Business Principles

Topic 4
Marketing: Developing & Implementing
Customer-Oriented Marketing Plans
Chapter14

Course: COMR 1100

Chinonso Okafor

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 Creating a global Marketing
Campaign
https://www.youtube.com/watch?v=SI-rsong4xs

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 Learning Objectives
1. Define marketing and explain how the marketing
concept applies to both for-profit and non-profit
organizations.
2. Describe the four Ps of marketing.
3. Identify the steps in the marketing research
process, and explain how marketers use
environmental scanning to learn about the
changing marketing environment.

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 Learning Objectives, Pt. 2
4. Compare the consumer market to the business-
to-business market.
5. Describe the market segmentation process, and
the role of relationship marketing.
6. Explain how marketers meet the needs of the
consumer market through the study of consumer
behaviour.

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 Developing & Implementing Customer-
Oriented Marketing Plans
Marketing is a set of business practices designed to plan
for and present an organization’s products or services in
ways that build effective customer relationships.

• Determining the needs and wants of others.

• Providing a good or service to satisfy those wants or
needs.
• Ensuring that the satisfaction meets or exceeds the
level of expectation.
“Find a need and fill it.”
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 What is Marketing?, Pt. 2
• In the past marketing focused almost entirely on
helping the seller sell.
• That’s why many people still think of it as mostly
selling, advertising, and distribution from the seller
to the buyer.
• Today, much of marketing is instead about helping
the buyer buy.

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 Evolution of Marketing
• Production Era: up to early 1900s
• Selling Era: 1920s–1950s
• Marketing Era: 1950s-1990s
• Customer
• Service
• Profit
• Customer Relationship Era: 1990s+

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Marketing Eras

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 Evolution of Marketing
• PRODUCTION era focused on producing as
much as possible as often demand was greater
than supply.

• SALES era, marketers use selling, advertising,

publicity, and sales promotion techniques to
sell their products.

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 The “Marketing” Concept
A three-part business philosophy:
(1) a customer orientation
• Find out what consumers want and provide it for them.
(2) a service orientation
• Everyone from the president of the firm to the delivery
people should be customer-oriented.
(3) a profit orientation
• Focus on those goods and services that will earn the
most profit and enable the organization to survive and
expand.

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 Evolution of Marketing
The Market Orientation Era
• Firms with a market orientation focus their
efforts on;
– Continuously collecting information about
customers’ needs and competitors’ capabilities
– Sharing this information throughout the
organization
– Using the information to create value, ensure
customer satisfaction, and develop customer
relationships
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 Developing & Implementing Customer-
Oriented Marketing Plans
The Market Orientation Era
Customer Relationship Management (CRM) is the
process of learning as much as possible about
customers.
• Do everything you can to satisfy them and even
exceed expectations.
• Retain customers over time and manage the
customer life cycle.
• Enables firms to grow in competitive markets
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 Developing & Implementing Customer-
Oriented Marketing Plans
The Social Media Marketing Era
Social media is the process that allow users to
interact with each other by;
• Sharing information
• Opinions
• Knowledge, and interests.
Social Media provides a rich environment to
collect customer needs and opinions.
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 The Social Media Marketing Era
• Social media involves the building of communities
or networks, encouraging participation and
engagement.
• The most common tools or platforms used by both
consumers and organizations are social networking
sites (e.g., Facebook, LinkedIn, Instagram, and
Twitter), blogs, wikis, podcasts, and other shared
media sites such as YouTube and TikTok.

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 Developing & Implementing Customer-
Oriented Marketing Plans
Marketing is a critical part of all organizations.

NON-PROFITS CAN BENEFIT FROM MARKETING

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 Non-Profit Organizations Prosper From
Marketing
• Charities use marketing to raise funds for combating world
hunger, for instance, or to obtain other resources. Retaining
customers over time, or managing the entire customer life
cycle, is a cost-effective way for firms to grow in
competitive markets.
• The not-for-profit category is one of the most competitive
segments in the Canadian marketplace
• Environmental groups use marketing to try to cut carbon
emissions
• Churches use marketing to attract new members and to
raise funds

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Elements in the Marketing Mix

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 Developing & Implementing Customer-
Oriented Marketing Plans
The Marketing Mix:
• Product- designing a want-satisfying product

• Price- Setting price for the product

• Place – getting the product to a place where the customers

will buy them.

• Promotion – promoting the product

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 Developing & Implementing Customer-
Oriented Marketing Plans
• These four factors are called the marketing mix
because they are mixed together in a marketing
program.

• A marketing manager designs a marketing program

that “mixes” some of the products, different levels
of prices, picks a mix of places (locations) and a mix
of TV, radio, websites, etc. (i.e., promotion).

