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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 MarketingPlacesPropertiesOrganizationsInformat
2、ionIdeasGoodsServicesExperiencesEventsPersonsCore Concepts of MarketingMarketing EnvironmentCompetitionTarget markets & segmentationNeeds, wants & demandsProduct or offeringValue and satisfactionExchange and transactionsRelationship and networksMarketing channelsSupply chainThe Four P Components of
3、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 Conc
4、eptFigure 1-10: The Customer ConceptCompany Orientations Toward the MarketplaceProcter & Gambles R site allows customers to design their own beauty productsHow Marketing Practices are Changing: E-BusinessE-businessE-commerceE-purchasingE-marketingInternet Domains: B2C (Business to Customer)Adapting
5、Marketing to the New EconomyCustomers can shop online at Calyx and Corolla or ask for a catalog and shop by phoneAdapting Marketing to the New EconomyInternet Domains: B2B (Business to Business)Adapting Marketing to the New EconomyInternet Domains: C2C (Consumer to Consumer)Internet Domains: C2B (Cu
6、stomer to Business)Pure Click vs. Brick and Click CompaniesPure-click companiesCarPoint, leading metamediary for car buying, is a pure click company: It exists only on the Web. Premier D is a special business-oriented part of the Dell Web site that allows customers to interact with Dell and customiz
7、e all phases of doing business with Dell.Three Intensive Growth Strategies:Ansoffs Product/Market Expansion GridStarbucks home page: Customers can request a catalog of Starbucks products, subscribe to a newsletter, and shop onlineSWOT AnalysisInternal Environmental AnalysisStrengthWeaknessExternal E
8、nvironmental AnalysisOpportunityThreatQuestions for Discussion 1Foreigners 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 guan-xi. If a company representative wants to rent office
9、 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 2Sharon Solomon is an entrepreneur who created and markets co
10、oking 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 ValueIdentifying Problems or OpportunitiesDiagnosis an
11、d 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 researchShould Research Be Conducted? Time Constraint
12、s Availability of DataNature Of the DecisionBenefit VS. Cost Understand the ConsumerOverall Model of Consumer BehaviorCultural FactorsCultureSubculturesDiversity marketingSocial classInfluencing Buyer BehaviorModel of Buyer BehaviorInfluencing Buyer BehaviorSocial FactorsReference GroupsReference gr
13、oupsMembership groupsPrimary groupsSecondary groupsAspirational groupsDissociative groupsOpinion leaderSecondary groupsAspirational groupsDissociative groupsOpinion leaderFamilyFamily of orientationFamily of procreationRoles and StatusesRoleStatusLevi-Strausss Silver Tab line is also featured on its
14、 Web sitePersonal FactorsAge and Stage in the Life CycleFamily life cycleOccupation and Economic CircumstancesInfluencing Buyer BehaviorPersonality and Self-ConceptPersonalityBrand personalitySincerityExcitementCompetenceSophisticationRuggednessSelf-conceptPersons actual self-conceptIdeal self-conce
15、ptOthers self-conceptInfluencing Buyer BehaviorPsychological FactorsMotivationMotiveFreuds TheoryLadderingProjective techniquesInfluencing Buyer BehaviorMaslows Hierarchy of NeedsConsumer Buying ProcessProblem RecognitionInformationSearchEvaluation ofAlternativesPurchase DecisionPost-purchaseBehavio
16、rSuccessive Sets Involved in Customer Decision Making Wait a minutewhat aboutBusiness Customer? Business v.s Consumer MarketsFewer buyersLarger buyersClose supplier-customer relationshipGeographically concentratedDerived demandInelastic demand (short-term) Business v.s. Consumer MarketsProfessional
17、purchasingSeveral buying 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 Re
18、sponsibility ConcernsOrganizationalObjectivesPoliciesProceduresOrganizational StructuressystemsInterpersonalInterestsAuthorityStatusEmpathyPersuasivenessIndividualAgeIncomeEducationJob positionPersonalityRisk attitudescultureBusinessbuyerParticipants in the Business Buying ProcessGatekeepersInitiato
19、rsBuyersApproversUsersDecidersInfluencersNew Task BuyingModified Re-buyStraight Re-buyCustom furnitureInstalled componentsBuildingsWeapon systemsNew vehiclesElec. EquipConsultantsComputer equip.UtilitiesOffice SuppliesBulk chemicalsInvolved decision makingProblem RecognitionGeneral Need DescriptionP
20、roduct SpecificationSupplier SearchProposal SolicitationSupplier SelectionOrder Routine SpecificationPerformance ReviewNeed RecognitionInforSearchEvaluationPurchasePostPurchaseDiscussion QuestionThe most expensive watch in the world is made by Rolex, and it is perceived to be a highly desirable stat
21、us symbol. Dolan, a college 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
22、watches used someone he had never heard of in its ads?Discussion QuestionThe 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 ov
23、en.STP Market Segmentation Market Targeting Market PositioningLevels and Patterns of Market SegmentationLevels of Market SegmentationMass marketingMicromarketingSegment marketingMarket segmentSectorFlexible market offeringNaked solutionDiscretionary optionsLevels and Patterns of Market SegmentationN
