Chapter 13 Marketing What is Marketing Marketing the activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large activities buyers and sellers perform to facilitate mutually satisfying exchanges Helping the buyer buy Evolution of marketing four eras production selling marketing concept customer relationship o Production from the first European sellers to the early 1900s produce a lot bc there is a limitless market for it farmers carpenters trade workers oil industry today o Selling 1920s 1970s mass production techniques lead to an excess supply so business philosophy turned to selling o Marketing concept 1950s to 1990s a 3 part business philosophy Customer orientation find out what customers want provide it for them Service orientation make sure everyone in the organization has the same objective customer satisfaction Profit orientation focus on the goods services that will make the most profit and enable the organization to survive o 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 stimulate customer loyalty Charities use marketing to raise funds The Marketing Mix Marketing Mix the ingredients that go in to a marketing program 4 P s product price place promotion Designing a want satisfying product setting a price for the product putting the product in a place where people will buy it and promoting the product Find opportunities conduct research identify a target market design a product to meet the need based on research do product testing determine a brand name design a package and set a price select a distribution system design a promotional program build a relationship with customers Product any physical good service or idea that satisfies a want or need plus anything that would enhance the product in the eyes of the consumers such as the brand Test marketing the process of testing products among potential users Brand name a word letter or group of words or letters that differentiates one seller s good and services from those of competitors Price depends on competitors price production distribution promotion of the product Intermediaries middle links in a series of organizations that distribute goods from producers to consumers Promotion all the techniques sellers use to inform ppl about and motivate them to buy their products or services o Advertising personal selling public relations publicity word of mouth viral marketing various sales promotion efforts like coupons Providing Marketers with Information Marketing research the analysis of markets to determine opportunities and challenges and to find the information needed to make good decisions o Businesses need information to compete effectively and marketing research is the activity that gathers it o Listen to what customers employees shareholders dealers consumer advocates media representatives other stakeholders have to say o 1 Define the question problem opportunity and determine the present situation o 2 Collecting research data o 3 Analyzing the research data o 4 Choosing the best solution and implementing it o Secondary data information that has already been complied by others and published in journals and books or made available online avoids costly research o Primary data data that you gather yourself not from secondary sources such as books and magazines ex telephone surveys online surveys mail surveys personal interviews Focus groups a small group of ppl who meet under the direction of a discussion leader to communicate their opinions about an organization its products or other given issues o Continuous process of responding to changes in the marketplace and in consumer preferences The Marketing Environment Environmental scanning the process of identifying the factors that can affect marketing success sociocultural competitive economic global technological o Global using the internet increased globalization o Technological internet customer databases blogs social networking companies can develop products that closely match consumers needs o Sociocultural population growth and changing demographics can have an effect on sales o Competitive o Economic economy slow than marketers have to adapt by offering products that are less expensive and more tailored to consumers with modest incomes Two Different Markets Consumer and Business To Business B2B Consumer market all the individuals or households that want goods and services for personal consumption or use Business to business B2B market all the individuals and organizations that want goods and services to use in producing other goods and services to sell rent or supply goods to others oil drilling bits cash registers display cases office desks public accounting audits business software The end use of the product determines whether a product is a consumer product or B2B product The Consumer Market Businesses must decide which groups to serve and then develop products and services specially tailored to their needs Market segmentation the process of dividing the total market into groups whose members have similar characteristics o Geographic segmentation dividing market by cities counties states or regions o Demographic segmentation dividing the market by age income and education level most commonly used o Psychographic segmentation dividing the market using the group s values attitudes and interests o Benefit segmentation dividing the market by determining which benefits of the product to talk about o Volume or usage segmentation dividing the market by usage volume of use o The best segmentation strategy is to use all the variables to come up with a consumer profile that represents a sizable reachable and profitable target market o Niche marketing the process of finding small but profitable market segments and designing or finding products for them Long tail phrase coined by Chris Anderson explaining how companies selling more products with lower demand can easily compete with those solely dependent on big sellers o One to one marketing developing a unique mix of goods and services for each individual customer Target marketing marketing directed toward those groups market segments an organization decides it can serve profitably Mass marketing developing products and promotions to please large groups of
View Full Document
Unlocking...