Chapter 13 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 4 Eras of marketing 1 production 2 selling 3 marketing concept 4 customer relationship Marketing Concept 1 customer orientation 2 service orientation 3 profit orientation Customer relationship management the process of learning as much as possible about present customers and doing everything you can over time to satisfy them or even to exceed their expectations with goods and services Marketing Mix 1 setting a price for the product 2 designing a want satisfying product 3 putting the product in a place where people will buy it 4 promoting the product 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 the brand name 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 goods and services from those of competitors Promotion consists of all the techniques sellers use to inform people about and motivate them to buy their products or services Marketing research marketers analyze markets to determine opportunities and challenges and to find the information they need to make good decisions 1 defining the question and determining the present situation 2 collecting research data 3 analyzing the research data 4 choosing the best solution and implementing it Secondary data information that has already been complied by others and published in journals and books or made available online Primary data data that you gather yourself ex survey 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 issues Environmental scanning the process of identifying factors that can affect marketing success 1 global factors 2 technological factors 3 socio cultural factors 4 competitive factors 5 economic factors Consumer market all the individuals or households that want goods and services for personal consumption or use Business to business market B2B all the individuals and organizations that want good and services to use in producing other goods and services or to sell rent or supply goods to others Market segmentation the process of dividing the total market into groups whose members have similar characteristics Target marketing marketing directed toward those groups an organization decides it can serve profitably Geographic segmentation dividing a market by cities counties states or regions Demographic segmentation dividing the market by age income and educational level Psychographic segmentation dividing the market using the group s values attitudes and interests Benefit segmentation dividing the market by determining which benefits of the products to talk about Volume or usage segmentation dividing the market by volume of product use Niche marketing the process of finding small but profitable market segments and designing or finding 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 Relationship marketing marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements OUTLINE During the productions era marketing was largely a distribution function Emphasis was on producing as many goods as possible and getting them to markets By the early 1920s during the selling era the emphasis turned to selling and advertising to persuade customers to buy the existing goods produced by mass production After WWII the tremendous demand for goods and services led to the marketing concept era when business recognized the need to be responsive to customers needs During the 1990s marketing entered the customer relationship era focusing on enhancing customer satisfaction and stimulating long term customer loyalty The newest customer relationship building involves social networking Factors that influence consumer decisions are learning referencing culture subculture cognitive dissonance Customers in the B2B market are relatively few and large B2B markets tend to be more geographically concentrated and industrial buyers generally are more rational than ultimate consumers in their selection of goods and services B2B sales tend to be direct and there is much more emphasis on personal selling than in consumer markets Chapter 14 Value good quality at a fair price when consumers calculate the value of a product they look at the benefits and then subtract the cost to see if the benefits exceed the costs Total product offer everything that consumers evaluate when deciding whether to buy something also called a value package it includes price brand name and satisfaction in use Product line a group of products that are physically similar or are intended for a similar market Product mix the combination of product lines offered by a manufacturer Product differentiation the creation of real or perceived product differences marketers use pricing advertising and packaging to make their products unique and attractive Convenience goods and services products that the consumer wants to purchase frequently and with a minimum effort Shopping goods and services products that the consumer buys only after comparing value quality price and style from a variety of sellers ex clothes shoes Specialty goods and services consumer products with unique characteristics and brand identity because these products are perceived as having no reasonable substitute the consumer puts forth a special effort to purchase them ex watches jewelry Unsought goods and services products that consumers are unaware of haven t necessarily thought of buying or find that they need to solve an unexpected problem Industrial goods products used in the production of other products sometimes called business goods or B2B goods sold largely through salespeople and rely less on advertising Bundling grouping two or more products together and pricing them as a unit Brand a name symbol or design that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors Trademark a brand that has exclusive legal
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