Marketing Helping Buyers Buy 10 29 2013 Key Terms Benefit Segmentation product to talk about Brand Name o Dividing the market by determining which benefits of the o A word letter or group of words or letters that differentiates one seller s goods and services from those of competitors Business to business B2B Market o 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 Consumer Market o All the individuals or households that want goods and services for personal consumption or use Customer Relationship Management CRM o Process of learning as much as possible about customers and doing everything you can to satisfy them or exceed expectations with goods and services Demographic Segmentation o Dividing the market by age income and education level Environmental Scanning o Process of identifying the factors that can affect marketing success Focus Group o 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 Geographic Segmentation o Dividing a market by cities counties states or regions Marketing o The activity set of institutions and processes for creating communication delivering and exchanging offerings that have value for customers clients partners and society at large Marketing Concept o 3 part business philosophy Customer Orientation Service Orientation Profit Orientation Marketing Mix o Ingredients that go into a marketing program Product Price Place Promotion Marketing Research decisions Market Segmentation Mass Marketing individual customer Niche Marketing o The analysis of markets to determine opportunities and challenges and to find the information needed to make good o Process of dividing the total market into groups whose members have similar characteristics o Developing a unique mix of goods and services for each o Process of finding small but profitable market segments and designing or finding products for them One to one Marketing o Developing a unique mix of goods and services for each individual customer Primary Data o Data that you gather yourself not from secondary sources such as books and magazines Product o 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 Promotion o All the techniques sellers use to inform people about and motivate them to buy their products or services Psychographic Segmentation o Dividing the market using groups values attitudes and interests Relationship Marketing o Marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements Secondary Data o Information that has already been compiled by others and published in journals and books or made available online Target Marketing o Marketing directed toward those groups an organization decides it can serve profitably Test Marketing o the process of testing products among potential users Volume or Usage Segmentation o Dividing the market by usage volume of use Marketing Helps sellers sell and buyers buy o Helping the buyers buy automatically helps the seller sell Evolution o 1 Production From 1st arrival to around 1930s Produce as much as possible limitless market o 2 Selling 1920s 1970s Mass production techniques had been developed Production capacity had exceeded demand Turn to selling sales o 3 Marketing Concept 1945 1990s Emerges due to baby boom Increased Consumer Spending 3 Parts Customer Orientation Provide what customers want Service Orientation Customer Satisfaction 1 for Everyone Profit Orientation Focus on goods services that earn profit o 4 Customer Relationship 1990s Current Apply Customer Relationship Management CRM Give customer power to build relationships with suppliers and consumers The Marketing Mix Product o Designing a want satisfying product Price Place Promotion o Setting a price for the product o Putting the product in a place where people will buy it o Promoting the product including how green it is Designing a Product to Meet Customer Needs 1st Research is necessary Once a need or want is found design product o Ex Vegetarian restaurant in a town with a lot of vegetarians and little supply Next Concept Testing o Develop an accurate description of product and ask people online or in person if the idea appeals to them If it appeals move on to Test Marketing Try and get Brand Names to attract customers Setting Appropriate Price Compare to competition Consider costs of producing distributing and promoting Quality and demand of product as well Getting Product to Right Place Several different ways o Sell out of store o Delivery o Sell in super markets convenient stores Referred to as intermediaries Developing an Effective Promotional Strategy Includes advertising personal selling public relations publicity word of mouth and various sales promotion efforts coupons rebates samples and cents off deals Often includes relationship building w customers Providing Marketers with Information Involves Market Research Helps identify what products customers have purchased in the past and what changes have occurred to alter what they want now and what they ll likely want in the future The Marketing Research Process 1 Defining the question 2 Collecting research data o Involves primary and secondary data usage o Uses a focus group 3 Analyzing the research data 4 Choosing the best solution and implementing it The Marketing Environment Marketing managers must use Environmental Scanning 5 Factors o Global Internet Increased globalization More pressure on those responsible for delivering products o Technological o Sociocultural Using computer databases to develop products that closely match consumer wants and needs Monitoring social trends to maintain close relationships with customers since population growth and changing demographics effect sales o Competitive o Economic Being aware of competition Pay close attention to changes in the economy Two Different Markets Consumer and Business to Business B2B Consumer Market o Businesses must decided which group to serve and then develop products services tailored to that groups needs Use Market Segmentation and Target Marketing Segmenting the Consumer Market 5 Ways to Segment o Geographic Focusing on areas o Demographic Focusing on certain ages incomes or education levels o
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