Jessica Hirschberg BMGT110 Quiz 3 Study Guide Chapter 13 Marketing Helping Buyers Buy 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 Marketing is activities buyers and sellers perform to facilitate mutually beneficial exchanges Four Eras of U S Marketing Production Era the general philosophy was produce what you an because the market is limitless Selling Era after mass production the focus turned from production to persuasion Marketing Concept Era after WWII a consumer spending boom developed businesses knew they needed to be responsive to consumers if they wanted their business included three part 1 Customer Orientation finding out what customers want and then providing it 2 Service Orientation making sure everyone in an organization is committed to customer satisfaction 3 Profit Orientation focusing on the goods and service that will earn the most profit Customer Relationship Era organizations seek to enhance customer satisfaction building long term relationships Customer Relationship Management CRM learning as much as you can about customers and doing what you can to satisfy or exceed their expectations Elements in the Marketing Mix PRODUCT PLACE PRICE PROMOTION Developing a Product Product a good service or idea that satisfies a consumer s want or need Test Marketing testing product concepts among potential product users Brand Name a word letter or a group of words or letters that differentiates one seller s goods from a competitor s Advertising Mascots Tony the Tiger Toucan Sam Meow Mix Cat Coca Cola Polar Bears Pricing products depends on many factors Competitor s prices Production costs Distribution High or low price strategies Middlemen are important in place strategies because getting a product to consumers is critical Pricing strategies cost plus value based competitive going rate skimming charges higher for a competitive advantage discount loss leader psychological make product appear less expensive Other things to keep in mind with price Payment period Allowances regular vs seasonal Bundling Trade discounts Price flexibility Credit terms Price differences target customers geographic areas Volume discounts and wholesale pricing Cash and early payment discount Place Decisions direct sales reseller sales market coverage intensive selective exclusive inventory size logistics Promotion all the techniques sellers use to inform people about their products and motivate them to purchase those products includes Advertising Personal selling Public relations Viral marketing Sales promotions 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 stakeholders Research uncovers market trends and attitudes held by company insiders and Four Steps in the Marketing Research Process 1 Defining the problem or opportunity and determining the present situation 2 Collecting research data 3 Analyzing the data 4 Choosing the best solution and implementing it Secondary data existing data that has previously been collected by sources like the government Secondary data incurs no expense and is usually easily accessible Secondary data doesn t always provide all the needed information for marketers Primary data in depth information gathered by marketers from their own research by telephone online and mail surveys personal interviews and focus groups Key Benefits to Marketing Research Analyze customer needs and satisfaction Analyze current markets and opportunities Analyze the effectiveness of marketing strategies Analyze marketing process and tactics currently used Analyze the reasons for goal achievement or failure Ways to Find Out What Consumers Think Conduct informal consumer surveys Host a customer focus group Listen to competitor s customers Survey your sales force Become a phantom customer Environmental scanning the process of identifying factors that affect marketing success influenced by the global marketplace and explosion of the information age factors involved in scanning include Cultural influences Governmental and political influences Demographic and lifestyle trends Local national and world economic trends Strengths of multi national competitors Influence of technology on physical distribution Consumer market all the individuals or households that want goods and service 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 productions or to sell rent or supply to others products are often sold and resold several times before reaching consumers includes Manufacturers Wholesalers and retailers Hospitals schools and charities Government B2B Market Differences There are relatively few customers Customers tend to be large buyers Markets are geographically concentrated Buyers are more rational than emotional Sales are direct Promotions focus heavily on person selling 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 Target marketing selecting which segments an organization can serve profitably Geographic segmentation dividing the market by cities countries states or Demographic segmentation dividing the market by age income education and other demographic variables Psychographic segmentation dividing the market by group values interest and Benefit segmentation dividing the market according to product benefits and characteristics regions opinions customer prefers Volume usage segmentation dividing the market by the volume of product use Niche Marketing identifies small but profitable market segments and designs or finds products for them One to One Marketing developing a unique mix of goods and services for each individual customer Mass marketing developing products and promotions to please large groups of people uses little market segmentation Relationship marketing rejects the idea of mass production and focuses toward custom made goods and services for customers goal is to keep customers happy by offering products that meet exact expectations Effective relationship marketing is built on Open communication Consistently reliable service Staying in contact with
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