, the political/legal issues affect heavily regulated sectors (e.g., telecommunications and pharmaceuticals) more than others.

Discussion Activity 2

What are the different ways to segment a consumer market? Does it make sense to use more than just a single segmentation variable? Why or why not? What are the key characteristics of a high-potential target market?

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Answers will vary.

Key ways to segment a target market:

Demographic: Segmentation based on measurable characteristics about people such as age, income, ethnicity, and gender

Geographic: Segmentation based on where consumers live,

25 Jun Research and discuss the fundamentals of marketing. Research and discuss target marketing and the successful application of target marketing. As you discuss the topics remember to ide

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