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