1、Chapter 4MarketingDefining Marketing Marketing is a societal process by which individuals and groups obtain what they need and want through creating,offering,and freely exchanging products and services of value with others.By Philip KotlerThe Scope of MarketingnPlacesnPropertiesnOrganizationsnInform
2、ationnIdeasnGoodsnServicesnExperiencesnEventsnPersonsCore Concepts of MarketingMarketing EnvironmentCompetitionTarget markets&segmentationNeeds,wants&demandsProduct or offeringValue and satisfactionExchange and transactionsRelationship and networksMarketing channelsSupply chainThe Four P Components
3、of the Marketing MixAlternative Marketing Mix:The Four CsThe Four CsCustomer SolutionCustomer CostConvenienceCommu-nicationCompany OrientationsTowards the Market PlaceMarketing ConceptSelling ConceptProduct ConceptProduction ConceptFigure 1-7:Contrasts Between the Sales Concept and the Marketing Con
4、ceptFigure 1-10:The Customer ConceptCompany Orientations Toward the Marketplace How Marketing Practices are Changing:E-Business E-business E-commerce E-purchasing E-marketing Internet Domains:B2C(Business to Customer)Adapting Marketing to the New EconomyAdapting Marketing to the New Economy Internet
5、 Domains:B2B(Business to Business)Adapting Marketing to the New Economy Internet Domains:C2C(Consumer to Consumer)Internet Domains:C2B(Customer to Business)Pure Click vs.Brick and Click Companies Pure-click companiesThree Intensive Growth Strategies:Ansoffs Product/Market Expansion GridSWOT Analysis
6、Internal Environmental AnalysisStrengthWeaknessExternal Environmental AnalysisOpportunityThreatQuestions for Discussion 1nForeigners who do business in China must either accept the concept of guan-xi or be inevitably unsuccessful.Guan-xi means personal relationships.Everything in China is based on g
7、uan-xi.If a company representative wants to rent office space,find a product distributor,or erect a billboard,he or she must begin with guan-xi.Is a company that uses relationship marketing better able to understand the importance of guan-xi than one that does not?Questions for Discussion 2nSharon S
8、olomon is an entrepreneur who created and markets cooking videos under the brand name At Home on the Range.She has explained to friends that she has no competition because there are no cooking instructional videotapes currently on the market.Respond to Solomons statement.Research and Managerial Valu
9、eIdentifying Problems or OpportunitiesDiagnosis and AssessmentSelecting and Implementing Business Strategy and Course of ActionEvaluating Strategy and Course of ActionThe Marketing Research ProcessPopular Research MethodsObservational Focus-groupSurvey In-depth Interview Experimental Focus group res
10、earchShould Research Be Conducted?Time Constraints Availability of DataNature Of the DecisionBenefit VS.Cost Overall Model of Consumer BehaviornCultural FactorsnCulturenSubculturesnDiversity marketingnSocial classInfluencing Buyer BehaviorModel of Buyer BehaviorInfluencing Buyer BehaviornSocial Fact
11、orsnReference GroupsnReference groupsnMembership groupsnPrimary groupsnSecondary groupsnAspirational groupsnDissociative groupsnOpinion leadernSecondary groupsnAspirational groupsnDissociative groupsnOpinion leadernFamilynFamily of orientationnFamily of procreationnRoles and StatusesnRolenStatusnPer
12、sonal FactorsnAge and Stage in the Life CyclenFamily life cyclenOccupation and Economic CircumstancesInfluencing Buyer BehaviornPersonality and Self-ConceptnPersonalitynBrand personalitynSinceritynExcitementnCompetencenSophisticationnRuggednessnSelf-conceptnPersons actual self-conceptnIdeal self-con
13、ceptnOthers self-conceptInfluencing Buyer BehaviornPsychological FactorsnMotivationnMotivenFreuds TheorynLadderingnProjective techniquesInfluencing Buyer BehaviorMaslows Hierarchy of NeedsConsumer Buying ProcessProblem RecognitionInformationSearchEvaluation ofAlternativesPurchase DecisionPost-purcha
14、seBehaviorSuccessive Sets Involved in Customer Decision Making Wait a minute Business v.s Consumer MarketsFewer buyersLarger buyersClose supplier-customer relationshipGeographically concentratedDerived demandInelastic demand(short-term)Business v.s.Consumer MarketsProfessional purchasingSeveral buyi
15、ng influencesMultiple sales callsDirect purchasingReciprocityleasingMajor Influences on Industrial Buying BehaviorEnvironmental Level of Demand Economic Outlook Interest Rate Rate of Technological Change Political and Regulatory Developments Competitive Develop-ments Social Responsibility ConcernsOr
16、ganizationalObjectivesPoliciesProceduresOrganizational StructuressystemsInterpersonalInterestsAuthorityStatusEmpathyPersuasivenessIndividualAgeIncomeEducationJob positionPersonalityRisk attitudescultureBusinessbuyerParticipants in the Business Buying ProcessGatekeepersInitiatorsBuyersApproversUsersD
