Business in class 1 13 15 What is Marketing Marketing An organizational function and a set of processes for Creating communicating and delivering value to customers Managing costumer relationships in ways that benefit the organization and its stakeholders stakeholders consist of owners of the company Asks Who are your potential costumers How big is the market How fast is it growing Can you usefully group your costumers What do they want from you Product price Place Promotion Costumer Perceived Value A consumer s evaluation of the difference between all the benefits and all the costs of a marketing offer relative of those competing offers The Marketing Mix The 4 P s of marketing product price place promotion A unique blend of product distribution place promotion and pricing strategies designed to produce mutually satisfying exchanges with a targets market The role of Marketing Research Marketing Research Marketing Market Research Market segmentation and target markets Consumer Behavior The roleThe process of planning collecting and analyzing data relevant to a marketing decision Note Your industry conditions report in foundation shows the information collected by the marketing function Secondary Data Data previously collected for a purpose other than the one at hand collected by someone else Research secondary research A research method that relies on already available information Websites Publications Research reports Secondary Research Collection of information from published sources Primary Data Information collected for the first time can be sued for solving the particular problem under investigation Research primary research A research method that relies on three types of observation People watching people People watching an activity Machines watching people Primary Research Observational research Collection of original information Basis for segmentation Basis for segmentation dividing a big market into smaller subsets Geography Location and Cultural Differences Demographics Age gender income family life cycle Psychographics Market segmentation on the basis of personality motives lifestyles and geodemographics segmenting potential customers into neighborhood lifestyle categories combines geographic demographic and lifestyle segmentation Benefits sought The process of grouping customers into market segments according to the benefits they seek from the product Usage rate Intermarket Segmentation Teens show surprising similarity no matter where in the world they live many companies target teenagers with worldwide marketing campaigns Target Market A group of people or organizations for which an organization designs implements and maintains a marketing mix intended to meet the needs of that group resulting in mutually satisfying exchanges Consumer Behavior Processes a consumer uses to make purchase decisions as well as to use and dispose of purchased goods or services also includes factors that influence purchase decisions and the product use Generations Tweens Pre and early adolescents age 8 14 Population of 29 million Purchasing power od 39 billion View TV ads as just advertising Emerging as the most influential generation in history Generation Y Born between 1979 and 1994 Population of 60 million Purchasing power of 200 billion annually Researchers have found Gen Y ers to be Impatient Family oriented Inquisitive Opinionated Diverse Time managers Street smart Word of mouth marketing is effective Generation X Born between 1965 and 1978 Population of 40 million Savvy and cynical and consumers Time is at a premium and outsourcing is utilized Entering their money making years Baby Boomers Born between 1946 and 1964 Population of 77 million the largest demographic segment 1 trillion in spending power for aged 50 to 60 Income will continue to grow as they keep working Foundation MTBF Mean Time Between Failure Low tech 14 00 20 00 hours High tech 17 00 23 000 hours Longer MTBF time is more attractive Lower price is more attractive Age Low tech age 3 High tech age 0