Chapter 13 - Marketing : Helping buyers Buy

attributes typically used to differentiate consumer groups

-income -education -age

the broad and varied group of people that provide market research information are called

-shareholders -consumers -stakeholders

factors that are part of the technological environment

bar codes, data interchange, and telecommunications

examples of geographic segmentation

by states, by city, and by region

in the 950s, a philosophy emerged where a business recognized the need to be responsive to consumers if they wanted to get their business -this philosophy is referred to as

marketing concept

characteristics of the United States cultural values:

-freedom -diversity -education

a focus group

is a group of people who meet under the direction of a discussion leader to communicate their opinions about an organization

factors that affect consumer behavior include the following: -cognitive dissonance

is a type of psychological conflict that can occur after a purchase

economic factors: markets must pay attention to the economic environment

as the economy slowed, marketers had to adapt by offering products that were less expensive and more tailored to consumers with modest incomes

secondary data are what markets gather first to avoid

incurring unnecessary expense

online communication provide

opportunities to observe people ( customers and others) interacting with one another, expressing their own opinions, forming relationships, and commenting on various goods and services.

when setting price, a company must consider many factor including the costs of

-distribution -promotion -production

order the fowlling steps that involves the marketing mix

1-design a product to meet the need based on research 2- determine a brand name, design a package, and set a price 3- select a distribution system 4-design a promotional program

managing the controllable parts of the marketing process means

1-designing a want-satisfying product 2-setting a price for the product 3-putting the product in a place where people will buy it 4-promoting the product the 4 factors are called the marketing mix because businesses blend them together in a well-designed marketing program

we can divide much of what marketing teams do into 4 factors, called marketing mix

1-product 2-price 3-place 4-promotion

marketing in the U.S. has passed through 4 eras:

1-production 2-selling 3-marketing concept 4-customer relationship today, a new era is quickly emerging: mobile/on-demand marketing

sociocultural factors: marketers must monitor social trends to maintain their

close relationship with customers, since population growth and changing demographics cna have an effect on sales -one of the fastest growing segments of the US population is people over 65. The increase in the number of older adults creates growing demand for retirement communities, health care, prescription drugs, recreation, continuing education, and more

The Emerging Mobile/On-Demand Marketing Era: as digital technology continues to grow, consumer demands are likely to rise in 4 areas -simple

consumers expect all interactions to be easy

The Emerging Mobile/On-Demand Marketing Era: as digital technology continues to grow, consumer demands are likely to rise in 4 areas -now

consumers want to interact anywhere, anytime

factors that affect consumer behavior include the following: -leading

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

the total potential consumer market consists of the billions of people in global markets. Because consumer groups

differ greatly by age, education level, income, and taste, a business usually can't fill the needs of every group. It might decide which groups to survive, and then develop products and services tailored to their needs -finding the right target market

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 group's values, attitudes, and interests

besides listening to customers, marketing researchers laos pay attnetion to what

employees, shareholders, dealers, consumer advocates, media representatives, and other stakeholders have to say.

the marketing concept had 3 parts: 1-a customer orientation

find out what consumers want and provide it for them

the marketing concept had 3 parts: -a 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

the production era

from the time the first european settlers began their struggle to survive in America, general philosophy was "Produce as much as you can, because there is a limitless market for it" -given the limited production capability and vast demand for products in those days, that production physiology was both logical and profitable -business owners were mostly farmers, carpenters, and trade workers. -they needed to produce more and more, so their goals centered on production

such intermediaries are the middle links in a series of organization ( also called middlemen)

getting the product to consumers when and where they want it is critical to market success

although the mass marketing-led many firms to success, marketing managers often

got so caught up with their products and competition that they became less responsive to the market

marketers in the U.S. have changed their products to meet the tastes and preferences of what groups whose numbers have increased?

