11 23 13 Chapter 13 Notes Marketing Helping Buyers Buy 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 o Market is about helping the buyer buy also helps the seller sell Marketing eras Production era always needed to produce more and more Selling era businesses developed mass production techniques and production capacity often exceeded the market demand so selling was the priority Marketing concept era businesses realized they had to be responsive to consumers if they wanted to get their business which led to the o Marketing concept Customer orientation find out what consumers want and provide it for them Service orientation make sure everyone in the organization has the same objective customer satisfaction Profit orientation focus on goods and services that bring in the most profit so the company can stay alive and expand Customer relationship era o Customer relationship management 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 Newest type customer managed relationship giving the customer the power to build relationships with suppliers and consumers The Marketing Mix ingredients that go into a marketing program Product any physical good service or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers such as the brand o Test marketing the process of testing products among potential users o Brand name a word letter or group of words or letters that differentiates one sellers goods and services from those of competitors Price Place o Intermediaries middle links in a series of organizations that distribute goods from Promotion all the techniques sellers use to inform people about and motivate them to buy producers to consumers their products or services o Relationship building with customers Providing Markets With Information Marketing research the analysis of markets to determine the opportunities and challenges and to find the information needed to make good decisions o Defining the question and determining the present situation o Collecting research data Secondary data information that has already been compiled by others and published in journals and books or made available online Primary data data that you gather yourself ex telephone surveys online surveys mail surveys and personal interviews Focus group small 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 o Analyzing the research data o Choosing the best solution and implementing it Marketing Environment Environmental scanning the process of identifying the factors that can affect marketing success Global factors o Trade agreements o Competition o Trends o Opportunities o Internet Technological factors o Computers o Telecommunications o Bar codes o Data interchanges o Internet changes Sociocultural factors o Population shifts o Values o Attitudes o Trends Competitive factors o Speed o Service o Price o Selection Economic factors o GDP o Disposable income o Competition o Unemployment Consumer market all the individuals or households that want goods and services for personal consumption or use Market segmentation the process of dividing the total market into groups whose members have similar characteristics o Consumer Market Geographic dividing the market by cities counties states or regions Demographic dividing the market by age income and education level Psychographic dividing the market using groups values attitudes and interests Benefit dividing the market by determining which benefits of the product to talk about it o Smaller Markets Volume or usage dividing the market by usage volume of use Niche marketing 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 o Relationship Markets people Mass marketing developing products and promotions to please large groups of Relationship marketing marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements o Target market marketing directed toward those groups and organization decides it can serve profitably o Consumer decision making process Problem recognition Information search Evaluate alternatives Make purchase decision or no purchase Post purchase evaluation Business to business market all the individuals and organizations that want goods and services to use in producing other goods and services or to sell rent or supply goods to others Differences between B2B and Consumer Markets Market structure Products Buying Procedures B2B Relatively few potential customers Larger purchases Geographically concentrated Require technology complex products Frequently require customization Frequently require technical advance delivery and after sale service Buyers are trained Negotiate details of most purchases Follow objective standards Formal process involving specific employees Consumer Many potential customers Smaller purchases Geographically dispersed Require less technical products Sometimes require customization Sometimes require technical advance delivery and after sale service No special training Accept standard terms for most purchases Use personal judgment Informal process involving household Closer relationships between marketers and buyers Often buy from multiple sources members Impersonal relationships between marketers and consumers Rarely buy from multiple sources
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