...UNDERSTANDING CUSTOMER NEEDS Barry L. Bayus Kenan-Flagler Business School University of North Carolina Chapel Hill, NC 27599 (919)962-3210 cherryflavorine@gmail.com January 2005 Revised November 2007 prepared for Shane, S. (ed.), Blackwell Handbook of Technology and Innovation Management, Cambridge, MA: Blackwell Publishers The comments of the following people on an earlier draft are greatly appreciated: Sridhar Balasubramanian, Dick Blackburn, Paul Bloom, Ed Cornet, Ely Dahan, Abbie Griffin, Steve Hoeffler, Erin MacDonald, Jackki Mohr, Bill Moore, Vithala Rao, Allan Shocker, and Gal Zauberman. Introduction Touted as the “most significant category innovation since toilet paper first appeared in roll form in 1890,” dispersible (flushable) moist toilet tissue on a roll was introduced in the United States by Kimberly Clark in 2001. According to a corporate press release, Cottonelle Fresh Rollwipes was a breakthrough product that “delivers the cleaning and freshening of pre-moistened wipes with the convenience and disposability of toilet paper.” Internal market research seemed to indicate that there was a clear customer need for a new product to supplement dry toilet paper. Surveys and focus groups revealed that over 60% of adult consumers had experimented with a moist cleaning method (e.g., using baby wipes, wetting a washcloth, sprinkling water on dry toilet paper) and one out of four used a moist cleaning method...
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...Principles of Marketing Marketing: Managing Profitable Customer Relationships Learning Objectives After studying this chapter, you should be able to: 1. Define marketing and outline the steps in the marketing process 2. Explain the importance of understanding customers and the marketplace, and identify the five core marketplace concepts 3. Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy 4. Discuss customer relationship management, and identify strategies for creating value for customers and capturing value from customers in return 5. Describe the major trends and forces that are changing the marketing landscape in this age of relationships 1-2 Chapter Concepts 1. 2. 3. 4. 5. 6. 7. 8. What Is Marketing? Understanding the Marketplace and Customer Needs Designing a Customer-Driven Marketing Strategy Preparing an Integrated Marketing Plan and Program Building Customer Relationships Capturing Value from Customers The New Marketing Landscape So, What Is Marketing? Pulling It All Together 1-3 What Is Marketing? Marketing Defined Marketing is the process by which companies create value for customers and build strong customer relationships to capture value from customers in return 1-4 What Is Marketing? The Marketing Process 1. 2. 3. 4. 5. Understand the marketplace and customer wants and needs Design a customer-driven marketing strategy Construct a marketing plan...
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...perhaps more appropriate than ever, as more retail organizations struggle to achieve one-to-one marketing-communications with customers and prospects. Targeting allows a retail enterprise to channel its marketing budget where there is the greatest (and fastest) possibility of Return On Investment (ROI). In terms of overall business strategy, your ability to identify and understand consumers helps you make accurate estimates about the potential for your products and services in a given market, as well as support and direct merchandise development strategies to both new and existing customers. Whether your target is current customers or new prospects, in markets known or unknown, an effective targeting model reduces the risk of any new venture. Blending Demographic, Behavioral, Expenditure and Media Preference data with retailer-specific data and applying data mining technologies produces Zip+4 and postal code level data assets that consistently outperform all other direct marketing techniques. In addition, methodology that should be used must be dynamic to allow the sights to be reset frequently to keep targets in focus consistently. Today's retail marketing managers must: Understand the connections between the lifestyle and expenditure characteristics of customers, their propensity to purchase one product or brand over another, and leverage this understanding for competitive advantage. Improve direct marketing response by ensuring they are targeting the right households at the...
