Creating Marketing Strategies for CustomerCentric Organizations.ppt

1、,CHAPTER 2,Creating Marketing Strategies for Customer-Centric Organizations,Consumer Analysis,The process of understanding consumer trends, global consumer markets, models to predict purchase and consumption patterns, and communication methods to reach target markets most effectively,Strategy,A deci

2、sive allocation of resources (capital, technology, and people) in a particular direction,Customer-Centric Organizations,A strategic commitment to focus every resource of the firm on serving and delighting profitable customers,Characteristics of Customer-Centric Organizations,Shared Vision and Values

3、 Cross-Functional Integration System-Wide Simultaneous Training Customer Based Metrics,Characteristics of Customer-Centric Organizations,Shared Vision and Values Cross-Functional Integration System-Wide Simultaneous Training Customer Based Metrics,The goal of a customer-centric organization is to pr

4、ovide a consumer with more value than its competitors,Value,The difference between what consumers give up (pay with time, money, or other resources) for a product and the benefits they receive,Marketing Strategy,Involves the allocation of resources to develop and sell products or services that consu

5、mers will perceive to provide more value than competitive products or services,Where Does Consumer Behavior Fit In?,Marketing Strategy,Involves the allocation of resources to develop and sell products or services that consumers will perceive to provide more value than competitive products or service

6、s,The process includes market analysis, market segmentation, brand strategy, and implementation with the consumer at the core,Implementation in Marketplace,Marketing Mix Product, Brand, Price, Place Promotion, and 7Rs,Market Analysis Consumer Company Environmental Political/Legal,Segmentation Demogr

7、aphic Situational Psychographic,Market Analysis,The process of analyzing changing consumer trends, current and potential competitors, company strengths and resources, and the technological, legal, and economic environments,Market Analysis,The process of analyzing changing consumer trends, current an

8、d potential competitors, company strengths and resources, and the technological, legal, and economic environments One goal is to minimize the number of failed products introduced to the market by better understanding the wants and needs of the market,Market Analysis: Consumer Insight and Product Dev

9、elopment,Consumer Insight: an understanding of consumers expressed and unspoken needs and realities that affect how they make life, brand, and product choices. Combines fact (from research) and intuition to yield an insight that can lead to a new product, existing product innovation, brand extension

10、, or revised communication plan,Market Analysis: Consumer Environment,Includes demographic trends, personal and group influences, knowledge, attitudes, motivation, purchase and consumption patterns, changing consumer needs, wants, and lifestyles,Market Analysis: Consumer Environment,Includes demogra

11、phic trends, personal and group influences, knowledge, attitudes, motivation, purchase and consumption patterns, changing consumer needs, wants, and lifestyles Changes in the consumer environment can lead to new product ideas, product adaptations, new packaging or new services to help consumers meet

12、 their changing needs -iPod Accessories,Market Analysis: Corporate Strengths and Resources,Resources: - Financial - Technological - Personnel / managerial - Production - Development and design - Research - Marketing / advertising,Market Analysis: Corporate Strengths and Resources,Resources: - Financ

13、ial - Technological - Personnel / managerial - Production - Development and design - Research - Marketing / advertising,-Proctor and Gamble once developed everything internally. Currently 35% of its innovations are based on licensing and strategic acquisitions,Market Analysis: Current and Potential

14、Competitors,- Who are current competitors and which firms are likely to become competitors? - What are advantages/disadvantages of competitors and competitive products? What do alternative scenarios show of how competitors react to new products or innovations?,Market Analysis: Market Environment,Phy

15、sical Conditions,Government Stability and Regulations,Market Environment,Technology,State of Economy,Implementation in Marketplace,Marketing Mix Product, Brand, Price, Place Promotion, and 7Rs,Market Analysis Consumer Company Environmental Political/Legal,Segmentation Demographic Situational Psychog

16、raphic,Market Segmentation,Process of identifying groups of people who behave in similar ways to each other, but somewhat differently than other groups,Inferring Other Behaviors From Product Usage,Inferring Other Behaviors From Product Usage,Market Segmentation,Process of identifying groups of peopl

