BUS101 Chapter 11

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Introduction to Marketing
Strategies
1 Summarize the ways in which 5 Describe the marketing research
marketing creates utility. function.
2 Discuss the marketing concept. 6 Identify and explain the methods

available for segmenting
consumer and business markets.
Describe not-for-profit marketing,
and identify the five major
categories of nontraditional 7 Outline the determinants
3
marketing. of consumer behavior.
Outline the basic steps in Discuss the benefits and

4 8 tools for relationship
developing a marketing strategy.
marketing.
Marketing - set of processes for creating,
communicating, and delivering value to customers and
for managing customer relationships in ways that
benefit the organization and its stakeholders.
Best marketers create a link in consumers minds between the
new need and the fulfillment of that need by the product.
Exchange process - activity in which two or more

parties give something of value to each other to satisfy
perceived needs.
Utility - want-satisfying power of a good or service.
Create time utility by making a good or service

available when customers want to purchase it.
Create place utility by making a product available in a

location convenient for customers.
Create ownership utility through an orderly transfer of

goods and services from the seller to the buyer.
Marketing concept - company-wide consumer
orientation to promote long-run success.
Firm starts with analysis of customers needs and
works backward to offer products that fulfill them.
Explained by shift from sellers market in which goods
and services are relatively scarce to buyers market in
which they are relatively plentiful.
20 million not-for-profits exist
worldwide.
Apply marketing tools to reach
audiences, secure funding,
improve their images, and
accomplish their overall missions.
Sometimes partner with a profit-
seeking company to promote a
message.
1. Study and analyze
potential target
markets and choose
among them.
2. Create a marketing
mix to satisfy the
chosen market.
Target market - group of people toward whom an organization
markets its goods, services, or ideas with a strategy designed to
satisfy their specific needs and preferences.
Product strategy involves the nature of the product and its
package design, brand names, trademarks, and product image.
Distribution strategy ensures that customers receive their
purchases in the proper quantities at the right times and
locations.
Promotional strategy blends advertising, personal selling, sales
promotion, and public relations to achieve its goals of informing,
persuading, and influencing purchase decisions.
Pricing strategy is setting profitable and justifiable prices for the
firms product offerings, sometimes subject to government
scrutiny.
Standardization - offering the same marketing mix
in every market.
Adaptation - developing a unique marketing mix to
fit each markets local competitive conditions,
consumer preferences, and government
regulations.
Mass customization - firms mass produce goods
and services and add unique features to individual
or small groups of orders.
Marketing research the process of collecting and
evaluating information to support marketing decision
making. AC Nielson Consumer Research
Secondary data: Previously published data from trade
associations, advertising agencies, marketing
research firms, and other sources.
Primary data: Data collected through observation,
surveys, and other forms of observational study.
Data mining - computer searches of customer data to
detect patterns and relationships.
Market segmentation the process of dividing a total
market into several relatively homogeneous groups.
Geographic Segmentation
Divides market into homogeneous groups on the basis of their
locations.
Demographic Segmentation
Divides market on the basis of various demographic or
socioeconomic characteristics: gender, income, age, occupation,
household size, stage in the family life cycle, education, and
ethnic group.
Psychographic Segmentation
Divides consumer market into groups with similar psychological
characteristics, values, and lifestyles.
Product-Related Segmentation
Divides market based on buyers relationship to the good or
service.
Geographic segmentation targets geographically
concentrated industries.
Demographic, or customer-based, segmentation a

good or service intended for a specific organizational
market (i.e. healthcare).
End-use segmentation - focuses on the precise way a

B2B purchaser will use a product.
Consumer behavior - actions of ultimate consumers
directly involved in obtaining, consuming, and
disposing of products and the decision processes
that precede and follow these actions.
Personal factors: needs and motives, perceptions, attitudes,
self-concept.
Interpersonal factors: cultural, social, and family influences.
Business buying behavior - often includes a

variety of influences from multiple decision makers.
Relationship marketing - developing
and maintaining long-term, cost-
effective exchange relationships with
partners.
Consumers enter into relationships
only if there is some benefit to them.
Lower costs and higher profits for the business.
Efficient targeting of best customers increases the
lifetime value of a customer.
Stronger relationships with business partners and
opportunities to combine capabilities and resources
to better accomplish goals.
80/20 principle: Frequent customers have a higher
lifetime value, so businesses allocate resources
accordingly.
Frequency marketing: reward purchasers with
cash, rebates, and other premiums.
Affinity programs: solicit involvement based on
common interest.
Comarketing: businesses jointly market each others
products.
Cobranding: firms link their names in a single
product.
Customizing products and
marketing and rapidly delivering
goods.
Customer relationship
management software helps
companies gather, sort, and
interpret data about specific
customers.

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> > > > > > > > Chapter 11

2 Discuss the marketing concept. 6 Identify and explain the methods

Outline the basic steps in Discuss the benefits and

Exchange process - activity in which two or more

Create time utility by making a good or service

Create place utility by making a product available in a

Create ownership utility through an orderly transfer of

Demographic, or customer-based, segmentation a

End-use segmentation - focuses on the precise way a

Business buying behavior - often includes a

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