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 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 money fierce Customer Orientation Meeting consumer needs Service Orientation Customer service Profit Orientation Focusing on goods and services that will ensure the company the most proft Satisfying customers and exceeding their expectations Encourage and promote customer satifaction and create long term customer loyalty Consumers have more power now which makes marketing on demand Consumers use social media and their mobile devices to make purchase THE MARKETING PROCESS Find opportunities Determine a brand name design and a package and set a price Select a distribution system Conduct research Do product testing Design a promotional program Identify a market Design a product to meet the need based on research Build a relationship with customers Production Era Selling Era Customer Relationship Era Emerging Moble On Demand Marketing Era Defining the question the problem or opportunity and determining the present situation Collecting research data from secondary data primary data and focus groups Analyzing the research data Choosing the best solution and implementing it CONSUMER MARKETS All the individuals or households that want goods and services for personal consumption or use and have the resources to buy them BUSINESS TO BUSINESS MARKETS 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 Market structure Many potential customers Geographically dispersed Smaller purchases Products Market Structure Relatively few potential customers Geographically concentrated Larger purchases Products Requires les technical products Sometimes requires customization Sometimes require technical advice delivery and after sale service Require technical complex products Frequently require customization Frequently require technical advice delivery and after sale service No special training Buying Procedures Buyers are trained Buying Procedures Accept standard terms for most purchases Use personal judgment Informal process involving household members Impersonal relationships between marketers and consumers Rarely buy from multiple sources Negotiate details of most purchases Follow objective standards Formal process involving specific employees Closer relationships between marketers and buyers Often buy from multiple sources Reaching other marketing segments Niche Marketing The process of finding small but profitable market segments and designing or finding products for them Ex Car Industry Lamborghinis are only targeted towards wealthy sports car lovers Mass Marketing Developing products and promotions to please large groups of people Ex Clothes shoes beer etc One to One Marketing Developing a unique mix of goods and services for each individual customer Ex Cosmetics for women come in a variety of shades for the varying skin tones Relationship Marketing Marketing strategy with the goal of keeping individual customers over time by offering the products that exactly meet their requirements Ex Customized shoes and golf clubs for the individual CONSUMER DECISION MAKING PROCESS Problem Recognition Realizing something is wrong or that you need soemthing Information Search Looking for ads and brochures about your problem Consumer Reports Reading reviews from other consumers Evaluate Alternatives Comparing all of your options to one another to see which is better Purchase Decison Making a decision on what you will purchase 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