Description
Chapter 1. Why Is Marketing Management Important?
Chapter 2. Customer Behavior.
Initial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.
Also, provide a graduate-level response to each of the following questions:
Before reading this chapter or beginning class, what did you expect marketing to be? Ask a family member, classmate, or coworker what they think marketing is. See whether you can persuade them that marketing enhances a mutually beneficial exchange between a customer and a company.
New businesses are frequently launched as a means to address a current glitch in the industry. Pick an industry and identify a typical customer problem. What changes could you make to enter that industry and enhance customer satisfaction (and be profitable)?
[Your post must be substantive and demonstrate insight gained from the course material. Postings must be in the student’s own words – do not provide quotes!]
[Your initial post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review]
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© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1
Why Is
Marketing
Management
Important?
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1. 2
Discussion Questions #1
1. What is the definition of marketing?
2. What can be marketed?
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1. 3
Marketing Defined
• Marketing is defined as an exchange
between a firm and its customers
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1. 4
What Can We “Market”?
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1. 5
Evolution of Modern Marketing
• Product/production orientation
• Focus on building a better gadget
• Sales orientation
• Focus on convincing the customer that your
product works best for them
• Customer orientation
• Focus on identifying customers’ wants
BEFORE formulating attractive solutions
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1. 6
Discussion Questions #2
1. Which orientation do you think would
mostly likely lead to an exchange?
2. Who do you think is responsible for
marketing?
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1. 7
Who Is Responsible for Marketing?
• Marketing and customer satisfaction is
everyone’s responsibility
• Marketing should permeate the firm
• Accounting/finance
• Sales
• Research and development
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1. 8
Reasons to Measure Marketing Success
• Pressure to show results
• Ensure that the chief marketing officer
(CMO) carries as much weight as the
CEO, CFO, or COO
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1. 9
Measuring Marketing Success
(slide 1 of 2)
• Quantify results when possible
• Sometimes the effectiveness of
marketing programs is easy to quantify
• Did the coupon promotion lift sales?
• Measure the percentage sales increase, etc.
• Did the direct mail campaign increase web
usage?
• Measure the number of web visits, etc.
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1. 10
Measuring Marketing Success
(slide 2 of 2)
• However, sometimes the effectiveness is
not easy to quantify
• Was the segmentation study effective?
• Difficult to quantify
• Did the advertising campaign increase
sales?
• Difficult to quantify because great advertising
is geared toward long-term brand building not
short-term results
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1. 11
Marketing Management Framework
• The 5Cs, STP, and the 4Ps constitute
the marketing management framework
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1. 12
5Cs
(slide 1 of 3)
• Customer
• The firm’s current and potential customers
• What are current customers’ preferences,
buying trends, etc.?
• What are potential customers’ preferences?
Should they be targeted?
• Company
• The firm’s capabilities, resources, etc.
• What does it do well?
• What doesn’t it do well?
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1. 13
5Cs
(slide 2 of 3)
• Context
• Macro-environmental forces facing the firm
• What is going on politically or legally that
might affect the firm?
• What is going on with the economy that
might affect the firm?
• What trends are occurring in society that
might affect the firm?
• What technological innovations might affect
the firm?
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1. 14
5Cs
(slide 3 of 3)
• Collaborators
• The companies/people firm works with
• Are these relationships strong? Can these
relationships be improved or leveraged?
• Competitors
• The companies/people firm works against
and how they compare to the firm in terms
of resources, capabilities, customer
preferences, reaction patterns, etc.
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1. 15
STP
• Segmentation
• Grouping customers with similar needs
• Targeting
• Pursuing segment who makes the most
sense for the firm
• Positioning
• Communicating product’s benefits clearly to
the intended target
• Developed through the 4Ps
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1. 16
4Ps
(slide 1 of 2)
• Product
• Goods or services customers need or want
• What should constitute your product mix?
What features and benefits should comprise
each product?
• Price
• How much should you charge given your
costs, competitive pricing, and customer
demand?
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1. 17
4Ps
(slide 2 of 2)
• Place
• How will you get the product into the
customers’ hands? Will you go directly to
customers or use channel partners?
• Promotion
• What communications mix will you use to
communicate with your targets? What
message will you use?
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1. 18
Considerations
(slide 1 of 2)
• The situation facing the company
changes over time
• Customer preferences change
• Competitors change offerings
• Government passes new laws, etc.
• Firm must consistently monitor the 5Cs
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1. 19
Considerations
(slide 2 of 2)
• 5Cs, STP, and 4Ps are interdependent
• As contextual factor changes, what would
the impact be on distribution channels?
• As a collaborator shifts their demands, what
will that do to our pricing structure?
• As our company sells off a nonperforming
function, what impact might that have on our
positioning and customer satisfaction?
• Marketers must understand the
interdependencies
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1. 20
Book Layout
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1. 21
Flow of Each Chapter
• Each chapter covers the “What,” “Why,”
and “How.”
• What is the topic in this chapter?
• Why does it matter?
• How do I do this?