hispanics and asians

of course, helping the buyer buy also helps the seller buy

in industries like this, the role of marketing is to make sure that a company's products or services are easily found online, and that the company responds effectively to potential customers

the consumer market is made up of

individuals and households

once you've researched consumer needs and found a target market for your product, the four P's of marketing come into play -you start by developing a product or products product

is 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

marketing managers must be aware of the surrounding environment when making marketing mix decisions -environmental scanning

is the process of identifying factors that can affect marketing success

customer relationship management ( CRM)

is the process of learning as much as possible about present customers and doing everything you can overtime to satisfy them - or even to exceed their expectations - with goods and services. -the idea is to enhance customer satisfaction and stimulate long-term customer loyalty

factors that affect consumer behavior include the following: -subculture

is the set of values, attitudes, and ways of doing things that results from belonging to a certain ethnic, racial, or other group with which one cloesly identifies -ex/ teenagers

factors that affect consumer behavior include the following: -culture

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

the B2B market is larger than the consumer market because

items are sold and resold several times in the B2B process before they reach the final consumer

relationship marketing tends to

lead away from mass production and toward custom made goods and services. -the goal is to keep individual customers over time by offering them new products that exactly meet their requirements. -technology and social media enable sellers to work with individual buyers to determine their wants and needs and to develop goods and services specifically designed for them

the marketing concept had 3 parts: -a service orientation

make sure everyone in the organization has the same objective: customer sanctification. -this should be a total and integrated organizational effort.

business to business ( B2B) marketers include

manufacturers ; intermediaries, such as retailers like hospitals, schools, and nonprofits; and the government

much of the future of marketing lies in mining such as online conversations and responding appropriately. -ex/

marketers are learning why online shoppers will add goods to their shopping carts, but then leave before they give their credit card information

analyzing the research data

marketers must turn the data they collect in the research process into useful information -careful, honest interpretation of the data can help a company find useful alternatives to specific marketing challenges

defining the question and determining the present situation

marketing researchers need the freedom to discover what the present situation is, what the problems or opportunities are, what the alternatives are, what information they need, and how to go about gathering and analyzing data.

the marketing environment: competitive factors

markets must pay attention to the dynamic competitive environment

in the world of mass production following the industrial revolution, marketers responded by practicing mass marketing. -mass marketing

means developing products and promotions to please large groups of people. -that is, there is little market segmentation. That means using mass media such as TV, radio, and online ads to reach them.

today consumers are able to share, compare, and rate experiences 24/7 in the new marketing era known as the

mobile/on-demand era

phone surveys, online surveys, mail surveys, and personal interviews are the

most common forms of primary data collection. -focus groups are another popular method of surveying individuals

collecting data: usable information is vital to the marketing research process. -research can become quite expensive, however, so marketers must often make a trade-off between the need for information and the cost of obtaining it.

normally the least expensive method is to gather information already compiled by others and published in journals and books or made avlaaible online such existing data are called secondary data since you aren't the first one to gather them

target market

one or more specific groups of potential consumers toward which an organization directs its marketing program

global factors: by going online, businesses can

reach many of the world's consumers relatively easily and carry on a dialogue with them about the goods and services they want -the galvanization process puts more pressure on those whose responsibility it is to deliver products to these global customers

marketing is described as 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 -also as the activities buyers and sellers perform to facilitate mutually satisfying exchanges

the best segmentation strategy is to use all the variables to come up with a consumer profile that represents a

sizeable, reachable, and profitable target market. -that may mean not segmenting the market at all and instead going after the total market ( everyone. Or it may mean going after the ever-smaller segments

much of research now being gathered online through ( marketing research)

social media

the customer relationship era

some managers extended the marketing concept by adopting the practice of customer relationship management -the idea is to enhance customer satisfaction and stimulate long-term customer loyalty

sources of primary data collection

surveys and focus groups

selecting which groups or segments an organization can serve profitably is

target marketing

promotion consists of all the

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

the porcess of testing products among potential users is called

test marketing

concept testing

testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal -developing an accurate description -if consumers like the products and agree they would buy them, you have the information you need to find investors and look for a convenient location to open a restaurant

promotion often includes relationship building with customers

that means responding to suggestions consumers make to improve the products or their marketing, including price and packaging -listening to customers and responding to their needs is the key to the ongoing process that is marketing