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...Introduction 1.2 HR Profession Map Summary 1.3 Key area One; Strategy Insights and Solutions 1.4 Key area Two; Leading and managing HR 1.5 Summary of the Eight behaviours 1.6 Resourcing and Talent planning 1) 2) 2.1 Understanding customer’s needs 2.2 Communicating effectively 2.3 Building and maintain effective service 3. References 1.1Introduction I work as a HR administrator at Sphere Group, which operates in the recruitment sector. This report will outline the HR profession map, its two core areas and eight behaviours, before discussing the Professional area of Resourcing and talent planning. Part Two will discuss how an HR practitioner should ensure that the services they provide are timely and effective, commenting on understating the customers’ needs, effective communication methods and how to build and maintain effective service. Part One 1.2 My HR Profession Map summary The HR profession Map (HRPM) is key to helping HR practitioners understand what they are good at, what they can improve on and what they need to do to develop. The map is made up of ten professional areas that HR practitioners are involved in and need to know about, eight behaviours to demonstrate in these professional areas and four bands of professional competence. The ten professional areas are: Strategy, insights and solutions, leading and managing HR, organisation development, resourcing and talent planning...
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...Marketing: Creating and Capturing Customer Value Chapter 1- slide 1 Creating and Capturing Customer Value Topic Outline • • • • • • • What Is Marketing? Understand the Marketplace and Customer Needs Designing a Customer‐Driven Marketing Strategy Preparing an Integrated Marketing Plan and Program Building Customer Relationships Capturing Value from Customers The Changing Marketing Landscape Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 2 What Is Marketing? Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 3 What Is Marketing? The Marketing Process Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 4 Understanding the Marketplace and Customer Needs Core Concepts • • • • • Customer needs, wants, and demands Market offerings Value and satisfaction Exchanges and relationships Markets Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 5 Understanding the Marketplace and Customer Needs Customer Needs, Wants, and Demands Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 6 Understanding the Marketplace and Customer Needs • Market offerings are some combination of products...
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...11/06/2014 Chapter One Marketing: Creating and Capturing Customer Value Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 1 Creating and Capturing Customer Value Topic Outline • • • • • • • What Is Marketing? Understand the Marketplace and Customer Needs Designing a Customer-Driven Marketing Strategy Preparing an Integrated Marketing Plan and Program Building Customer Relationships Capturing Value from Customers The Changing Marketing Landscape Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 2 1 11/06/2014 What Is Marketing? Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 3 What Is Marketing? The Marketing Process Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 4 2 11/06/2014 Understanding the Marketplace and Customer Needs Core Concepts • • • • • Customer needs, wants, and demands Market offerings Value and satisfaction Exchanges and relationships Markets Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 1- slide 5 Understanding the Marketplace and Customer Needs Customer Needs, Wants, and Demands Copyright © 2010 Pearson Education, Inc. Publishing...
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... Assessment 1 Assessment 1 is intended to test the students understanding of the materials covered between week 1 and week 3. The task requires analysing Mobile Phones as a product in terms of the topics covered in the supply chain management course. The task also requires showing the understanding of the different supplies needed for delivering the product and how these supplies could be made sustainable. This analysis will enhance the student’s understanding of the issues often experienced when managing the internal and external supply chain which often fails to deliver the customers supply needs. As part of the assessment, students will need to draw a detailed computerised process map/model which takes into perspective the various interactions between the organisation, the customers and the suppliers. The headings that need to be covered in the report are: 1. Describe the product and its key characteristics with relation to the objective and perceived sources of quality explained in the textbook. How to answer the question: Students will need to research and find information about the product in addition to reflecting on the quality explanation from chapter 2 of the textbook. 2. Explain why it is important for organisations to continue innovating this product, how this innovation impacts the supply chain and the type(s) of product innovation categories this product went through during its lifecycle. This will need to be explained in relation to the chapters covered in the textbook...
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...Oklahoma State University Understanding Consumer Behavior Alex Urso DHM 1433 Final Paper Dr. Jane Swinney December 9th, 2013 Understanding consumer behavior is anything related to how people buy or select products and how the companies are meeting consumer needs. This is important to the field of merchandising and the design field because the consumers are what make a company successful. If a designer or a merchandiser does not understand their consumer their company will not flourish. Understanding consumer behavior can be described through material learned in this class, the textbook used and information from recent NRF Smartbriefs. In the first chapter of the textbook, In Fashion, the first principle of fashion is “consumers establish fashions by accepting or rejecting the styles offered”(Stone 24). It is false to say that designers design clothes with little regard for the acceptance of the designs. “The consumer is the ultimate user: the person who uses the finished fashion garment”(Stone 25). The designs that are made are specifically to please the consumer. With consumers having the power to reject styles and accept many styles, overall the consumer is who makes the style a fashion. “No designer can be successful without the support and acceptance of the customer”(Stone 24). Professionally, the designer has to know their target market in order to know what kind of consumers their design or company is going to attract. “Target markets are specific groups...