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1. 22
Managerial Recap
(slide 1 of 2)
• Marketing can make customers happier
and companies more profitable
• Marketing is about trying to find out what
customers would like, providing it to
them, and doing so profitably
• Marketing facilitates a relationship
between customers and a company
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1. 23
Managerial Recap
(slide 2 of 2)
• Just about anything can be marketed
• The marketing management
framework—5Cs, STP, 4Ps—will
structure the book
• If you can remain customer-centric, you’ll
be five steps ahead of the competition
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1. 24
© 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2
Customer Behavior
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2. 2
Marketing Framework
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2. 3
Discussion Question #1
• Describe the process you used when
you decided which college to attend.
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2. 4
The Science of Consumer Behavior
• There are known, reliable patterns that
comprise consumer behavior, including:
• The phases consumers go through when
making a purchase
• The different kinds of purchases that
consumers make
• How consumers sense and perceive,
become motivated, form attitudes, and
make decisions
• The cultural differences that influence
consumers
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 5
The Purchase Process
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2. 6
Pre-Purchase Phase
• Customers recognize a need/desire
• Some are heavily marketer influenced;
some are not
• e.g., Having trendy clothes vs. needing to eat
• Customers search and evaluate products
that address their need
• e.g., Conduct online search, ask friends, etc.
• Customers create a consideration set
• All brands considered as candidates for
purchase
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 7
Discussion Questions #2
1. What need/desire drove you to consider
“purchasing” college?
2. How did you search for information?
3. Which colleges were in your
consideration set?
4. What criteria did you utilize to form this
set?
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 8
Purchase Phase
• Customers narrow the consideration set
• Customer may delay the purchase
• Customer may decide not to purchase
• Customers decide on retail channel
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2. 9
Post-Purchase Phase
• Customers assess the purchase and the
purchase process
• Customers determine satisfaction
• Did the customer get what he expected?
• Customers’ level of satisfaction leads to
• Repeat purchases
• Negative or positive word of mouth
• Product returns, etc.
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 10
Discussion Questions #3
1. Are you satisfied with your college
decision? Why or why not?
2. Could your level of satisfaction affect
the college? If so, how?
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 11
Who Utilizes the Purchase Process?
• Business-to-Consumer (B2C) and
Business-to-Business (B2B) both utilize
the buying process
• The amount of time spent on a stage
depends upon what is being bought
• A business customer is an agent buying
something on behalf of an organization
• e.g., Administrative assistants, operations
department, etc.
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 12
Three Types of Consumer Purchases
(slide 1 of 2)
• Convenience purchases
• Low involvement; standard, frequently
consumed goods or impulse purchase
• Consumers don’t spend much time thinking
or planning the purchase
• Shopping purchases
• Medium involvement; not as frequently
purchased
• Consumers spend time and effort prior to
purchase
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 13
Three Types of Consumer Purchases
(slide 2 of 2)
• Specialty purchases
• High involvement; occasional purchases,
often more expensive, require more thought
• Customers put much effort into the purchase
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 14
Types of Business Purchases
• Straight rebuy
• Low involvement; purchase what was
purchased last time with little or no thought
• Modified rebuy
• Medium involvement; something about the
purchase is altered requiring some thought
• New buy
• High involvement; purchase something that
hasn’t been purchased before requiring
much thought and planning
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 15
Types of Purchases
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2. 16
Low-Involvement Purchases
• Low-involvement purchases
• Have more price sensitivity
• Use price discounts
• Generally don’t generate word of mouth
• Are usually distributed intensively
• Marketers should focus on how to capture
consumers’ attention
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 17
High-Involvement Purchases
• High-involvement purchases
• Have less price sensitivity
• Use brand communities and events
• May generate word of mouth
• Are usually distributed selectively
• Marketers should focus on providing
consumers with information
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 18
Anatomy of a Grocery Store
• Layout of a grocery store encourages
purchases
• Group similar products
• Group complementary products
• Place common purchases far from the
entrance
• Group products to form consideration sets
• Place high-profit and impulse-purchase
items at end of aisles and checkout lanes
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 19
Sensation and Perception
(slide 1 of 5)
• Utilize senses to convey information
• Consumers have selective attention;
they block out what is not relevant
• Visual: colors can convey
• Product characteristics (white for freshness
for toothpaste)
• Brand identity (Tiffany’s aqua blue)
• Meaning (affected by culture)
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 20
Sensation and Perception
(slide 2 of 5)
• Hearing can
• Increase spending
• e.g., Quick tempo music = increased spending
• Convey a brand
• e.g., Harley-Davidson’s distinctive sound
• Smell can
• Get attention
• e.g., Smelling the Cinnabon store
• Allow product sampling
• e.g., Perfume in magazines
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 21
Sensation and Perception
(slide 3 of 5)
• Taste can
• Distinguish one brand from another
• e.g., Coke vs. Pepsi
• Touch can
• Convey brand imagery
• e.g., Well-designed products compared to
value designed products
• e.g., Ergonomics, clean lines, simplicity,
beauty, and sensual experiences
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2. 22
Sensation and Perception
(slide 4 of 5)
• Subliminal
advertising
• An ad that is
shown so quickly
that is doesn’t
meet the
threshold of
liminal recognition
• Has been
debunked by
research
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2. 23
Sensation and Perception
(slide 5 of 5)
• Mere exposure
• Repeated exposure to an ad brings
familiarity and a positive feeling
• Perceptual fluency
• Customers may pay the most attention to
the content of a message
• However, the colors, font, etc. make a brand
impression as well
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 24
Learning, Memory, and Emotions
• Sensory and perceptual impressions can
become brand associations
• Learning is the process by which
associations get past the sensory and
perception stages into short-term
memory and then, with repetition and
elaboration, into long-term memory
• Classical and operant conditioning
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2. 25
Classical Conditioning
(slide 1 of 2)
• Pavlov’s dogs
• Stage 1: a dog drools at sight of food
• Stage 2: a dog doesn’t respond to a bell
• Stage 3: ringing a bell while placing food in
front of the dog elicits drool
• Stage 4 (occurs over time): a bell rung in
front of the dog elicits drool
• A similar process can be used in
advertising and jingles
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2. 26
Classical Conditioning
(slide 2 of 2)
• Companies may have negative brand
associations in customers’ memories
• Some companies change names to help
create new associations
• e.g., Philip Morris is now Altria
• e.g., ValuJet is now AirTran
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2. 27
Discussion Question #4
• Use classical conditioning theory to
explain this advertisement.
