Marketing decisions should consider consumers wants, the company's should consider consumer wants, the company's requirements and consumers ans society's long run interests
The 4 p's of marketing
Place price promotion product
Customer Relationship (management) Marketing
- Deals with all aspect of acquiring, keeping and growing customers.
-customer value and satisfaction are key
Partner relationship marketing
1. customer is always right
2. if customer is wrong reread number 1
The combined discounted customer lifetime values of all the company's current and potential customers.
-classify customers by loyalty and potential profitability
Questions the mission statement should answer include:
-What is our business?
-Who is our customer?
-What do consumer value?
-What should our business be?
Mission statements should be market oriented, not product oriented.
The company must:
-Analyze its current business portfolio or strategic business units (SBUs)
-Decide which SBUs should receive more, less, or no investment; and
-Develop strategies for growth and downsizing.
Marketing in Strategic planning
Marketing plays key told
-provides a guiding philosophy
--the marketing concept
-Provides inputs to strategic planners
-Designs strategies to reach objectives
Partner relationship managment
Marketers must practice partner relationship management
-Working with partners internally within the company can create an effective value chain.
-Working with external partners in the marketing system helps to form a superior value delivery network
-Involves evaluating each market segments attractiveness and selecting one or more segments to enter
The 4 c's
Return on Marketing
Return on marketing investments in assessed using one or more methods:
-Standard marketing performance measures
*Brand awareness, sales, market share
*Customer acquisition, customer retention, customer lifetime value
The study of human populations in terms of size, denisty, location, age, gender, race, occupation, and other statistics
The changing age structure of the U.S. population is the single most important demographic trend
-Baby boomers, Generation X, and the Millennials are key generational groups
The american family and household makeup is changing: Traditional households with children= 23%
Married without children = 29%
Single parents =16 %
Non-family househaolds= 32%
- United States is an ethnic "salad bowl"
*Ethnic segments will continue to grow as a percentage of the U.S. pop
* Marketers target specially designed ads, products and promotions at ethnic groups.
- Consists of factors that affect consumer purchasing power and spending patterns
Involves natural resources that are needed as inputs by marketers or that are affected by marketing activities
*Shortages of raw material
*increased government intervention
*environmentally sustainable strategies
-Changes rapidly, creating new markets and opportunities and/or danger of products becomeing obsolete
-challenge is to make practical affordable new products.
-Safety regulations result i higher research costs and longer time between product conceptualization and introduction
-Includes laws, government agencies, and pressure groups that influence or limit various organizations and indiv. in a given society
areas of concern:
-Changing gov. agency enforcement
-increase emphasis on ethics and socially responsible behavior
-Core beliefs and values are passed on from parents to children and are reinforced by schools, churches, business and gov.
-Secondary beliefs and values are more open to change.
--Marketers may be able to change secondary beliefs but not core beliefs.
Many firms simply react to changes in the marketing environment.
Some firms attempt to manage the marketing environment via aggressive actions designed to affect the publics and forces in the marketing environment.
The marketing info System
Consists of people and procedures for assessing info needs, developing the needed info, and helping decision makers to use the info to generate and validate actionable customer and market insights.
Fresh understanding of customers and the marketplace derived from marketing info that becomes the basis for creating customer value and relationships
info that already exists somewhere which has been collected for another purpose.
-commercial data services
consists of info collected for the specific purpose at hand. - must be relevant, accurate, current, and unbiased.
Primary data collection
-Research- observation,survey or experiment
-contact methods -- Mail= least flexible, telephone, personal, or online.
-Sampling plan- sampling unit, sample size and sampling procedure
-Research instruments: Questionnaire or mechanical instruments.
The gathering of primary data by observing relevant people, actions and situations.
--can obtain info that people are unwilling or unable to provide
--cannot be used to observe feelings attitudes and motives, and long-term or infrequent behaviors
-After hanging out in the hotel lobbies observing business travelers, Marriott revamped its hotel lobbies by creating a "social zone" where travelers can work or unwind. The new lobbies feature brighter lights, small tables, and wireless access.
Survey and experimental research
- Most widely used method primary data collection.
-approach best suited for gathering descriptive info
-can gather info about people's knowledge, attitudes, preferences, or buying behavior
Online marketing research
-includes surveys, experiments, and focus groups conducted over the internet
-the least expensive and quickest way to gather info
-offers excellent control over sample
-good flexibility and response rates; able to collect a fair amount of info
-some forms prone to interviewer effects
-simple direct unbiased!
-what questions to ask?
form of each question?
-Wording should be simple direct, and unbiased
-questions should be arranged in a logical order
--> collecting data: most expensive phase, subject to error
-->Processing the data: check for accuracy, code for analysis
-->analyzing the data: tabulate results
Interpret the findings
report to managment:
- Present findings and conclusions that will be most helpful to decision making
Act of obtaining a desired object from someone by offering something in return?
customer lifetime value
The combined discounted customer lifetime values of all the company's current and potential customers
-Classify customers by loyalty and potential profitability
marketing in non profits
Which department carries responsibility for achieving profitable growth