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...product line needs to bring in new customers. As Toro is known for industrial equipment for turfs around the world there was a need to expand to residential market. Toro partners with Lawnboy and this can be more difficult than first thought because the market source will be close to the same. So Toro needs to look for the right market to connect with to get the best return for the company. Understanding the details of the product, the life cycle the product, and how the movement will affect the product are needed steps to ensure a successful line for the company. One also needs to identify the price strategy, positioning, and differentiation of the product to enable the company to bring in the best profit for the life of the product (Perreault, Cannon, & McCarthy, 2011). Toro’s new Easylawn is an evolutional machine that will allow potential customers who are disabled older or have restrictive movement be able to tend the yards again. The Easylawn is a tri-pod with wheels that is able to be push across the yards with easy, add to it the light weight mower, weed-eater, and edger’s that clips on to tripod with little effort. The Easylawn comes with an eFlex Lithium-Ion rechargeable battery that lasts up to 6 hours per charge to ensure time for any size residential yard (Toro, 2012). The easy push start and adjustable wheel base makes it easy to use for everyone. The interchangeable adapters of the weed-eater, edger, and mower allow for less storage needed customers as well...
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...Customers make purchases in order to satisfy needs. Some of these needs are basic and must be filled by everyone on the planet, example: food and shelter, while others are not required for basic survival and vary depending on the person. Sometimes in the consumer market people are involved in a purchase decision, example: in planning for a family vacation the father may make the hotel reservations but others in the family may have input on the hotel choice. Therefore, understanding consumer purchase behavior involves not only understanding how decisions are made but also understanding the dynamics that influence purchases. Consumer buyer behavior refers to the buying behavior of final consumers (individuals and households who buy goods and services for personal consumption). All of there final consumers combine to make up the consumer market. Customers go through a five-stage decision-making process in any purchase: 1. Need Recognition & Problem Awareness 2. Information Search Customers make purchases in order to satisfy needs. Some of these needs are basic and must be filled by everyone on the planet, example: food and shelter, while others are not required for basic survival and vary depending on the person. Sometimes in the consumer market people are involved in a purchase decision, example: in planning for a family vacation the father may make the hotel reservations but others in the family may have input on the hotel choice. Therefore, understanding consumer...
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...competitive with other organizations within the same industry. In my community, a small business that needs to be introduced is a day care center. I will be the owner of the center and operator of the center; the décor will be kid friendly with bright clean colors. This will be a place when a family walks into the center it feels welcoming. Setting my day care center apart from the other centers in the area will be a challenge. Below is the mission and vision statement for my establishment along with the outline of how I plan to set my business on top of the other establishments. Mission Statement The child care center will provide a safe, developmental program (age appropriate) environment for infants, toddlers, preschoolers, pre-kindergarten, and school age children. The focus of the center is to provide early education, which will increase social/emotional, physical, and cognitive development. Teachers will provide a good environment to help promote good behavior and manners. Our goal is to support the willingness to learn in which is in the best interest of the children. Vision Statement The child care center will be known for superior quality education. Our center will provide a place where parents and children can interact in a safe environment and still have fun. The employees are trained and educated by the center for their appropriate age group. Teachers have an understanding of the mission and values of the center and are committed to follow these. Our center will be well...