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Understanding the Marketing Process

• Market research to find out if a need exists

• Design a product to meet the need
• Distribution: getting the product to the customer
• Establishing a relationship with the customer
• Promoting the product, dealing with complaints,
etc. helps to establish a customer relationship

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The Marketing Process with the Four Ps

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 Product
A product is any physical good, service, or idea that satisfies a
want or need plus anything that would enhance the product
in the eyes of consumers, such as the brand.

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 Product: Brand Name
Brand name
• a word, device (design, shape, sound, or colour), or
combination of these used to distinguish a seller’s
goods or services from those of competitors.

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 Developing & Implementing Customer-
Oriented Marketing Plans
Price
• Money or other consideration (including other
goods and services) exchanged for the ownership
or use of a good or service. Set appropriate price.

Place
• Where the products is to be sold. Also referred to
as location.
• Getting the product to the customers when and
where they want it is critical for market success. 24
 Developing & Implementing Customer-
Oriented Marketing Plans

Promotion
The techniques sellers use to inform and motivate
customers to buy products. They include:
• Advertising,
• Personal selling,
• Public relations,
• Various sales promotions such as coupons and
samples.
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 Market Research Process
Market Research: Analysis of markets to determine opportunities and
challenges and to find information needed for decision making.

Four Key steps:

• Define
Define the question (problem or opportunity) and determine the present
situation.
Collect
• Collect research data.
Analyze
• Analyze the research data.
Choose
• Choose the best solutions and implement them.
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 Market Research Process
1) Define the research question
• Discover what the present situation is – what
the problems or opportunities are, what the
alternatives are, etc.
2) Collect data
• Start with secondary data ( information that
has already been compiled in journals, books
or made available online). Followed by
Primary data gathered by oneself.

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 Research some of the primary and secondary sources and be
ready to explain to the class

Sources of
Primary and
Secondary
Information

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 Uses of Market Research
• Analyze Customer Needs/Satisfaction
• Analyze Markets & Opportunities
• Analyze Effectiveness of Strategy/Tactics
• Analyze Goal Achievement

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 Market Research Process
3) Analyze the data
• Turn data collected into useful information.
• Carefully and impartially interpretation of data
can help a company find alternatives to
specific marketing challenges.
• Data analytics can be used to transform huge
amount of data into useful information

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 Market Research Process
4) Choose the Best Solution and Implement it
After collecting and analyzing data;
• Determine strategies.
• Make recommendations as to which strategy
may be best and why.
The final step in a research effort involves;
• Following up on the actions taken to see if the
results were as expected.

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 Marketing Environment
Marketing managers must be aware of the
environment while making the marketing
decision mix.

Environmental Scan: Identifying the factors that

may affect marketing success

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 The Marketing Environment
• Global Environment (international trade)
• Technological Environment
• Social Environment
• Competitive Environment
• Economic Environment
• Legal Environment

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 SWOT
INTERNAL EXTERNAL

STRENGHTS OPPORTUNITIES
What is a SWOT to TOWS Analysis?

WEAKNESSES THREATS

Internal- They relate to PRIMO-F = People, resources, OT – External – Includes concepts like
innovation and Ideas, Marketing, Operations and Finance PESTLE.
 SWOT to TOWS
• SWOT analysis examines the Strengths, Weaknesses,
Opportunities and Threats an organization faces. It is
used by marketers to get clearer picture of their
internal and external environment.

• TOWS uses same elements at SWOT but in reverse

order. It combines external and internal forces to
determine how best to use the ideas.
• TOWS is more of an action tool than an analysis tool.
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 SWOT TO TOWS
• Analyze each section and you will see where
you need to focus

S–O W–O
ZONE OF RICHES WANNEBEE ZONE

S–T W–T
GET TOUGH ZONE HAZARD ZONE
 SWOT to TOWS
• S – O = Zone of Riches
– Pursue opportunities that are a good fit to your strengths
– Strategies for future growth
• W – O = Wannebee Zone
– Overcome weaknesses to pursue opportunities
– Strategies for Internal fixes
• S – T = Get Tough Zone
– Indentify ways that you can use your strengths to reduce vulnerabilities to
threats
– Strategies for external fixes
• W – T = Hazard Zone
– Suggests strategies to prevent your weaknesses from making you susceptible
to threats
– Strategies for Survival
 The Markets in Business
• There are two major markets in business:
• The consumer market consists of all individuals or
households that want goods and services for personal
consumption or use and have the resources to buy
them.
Business-to-business (B2B)
• This market consists of all individuals and organizations
that want products to use in producing other goods
and services or to sell, rent, or supply goods to others

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 B2B Market
• B2B marketers include manufacturers,
intermediaries such as retailers, institutions (e.g.,
hospitals, schools, and charities), and the
government.
• Some marketing and business professors use
a separate category for government and call
it B2G.

