Chapter 13 Marketing The activity and set of institutions and processes for creating communicating delivering and exchanging offerings with value for customers clients partners and society Contemporary marketing websites blogs social networking sites Marketing Concept Era After WWII a consume spending boom developed Business knew they needed to be responsive to consumers Customer orientation finding out what the customer wants and then providing it Service orientation making sure that everyone in an organization is committed to customer satisfaction Customer Relationship Era Profit orientation focusing on the goods and services that will earn the most profit Customer relationship management learning as much as you can about customers and doing what you can to satisfy of exceed their expectations Organizations seek to enhance customer satisfaction by building long term relationships Non profit market Fundraising PR special campaigns ecological practices changing public opinions and attitudes increasing organizational membership Non profit marketing strategies Determine the firm s goals and objectives Focus on long term marketing Find a competent board of directors Exercise strategic planning Train and develop long term volunteers Carefully segment the target market Product Test marketing Brand Name Good service or idea that satisfies a consumer s want or need Testing product concepts among potential product users Pricing products depends on Competitors prices Production costs Distribution High or low price strategies Getting products to consumers is critical middlemen Promotion Word letter or a group of words that differentiates on seller s goods from a competitor s Techniques sellers use to inform people about their products and motivate them to purchase those products Includes advertising personal selling PR viral marketing and sales promotions Marketing research Analyzing markets to determine challenges and opportunities and finding the information needed to make good business decisions future 4 steps Secondary data Primary data Key Benefits Used to identify products consumers have used in the past and what they want in the Uncovers market trends and attitudes held by company insiders and stakeholders Define the problem or opportunity and determine the present situation Collect data and research Analyze data Choose best solution and implement it Existing data that has previously been collected by sources like the government Doesn t always provide all of the needed info Incurs no expense and is usually easily accessible In depth info gathered by marketers from their own research Collect through telephone online and mail surveys personal interviews and focus groups Must turn this data into useful info Must use analysis to plan strategies and make recommendations Must evaluate their actions and determine if further research is needed ANALYZE customer needs and satisfaction current markets and opportunities effectiveness of marketing strategies marketing process and tactics currently used reasons for goal achievement or failure Process of indentifying factors that affect marketing success Global trade agreements competitions trends opportunities internet Technological computers telecommunications bar codes Sociocultural popular shifts values attitudes trends Competitive speed service price selection Economic GSP disposable income competition unemployment What customers think Conduct informal customer surveys Host a customer focus group Listen to competitor s customers Survey your sales force Become a phantom customer Environmental scanning Important factors Always be customer focused Benchmark against the best firms Continuously improve performance Develop the best value package Empower your employees Focus on relationship building Goal achievement is the reward Consumer Market the resources to buy them All the individual or households that want goods and services for personal use and have Size and diversity of consumer market forces marketers to decide which groups they Individuals and organizations that buy goods and services to use in production or to sell rent or supply to others want to serve Business to business 4 P s of marketing Product Place Price Promotion Target marketing Selecting which segments an organization can serve profitably Market segmentation divides total market into groups with similar characteristics Geographic cities counties states or regions Demographic age income or education Psychographic values interests and opinions Benefit product benefits which the customer prefers Volume volume or product usage Niche identifies small but profitable market segments and designs products for them One to one marketing developing a unique mix of goods and services for each individual Relationship marketing rejects the idea of mass production and focuses on customer consumer made goods Successful relationship marketing is built on Open communication Consistently reliable service Staying in contact with customers Trust honesty and ethical behavior Showing that you truly care Steps in consumer decision making process Problem recognition Search for info Evaluating alternatives Purchase decision Post purchase evaluation Key Factors Learning Reference groups Culture Subcultures Cognitive dissonance B2B Market include Manufacturers Wholesalers Retailers Hospitals schools and charities Government Products are often sold and resold several times before reaching final consumers Difference Customers tend to be large buyers Markets are geographically concentrated Buyers are more ration than emotional Sales are direct Promotions focus heavily on personal service
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