Business Chapter 13/16

Marketing concept

customer orientation, service orientation, profit orientation

Geographic segmentation

dividing a market by cities, states, or regions

Psychographic segmentation

dividing the market using the group's values, attitudes, and interests

Qualifying

in the selling process, making sure that people have a need for the product, the authority to buy, and the willingness to listen to a sales message

Business-to-business (B2B) marketers

include manufacturers; intermediaries such as retailers; institutions like hospitals, schools, and nonprofits; and the government (few customers)

Target marketing

selecting which groups or segments an organization can serve profitably

Promotion mix

the combination of promotional tools an organization uses

Test marketing

the process of testing products among potential users

Sales promotion

the promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities

Primary sources

interviews, surveys, observation, focus groups, online surveys, questionnaires, customer comments, letters from customers

Inform people you're responsive to their needs

its not enough to simply have programs in the public interest, you have to *tell* the public about those programs

Listen to the public

public relations starts with good marketing research to evaluate public attitudes

Push Strategy

the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise; pushing it through the distribution system to the stores

Culture (consumer behavior)

the set of values, attitudes, and ways of doing things transmitted from one generation to another in a given society

One-to-one marketing

developing a unique mix of goods and services for each individual customer

Mass marketing

developing products and promotions to please large groups of people

Infomercial

a full-length TV program devoted exclusively to promoting a particular good or service

Focus group

a 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

Podcasting

a means of distributing multimedia digital files on the Internet for downloading to a portable media player

Prospect

a person with the means to buy a product, the authority to buy, and the willingness to listen to a sales message

Trial close

a question or statement that moves the selling process toward the actual purchase

Brand name

a word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors

Product placement

advertisers pay to put their products into shows and movies where the audience will see them

Institutional advertising

advertising designed to create an attractive image for an organization rather than for a product

Product advertising

advertising for a good or service to create an interest among consumer, commercial, and industrial buyers

Business-to-business advertising

advertising from manufactures to other manufactures (firm selling motors to auto companies)

Online advertising

advertising messages that appear on computers as people visit different websites

Comparison advertising

advertising that compares competitive products

Mobile advertising

advertising that reaches people on their smartphones

Advocacy advertising (cause advertising)

advertising that supports a particular view of an issue

Retail advertising

advertising to consumers by various retail stores such as supermarkets and shoe stores

Trade advertising

advertising to wholesalers and retailers by manufacturers to encourage them to carry their products

Interactive promotion

allows marketers to go beyond a monologue, in which sellers try to persuade buyers to buy things, to a dialogue, in which buyers and sellers work together to create mutually beneficial exchange relationships

Publicity

any information about an individual, or organization that's distributed to the public through the media and is not paid for or controlled by the seller

Product

any physical good, service, or idea that satisfies a want or need, plus anything that would enhance the product in the eyes of the consumers, such as the brand name

Change policies and procedures

businesses earn understanding not by bombarding the public with propaganda but by creating programs and practices in the public interest

Integrated Marketing Communication (IMC)

combines the promotional tools into one comprehensive, unified promotional strategy

Consumer market

consists of all the individuals or households that want goods and services for personal consumption or use and have the resources to buy them

Promotion

consists of 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)

Learning (consumer behavior)

creates changes in an individual's behavior resulting from previous experiences and information

Interactive advertising

customer-oriented communication that enables customers to choose the information they receive, such as interactive video catalogs that let customers select which items to view

Primary data

data that you gather yourself (not from secondary sources such as books and magazines)

Pull Strategy

directs heavy advertising and sales promotion efforts toward consumers

Demographic segmentation

dividing the market by age, income, education level, religion, race, and occupation (most widely used segmentation but not the best)

Benefit segmentation

dividing the market by determining which benefits of the product to talk about

Volume (or usage) segmentation

dividing the market by usage (volume of use)

Customer Orientation

find out what customers want and provide it for them

Profit Orientation

focus on those goods and services that will earn the most profit and enable the organization to survive and expand to serve more consumer wants and needs

Secondary sources

government publications, commercial publications, magazines, newspapers, internal sources, general sources

Niche marketing

identifying small but profitable segments and designing or finding products for them

Viral marketing

includes any strategy that encourages people to pass on a marketing message to others, creating exponential growth in the message's influence as the message reaches thousands, or even millions

Secondary data

information that has already been compiled by others and published in journals and books or made available online

Sampling

letting consumers have a small sample of the product for no charge

Service Orientation

make sure everyone in the organization has the same objective: customer satisfaction

Relationship marketing

marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements

Middlemen

middle links in a series of organizations that distribute goods from producers to consumers

Propoganda

nonpersonal communication that does not have an identified sponsor

Advertising

paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the message

Word-of-mouth promotion

people tell other people about products they've purchased or services they've used

Consumer decision -making process

problem recognition, information search, evaluate alternatives, purchase decision

Prospecting

researching potential buyers and choosing the most likely to buy

Subculture (consumer behavior)

set of values, attitudes, and ways of doing things that results from belonging to a certain ethnic, racial, or other group with which one closely identifies (teenagers)

Marketing

the activity, set of institutions, and processes for creating, communicating, and exchanging offerings that have value for customers, clients, partners, and society at large (the activity buyers and sellers perform to facilitate mutually satisfying exchanges)

Marketing research

the analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions

Personal selling

the face-to-face presentation and promotion of goods and services, including the salesperson's search for new prospects and follow-up service after the sale

Reference group (consumer behavior)

the group an individual uses as a reference point in forming beliefs, attitudes, values, or behavior

Market segmentation

the process of dividing the total market into groups with similar characteristics

Enviornmental scanning

the process of identifying factors that can effect marketing success

Customer Relationship Manager (CRM)

the process of learning as much as possible about present customers and doing everything you can over time to satisfy them (or even to exceed their expectations) with goods and services

Cognitive dissonance

type of psychological conflict that can occur after a purchase