* Chapter

Thirteen

*
Marketing: Helping Buyers Buy

McGraw-Hill/Irwin

Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

WHATS MARKETING?

*What is
Marketing? LG1

Marketing -- The activity, set of institutions and

processes for creating, communicating, delivering, and exchanging offerings with value for customers, clients, partners and society at large.

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* * *

Evolution of Marketing
Production Era - Up to early 1900s:
farming & trades profited from this philosophy of limitless mkt. Produce as much as you can because of a vast demand of a growing needs.

Selling Era - 1920s-1950s:

mass production (assembly line) reduced costs and made product available and accessible. Most companies emphasized selling & advertising to grow the business.

* * *

Evolution of Marketing
Marketing Era - 1950s+
Businesses recognized a need to be responsive to customer needs and demands to remain competitive .

The Marketing Concept

Customer orientation! Service orientation! Profit orientation!

* * *

Customer Relationship Management (CRM)

The process of learning as much as possible about customers and doing everything you can to satisfy them or even exceed their expectations with goods and services over time.

* * *

Elements in the Marketing Mix

Product
Marketing Program
Buy at Computers R Us

Place

Price

Promotion
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DEVELOPING a PRODUCT
Product -- A good, service, or idea that satisfies a
consumers want or need.

Designing a Product to Meet Consumer Needs

LG2

Price -- consider the costs of producing, distributing and

promoting the product, which all influence the price.

Promotion -- advertising, personal selling; public relations,

publicity; word of mouth and various sales promotion efforts.

Place -- Getting the product to consumers when and where

they want is critical to market success

Brand Name -- A word, letter, or a group of words or letters

that differentiates one sellers goods from a competitors.

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* * *

Marketing Process
1. Find Opportunity 2. Conduct Research 3. Identify Target Market 4. Design Product 5. Product Testing 6. Brand Name, Design & Price 7. Develop Distribution System 8. Design Promotional Program 9. Build Relationship With Customer

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SEARCHING for INFORMATION

*Providing
Marketers with Information LG3

Test Marketing -- Testing product

concepts among potential product users.
Marketing Research -- Analyzing markets to

determine challenges and opportunities, and finding the information needed to make good decisions.

Research is used to identify products consumers have used in the past and what they want in the future. Research uncovers market trends and attitudes held by company insiders and stakeholders.

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COLLECTING SECONDARY RESEARCH DATA

Secondary Data -- Existing data that has
previously been collected by sources like the government.

*
Collecting Data
LG3

Secondary data incurs no expense and is usually easily accessible. Secondary data doesnt always provide all the needed information for marketers.
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COLLECTING PRIMARY RESEARCH DATA

*
Collecting Data
LG3

Primary Data -- In-depth information gathered by

marketers from their own research.

Telephone, online and mail surveys, personal interviews, and focus groups are ways to collect primary data.

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* * *

Focus Group
A focus group is a small group of people (8 to 16 individuals) who meet under the direction of a discussion leader to communicate their opinions about a product or service that is offered by an organization.

*
Marketing Research
Marketing Research
LG3

Defining the question/problem/opportunity and determining the present situation. Collecting research data. Analyzing the research data. Choosing the best solution and implementing it

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The MARKETING ENVIRONMENT

*The Marketing
Environment LG4

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The CONSUMER and B2B MARKET

Consumer Market -- All the individuals or

Two Different Markets: Consumer and B2B

LG4

households that want goods and services for personal use and have the resources to buy them.

Business-to-Business (B2B) -- Individuals and

organizations that buy goods and services to use in production or to sell, rent or supply to others.

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*
MARKETING to CONSUMERS

The Consumer Market LG5

The size and diversity of the consumer market forces marketers to decide which groups they want to serve. Market Segmentation -- Divides the total market
into groups with similar characteristics.

Target Marketing -- Selecting which segments an

organization can serve profitably.

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*
MARKET Segmentation

The Consumer Market LG5

geographic segmentation -Dividing a market by cities, countries, states or regions. demographic segmentation - Age, income and education level, religion, race, life stage, nationality and occupation.

psychographic segmentation - groups values, attitudes and interests benefit segmentation - comfort, convenience, durability, economy, health, luxury, safety, and status.

volume/usage segmentation - Separating the market by volume of product.

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*
MARKET Segmentation
Reaching smaller market segments Niche Marketing -BMW cars, Apple computers. One to one marketing - travel agency. Moving towards Relationship marketing . Mass marketing - using mass media, such as TV, radio and news paper. Relationship marketing tends to lead away from mass production and towards custom made goods and services.

The Consumer Market LG5

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The CONSUMER DECSION MAKING PROCESS AND OUTSIDE INFLUENCES

The Consumer Decision-Making Process

LG5

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KEY FACTORS in CONSUMER DECISION-MAKING

Learning Reference Groups Culture Subcultures Cognitive Dissonance

*The Businessto-Business Market LG6

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B2B MARKET DIFFERENCES

There are relatively few customers. Customers tend to be large buyers.

*The Businessto-Business Market LG6

Markets are geographically concentrated.

. than emotional. Buyers are more rational

Sales are direct. Promotions focus heavily on personal selling.

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