CHAPTER 12 CustomerDriven Marketing

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CHAPTER 12 Customer-Driven Marketing

• What is Marketing?
• The process of planning and executing the
  conception, pricing, promotion, and distribution
  of ideas, goods, and services

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Why have marketing?

• UTILITY
• 1. Form utility (production)
• 2. Place utility
• 3. Time utility
• 4. Ownership utility

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What Is a Market?

• consists of people with purchasing power and the
  authority to buy.

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• Consumer products ultimate consumer
• Business products directly or indirectly used by
  a business
• What about a Goodyear tire?

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5 Types of Nontraditional Marketing

• 1. Person marketing
• -designed to enhance the favorable opinion of
  an individual by selected others.
• 2. Place marketing
• -attempts to attract people to a particular
  area such as a city, state, or nation.

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• 3. Cause marketing
• -marketing of a social cause or issue.
• 4. Event marketing
• -marketing of sporting, cultural, or
  charitable activities to selected target
  markets.

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• 5. Organization marketing
• -attempts to influence others to contribute
  in some way to an organization.

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Developing a Marketing Strategy

• Target Market
• the group of consumers toward whom a firm will
  direct its marketing efforts.

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• Marketing Mix
• Product
• package design, brand name, trademark, warranty
• Price
• Distribution
• Promotion
• Future forecasts show a 5th P, What do you think?
• PEOPLE

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Marketing Environment

• Competition
• Political and Legal Environment
• Economic Factors
• inflation, unemployment, and business cycles
• Technological Environment
• Social and Cultural Environment

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Market Segmentation

• Geographic
• location
• Demographic
• ie sex, income, age, occupation, education
• Psychographic
• based on behavioral or lifestyle profiles
• The VALS 2 (Values and Lifestyles) Program
• http//www.sric-bi.com/VALS/

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• Product-Related
• consumers relationship to the good or service
• -benefits buyers get
• -usage rates
• -degree of brand loyalty

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Relationship Marketing

• refers to situations where a company develops
  long-term, cost-effective links with individual
  customers for mutual benefit.

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• 80/20 principle
• 80 of sales from 20 of customers