24、iche MarketingNicheLocal MarketingIndividual Customer MarketingMass-customizationChoiceboardCustomerizationSegmentsIndividualsLevels and Patterns of Market SegmentationPatterns for Market SegmentationPreference segmentsHomogeneous preferencesDiffused preferencesClustered preferencesNatural market se
25、gmentsConcentrated marketingBasic Market-Preference PatternsMarket SegmentationMarket Segmentationis the process of dividing the total marketfor a good or service into several smaller,Internally homogeneous groups.Market SegmentationConsumer MarketVS.Consumer Marketsare commonly further segmented on
26、 the basis of :GeographyDemographicsPsychographicsBuying BehaviorBases for SegmentingConsumer MarketsGeographicDemographicPsychographicBehavioralEffective SegmentationMeasurableSubstantialAccessibleDifferentialActionableSize, purchasing power, profiles of Segmentation can be measuredSegments must be
27、 large or profitable enough to serveSegments 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:Customer LocationType of Business Customer,
28、 including:IndustrySizePurchase Organization StructurePurchase 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 Str
29、ategiesMarket Offering ProductNew Product DevelopmentProduct Life CycleManaging Product MixIntroduction to “Product”What is a “product”?Concept and ElementsProduct ClassificationThe Product and the Product MixProductPhysical goodsServicesExperiencesEventsPersonsPlacesPropertiesOrganizationsInformati
30、onIdeasThe Product and the Product MixProduct levelsCustomer value hierarchyCore benefitBasic productExpected productAugmented productCategories of Product & Service MixTangibleGoodW/ServiceHybridMajor ServiceW/GoodsPureServicePure TangibleGoodsProduct ClassificationTangibleVS.ConsumerVS.Consumer Go
31、odsProduct LifeNon-durableSemi-durableDurableConsumer BehaviorConvenience GoodShopping GoodSpecialty GoodUnsought GoodBusiness GoodsMaterials and PartsRaw MaterialsManufactured Material and PartsCapital ItemsInstallmentAccessory EquipmentSuppliesProducts on the InternetSoft ProductsInteractiveDownlo
32、adableHard ProductsLogistic & PaymentDeveloping New Market Offerings Six categories of new productsNew-to-the-world productsNew product linesAdditions to existing product linesImprovements and revisions of existing productsRepositioningCost reductionsThe Product and the Product MixProduct mix (Produ
33、ct assortment)WidthLengthDepthConsistencyProduct 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
34、-LINE LENGTHProduct-Mix WidthDetergentsToothpasteDisposable 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 Man
35、agementPricing Objectives & StrategyProfit-Driven Price 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
36、 short-run, tactical pricing rules!Generic Pricing StrategiesSkimming PriceNeutral PricePenetration PricePrice-Quality StrategiesHighValueSuperValueGood ValueOverchargingRip-offFalseEconomyPremiumValueMediumValuePremiumValueHighMediumLowPriceHighMediumLowProduct QualityCustomer PriceSensitivity Mana
37、gementDiscriminatory PricingPsychological PricingValue ManagementDiscriminatory PricingLocationProduct-formTimeCustomer SegmentPsychological Pricing and Substitute ProductsMost Attractive?Better Value?Psychological reason to price this way?A32 OZB24 OZB 120B 99Promotional PricingLoss-leader PricingS
38、pecial-event PricingCash RebateLow-interest FinancingLonger Payment TermsWarranties & Service ContractsPsychological DiscountingDistributionHow a Distributor Reduces the Number of Channel Transactions123456789Number of contacts without a distributor M*C=3*3=9= customer= ManufacturerHow a Distributor
39、 Reduces the Number of Channel TransactionsStore123456B. Number of contacts with a distributor M*C=3+3=6= Manufacturer= customer=DistributorMarketing Channels0-level Channel3-level Channel2-level Channel1-level ChannelManufacturerConsumerManufacturerConsumerRetailerMfgConsumerRetailerWholesalerJobbe
40、rMfgConsumerRetailerWholesalerIdentifying Channel AlternativesTypes of IntermediariesNumber of IntermediariesTerms 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 st
41、ore would be a limited-line store; and a mens custom-shirt store would 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 m
42、erchandisers. Examples: Sears, Nordstrom.Supermarket: Relatively large, low-cost, 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 lo
43、ng hours, seven days a week, and carrying a limited line of high-turnover convenience products at slightly higher prices, plus takeout sandwiches, coffee, soft drinks. Examples: 7-Eleven.Why are Wholesalers Used?WholesalersFunctionsManagementService & AdviceSelling and PromotionBuying andAssortment
44、BuildingBulking BreakingWarehousingTransportingFinancingRisk BearingMarketInformationThe Four Major Promotional ToolsAdvertisingPublic relationsSales promotionPersonal sellingAdvertisinginforms consumers about the existence and benefits of products and services, and attempts to persuade them to buy
45、them.The best form is word-of-mouth advertising.gives an agreed budget to ad ag.gives a statement 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 CompanyPublic RelationsPR is concerned with maintaining, improving or protecting the image of a c
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