17、ecidersInfluencersNew Task BuyingModified Re-buyStraight Re-buyCustom furnitureInstalled componentsBuildingsWeapon systemsNew vehiclesElec.EquipConsultantsComputer equip.UtilitiesOffice SuppliesBulk chemicalsInvolved decision makingProblem RecognitionGeneral Need DescriptionProduct SpecificationSupp
18、lier SearchProposal SolicitationSupplier SelectionOrder Routine SpecificationPerformance ReviewNeed RecognitionInforSearchEvaluationPurchasePostPurchaseDiscussion QuestionnThe most expensive watch in the world is made by Rolex,and it is perceived to be a highly desirable status symbol.Dolan,a colleg
19、e student,saw an ad for Rolex watches that used Peggy Fleming as its spokesperson.His parents told him she was a famous Olympic figure skater in the 1960s,and her success actually caused a rebirth of interest in the sport.Dolan has asked you to explain to him why Rolex watches used someone he had ne
20、ver heard of in its ads?Discussion QuestionnThe information search in the buying decision process involves gathering information from a number of sources.Name the four different sources and provide examples of each that an individual would use when buying a microwave oven.STP Market Segmentation Mar
21、ket Targeting Market PositioningLevels and Patterns of Market SegmentationnLevels of Market SegmentationnMass marketingnMicromarketingnSegment marketingnMarket segmentnSectornFlexible market offeringnNaked solutionnDiscretionary optionsLevels and Patterns of Market SegmentationnNiche MarketingnNiche
22、nLocal MarketingnIndividual Customer MarketingnMass-customizationnChoiceboardnCustomerizationnSegmentsnIndividualsLevels and Patterns of Market SegmentationnPatterns for Market SegmentationnPreference segmentsnHomogeneous preferencesnDiffused preferencesnClustered preferencesnNatural market segments
23、nConcentrated marketingBasic Market-Preference PatternsMarket SegmentationMarket Segmentationis the process of dividing the total marketfor a good or service into several smaller,Internally homogeneous groups.Consumer Marketsare commonly further segmented on the basis of:GeographyDemographicsPsychog
24、raphicsBuying BehaviorBases for SegmentingConsumer MarketsGeographicDemographicPsychographicBehavioralEffective SegmentationMeasurableSubstantialAccessibleDifferentialActionableSize,purchasing power,profiles of Segmentation can be measuredSegments must be large or profitable enough to serveSegments
25、can be effectivelyreached and servedSegments must respond differently toDifferent marketing mix elements&actionsMust be able to attract and serve the segmentsBusiness markets are oftensegmented on the basis of:nCustomer LocationnType of Business Customer,including:IndustrySizePurchase Organization S
26、tructurePurchase CriteriaBusiness MarketSegmentationTransaction conditions can also be a basis for segmenting a business market.Types of Buying SituationStraight rebuyModified rebuyNew rebuyUsage Rate:heavy,light,non-usersPurchase ProcedureProduct StrategiesnMarket Offering ProductnNew Product Devel
27、opmentnProduct Life CyclenManaging Product MixIntroduction to“Product”What is a“product”?Concept and ElementsProduct ClassificationThe Product and the Product MixnProductnPhysical goodsnServicesnExperiencesnEventsnPersonsnPlacesnPropertiesnOrganizationsnInformationnIdeasThe Product and the Product M
28、ixnProduct levelsnCustomer value hierarchynCore benefitnBasic productnExpected productnAugmented productCategories of Product&Service MixTangibleGoodW/ServiceHybridMajor ServiceW/GoodsPureServicePure TangibleGoodsProduct ClassificationConsumer GoodsnProduct LifeNon-durableSemi-durableDurablenConsume
29、r BehaviorConvenience GoodShopping GoodSpecialty GoodUnsought GoodBusiness GoodsnMaterials and PartsRaw MaterialsManufactured Material and PartsnCapital ItemsInstallmentAccessory EquipmentnSuppliesProducts on the InternetnSoft ProductsInteractiveDownloadablenHard ProductsLogistic&PaymentDeveloping N
30、ew Market Offerings nSix categories of new products1.New-to-the-world products2.New product lines3.Additions to existing product lines4.Improvements and revisions of existing products5.Repositioning6.Cost reductionsThe Product and the Product MixnProduct mix(Product assortment)nWidthnLengthnDepthnCo
31、nsistencyProduct MixconsistencyWidth-Number ofDifferent productlinesLength-Total numberOf items withinThe linesDepth-number of Versions of each productProduct Mix-All the productLines offeredProduct-Mix Width and Product-Line Length for Proctor&Gamble ProductsPRODUCT-LINE LENGTHProduct-Mix WidthDete
32、rgentsToothpasteDisposable Bar SoapDiapersPaper TissueIvory Snow(1930)Dreft(1933)Tide(1946)Cheer(1950)Gleem(1952)Crest(1955)Ivory(1879)Kirks(1885)Lava(1893)Camay(1926)Pampers(1961)Luvs(1976)Charmin(1928)Puffs(1960)Banner(1982)Summit(1992)Price ManagementPricing Objectives&StrategyProfit-Driven Price
