10-2
Session #3Session #3
1-2
1. OPENING REMARKS (15 minutes)• Questions
2. DISCUSS MATERIAL ( 90 minutes)• Chapter Review
3. ***BREAK*** (15 minutes)
4. CONCLUDE DISCUSSION (30 minutes)
5. MARKETING CASE DVD (45 minutes) (Wal Mart)
6. DISCUSS NEXT WEEK (30 minutes)
10-3
MARKETING MANAGEMENTMARKETING MANAGEMENT
7 7 Analyzing Business Analyzing Business
MarketsMarkets
Kotler Keller
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-4
Chapter Questions
• What is the business market, and how does it differ from the consumer market?
• What buying situations do organizational buyers face?
• Who participates in the business-to-business buying process?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-5
Chapter Questions
• How do business buyers make their decisions?
• How can companies build strong relationships with business customers?
• How do institutional buyers and government agencies do their buying?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-6
What is Organizational Buying?
Organizational buying refers to the decision-making process by which formal organizations establish the need for purchased products and services, and identify, evaluate, and choose among alternative brands and suppliers.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-7
Define A Business Market
The Business Market consists of all of the organizations that acquire goods and services used in the production of other products or services that are sold, rented or supplied to others.
Characteristics of Business Markets
• Fewer, larger buyers
• Close supplier-customer relationships
• Professional purchasing
• Many buying influences
• Multiple sales calls
• Derived demand
• Inelastic demand
• Fluctuating demand
• Geographically concentrated buyers
• Direct purchasing
Roles in the Buying Process
10-11
• Initiators• Users• Influencers• Deciders• Approvers• Buyers• Gatekeepers
Page 214-215
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-12
Of Concern to Business Marketers
• Who are the major decision participants?
• What decisions do they influence?
• What is their level of influence?
• What evaluation criteria do they use?
Stages in the Buying Process: Buyphases
• Problem recognition• General need description• Product specification• Supplier search• Proposal solicitation• Supplier selection• Order-routine specification• Performance review
Establishing Corporate Trust and CredibilityPage 228
• Expertise
• Trustworthiness
• Likability
Marketing Insight
Factors Affecting Buyer-Supplier Relationships
• Availability of alternatives
• Importance of supply
• Complexity of supply
ChapterChapter Questions
• What are the different levels of market segmentation?
• In what ways can a company divide a market into segments?
• What are the requirements for effective segmentation?
• How should business markets be segmented?
• How should a company choose the most attractive target markets?
Markets are not homogenous. A company cannot connect with all customers in large, broad or diverse markets. Consumers vary on many dimensions and often can be grouped according to one or more characteristics. A company needs to identify which market segments it can serve effectively. Such decisions require a keen understanding of consumer behavior and careful strategic thinking.
Core ConceptCore Concept
Effective Targeting Requires Marketers to…Effective Targeting Requires Marketers to…
• Identify and profile distinct groups of buyers who differ in their needs and preferences.
• Select one or more market segments to enter.
• Establish and communicate the distinctive benefits of the market offering.
Basic Market Preference PatternsBasic Market Preference Patterns
•How would you market ice cream to markets with these How would you market ice cream to markets with these preference patterns?preference patterns?
Flexible Marketing OfferingsFlexible Marketing Offerings
Naked solution– Product and service
elements that all segment members value
Discretionary options– Some segment
members value
– Options may carry additional charges
Ingredients at a fair cost Ingredients, recipes and cooking instructions at a fair cost
Experiential MarketingPage 245
CEM- Customer Experience Management…the process of strategically
Managing a customer’s entire
Experience with a product or
Company.
Marketing Insight
Segmenting Consumer MarketsSegmenting Consumer Markets
GeographicGeographic
DemographicDemographic
PsychographicPsychographic
BehavioralBehavioral
Demographic SegmentationDemographic Segmentation
Age and Life CycleAge and Life Cycle
Life StageLife Stage
GenderGender
IncomeIncome
GenerationGeneration
Social ClassSocial Class
Profiling American GenerationsProfiling American Generations
• MILLENIALS– 1979-1994
• BABY BOOMERS– 1946-1964
• GENERATION X– 1964-1978
• SILENT GENERATION– 1925- 1945
Behavioral SegmentationBehavioral SegmentationBuyers are divided on the basis their knowledge of, attitude toward, use of, or Buyers are divided on the basis their knowledge of, attitude toward, use of, or response to a productresponse to a product
Decision Roles• Initiator• Influencer• Decider• Buyer• User
Behavioral Variables• Occasions• Benefits• User Status
– Ex-users, non-users potential users, etc.
