FOUNDATIONS OF BUSINESS BUSN 101 CH 13 MARKETING HELPING BUYERS BUY OBJECTIVES Define Marketing and apply the marketing concept to both for profit and nonprofit organizations Describe the four P s of marketing Summarize the marketing research process Show how marketers use environmental scanning to learn about the changing marketing environment Explain how marketers apply the tools of market segmentation relationship marketing and the Compare the business to business market and the consumer market study of consumer behavior VOCABULARY v 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 v Marketing Concept A three part business philosophy 1 Customer Orientation Meeting consumer needs Finding out what consumers want and providing it for them 2 Service Orientation Customers first Customer satisfaction 3 Profit Orientation Profit for your products services Focus on goods and services that will earn the most profit and enable the organization to survive and expand to serve more consumer wants and needs v Customer Relationship Management CRM 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 Enhance customer satisfaction and create long term customer loyalty Satisfy the customer and exceed their expectations v Product Any physical good service or idea that satisfies a want of need plus anything that would enhance the product in the eye of consumers such as the brand name v Test Marketing The process of testing products among potential users Example Test market vegetarian burgers and learn to prepare the best burgers v Brand Name A word letter or group of words or letters that differentiates one seller s goods and services from those of competitors Example Apple Nike Coca Cola etc v Promotion All the techniques sellers use to inform people about and motivate them to buy their products or services Advertising personal selling public relations publicity word of mouth viral marketing and other various sales like coupons rebates samples and cents off deals v Marketing Research The analysis of markets to determine opportunities and challenges and to find the information needed to make good decisions The research identifies what consumers have purchased in the past and what changes have occurred to alter what they want in the future v Secondary Data Information that has already been compiled by others and published in journals and books or made available online Marketers normally gather this information first to avoid incurring unnecessary v Primary Data Data that you gather yourself not from secondary sources like journals expense books and magazines Example Survey v Focus Group A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization it s products or other given issues v Environmental Scanning The process of identifying the factors that can affect v Consumer Market All the individuals or households that want goods and servies for marketing success personal consumption or use v Business to Business Market B2B 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 v Market Segmentation The process of dividing the total market into groups whose Big sales that are sold to retailers members have similar characteristics Geographic Segmentation Dividing markets by cities cities states or regions Demographic Segmentation Dividing markets by age income and education Psychographic Segmentation Dividing markets by using groups values Benefit Segmentation Dividing markets by determining which benefits of the Volume Usage Segmentation Dividing markets by usage how much is used level attitudes and interests product to talk about volume v Target Marketing Marketing directed toward market segments v Niche Marketing The process of finding small but profitable market segments and designing for finding products for them Example Car industry Lamborghini v One to One Marketing Developing a unique mix of goods and services for individual customers v Mass Marketing Developing products and promotion to please large groups of people Clothes shoes beer etc v Relationship Marketing Marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements 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 Marketing is every thing a company does to acquire customers and sustain a long lasting relationship Advertising Helping the seller sell VS Selling Helping the buyer buy Delivering products to people The easier the marketer makes it for the customer to make a decision the more they will sell Helping the buyer buy is also helping the seller sell Right now the internet is a major player in marketing Consumers are able to find all the information they need about a good or service making it easier for them to come to a decision on whether they want to purchase it or not o Example Student and parents no longer need to travel to the University to see what it s like to help with their decisions There are many photos online along with virtual tours Since so many people are using the internet as a source to help decide whether they want to purchase a product or service marketers must keep track of relevant bloggers and their reviews THE MARKETING MIX These four factors are blended together so the business can produce a well designed marketing plan Product Price Place Promotion 1 Product Create a product that consumers need want 2 Price Set a price for the product that is competitive 3 Place Putting the product in a place where people will buy it 4 Promotion Promote the product to get people to know about it THE 4 ERA S IN US MARKETING General business philosphy was Produce as much as you can because there is a limitless market for it Businesses have developed mass production techniques so the philosphy went from producing to selling Marketing Concept Era After WW2 soldiers came home and there was an increase in demand for goods Also the baby boom there was an increase in consumer spending Competition for the consumer s