17、e who behave in similar ways to each other, but somewhat differently than other groups Results in market segment: a group of consumers with similar behaviors and needs that differ from those of the entire mass market Goal: minimize variance within groups and maximize variance between groups Opposite

18、 of market aggregation,Market Segmentation,Market aggregation: when organizations choose to market and sell the same product or service to all customers (also known as mass marketing),Market Segmentation,Identifying Segments,Market Segmentation,Increasing diversity in consumer needs and wants leads

19、to mass customization: customizing goods for individual customers in high volumes and at relatively low costs,Market Segmentation,Increasing diversity in consumer needs and wants leads to mass customization: customizing goods for individual customers in high volumes and at relatively low costs Key i

20、s understanding which customized features customers value the most,Market Segmentation,Increasing diversity in consumer needs and wants leads to mass customization: customizing goods for individual customers in high volumes and at relatively low costs Key is understanding which customized features c

21、ustomers value the most Ability to reach “segment of one”,Market Segmentation,Segmentation can increase customer satisfaction and profitability - decreases marketing expenses - increases value (and therefore price) to consumers,Criteria for Choosing Segments,Measurability: ability to obtain informat

22、ion about the size, nature, and behavior of a market segment Accessibility: degree to which segments can be reached, either through targeted advertising and communication programs or multiple retail channels,Criteria for Choosing Segments,Substantiality: size of the marketis it large enough to be pr

23、ofitable? Congruity: how similar members within the segment exhibit behaviors or characteristics that correlate with consumption behavior,Bayesian Analysis,Statistical technique based on a theorem that expresses uncertainty in probability terms Allows consumer analysts to make “educated guesses” on

24、how the human mind affects behavior or “why people buy” Analyzes data collected from point-of-sale (POS) scanners to identify patterns of behavior that define market segments,Implementation in Marketplace,Marketing Mix Product, Brand, Price, Place Promotion, and 7Rs,Market Analysis Consumer Company

25、Environmental Political/Legal,Segmentation Demographic Situational Psychographic,Market Mix Strategies: Product,Product: the total bundle of utilities (or benefits) obtained by consumers in the exchange process,Market Mix Strategies: Product,Product: the total bundle of utilities (or benefits) obtai

26、ned by consumers in the exchange process Internal considerations External considerations,Market Mix Strategies: Product,Internal considerations include: - What are the costs of developing, producing, distributing, and selling the product? External considerations include: - What form of product best

27、serves consumption patterns for the target segment - What packaging will most likely attract consumers and fulfill transportation, usage, and disposal of the product? - How will consumers compare this product to competitive or substitute products?,Market Mix Strategies: Place,Place: physical distrib

28、ution and location of sale - Where will consumers expect and want to buy this product? - What are the most effective outlets through which to sell the product and how best to get it there?,Market Mix Strategies: Price,Price: total bundle of disutilities (costs) given up by consumers in exchange for

29、the product,Market Mix Strategies: Price,Pricing considerations include: - What is the best pricing policy for the product or for the store? - How will consumers react to Everyday Low Prices or promotional prices? - Is it more important to have the “lowest price” or prices in the range consumers exp

30、ect to pay? - What effect does price reduction or price ending have on perceived quality of product? - What does pricing policy need to be to maintain a healthy profit margin?,Market Mix Strategies: Promotion,Promotion: activities involved in selling a product, including advertising, public relation

31、s, sales promotions, and personal sales - What message should be sent to consumers? - Which forms of communication will best reach specific segments? - What type of communication should occur at various stages of purchase and consumption - How should different product attributes be positioned throug

32、h different forms of media?,Market Mix Strategies: Brand,Brand: A product or product line, store, or service with an identifiable set of benefits, wrapped in a recognizable personality Functional elements Emotional elements Brand Promise,Market Mix Strategies: Brand,Functional elements - Performance

33、, quality, price, reliability, logistics Does the brand solve a problem as expected and do what it is supposed to do? Emotional elements - Image, personality, style, evoked feelings Does the brand create an emotional connections between the customer and the product or firm? Brand Promise What can co