• Usage Rate– Light, Medium, Heavy
• Buyer-Readiness• Loyalty Status
– Hard-core loyals, Split loyals, Shifting loyals or Switchers
• Attitude
Segmenting for Business MarketsSegmenting for Business Markets
DemographicDemographic
Operating VariableOperating Variable
Purchasing ApproachesPurchasing Approaches
Situational FactorsSituational Factors
PersonalCharacteristics
PersonalCharacteristics
•Review Review page 230page 230
Effective Segmentation CriteriaEffective Segmentation Criteria
MeasurableMeasurable
SubstantialSubstantial
AccessibleAccessible
DifferentiableDifferentiable
ActionableActionable
Marketing DiscussionMarketing Discussion
IS MASS MARKETING DEAD?
Is there still a viable way for marketers to builda profitable brand through mass marketing or
will it ultimately be replaced by refined targetedsegmentation marketing?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-36
Chapter Questions
• What is a brand and how does branding work?
• What is brand equity?
• How is brand equity built, measured, and managed?
• What are the important decisions in developing a branding strategy?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-37
Steps in Strategic Brand Management
• Identifying and establishing brand positioning
• Planning and implementing brand marketing
• Measuring and interpreting brand performance
• Growing and sustaining brand value
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-38
The Role of Brands
•Identify the maker•Identify the maker
•Simplify product handling•Simplify product handling
•Organize accounting•Organize accounting
•Offer legal protection•Offer legal protection
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-39
The Role of Brands
•Signify quality•Signify quality
•Create barriers to entry•Create barriers to entry
• Serve as a competitive advantage• Serve as a competitive advantage
•Secure price premium•Secure price premium
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-40
Brand Knowledge
• Knowledge
• Thoughts
• Experiences
• Beliefs • Images
• Feelings
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-41
Advantages of Strong Brands
• Improved perceptions of product performance
• Greater loyalty• Less vulnerability
to competitive marketing actions
• Less vulnerability to crises
• Larger margins• More inelastic
consumer response• Greater trade
cooperation• Increased marketing
communications effectiveness
• Possible licensing opportunities
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-42
BAV Key Components
•Differentiation
•Energy
•Relevance
•Esteem
•Knowledge
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-43
Figure 9.3 Brand Dynamics Pyramid
•Presence
•Relevance
•Performance
•Advantage
•Bonding
•Strong Relationship
•Weak Relationship
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-44
Aaker Model
• Brand Identity
• Extended Identity • Elements
• Brand Essence
• Core Identity• Elements
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-45
Figure 9.4 Brand Resonance Pyramid
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-46
Drivers of Brand Equity
• Brand Elements
• Marketing Activities
• Meaning Transference
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-47
Brand Elements
• Elements• Slogans
• Brand• names • URLs
• Logos
• Symbols• Characters
• Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-48
Brand Element Choice Criteria
• Memorable• Meaningful• Likeability• Transferable• Adaptable• Protectible
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-49
Designing Holistic Marketing Activities
• Personalization
• Integration
• Internalization
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-50
Figure 9.5 Secondary Sources of Brand Knowledge
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-51
Measuring Brand Equity
•Brand Audits•Brand Audits
•Brand Tracking•Brand Tracking
•Brand Valuation•Brand Valuation
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-52
Branding Terms
• Brand line• Brand mix• Brand extension• Sub-brand• Parent brand• Family brand
• Line extension• Category extension• Branded variants• Licensed product• Brand dilution• Brand portfolio
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-53
Brand Naming
•Individual names•Individual names
•Blanket family names•Blanket family names
•Separate family names•Separate family names
• Corporate name-individual name combo• Corporate name-individual name combo
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