the emerging mobile/ on-demand marketing age

the digital age is increasing consumers power and pushing marketing toward being on demand, not just always "on" -Consumers are demanding relevant information exactly when they want it, without all the noise of unwanted messages -consumers share , compare, and rate experiences through social media; and mobile devices make it all available 24/7 -developments such as inexpensive mircortrasmitters embedded in products will allow consumers to search by image, voice, or gestures

the marketing concept era

the postwar years ( after world war II) launched the sudden increase in the birthrate that we call the baby boom, and also a boom in consumer spending -competition for the consumer's dollar was fierce. Businesses recognized that they needed to be responsive to consumers if they wanted to get their business, and a physiology emerged called the marketing concept

often, secondary data don't provide all the information managers need for important business decisions. -to gather additional in-depth information, marketers must do their own research

the results of such new studies are called primary data -one way to gather primary data is to conduct a survey

every decision in the marketing process depends on information. -when marketers conduct marketing research,

they analyze markets to determine opportunities and challenges, and to find the information they need to make good decisions

The Emerging Mobile/On-Demand Marketing Era: as digital technology continues to grow, consumer demands are likely to rise in 4 areas -Can I?

they want to do new things with different kinds of information in ways that create value for them

technological factors: relate to the internet

using consumer database, blogs, social networking sites, and the like, companies can develop products and services that closely match consumers' needs

identify some of the factors used to divide the market in psychographic segmentation

values, attitudes, and interests

a product includes anything that would enhance it in the eyes of consumers, such as the

warranty, package, and brand

marketing research helps identify

what products customers have purchased in the past, and what changes have occurred to alter what they want now and what they're likely to want in the future -marketers also conduct research on business trends, the ecological impact of their decisions, global trends, and more -business need information to compete effectively, and marketing research is the activity that gathers it

what markets do at any particular time depends on

what they need to do to fill customer's' needs and wants, which are continually changing

niche marketing is

identifying small but profitable market segments and designing or finding products for them. -because it so easily offers an unlimited choice of goods, online retail transformed a consumer culture once based on big hits and best-sellers into one that supports more specialized niche products

sociocultural factors: other shifts in the US population are creating new challenges for markets as they adjust their products to meet the tastes and preferences of Hispanic, Asian, and other growing ethnicities

to appeal to diverse groups, markets must listen better and be more responsive to unique needs

demographic segmentation

dividing the market by age, income, education level, religion, race, and occupation

the marketing environment: sociocultural

-population shifts -values -attitudes -trends

the marketing environment: economic

-GDP -disposable income -competition -unemployment

marketers must pay attention to the dynamic competitive environment because

-change is occurring more rapidly -the internet gives consumers information instantly

the marketing environment: technological

-computers -telecommunications -bar codes -data interchange -internet changes

B2B marketing is different from consumer marketing because B2B

-customers are generally more rational -customers are large

businesses use market research to segment the consumer market using such characteristics as:

-demographic information -personality differences

the four P's of marketing please customers by doing what

-designing the product so it is something customers want -selling an acceptable price for customers -engaging in promotional strategies to attract the customer to the product

websites have helped the buyer buy

-not only are customers spread searching one dealership after another to find the best price, but manufacturers and dealers are eager to participate so that they don't lose customers. -the future of marketing is doing everything you can to help the buyer buy. The easier a marketer makes the purchase decision process, the more that marketer will sell

what are some of the industries that will benefit from the increase in the over 65 population

-prescription drugs -recreation -nursing homes

if a student majors in marketing, which career options will be available?

-public relations -retail store manager -advertising

the internet allows a company to provide customers easy access to

-research information about their products -inform them of product problems -communicate with them directly

the selling era

By the 1920s, businesses had developed mass-production techniques (such as automobile assembly lines), and production capacity often exceeded the immediate market demand. Therefore, the business philosophy turned from producing to selling. Most companies emphasized selling and advertising in an effort to persuade consumers to buy existing products; few offered extensive service after the sale.

