Ch. 13 Marketing: Helping Buyers Buy
Factors in the economic environment
- unemployment - disposable income
Consumer Decision-Making Process
1. Problem Recognition 2. Information Search 3. Alternative Evaluation 4. Purchase Decision 5. Postpurchase Evaluation
What are the four eras of marketing?
1. Production Era 2. Sales Era 3. Marketing Concept Era 4. Customer Relationship Era
4 Elements of the Marketing Mix
1. product 2. price 3. place 4. promotion
Steps of the marketing mix
1. product design 2. design/name, and price 3. set distribution system (place) 4. design promotional program
"Indirect sales" is specific to the B2B market, true or false?
False
Is the B2B market smaller or larger than the consumer market and why?
Larger, because items are often sold and resold several times before reaching the final consumer
marketing
activities, sets of institutions, and processes that add value for customers
online communities
allows companies to observe customers interacting, forming opinions and relationships, and giving feedback on goods and services
Marketing Concept Era
business philosophy that emerged in 1950 where business recognized need to be responsive to consumers in order to get their business, and involves 3 orientations (customer, service, profit)
learning
changes in an individual's behavior resulting from previous experiences
Production Era
concept: produce as much as you can because there is an unlimited market for the product
key objective of the service orientation
customer satisfaction
primary data
data you gather by yourself to meet a specific need
activities of marketing
describing: - benefits - where to buy - value proposition
benefit segmentation
determining which benefits customers prefer and using them to promote a product
concept testing
developing an accurate product description and asking people if they like the idea
mass marketing
developing products & promotions to appeal to large groups of people
benefit segmentation
dividing market based on specific product features that will appeal to different groups
market segmentation
dividing total market into groups whose members have similar characteristics
customer relationship management
doing everything possible to satisfy customers or even exceed their expectations
key objective of the customer orientation
emphasis on meeting consumer demand rather than on promotion and sales
secondary data
existing data gathered by other sources
Sociocultural, competitive, economic, global, and technological influences are all factors influencing:
marketing environment
profit orientation
marketing goods/services that will earn a profit and enable the firm to survive and expand to serve more consumer wants/needs
relationship marketing
marketing strategy with goal of keeping individual customers over time by offering products that meet their exact requirements
target marketing
marketing towards groups (market segments) the organization thinks it can serve profitably
consumer behavior
observing consumer thought processes and behavior at each stage in a purchase to determine best way to help buyers buy
intermediaries
organizations that assist in moving goods/services from producers to businesses (B2B) and businesses to consumers (B2C)
Key factors under psychological influence of decision making
perceptions, attitudes, motivation
Selling Era
persuading customers to purchase existing products, focus on selling with little service afterward and less customization
sociocultural factors
population shifts, values, attitudes, and trends
environmental scanning
process of identifying factors that can affect marketing success
brand name
important use of words, letter, or groups of words or letters that distinguishes one brand's product from another's
marketing research
includes paying attention to needs of stakeholders (e.g. customers, employees, shareholders, dealers, consumer advocates, media representatives)
Are there more or less customers in the B2B market than in the consumer market?
less
volume segmentation
separating the market by usage
culture
set of values, attitudes, and ways of doing things carried from one generation to the next
subculture
set of values, attitudes, and ways of doing things that results from belonging to a specific ethnic, racial, or other group
focus group
small group of people who meet under direction of a discussion leader to communicate opinions about a product
Since population growth and changing demographics can affect company sales, what must marketers monitor?
social trends
Teenagers, Hispanics, and Generation Y are example of what?
subcultures
test marketing
testing a product among potential users
key function of intermediaries
to assist with getting a product to a customer when and where they want it
Starting key component in the marketing mix
to design and offer a want-satisfying product
target marketing
when a business selects groups or segments that they can serve most profitably
3 Parts of the Marketing Concept
1. Customer orientation 2. Service orientation 3. Profit orientation
Customer Relationship Era
extended the marketing concept by learning as much as possible about present customers
Consumer Market
focus on goods and services for personal consumption
one-to-one marketing
focuses on developing unique mix of goods/services for each individual customer
reference group
group that an individual identifies with and that influences beliefs, attitudes, values, or behavior
niche marketing
when a company finds a small but profitable market segment and designs products just for them
cognitive dissonance
when consumers have doubts after a major purchase about whether or not they got the product at the best price
Components of the Consumer Market
- 80 million households - individuals
psychographic segmentation
- attitudes - interests - lifestyle - personality
B2B Market
- buyers are well-trained, more professional - focus on goods and services to be used in production
Broad and varied group of people that provide market research information
- consumers - stakeholders - shareholders
Important functions of marketing
- deliver product/service - facilitate exchange - communicate product/service benefits
activities involved in marketing
- developing the exchange process - advertising
Values of the U.S. culture
- education - freedom - diversity
customer orientation
- find out what consumers want and provide it for them (consumer needs > promotion/sales)
What is market research conducted on?
- global trends - ecological impact of decisions - business trends
Components of the B2B Market
- government - institutions - manufacturers
demographic segmentation
- income - education - age
promotion
- informing people about products and benefits - motivating potential customers to buy - describing value proposition of product/service
secondary sources of data
- magazines - government publications
service orientation
- make sure everyone has same objective: customer satisfaction - customer-oriented
What is included in a product that would enhance it in the eyes of consumers?
- package - brand - warranty
Major factors that affect both consumer and B2B markets
- product - market structure - buying procedures
What must be considered when setting price?
- promotion - production - distribution
Why do nonprofits use marketing?
- raise funds to meet objectives - increase awareness of their cause(s)
How business buyers make decisions
- rational processes - total product offer - product specifications
Why is it important to properly define the question during the marketing research process?
- recognize current situation - identify question as problem or opportunity - determine what info is needed
Careers in marketing
- retail store management - public relations - marketing advertising
What is specific to the B2B market?
- sales based on personal selling - buyers are less emotional than consumers - markets are geographically concentrated
technological innovations companies can use
- social networking - data bases - blogs
geographic segmentation
- state - city - region
Two main groups that states try to attract through marketing
- tourists - new businesses
4 Steps of the Marketing Research Process
1. Define question 2. Collect research data 3. Analyze research data 4. Choose & Implement best solution