33、 SettingCustomers Sensitivity ManagementCompetitive Pricing managementProfit-Driven PricingThe aim of pricing is to capture the value of our brand to maximize long-run profitability.You cannot achieve superior long-run profitability by following short-run,tactical pricing rules!Generic Pricing Strat
34、egiesnSkimming PricenNeutral PricenPenetration PricePrice-Quality StrategiesHighValueSuperValueGood ValueOverchargingRip-offFalseEconomyPremiumValueMediumValuePremiumValueHighMediumLowPriceHighMediumLowProduct QualityCustomer PriceSensitivity ManagementDiscriminatory PricingPsychological PricingValu
35、e ManagementDiscriminatory PricingLocationProduct-formTimeCustomer SegmentPsychological Pricing and Substitute ProductsnMost Attractive?nBetter Value?nPsychological reason to price this way?A32 OZB24 OZB 120B 99Promotional PricingLoss-leader PricingSpecial-event PricingCash RebateLow-interest Financ
36、ingLonger Payment TermsWarranties&Service ContractsPsychological DiscountingHow a Distributor Reduces the Number of Channel Transactions123456789A.Number of contacts without a distributor M*C=3*3=9=customer=ManufacturerHow a Distributor Reduces the Number of Channel TransactionsStore123456B.Number o
37、f contacts with a distributor M*C=3+3=6=Manufacturer=customer=DistributorMarketing Channels0-level Channel3-level Channel2-level Channel1-level ChannelManufacturerConsumerManufacturerConsumerRetailerMfgConsumerRetailerWholesalerJobberMfgConsumerRetailerWholesalerIdentifying Channel AlternativesnType
38、s of IntermediariesnNumber of IntermediariesnTerms and Responsibilities of Channel MembersMajor Retailer TypesSpecialty Store:Narrow product line with a deep assortment.A clothing store would be a single-line store;a mens clothing store would be a limited-line store;and a mens custom-shirt store wou
39、ld be a superspecialty store.Examples:The Body Shop.Department Store:Several product linestypically clothing,home furnishings,and household goodswith each line operated as a separate department managed by specialist buyers or merchandisers.Examples:Sears,Nordstrom.Supermarket:Relatively large,low-co
40、st,low-margin,high volume,self-service operation designed to serve total needs for food,laundry,and household products.Examples:Kroger.Convenience Store:Relatively small store located near residential area,open long hours,seven days a week,and carrying a limited line of high-turnover convenience pro
41、ducts at slightly higher prices,plus takeout sandwiches,coffee,soft drinks.Examples:7-Eleven.Why are Wholesalers Used?WholesalersFunctionsManagementService&AdviceSelling and PromotionBuying andAssortment BuildingBulking BreakingWarehousingTransportingFinancingRisk BearingMarketInformationThe Four Ma
42、jor Promotional ToolsnAdvertisingnPublic relationsnSales promotionnPersonal sellingAdvertisingninforms consumers about the existence and benefits of products and services,and attempts to persuade them to buy them.nThe best form is word-of-mouth advertising.gives an agreed budget to ad ag.gives a sta
43、tement ofthe objectives of the ad.campaigngives an overall ad strategy concerning the messagestransferred to target customerscreates advertisementsdevelops a media plan specifyingwhich media will be used and in which proportionsproduces alternativeads or commercialsAdvertising AgencyClient CompanyPu
44、blic RelationsnPR is concerned with maintaining,improving or protecting the image of a company or product.nPublicitythe most important elementnany mention of a companys products that is not paid for,in any medium read,viewed or heard by a companys customers or potential customers,aimed at assisting
45、sales.Sales Promotionsnare temporary tactics designed to stimulate either earlier or stronger sales of a product.nfree samples,coupons,price reductions.nTo generate the initial trial of a new productfree samples+extensive advertising)nTo protect product in the maturity stageprice reductionSales Prom
46、otionsdistributors,dealers&retailers retailerssales forces to stock new items or large quantities to encourage off-season buying the stocking of items related to an existing product to strengthen brand loyalty to gain entry to new marketsPersonal SellingnThe most expensive promotional tool,a complem
47、ent to advertising.nA major source for new product ideas.Case study:promotional strategiesnYour team is responsible for promoting one of the following:nA new,up-market health and fitness clubnA new brand of jeans,manufactured by a new(and therefore unknown)companynA new,fashionable but inexpensive r
48、ange of quartz watchesnPotatoes,to be sold in supermarketsnA new taxi company in your townCase study:promotional strategiesnDecide exactly what your product is,what is special about it,and which tools you would use to promote it.Imagine that you have a generous budget,and are thus able to employ several different tactics.