The Emerging Mobile/On-Demand Marketing Era: as digital technology continues to grow, consumer demands are likely to rise in 4 areas -For me

Consumers expect all data stored about them to be used to personalize what they experience

consumers today spend hours searching online for good deals -wise marketers provide

a health of information online and even cultivate customer relationship using blogs and social networking sites such as Facebook and Twitter.

one of the best ways to understand the entire marketing process is to take

a product or group of products and follow the process that led to their development and sale

there are 2 major markets in business: the consumer market and the business-to-business market. -business to business ( B2B) market

consists of 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 -oil drilling bits, cash registers, display cases, office desks, public accounting audits, and business software are B2B goods and services. traditionally, they have been known as industrial goods and services because they are used in industry

there are 2 major markets in business: the consumer market and the business-to-business market. -the consumer market

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

the B2B market is larger than the

consumer market

a market consists of

people with unsatisfied wants and needs who have both the resources and the willingness to buy

choosing the best solution and implementing it: after collecting and analyzing dta, marketing researchers determine alternative stragies and make recommendations about which may be best and why

this final step in a research effort also includes following up on actions taken to see whether the results were what was expected -if not, the company can take corrective action and conducts new studies in its ongoing attempt to provide consumer satisfaction at the lowest level

after you've decided what products and services you want to offer consumers, you have to set appropriate prices

those prices depend on a number of factors. -may charge to stay competitive -may charge less to being more customers in -or may offer high quality products for which consumers are willing to pay a little more may also consider the costs of producing, distributing, and promoting the product, which all influence your price

states use marketing to attract many groups. Choose the 2 main groups from the list that states try to attract:

tourists and new businesses

the marketing environment: global

-trade agreements -competition -trends -opportunities -internet

one of the fastest-growing segments of the U.S. population is people over the age of

65

a brand name is

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

promotion includes

advertising; personal selling; public relations; publicity; word of mouth ( virtual marketing) ; and various sales promotion efforts, such as coupons, rebates, samples, and cents-off-deals

even though the marketing concept emphasizes a profit orientation, marketing is a critical part of

almost all organizations, including nonprofits

one-to-one marketing means

developing a unique mix of goods and services for each individual customers -travel agencies often develop packages, including airline reservations, hotel reservations, rental cars, restaurants, and admission to museums and other attractions for individual customers

influences on the marketing environment

global, economic, and competitive

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

market segmentation

a firm can segment the consumer market several ways

-geographic segmentation -demographic segmentation -psychological segmentation -benefit segmentation -volume ( or usage) segmentation

the B@B market includes:

-government -institutions -manufacturers

what are examples of a subculture

-hispanics -teenagers -Gen Y

it is important to properly define the question during the marketing research process to

-identify the question as a problem or opportunity -determines what information is needed -recognize the current situation

factors that affect consumer behavior include the following:

-learning -reference group -culture -subculture -cognitive dissonance

the marketing environment: competitive

-speed -service -price -selection

major factors in the marketing environment

-technological factors -global factors - competitive factors

the customer decision making process

-the first step in the consumer decision-making process is problem recognition. this leads to an information system -after completing all this information you evaluate alternatives and make a purchase decision -Market researches investigate these consumer thought processes and behavior at each stage in purchase to determine the best way to help the buyer buy. this area of study is called consumer behavior

there is a wide variety of careers in marketing than in most business disciples

-you could become a manager in a retail store -you could do marketing research or work in product management -you could go into selling, advertising, sales promotion, or public relations -you could work in transportation, storage, or international distribution -you could make websites

B2B marketing strategies also differ from consumer marketing because business buyers have their own decision-making process. -several factors make b2B marketing different, including

1- consumers in the B2B market are relatively few 2-business customers are relatively large 3-B2B markets tend to be geographically concentrated 4-business buyers are generally more rational and less emotional than ultimate consumers 5- B2B sales tend to be direct, but not always 6- whereas consumer promotions are based more on advertising, B2B sales are based on personal selling

list the 4 steps of the marketing research process in order from first to last

1- defining the question ( the problem or opportunity) and determining the present situation 2- collecting research data 3-analyzing the research data 4-choosing and implementing the best solution

a focus group is a group of people who meet under the direction of a discussion leader and:

express their concerns about specific issues and express their opinions about an organization or product

the important thing to remember is that the buyers reason for buying-that is the end use of the product- determines whether a product

is a consumer product or B2B product

what are some of the acitvites invovled in marketing?

developing the exchange process and advertising

factors that affect consumer behavior include the following: -reference group

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