Chapter 13 Marketing 1 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 As stated by AMA a More simply the activities buyers and sellers perform to facilitate mutually satisfying exchanges i Focuses on helping the buyer buy which in turn helps the seller sell 1 Example Vehix com helps potential buyers pick the car and model that they like so when they go into the store they know which car to buy Hence helping the helper buy 2 Evolution of Marketing a What marketers do at any particular time depends on what they need to do to fill customers continuously changing needs and wants i Production Produce as much as you can because there is a limitless market for it 1 Business owners were mostly farmers carpenters and trade workers 2 Goal Produce to meet growing demand for products with the least expensive distribution storage techniques ii Selling Mass production techniques were developed such as assembly lines 1 Production exceeds market demand so businessmen focus on selling to reduce excess 2 Sell the products but rarely were services extended after a sale iii Marketing Concept Baby boom generation creates huge demand for goods and services and increased competition 1 Customer Orientation Find out what consumers want and provide it for them 2 Service Orientation Everyone in organization should have the same objective customer satisfaction 3 Profit Orientation Focus on goods and services that will earn the most profit that will earn the most profit then expand to serve more consumer wants and needs a Process goes slowly in the 60 s and 70 s iv Customer Relationships Process of learning as much as possible about present customers and doing everything you can over time to satisfy them or exceed their expectation with goods and services 1 Enhance consumer satisfaction and stimulate long term customer loyalty a Example Airlines offering frequent flier programs social networking online communities and blogs 2 Customer Managed Relationships CMR Give the customer the power to build relationships with suppliers a Example Expedia com Travelocity and Priceline 3 Marketing Mix The blending of the 4 P s to sell a product a Product Designing a want satisfying good service b Price Setting a price c Place Deciding where to sell the product d Promotion Advertising the product e This mix does not always work for all types of products services i So seek an opportunity conduct preliminary research and identify groups of people who might be interested in your product 1 Target Market Group of people interested in your product f Product Any physical good service or idea that satisfies a want or need plus anything that would enhance the product in the eye of consumers such as brand name g Test Marketing The process of testing products among potential users h Brand Name Word letter or group of words or letters tat differentiates one seller s goods and services from those of competitors i Intermediaries Middlemen Middle links in a series of organizations that distribute j Promotion All the techniques sellers use to inform people about and motivate them to goods from producers to consumers buy their products or services i Advertising personal selling public relations public word of mouth viral marketing various sales promotion efforts such as coupons rebates samples and cents off deals ii Relationship building with customers 4 Providing Marketers with Information a Marketing Research Marketers analyze markets to determine opportunities and challenges and to find the information they need to make good decisions i Identifies what products customers have purchased in the past and what changes have occurred to alter that they want now and what they re likely to want in the future b The Marketing Research Process i Defining the question problem or opportunity and determining the present situation ii Collecting research data 1 Secondary Data Gathering information already compiled by others and published in journals and books or made available online a Gather this first to avoid incurring unnecessary expenses 2 Primary Data Data that you gather yourself not from secondary sources interviews a Telephone surveys online surveys mail surveys and personal 3 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 other given data iii Analyzing research data iv Choosing the best solution and implementing it 5 Marketing Environment success a Environmental Scanning The process of identifying factors that can affect marketing i Global Trade agreements competition trends opportunities internet ii Technological Computers telecommunications bar codes data interchange internet changes iii Socio cultural Population shifts values attitudes trends iv Competitive Speed service price selection v Economic influences GDP Disposable income competition unemployment 6 Different Markets willingness to buy a Market People with unsatisfied wants and needs who have both the resources and i Consumer Market All individuals or households that want goods and services for personal consumption or use and have the resources to buy them 7 Consumer Market characteristics ii Business to Business B2B All individuals and organizations that want goods and services to use in producing other goods and services to sell rent or supply goods to others a Market Segmentation The process of dividing the total market into groups with similar i Geographic Dividing market by cities counties states or regions ii Demographic Age income and education level iii Psychographic Specific lifestyles such as values attitudes and interests iv Benefit Determining which benefits of the product to talk about v Volume Usage By usage or volume of use b Target Marketing Selecting which groups or segments an organization can serve c Niche Marketing Identifying small but profitable market segments and designing or d One to One Marketing Developing a unique mix of goods and services for each profitably finding products for them individual customer people i Mass Marketing Developing products and promotions to please large groups of ii Relationship Marketing Leads away from mass production and toward customer made goods and services 8 Consumer Decision Making a Problem Recognition b Information Search c Evaluate Alternatives and Make a Purchase Decision d
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