BUS7450 Strategic Marketing Management Week 3 Dr. Jenne Meyer.
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Transcript of BUS7450 Strategic Marketing Management Week 3 Dr. Jenne Meyer.
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BUS7450Strategic Marketing Management
Week 3Dr. Jenne Meyer
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BUS7500 Article reviews
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Research Class Activity
Share key brands Yes/No Questions
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The Marketing Research Process
Define the problem Develop research plan Collect information Analyze information Present findings Make decision
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Questionnaire Do’s and Don’ts
Ensure questions are free of bias
Make questions simple Make questions specific Avoid jargon Avoid sophisticated
words Avoid ambiguous words
Avoid negatives Avoid hypotheticals Avoid words that could
be misheard Use response bands Use mutually exclusive
categories Allow for “other” in fixed
response questions
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5Creating Long-Term Loyalty Relationships
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Figure 5.1 Customer-Orientations
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-7
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What is Customer Perceived Value? Customer perceived value is the
difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives.
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Figure 5.2 Determinants of Customer Perceived Value
Image benefit Psychological cost
Personal benefit Energy cost
Services benefit Time cost
Product benefit Monetary cost
Total customer benefit Total customer cost
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Steps in a Customer Value Analysis
Identify major attributes and benefits that customers value
Assess the qualitative importance of different attributes and benefits
Assess the company’s and competitor’s performances on the different customer values against rated importance
Examine ratings of specific segments Monitor customer values over time
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Maximizing Customer Lifetime Value
Customer Profitability
Customer Equity
Lifetime Value
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Figure 5.3 Customer-Product Profitability Analysis
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Estimating Lifetime Value
Annual customer revenue: $500 Average number of loyal years: 20 Company profit margin: 10 Customer lifetime value: $1000
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What is Customer Relationship Management?
CRM is the process of carefully managing detailed information about individual
customers and all customer touch points to maximize customer loyalty.
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Attracting and Retaining Customers
Reduce the rate of defection Increase longevity Enhance share of wallet Terminate low-profit customers Focus more effort on high-profit customers
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Figure 5.4 The Marketing Funnel
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 5-16
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6Analyzing Consumer Markets
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Consumer Behavior
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What Influences Consumer Behavior?
Cultural Factors
Social Factors
Personal Factors
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What is Culture?
Culture is the fundamental determinant of a person’s wants and behaviors acquired
through socialization processes with family and other key institutions.
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Subcultures
Nationalities Religions Racial groups Geographic regions
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Fast Facts About American Culture
The average American: chews 300 sticks of gum a year goes to the movies 9 times a year takes 4 trips per year attends a sporting event 7 times each
year
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Social Classes
Upper uppers
Lower uppers
Upper middles
Middle
Working
Upper lowers
Lower lowers
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Social Factors
Reference groups
Family
Social roles
Statuses
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Reference Groups
Membership groups Primary groups Secondary groups Aspirational groups Disassociative groups
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Family Distinctions Affecting Buying Decisions
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Personal Factors
Age Life cycle stage Occupation Wealth
Personality Values Lifestyle Self-concept
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Age and Stage of Lifecycle
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Occupation and Economic Circumstances
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Personality
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Brand Personality
Sincerity Excitement Competence Sophistication Ruggedness
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Figure 6.1 Model of Consumer Behavior
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-32
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Motivation
Freud’sTheory
Behavioris guided by subconsciousmotivations
Maslow’sHierarchyof Needs
Behavioris driven by
lowest, unmet need
Herzberg’sTwo-Factor
Theory
Behavior isguided by motivating
and hygienefactors
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Maslow’s Hierarchy
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Perception
Selective attention Selective retention Selective distortion Subliminal perception
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Emotions
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Memory
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Figure 6.3 State Farm Mental Map
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Figure 6.4 Consumer Buying Process
Problem Recognition
Information Search
Evaluation of alternatives
Purchase Decision
Postpurchase Behavior
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Sources of Information
CommercialPersonal
Public Experiential
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Figure 6.6 Steps Between Alternative Evaluation and Purchase
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Figure 6.7 How Customers Use or Dispose of Products
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Low-Involvement Decision Making
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Decision Heuristics
Availability Representativeness Anchoring and adjustment
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Framing
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7Analyzing Business Markets
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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?
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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?
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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.
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Top Marketing Challenges
Understanding customer needs in new ways; Identifying new opportunities for growth; Improving value management techniques Calculating better marketing performance and
accountability metrics; Competing and growing in global markets Countering the threat of product and service
commoditization Convincing C-level executives to embrace the
marketing concept
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Characteristics of Business Markets Fewer buyers Close supplier-
customer relationships
Professional purchasing
Many buying influences
Multiple sales calls Derived demand Inelastic demand Fluctuating demand Geographically
concentrated buyers Direct purchasing
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Stages in the Buying Process: Buyphases
Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order-routine specification Performance review
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Class wrap up
What is due for next week