34、nsumer expect in exchange for their money?,Market Mix Strategies: Brand,Brand: A product or product line, store or service with an identifiable set of benefits, wrapped in a recognizable personality Brand Equity Brand Personality Brand Protection,Market Mix Strategies: Brand,Brand Equity Difference

35、in value created by the brand minus the cost of creating the brand Brand Personality Reflection consumers see of themselves or think will develop by using a brand Brand Protection By promising a certain outcome, brands reduce the risk to consumers that the product may not deliver as expected,Transfo

36、rming Customers into Friends and Fans,Implementation in Marketplace,Marketing Mix Product, Brand, Price, Place Promotion, and 7Rs,Market Analysis Consumer Company Environmental Political/Legal,Segmentation Demographic Situational Psychographic,Strategy Implementation,Even the best strategies are wor

37、thless if not implemented well in the marketplace,Strategy Implementation,Even the best strategies are worthless if not implemented well in the marketplace 7Rs for formulation and implementation,Customer Loyalty and Customer Relationship Management,It is less costly and easier to keep a customer tha

38、n it is to create a new one,Customer Loyalty,It is less costly and easier to keep a customer than it is to create a new one Loyal customers generate superior margins and recruit additional customers,Customer Loyalty,It is less costly and easier to keep a customer than it is to create a new one Loyal

39、 customers generate superior margins and recruit additional customers With increased choices, consumers are becoming more fickle and less loyal,Customer Loyalty,It is less costly and easier to keep a customer than it is to create a new one Loyal customers generate superior margins and recruit additi

40、onal customers With increased choices, consumers are becoming more fickle and less loyal Consumer feel entitled to try new brands and switching behavior increases,Customer Loyalty,It is less costly and easier to keep a customer than it is to create a new one Loyal customers generate superior margins

41、 and recruit additional customers With increased choices, consumers are becoming more fickle and less loyal Consumer feel entitled to try new brands and switching behavior increases To retain current customers, firms must focus on customer expectations of future benefits,Customer Loyalty,Customer Re

42、lationship Management,Process of managing all the elements of the relationship a firm has with its customers and potential customers with CRM solutions and enterprise systems,Customer Relationship Management,Implementing CRM,Customer Relationship Management,Implementing CRM Identify all customers an

43、d the nature of contacts with them - Identify which types of customers are most profitable - Identify and understand behaviors of the most profitable customers Manage contact with most profitable customers Manage firm activities including strategies and tactics to please the most profitable customer

44、s,Customer Relationship Management,Provides the ability to calculate the Customer Lifetime Value - The value to the company of a customer over the whole time the customer relates to the company,Global Marketing Strategy,Global Marketing Strategy,Thinking Globally: involves ability to understand mark

45、ets beyond ones own country of origin with respect to: Sources of demand Sources of supply Management & marketing methods,Global Marketing Strategy,Organizations must understand markets on a global basis in terms of people Consumers have a myriad array of foreign-made and globally branded products C

46、ultural, ethnic, and motivation variables also affect consumer decisions,Global Marketing Strategy,Can marketing be standardized?,Global Marketing Strategy,Can marketing be standardized? - Can a firm use the same marketing program in all target countries, or must it create a different program for ea

47、ch? - Which are greaterthe similarities among or differences between consumers in different countries? - How do advantages of economies of scale and unified brand image compare to advantages of culture-specific messages?,Global Marketing Strategy,Cross-Cultural analysis: the comparison of similariti

48、es and differences in behavioral and physical aspects of cultures,Global Marketing Strategy,Cross-Cultural analysis: the comparison of similarities and differences in behavioral and physical aspects of cultures Cultural empathy: the ability to understand the inner logic and coherence of other ways o

49、f life and refrain from judging other value systems,Global Marketing Strategy,Cross-Cultural analysis: the comparison of similarities and differences in behavioral and physical aspects of cultures Cultural empathy: the ability to understand the inner logic and coherence of other ways of life and ref

50、rain from judging other value systems Ethnography: describing and understanding consumer behavior by interviewing and observing consumers in real-world situations,Global Marketing Strategy,Intermarket segmentation: the identification of groups of customers who transcend traditional market or geographic boundaries (simil