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 B2B Market, Pt. 2
• Features of the B2G markets:
• The number of customers in the B2B market is
relatively few.
– That is, there are far fewer construction firms or mining
operations compared to the more than 35 million
potential customers in the Canadian consumer market.
• The size of business customers is relatively large.
– That is, a few large organizations account for most of the
employment and production of various goods and
services.

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 B2B Market, Pt. 3
• B2B markets tend to be geographically
concentrated.
– Consequently, marketing efforts may be concentrated
in a particular geographic area.
• Business buyers are generally thought to be more
rational (as opposed to emotional) than the
ultimate consumers in their selection of goods and
services.

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 B2B Market, Pt. 4
• B2B sales tend to be direct.
– Manufacturers sell products, such as tires, directly to
auto manufacturers but tend to use intermediaries,
such as wholesalers and retailers, to sell to ultimate
consumers.
• There is much more emphasis on personal selling
in B2B markets than in consumer markets.

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 The Markets in Business
• Because consumer groups differ greatly in age,
education level, income, and taste, a business
usually cannot fill the needs of every group.
• Therefore, it must first decide which groups to
serve
• Dividing the total market into several groups
whose members have similar characteristics is
called market segmentation.

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 Market Segmentation
To understand the details of the customers and
how the product will meet their needs.

Market Segmentation:
• Dividing the total market into groups with
similar characteristics.

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 Defining Your Market
Segmenting the Consumer Market

• Geographic Segmentation
• Demographic Segmentation
• Psychographic Segmentation
• Behavioural Segmentation

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 Consumer market segmentation
• What type of segmentation could you do to
identify different market segments? Chat with
your row! 10 minutes! Be ready to share with
the class.

Psychographic segmentation – based on values

look at VALS Values, Attitudes and life styles.
Show example. 48
Segmenting the Consumer Market
Geographic Segmentation
• Dividing the market by geographic area.

Demographic Segmentation
• Dividing the market by age, income, and education
level.

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Segmenting the Consumer Market, Pt. 2

Psychographic Segmentation
• Dividing the market according to personality or
lifestyle (activities, interests, and opinions).
Behavioural Segmentation
• Dividing the market based on behaviour with or
toward a product.
o Benefits Sought
o Usage Rate
o User Status

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Segmenting the Consumer Market, Pt. 3
• Behavioural Segmentation Usage Rate: 80/20 rule
• In marketing, the 80/20 rule says that 80 percent of
your business is likely to come from just 20 percent of
your customers.

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 Target Marketing Reaching Smaller Market
Segments
• Target marketing: Selecting which groups (market
segments) an organization can serve profitably.
• Mass marketing means developing products and
promotions to please large groups of people
resulting in little market segmentation
• Niche marketing is the process of finding small but
profitable market segments and designing or
finding products for them.
• One-to-one (individual) marketing means
developing a unique mix of goods and services for
each individual customer.
– Travel agencies often develop such packages. 52
Target Marketing Reaching Smaller Market
Segments, Pt. 2
Product positioning, which refers to where a product
fits in customers’ minds and why it is better than
other competitive products.
A positioning statement, is a description of your
product and target audience and explains how it
fills a market need. It expresses how a company
wants to be perceived by customers and can be
useful with establishing a product’s position
relative to that of its competitors.

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Building Marketing Relationships
• Relationship marketing tends to lead away from
mass production and toward custom-made goods
and services.
• The goal is to keep individual customers over time
by offering them new products that meet their
requirements exactly. – unique vacations, hand
made attires

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 Consumer Behaviour
Consumer Behavior: The study of consumer thought
process and behavior at each stage in a purchase, to
determine the best way to help the buyer buy.

Five steps of decision-making Process:

Problem Recognition
Information Search
Evaluate alternatives
Purchase decision
Post purchase evaluation
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 Consumer Decision Making. STP

Cognitive Dissonance: A type of psychological conflict that occurs after a

purchase. What happens when new information or belief conflicts with a
previously existing belief. 56
 Ethnic Marketing
• Combinations of the marketing mix that reflect the
unique attitudes, race or ancestry, communication
preferences, and lifestyles of ethnic Canadians.

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 Green Marketing
• Green marketing refers to the process of selling
products and/or services based on their
environmental benefits.

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 Chapter Summary
1. Marketing Definition
• Marketing Concept
• Applied to for-profit
• And non-profit organizations
2. The 4Ps
3. Marketing Research Process
4. Business-to-Business vs. Consumer Markets
5. Market Segmentation
• Relationship Marketing
6. Consumer Behaviour
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