October 10New Product

The Marketing Process

Customer Relationship Management

Understanding the Customer

Customer Needs and Wants

NEEDS:• Food • Clothing• Shelter

WANTS:• Morton’s filet mignon• Gucci Shoes• Pottery Barn Couch

Understanding the Customer

Perceived Value

Customers needs and wants impact their perception of “value” and therefore their buying behavior

If a consumer believes a Dominos pizza delivers them value to meet their need (food) and wants (pizza delivery) for a worthwhile price, they’ll probably continue purchasing Dominos

Understanding the Customer

Perceived Value

The customer’s understanding of value is based on product/service offered plus an understanding of competitors

There is an emotional, psychological and social benefit associated with purchasing the product

Dominos Pizza:• Fresh Ingredients for my family • Is delivered to my home• Trusted or well known brand

Understanding the Customer

Customer Satisfaction

All the best marketing efforts will never keep a customer without customer satisfaction

A perfect storm of the 4Ps must take place in order to influence the perceived value and the customer satisfaction

• P – Is it a product that satisfies my wants/needs• P – Is it affordable? Or does the price accurately reflect the

quality of the product• P – Is it accessible?• P – Have they communicated properly vs competitors?

Strategic PlanningShort and long term plans to be successful and continue to be successful as the environment changes

• Value Proposition - The set of benefits (or values) a company promises to deliver to customers in order to satisfy customer wants and needs

• Mission Statement - Describes a company’s purpose and what it wants to accomplish with its business

• Goals and Objectives - Process for achieving and measuring success

Competitive Advantage

The competitive edge a company has over its competitors

• Differentiates

• What makes it special?• High Quality?• Affordable?• Reliable?• Distinguishable service?

SWOT Analysis

SWOT AnalysisStrengths/Weaknesses – Internal Organizational Factors• Reputation, budgets, quality of product, position in market

(established? New?)

Opportunities/Threats – External Factors to the Organization• Economy, expansion, competitor specifics

Marketing Environment

• It is essential to understand your environment• Industry• Markets• Customers• Competitors

• 2 main categories of the Marketing Environment• Microenvironment• Macroenviroment

Microenvironment

• The Company itself• Suppliers• Intermediaries• Customers• Competitors• Publics

Microenvironment – The Company

• Executives, Management, Staff in most departments (finance, accounting, operations all work with marketing)

• They establish policies, procedures, strategies• Mission Statement• Goals and Objectives• 4 Ps

Microenvironment – Suppliers

• Provide materials needed to produce goods/services

• Impact:• Delays• Price increases• Shortages

Microenvironment – intermediaries

• Promotion, Sale or Distribution of a companies product or service to its customers

• Retailers• Wholesalers• Shipping companies• Advertising Agencies

Microenvironment – Customers

• Consumer Market - Personal Consumption• Business Market - Businesses that use your product/service

to create their own product• Reseller Market – Retailers• Government Market- Government agencies that use your

product/service to create other public services• International Markets – Any buyer from other country

Microenvironment – Competitors

• What is their perceived value• Advantages/disadvantages• 4 Ps

Microenvironment – Publics• Any group that may impact a company• Financial – loans• Media – Newspaper, tv news• Government – Legal issues, product safety• Citizen-action – consumer or environmental groups• General Public – Word of mouth

• Advantages/disadvantages• 4 Ps

Macroenvironment

Societal forces that affect businesses

• Demographics• Economic Environments• Natural Environments• Technology

Macroenvironment – Demographics

• Study of Human Population• Gender• Age• Race• Location• Occupation• Income

Macroenvironment – Economic Environment

• Economy affects purchasing power• Income• Interest rates• Unemployment

Macroenvironment – Natural Environment

• Natural Resources• Gas prices• Pollution risks• Recycling• Biodegradable

Macroenvironment – Technology

• Advancement• Obsolete products/services/distribution• Communication• Data Collection• CRM

In Class Assignment• Work with your group to refine your

• SWOT Analysis – keep in mind the macro/micro environments• Value Proposition• Mission Statement

• Create the following:• 2 - 4 Goals• Objective for your goals• Create a statement that clearly defines your

Competitive Advantage• Who is your target market

Homework• Read Module 5• Work with your group to create finalize and present:• SWOT Analysis – keep in mind the macro/micro

environments• Value Proposition• Mission Statement • 3 Goals• Objective for your goals• Create a statement that clearly defines your Competitive

Advantage• Who is your target market