CUSTOMERDRIVEN MARKETING

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CUSTOMER-DRIVEN MARKETING
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Sales Orientation

• 1890 - 1920 began the era of mass production
• Now production could exceed the immediate demand
• Business took on a sales orientation, devoting
  more resources to getting the sale
• Post WWII brought the era of the Buyers Market
• More production, more choice

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FILM FIRING YOUR CUSTOMERS

• When you go shopping, are there any efforts made
  to encourage you to spend more? What are they?
• Have stores or other businesses made subtle
  efforts to eliminate you or someone you know as a
  customer? How?

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FILM FIRING YOUR CUSTOMERS

• Thinking of your family, what marketing efforts
  have you noticed aimed at you versus your
  parents? Are they effective?
• What businesses would be wise to court you and
  your classmates as customers even if they would
  lose on your business in the short run?

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What is Marketing?

• Determining the needs and wants of others
• Providing a good or service to satisfy those
  wants or needs
• That satisfaction should meet or exceed the level
  of expectation
• Find a need and fill it

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The Exchange Process Giving Up One Thing in
Return for Another
Something of Value
(money,credit,labor, goods)
Buyer
Seller
(goods,services,ideas)
Something of Value
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Value Added by Marketing

• Time Utility - products available when the
  customer wants them
• Place Utility - goods and services available
  where the customer wants them
• Ownership Utility - making the exchange of goods
  easy
• Form Utility - created through the production
  process
• Information Utility - informs the buyer of
  existence, usage, price and where available

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Functions of Marketing

• Buying
• Selling
• Transporting
• Storing

• Grading
• Financing
• Marketing research
• Risk taking

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Using the Marketing Concept
Marketing Success
Training employees
Quality
Service
Value
Customer satisfaction
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Total Quality Management

• Business moved from a customer orientation to a
  desire to please the consumer
• Involve employees in the attempt to exceed
  customer expectations
• This approach goes hand in hand with employee
  empowerment

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Marketing for the New Millenium

• Train cross-functional teams to get everyone in
  the organization committed to customer
  satisfaction
• Marketing aimed not only at the consumer, but
  society as a whole
• Relationship marketing tries to custom make goods
  for the customer and establish a long-term
  relationship with the client

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Understanding the Marketing Process

• Market research to find out if a need exists
• Design a product to meet the need
• Distribution - getting the product to the
  customer
• Establishing a relationship with the customer
• Promoting the product, dealing with complaints,
  etc. helps to establish a customer relationship

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APPLICATION EXERCISE FIND A NEED FILL IT

• Divide into groups
• Come up with one proposal
• Discuss in class

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DEVELOPING A MARKETING STRATEGY
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Target Marketing

• The process of deciding which market segments to
  serve
• Variables to consider in making the decision
  about a target market
• Size and growth potential of the segment
• How reachable is the segment
• The nature of the market
• The nature of the company

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Target Market Strategies
12-8
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Market Segmentation

• Geographic Segmentation - geographic areas
• Demographic Segmentation - age, sex, education,
  occupation, family size, etc.
• Psychographic Segmentation - lifestyle,
  interests, values, attitudes
• Behavioristic consumer characteristics

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Generational Marketing

• Canadas oldest citizens - the generation of
  great hope - desire products that
  reward them for hard work
• Baby boomers - the generation born in great
  economic prosperity - desire
  products that save time or simplify
  living
• Gen Xers - desire products that fit with the
  image of (born between 1966-1980) self they are
  creating
• Generation Y - the most privileged
  generation - desire products that are
  high-tech and authentic and
  nontraditional shopping venues

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Marketing to Different Generations (or target
markets)
Whats Cool?

• According to Boomers According to Generation Y
• Lexus LS 400 Jeep Wrangler
• Gap Delias
• Estee Lauder Hard Candy
• Palm Pilot Motorola Flex Pagers
• Coke Mountain Dew
• Nikes Vans

Source Ellen Neuborne and Kathleen Kerwin,
Generation Y,Business Week, February 15, 1999,
pp. 82-83.
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The Marketing Mix

• The environment is in a constant state of change
• Social forces
• Economic realities
• Technological developments
• Global forces
• The four Ps in marketing Product, Price, Place,
  Promotion make up the Marketing Mix

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Elements in the Marketing Mix
Product
Price
Place
Promotion

• Goods
• Service
• Features
• Accessories
• Packaging
• Instructions
• Warranty
• Branding
• Options

• List price
• Credit terms
• Allowances
• Flexibility
• Discounts

• Channel type
• Intermediaries
• Market coverage
• Transport mode

• Objectives
• Advertising
• Personal selling
• Publicity
• Public relations
• Sales Promotion
• Word of mouth

Marketing Manager
Marketing Program

• Product

• Promotion

• Price

• Place

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Product Development and the Value Package

• Intense competition forces companies to
  constantly develop new products
• The Value Package is everything that the consumer
  evaluates when deciding to buy
• This includes both tangibles and intangibles such
  as price, packaging, store appearance, delivery,
  past experience, brand image, name, reputation,
  etc.

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The Buying Decision-making Process

• Need recognition
• Choice of an involvement level (how much
  information?)
• Alternative search evaluation
• Purchase decision
• Post-purchase evaluation
• Possible cognitive dissonance

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Buying Behavior

• Psychological variables
• perception
• motivation
• learning
• Social variables
• social roles
• reference groups
• social classes
• culture

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Whos Buying Beetles?
Age of head of household
Source USA Today, February 2, 1999, p. B-3.
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A Marketing Mix and the Marketing Environment
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Marketing Environment Trends
11-15
1
1 White 59, hispanic 51,black 35 (only groups
broken out)Source Census Bureau
Source USA Today, March 3, 1999, p. A-1.
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Careers in Marketing

• Careers available in Retail or Wholesale
  Marketing
• Selling
• Advertising
• Public Relations
• Transportation
• Distribution
• N.B. - everything has been sold by someone at
  least once before you use it

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ON TO DIMENSIONS OF MARKETING STRATEGY
(21/11/2005)

• Assignment chapter 12
• Class Activities
• Case Analyzing Canadian Tires Marketing
  Strategy (group work)
• Film discussion Boom, Bust Retail (questions
  on p. 327)