Chapter 13- Marketing: Helping Buyers Buy

What does it mean to "help the buyer buy"?

"Help the buyer buy" means for the marketer to make the decision making process easier.

What are the four steps in the marketing research process?

(1)Define the problem or opportunity and determine the present situation, (2) collect data, (3) analyze the data, and (4) choose the best solution.

What are the four key factors that make B2B markets different from consumer markets?

1. There are relatively few customers. 2. Customers tend to be large buyers. 3. Markets are geographically concentrated. 4. Buyers are more rational than emotional. 5. Sales are direct. 6. Promotions focus heavily on personal selling.

What kinds of organizations are involved in marketing?

All kinds of organizations use marketing, including for-profit and nonprofit organizations like states, charities, churches, politicians, and schools.

What makes the business-to-business market different from the consumer market?

Customers in the B2B market are relatively few and large. B2B markets tend to be geographically concentrated, and industrial buyers generally are more rational than ultimate consumers in their selection of goods and services. B2B sales tend to be more direct, and there is much more emphasis on personal selling than in consumer markets.

How has marketing changed over time?

During the production era, marketing was largely a distribution function. Emphasis was on producing as many goods as possible and getting them into markets. By the early 1920s, during the selling era, the emphasis turned to seeing and advertising to persuade customers to buy the existing goods produced by mass production. After World War II, the tremendous demand for goods and services led to the marketing concept era, when businesses recognized the need to be responsive to customer's needs. During the 1990s, marketing entered the customer relationship era, focusing on enhancing customer satisfaction and stimulating long-term customer loyalty. Today marketers are using mobile/on-demand marketing to engage customers.

What is environmental scanning?

Environmental scanning is the process of identifying factors that can affect marketing success. Marketers pay attention to all the environmental factors that create opportunities and threats.

What are some of the factors that influence the consumer decision-making process?

Factors that influence the consumer decision-making process include learning, reference group, culture, subculture, and cognitive dissonance.

What are some of the ways marketers segment the consumer market?

Geographic segmentation means dividing the market into different regions. Segmentation by age, income, and education level is demographic segmentation. We study a group's values attitudes, and interests using psychographic segmentation. Determining which benefits customers and using them to promote a product is benefit segmentation. Separating the market by usage is called volume segmentation. The best segmentation strategy is to use all the variables to come up with a consumer profile for a target market that's sizable, reachable, and profitable.

What is marketing?

Marketing is 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.

What is the difference between mass marketing and relationship marketing?

Mass marketing means developing products and promotions to please large groups of people. Relationship marketing tends to lead away from mass production toward custom-made goods and services. Its goal is to keep individual customers over time by offering them products or services that meet their needs.

What is niche marketing, and how does it differ from one-to-one marketing?

Niche marketing is the process of finding small but profitable market segments and designing or finding products for them, whereas one-to-one marketing deals with just one customer for which the marketer develops a unique mix of goods and services.

Can you define the terms consumer market and business-to-business market?

The consumer market is all the individuals or households that want goods and services for personal consumption or use, whereas the business-to-business (B2B) market is 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.

What factors are included in environmental scanning?

The factors included in environmental scanning are global, technological, sociocultural, competitive, and economic.

Can you name and describe five ways to segment the consumer market?

The five ways to segment the consumer market are geographic-region, demographic- age, gender, and race, psychographic-personalty and values, benefit-divides an already established market, and volume-usage.

What are the four Ps of the marketing mix?

The four Ps of the marketing mix are product, price, place, and promotion.

How do marketers implement the four Ps?

The idea behind the four Ps is to design a product people want, price it competitively, place it where consumers can find it easily, and promote it so consumers know it exists.

What are some of the more important environmental trends in marketing?

The most important global and technological change is probably the growth of the internet and mobile marketing. Another is the growth of consumer databases, with which companies can develop products and services that closely match consumers' needs. Marketers must monitor social trends like population growth and shifts to maintain their close relationship with customers. They must also monitor the dynamic competitive and economic environments.

What are the three parts of the marketing concept?

The three parts of the marketing concept are (1) a customer orientation, (2) a service orientation, and (3) a profit orientation (that is, marketing goods and services that will earn a profit and enable the firm to survive and expand).

focus group

a small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its product, or other given issues

marketing concept

a three-part business philosophy: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation

brand name

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

business-to-business (B2B) market

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

all the individuals or households that want foods and services for personal consumption or use

promotion

all the techniques sellers use to inform people about and motivate them to buy their products or services

product

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 name

primary data

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

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

demographic segmentation

dividing the market by age, income, and education level

geographic segmentation

dividing the market by cities, counties, states, or regions

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)

psychographic segmentation

dividing the market using the groups values, attitudes, and interests

secondary data

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

target marketing

marketing directed toward those groups (market segments) an organization decides it can serve profitable

relationship marketing

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

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

marketing research

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

marketing mix

the ingredients that go into a marketing program: product, price, place, and promotion

market segmentation

the process of dividing the total market into groups whose members have similar characteristics

niche marketing

the process of finding small but profitable market segments and designing or finding products for them

environmental scanning

the process of identifying the factors that can affect marketing success

customer relationship management (CRM)

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

test marketing

the process of testing products among potential users