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2. 28
Operant Conditioning
• Skinner used pigeons to show that
learning occurs by positively reinforcing
behavior
• Fixed ratio reward: reward is given every
time or every 4th time, etc.
• Variable ratio reward: reward timing varies
unpredictably
• Subject will engage in the behavior more
often if rewarded on the variable schedule
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 29
Discussion Questions #5
1. Discuss how a deli could utilize operant
conditioning to design a loyalty program
under
• fixed ratio reward, and
• variable ratio reward
2. Which reward ratio do you think would
be more effective and why?
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2. 30
Motivation: Hierarchy of Needs
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2. 31
Maslow’s Hierarchy of Needs
(slide 1 of 2)
• Maslow suggests that people must have
their basic needs met before moving on
to more abstract needs
• Marketers may identify their product with
one of Maslow’s needs
• e.g., Volvo and safety needs
• Many brands are associated with a sense of
belonging, social acceptance, and respect
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 32
Maslow’s Hierarchy of Needs
(slide 2 of 2)
• Marketers may identify products with
aspiration groups
• Marketers may offer an extended brand
line for customers at different levels in
Maslow’s hierarchy
• e.g., Mercedes has a lower-end C model,
then upward to E, S, and finally CL models
• Marketers use hierarchy for positioning
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 33
Distinguishing Motivations
• Utilitarian vs. hedonic
• e.g., Suit for interviews vs. Armani suit
• Conformity vs. individuality
• May vary over lifetime or in different
situations
• Risk seeking vs. risk averse
• Risk tolerance may vary with product
knowledge
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2. 34
Attitudes and Decision Making
• Attitudes and decision making influence
whether consumers
• Will buy a brand
• Repeatedly purchase it
• Become loyal
• Recommend it to others, etc.
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 35
What Are Attitudes?
• Attitudes are a mix of beliefs and
importance weights
• Beliefs
• e.g., I think Sprite has caffeine
• Importance
• e.g., I think having caffeine is important
• Customer may differ on both importance
and beliefs
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 36
Decision Making
(slide 1 of 3)
• Decision making:
• With a few choices, consumers easily
compare brands to make decision
• With many choices, consumers use two
stages:
• Stage 1: Determine consideration set
• Stage 2: Compare brands to make a
purchase decision
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2. 37
Decision Making
(slide 2 of 3)
• Stage 1
• Non-compensatory method: if a brand
doesn’t have important attributes, it is cut
• Lexicographic method: compare all brands
on most important attribute; cut brands that
don’t have it; move on to next important
attribute and compare and cut, etc.
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 38
Decision Making
(slide 3 of 3)
• Stage 2: Compare brands in detail
• Compensatory model (cost/benefits)
• One excellent attribute can compensate for a
poor attribute
• Some websites aid this process by allowing
users to view a side-by-side comparison of
attributes
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2. 39
Cultural Differences
• Socio-cultural differences influence
consumers and produce shopping
patterns
• Social class
• e.g., Old-monied people seek exclusivity;
nouveaus indulge in conspicuous
consumption
• Age
• e.g., Young people buy furniture; as they get
older they buy diapers and minivans; then
college and finally healthcare
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 40
Discussion Question #6
• How can a marketer capitalize on the
Baby Boomer segment?
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2. 41
Managerial Recap
(slide 1 of 2)
• Three major phases of consumption
• Pre-purchase, purchase, post-purchase
• Three major classes of purchases
• B2C: convenience, shopping, specialty
• B2B: straight rebuy, modified rebuy, new buy
• Involvement determines class
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 42
Managerial Recap
(slide 2 of 2)
• How do consumers think?
• Sensing and perceiving information that is
learned and stored in memory
• Motivations help marketers understand what
consumers are seeking to satisfy
• Attitudes and decision making are subject to
influence by good information and biases
• Social norms define consumers
© 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. 43
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