BUSI 330
Relationships: What is the difference between needs, wants and desires?
1. Needs: Most Important-most stability
a. A need occurs when a person feels deprived of basic necessities such as food, clothing,
and shelter
2. Wants: convenience
a. A want is a need that is shaped by a person’s knowledge, culture, and personality
3. Desires: more than a want
Why do we need someone to provide our needs?
1. Best price
2. Best Product
3. Best Service
4. Industrial Revolution
5. Dependent-cannot produce every resource independently**Research suggests that firms cannot
succeed by being all things to all people.*
6. Information Age
a. Big Generations-wants, needs, desires
b. Good Leadership (President) - making good decisions
c. Information Age – innovative ways to complete traditional processes
i. Promotion, presentation
Marketing Mix:The 4 Ps
Price: affordable, what is exchanged for the product
Placement: convenient, a means of getting the product to the consumer
Product/Packaging: simple, reflect the corporation, a good, service, or idea to satisfy the consumer’s
needs
Promotion: a means of communication between the seller and buyer
Brand Loyalty:
Customer Value Proposition: (part of an effecting marketing mix) a cluster of benefits that an
organization promises customers to satisfy their needs.
Ex. Walmart- “Everyday low prices for a broad range of products that are always in stock in
convenient location”
Environmental Forces: Social, economic, technological, competitive and regulatory forces.
Ex. What consumers want and need, changing technology, the state of the economy in terms of
whether it is expanding or contracting, actions that competitors take, and government restrictions.
Relationship Marketing: Easy to Understand, Hard to Do
Customer Value: the unique combination of benefits received by targeted buyers that includes quality,
convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
Relationships Changed focus over the years:
Production
Product
Selling:
Marketing:
Societal Marketing: tithe principle
Value
The unique combination of benefits received by targeted buyers that includes quality,
convenience, on-time delivery, and both before-sale and after-sale service at a specific price.
oFirms try to place a dollar value on purchases of loyal, satisfied customers during their
lifetimes.
oFirms deliver outstanding customers value with one of the three value strategies: best
price, best product, or best service.
Example: Apple iPad
Basic Capitalistic Economic Model
What value does Government bring to the market?
Federal: Security
State: Infrastructure, Education,
Local: Police Department, Fire Protection, EMT
Land, labor, and capital
G
G
S
F
P
What is Customer lifetime value?
Relationship Marketing: links the organization to its individual customers, employees, suppliers,
and other partner for their mutual long-term benefit.
oInvolves a personal, ongoing relationship between the organization and its individual
customers that begins before and continues after the sale.
CLV: calculate by: Unit of value * time
BUSI 330
Monday, August 30, 2015
Marketing Organizational Culture
Organizational Chart Form of communication to the employees, to managers, shareholders, customers,
and Competitors
-display authority, span of control
-functional or dysfunctional?
Star Question: QUIZ (10 points)
Figure 2.1
How do we organize
oBy function
Customer loyalty program
oBy Project
oBy Geography
Specific location
oBy product category
On Quiz Wednesday
Kinds of Organizations
oFor-Profit Organizations (aka: Business Firm)
A privately owned such as Target, Nike, or Cree that serves its customers to earn
a profit so that it can survive
Profit: the money left after a for-profit organization subtracts its total
expenses from its total revenues and is the reward for the risk it
undertakes in marketing its offerings
oNonprofit Organizations
Nongovernmental organization that serves its customers but does not have
profit as an organizational goal. Instead focuses on operational efficiency or
client satisfaction goals
Must have sufficient funds above its expenses to continue operations
oGovernment Agencies
A Federal, State, County, or City unit that provides a specific service to its
constituents.
Organizations that develop similar offerings create an industry, such as the
computer industry or the automobile industry
What is Strategy?
September 16, 2015
Behavior
Perception (continued) – page 96-97
Selective perception
Perceived Risk
Learning – page 98
Behavioral: Auto response from repeated exposure
Cognitive: response based on reasoning
Brand Loyalty: auto response form experience
U.S. VALS Survey
Strategic Business Insights
Take survey on strategicbusinessinsights.com
Lifestyle
One of the most diverse demographic lifestyle groups (Harley Davidson Riders)
oInsurance
oFly and ride (vacation sports)
Consumer Socialization Effect
September 23, 2015
Buying Center Players (page 125)
Initiators
Users are the people in the organization who actually use the product or service, such as a secretary who
will use a new word processor
Influencers affect the buying decision, usually by helping define the specifications for what is bought. The
information technology manager would be a key influencer in the purchase of a new mainframe computer.
Buyers have formal authority and responsibility to select the supplier and negotiate the terms of the
contract.
Deciders have the formal or informal power to select or approve the supplier that receives the contract. In
routine orders the decider is usually the buyer or purchasing manager; in important technical purchases it
is more likely to be someone from R&D, engineering, or quality control. The decider for a key component
being incorporated in a final manufactured product might be any of these three people.
Gatekeepers control the flow of information in the buying center. Purchasing personnel, technical experts,
and secretaries can all keep salespeople or information from reaching people performing the other four
roles.
Online Buying in Organizational Markets (page 126)
Size/Scope
E-marketplaces
Reverse Auctions (many sellers; 1 buyer)
