Marketing Providing Value To Customers


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PowerPoint Presentation:

Marketing: Providing Value To Customers

Chapter Objectives:

Chapter Objectives Define marketing / marketing strategy and outline how to identify target market. Identify 4Ps, explain marketing research, discuss branding strategies, explain benefits of packaging/labeling. Identify pricing strategies for new/existing products Explore production-distribution strategies/supply-chain management Describe promotion mix and managing customer relationships Explain product life cycle/effects on marketing mix Describe the marketing environment and factors influencing consumer behavior Describe opportunities in field of marketing


Marketing “…a set of processes for creating, communicating and delivering value to customers and for improving customer relationships.”

Satisfying Customer Needs:

Satisfying Customer Needs Product- Features & Benefits Setting Price Identify Target Market Make Customers Aware Get People To Buy Deliver Purchased Product Managing Relationships With Customers After Delivery

The Marketing Concept:

The Marketing Concept

Marketing Concept:

Marketing Concept “…satisfying customer needs while meeting organizational goals...”

PowerPoint Presentation:

Marketing Strategy

Target Market:

Target Market “…a specific group of consumers…particularly interested in your product…who…have access to it…and…have the means to buy it.”

Identifying Your Market:

Identifying Your Market Consumer Market Industrial Market

Market Segments:

Market Segments “…groups of potential customers with common characteristics that influence their buying decisions.”

Market Segmentation Categories:

Market Segmentation Categories Demographic – Age, marital status, gender, ethnic background, income, occupation, education Geographic – Climate, region, population density Behavioral – Attitudes toward product, user status, usage rate Psychographic – Interests, activities, attitudes, values

The Marketing Mix:

The Marketing Mix

Marketing Research:

Marketing Research “…the process of collecting and analyzing the data that’s relevant to a specific marketing situation.”

Market Research Data:

Market Research Data Secondary Already collected Company Documents Government Data Primary New Information Surveys Personal Interviews Focus Groups Need for Data : What Methods Who


Branding “…word, letter, sound, or symbol that… differentiate(s)… products on the market.” Trademark – “…register(ed) name with the U. S. Patent and Trademark Office.” U.S. Patent & Trademark Website

Branding Strategies:

Branding Strategies Private Branding Generic Branding Manufacturer Branding

Brand Equity:

Brand Equity “…any added value generated by favorable consumer experiences…”


Packaging/Labeling Packaging - “…container that holds…(the) product.” Labeling – “…what… (is said) about the product on… (the) packaging.”

Product Pricing:

Product Pricing New Skimming Penetration Other Cost-Based Demand-Based Target Costing Prestige Odd-Even


Distribution Intermediary – “…a wholesaler or retailer who helps move products from their original source to the end user…” Each intermediary in the channel of distribution requires a profit margin, thus increasing the cost of the product.

Distribution Channels:

Distribution Channels

What an Intermediary Can Do:

What an Intermediary Can Do

Physical Distribution:

Physical Distribution Warehousing Transportation Materials Handling

Just-In-Time Production:

Just-In-Time Production “…companies require suppliers to deliver materials to their facilities just in time to go into the production process.”

Factors Affecting Transportation Mode:

Factors Affecting Transportation Mode Cost Speed Match of Mode to Good Dependability Accessibility

Transportation Modes:

Transportation Modes Truck (65%)- expensive and can go anywhere in a reasonable time Train (4%)- moderately priced, generally accessible, faster than ship & slower than plane Plane (8%)- faster but cost more Ship (9%)- inexpensive but slow Pipeline (3%)- fine for liquid product Multimodal (11%)- includes rail, truck, and water

The Supply Chain:

The Supply Chain

Value Chain:

Value Chain “…the entire range of activities involved in delivering value to customers…”

Customer Value Triad:

Customer Value Triad

Promotion Mix:

Promotion Mix “…the means by which (companies) communicate with customers…”

Considerations Before Selecting Promotional Strategy:

Considerations Before Selecting Promotional Strategy Purpose of Promotion? Target Market? Product Features to Emphasize? Afford? Similar to Competitors?

Promotional Tools:

Promotional Tools Advertising Personal Selling Sales Promotion Publicity & Public Relations

Customer-Relationship Management:

Customer-Relationship Management “…a marketing strategy...focus(ed) on information about current customers to nurture...maintain strong relationships with them.”

Marketing- Permission vs. Interruption:

Marketing- Permission vs. Interruption Permission – “Companies...ask for customers’ cooperation…” Interruption – “…hop(e)...people listen even though you’re interrupting them…” Mass Marketing- “…sending out messages to a vast audience of anonymous people.”

Product Life Cycle:

Product Life Cycle

Introduction Stage & Marketing Mix:

Introduction Stage & Marketing Mix Product Awareness Limited Competition Skim-Pricing Approach Few Channels

Growth Stage & Marketing Mix:

Growth Stage & Marketing Mix Building Sales Competition = Lowering Prices Multiple Channels Profitable

Maturity Stage & Marketing Mix:

Maturity Stage & Marketing Mix Sales Grow At Decreasing Rate Differentiate from Competition Price Wars Profits Up With Sales Changing Consumer Preferences

Decline Stage & Marketing Mix:

Decline Stage & Marketing Mix Demand Down Intense Price Competition Profits Low Or Losses Revitalize Or Pull Product

Marketing Environment:

Marketing Environment

Generation Gaps:

Generation Gaps Baby-Boomers = 1946 – 1964 Generation X = 1965 – 1975 Generation Y = 1976 - 2001

Consumer Behavior:

Consumer Behavior “…the decision process that individuals go through when purchasing or using products.”

Buying Process:

Buying Process

Influences On Buying Behavior:

Influences On Buying Behavior Psychological Motivation Perception Learning Attitudes Personality Social Family Reference Groups Economic or Social Status Culture

Careers In Marketing:

Careers In Marketing Advertising Brand/Product Management Marketing Research Supply Chain/Logistics Management Retailing Sales

PowerPoint Presentation:

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