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...BOA Marketing Unit 1 Chapter 1 An Study Guide By Dinah What does marketing do: Marketing entails processes that focus on delivering value and benefits to customers, not just selling goods, services, and/or ideas. It uses communication, distribution, and pricing strategies to provide customers and other stakeholders with the goods, services, ideas, values, and benefits they desire when and where they want them. It involves building long-term, mutually rewarding relationships when these benefit all parties concerned. Marketing also entails an understanding that organizations have many connected stakeholder "partners," including employees, suppliers, stockholders, distributors, and society at large. 1. Research shows that companies that reward employees with incentives and recognition on a consistent basis are those that perform best. * The motto of Wegmans Food Markets, the Rochester-based grocery chain that has been ranked by Fortunemagazine as the best company to work for in America, states, "Employees first, customers second." The rationale is that if employees are happy, customers will be too. What other marketing type: One desired outcome of marketing is an exchange ; people giving up something to receive something they would rather have. Normally, we think of money as the medium of exchange. We "give up" money to "get" the goods and services we want. Exchange does not require money, however. Two persons may barter...
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...UNDERSTANDING THE CONSUMER BEHAVIOUR - I The purpose of this exercise is to broaden your understanding of consumer behaviour by bringing you face-to-face with a customer. The first step is to find a person who is not a member of this course, and who has recently bought a product or service of the kind defined in the box below. This customer could be an institutional / industrial buyer if you prefer. Your assignment is to conduct a depth interview of about 30-60 minutes in length with this customer. The goal of the interview is to understand the decision process that governed the purchase of this product or service in terms that can be useful to a marketing manager. The list of questions ahead in this sheet is intended as a broad guideline around which you can structure your depth interview. It is not to be followed dogmatically. Nor is it complete and exhaustive of the types of questions you need to ask, or the level of detail for which you need to probe. Rather you should try to stimulate a lively and open discussion around these key question areas from which you can: (a) develop a deep understanding of the purchase decision process; and (b) surface the factors, in the environment and in the customer’s psyche, that really determined why the customer acted the way he or she did. Be prepared to report briefly and concisely to the class on your key insights. You will probably find it useful to summarize your thoughts in writing (1-2) pages. I. A mundane product...
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...the profession map, this would assure that any organisation would be sustainable and successful. The Core Professional Areas: There are two 2 Core Professional Areas • Insight, Strategies and Solutions – By having an insight into organisations, you are able to spot opportunities and are able to turn them into strategies and solutions. By doing this you are able to meet organisational needs now and in the future. • Leading HR – Having leadership skills allows you to work collaboratively with colleagues. You are able to guide and advise, enabling everyone, as a whole, to deliver valued skills and outstanding performance. These two areas are seen to be a requirement of any HR professional, regardless of their role, location or stage of their career. The Specialist Professional Areas: There are also 8 specialist professional areas that coincide with the HRPM. • Organisation Design - Ensuring that every aspect of the organisation is designed correctly and efficiently to deliver the maximum impact. • Organisation Development – is imperative. It sets requirements and strategies that need to be met to achieve goals. By training and developing individuals, you set out to have a team of people who have the appropriate skills, behaviours, culture and performance needed in an organisation. • Resourcing and Talent Planning – Ensures that an organisation has the appropriate strategies in place to attract suitable candidates. • Learning and Development – Providing members of staff...
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...marketing create or satisfy needs? Take a position, marketing shapes or merely reflects needs and wants of conso answer these questions, we must know what market is. Market is the set of all actual and potential buyers of a product or service and marketing is a social and managerial process where by individuals and groups obtains what they need and want through creating and exchanging products and value with others. The traditional view of marketing is that the firm makes something and then sells it. In my words, marketing is how the producers create value to the customer and receive it by needs and wants. We must know that marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. Ever since man started to trading goods, marketing was created. Suppose that marketing was never exist, we cannot buying foods, houses, car, etc. Without marketing, this world is nothing. Marketing involves the satisfying customers’ needs and wants. Marketing has a value creation and delivery sequence that consists of three parts. That is choosing the value, providing the value, and communicating the value. From my understanding, marketing does both. It creates and satisfies needs of customers. Marketers must use the marketing development’s term to create needs. They must learn how to change in knowledge, behavior, attitudes, or creativity. Then, it helps customers to be motivated to learn...
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