CHAPTER 13 BMGT What is Marketing Marketing set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large o A K A the activities buyers and sellers perform to facilitate satisfying exchanges Marketing used to focus on helping the seller sell NOW marketing is about helping the buyer buy o Ex websites like Vehix com to search vehicles the consumer wants o Ex virtual tours of college campuses o Ex searching the internet for good deals on products This makes it convenient so the consumer doesn t need to go to the car dealership etc The future of marketing is doing everything possible to help the buyer buy Retailers and other marketers who rely solely on traditional advertising and selling are losing out Marketers needs to provide for the consumer consumer wants are always changing Marketing in the US passes through 4 eras to the new ways of marketing The Evolution of Marketing o Production o Selling o Marketing Concept o Customer Relationship Production Era market for it demand for products Selling Era existing products Marketing Concept Era services Marketing concept General philosophy if American business was Produce as much as you can b c there is a limitless Production philosophy was both logical and profitable b c of the limited production capability and Business owners were mostly farmers carpenters and trade workers o Needed to produce more therefore their goals centered on production 1920 s mass production techniques were installed Business philosophy changes from producing to SELLING Most companies emphasize selling and advertising in an effort to persuade consumers to purchase After WWII baby boom and starting new careers sparked a large demand for products and o Customer orientation find out what consumers want and provide it for them o Service orientation customer satisfaction everyone should be customer oriented o Profit orientation focus on goods and services that will earn the most profit Led to focus on CRM customer relationship management Customer Relationship Era Customer relationship management CRM process of learning as much as possible about present customers and doing everything you can to exceed their expectations with goods services Stimulate long term customer loyalty goal 6 8 of marketers have excellent knowledge of their customers when it comes to demographic behavioral and psychographic data CRM CMR customer managed relationships Nonprofit Organizations and Marketing Although the marketing concept emphasizes profit orientation marketing is also important in non profit organizations o Ex Red Cross o Ex Greenpeace promotes ecologically safe technologies o Ex politicians use marketing for votes The Marketing Mix 4 P s o Product o Price o Place o Promotion Marketing mix 4 P s Applying the Marketing Process Target market people who you will try to persuade to buy your product Marketing process with the 4 P s o Find opportunities o Conduct research o Identify a target market o Design a product to meet the need based on research o Do product testing o Determine a brand name price o Select a distribution system o Design a promotional program o Build a relationship with customers Product Price Place Promotion Designing a Product to Meet Consumer Needs Product any physical good service or idea that satisfies a want o need o Concept testing o Test marketing testing products among potential users Brand name a word letter or group of words that differentiates one s seller s goods and services from those of competitors Setting the Appropriate Price willing to pay a little more for o Ex Starbucks In the restaurant business the price could be close to what other restaurants charge to stay competitive Might want to charge less to attract business or offer high quality products that customers are Must consider costs of producing distributing and promoting the produce will influence price Getting the Product to the Right Place Intermediaries middle links in a series of organizations that distribute goods from producers to consumers middle men o Get the product to consumer when and where they want is critical to market success Developing an Effective Promotional Strategy Promotion all the techniques sellers use to inform people about and motivate them to buy their products or services marketing o Includes advertising personal selling public relations publicity word of mouth viral o Includes relationship building with customers responding to suggestion consumers make to improve the product or their marketing including price and packaging Providing Marketers with Information Marketing research marketers analyze markets to determine opportunities and challenges and to find the info they need to make good decisions o Helps identify what products customers have purchased in the past and what changes have occurred to alter what they want now and what they re likely to want in the future o Research is now being gathered online The Marketing Research Process 4 key steps to marketing research o Defining the problem and determining the current situation o Collect research data o Analyze the research data o Choose the best solution and implement it Secondary data info that has already been compiled by others and published in journals and books or make available online o What marketers should gather first to avoid incurring unnecessary expense To gather additional in depth info marketers must do their own research the results of such new studies are called primary data Focus group a group of people who meet under the direction of a discussion leader to communicate their opinions about an organization its products or given issues When analyzing data marketers must turn the data they collect in the research process into useful info After collecting and analyzing data market researchers determine alternative strategies and make recommendations about which may be the best and why The marketing process is a continuous process responding to changes in the marketplace and in Environmental scanning the process of identifying factors that can affect marketing success consumer preferences The Marketing Environment o Sociocultural factors o Competitive factors o Economic factors o Global factors o Technological factors Using the internet businesses can research many of the world s consumers relatively easily and carry on a dialogue with them about goods and services they want Technological
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