Chapter 13: Marketing: Helping Buyers Buy

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

3. Niche marketing is identifying small but profitable market segments and designing or finding products for them. One-to-one marketing means developing a unique mix of goods and service for each individual customer.

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

1. In the past marketing focused entirely on helping the seller sell the product. Today marketing has changed from selling to instead helping the buyer buy. It is critical today that organizations do everything to help buyers make decisions.

What are the four Ps of the marketing mix?

3. The four Ps of the marketing mix are: (1) Product, (2) Price, (3) Place, and (4) Promotion.

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

65

LO 13-6 Compare the business-to-business market and the consumer market.

Business-to-Business Markets •B2B marketers include: •Manufacturers. •Retailers. •Hospitals, schools, and nonprofits. •Government. •Products are often sold and resold several times before reaching final consumers.

Select the technological innovations that companies can use to develop products and services that match consumers' wants and needs more effectively.

Data bases Blogs Social media

Pick out the attributes typically used to differentiate consumer groups.

Education Income Age

The business philosophy that emphasized selling and advertising in an effort to persuade consumers to buy existing products occurred during the production era.

False

Instead of selling your product throughout the United States, you might concentrate on one or two regions. This is an example of which type of segmentation?

Geographic

Pick out the influences in the marketing environment.

Global Economic Competitive

LO 13-2 Describe the four Ps of marketing.

Marketing Mix •The ingredients that go into a marketing program; also known as the four Ps: 1.Product. 2.Price. 3.Place. Promotion.

Rank order the different eras of marketing by putting the earliest at the top to the most recent at the bottom.

Production Sales Marketing Concept Customer relationship

Which of these are sources of primary data collection?

Surveys Focus groups

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

Tourists New businesses

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

True

There is a wider variety of careers in marketing than in most business disciplines.

True

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

brand package warranty

Studying the thought processes people use to make buying decisions and the factors that influence their choices is the study of behavior.

consumer

The individuals or households that want goods and services for personal consumption or use, and have the resources to buy them are part of the:

consumer market

The consumer market consists of 80 million households, but there are fewer in the B2B market of an industry like auto manufacturing.

customers, firms, companies, or buyers

The production era philosophy was to produce as much as possible because the was unlimited.

demand or market

Compared to the 80 million or so households in the U. S. consumer market, there are:

fewer customers in the B2B market

Dividing a market by cities, counties, states, or regions is segmentation.

geographic

Databases, blogs, and social networking help companies gather to meet consumer needs through the development of products and services.

information, data, or research

The B2B market includes:

institutions government manufacturers

Getting products to consumers when and where they are wanted is critical to market success. Many times it is the responsibility of:

intermediaries

The factors that go into a marketing program: product, price, place, and promotion, are called the mix.

marketing

There is a wider variety of careers in than in most business disciplines.

marketing

State governments use to compete with other states and countries to locate businesses in their areas.

marketing or incentives

With marketing research, marketers analyze markets to determine:

opportunities and challenges

One of the fastest-growing segments of the U.S. population is:

over 65

Many customers value fast, fresh, flavorful food that is free of preservatives, chemicals, and antibiotics. The marketing mix factor that represents the value of the product to a customer is:

price

Marketing helps to identify what products customers have purchased in the past, current purchasing patterns, and future wants.

price

The four factors in the marketing mix are:

product, price, place, and promotion

Marketing started with companies selling whatever they produced without considering customer needs. This was called the ______ era of marketing.

production

When setting price, a company must consider many factors including the costs of:

promotion production distribution

Existing data is called data since you aren't the first one to gather the data.

secondary

Marketers must pay attention to the dynamic competitive environment because:

change is occurring more rapidly the Internet gives consumers information instantly

is a persuasive form of communication that informs people and motivates them to buy products and services.

Promotion

Sociocultural, competitive, economic, global, and technological influences are all factors influencing:

the marketing environment

During the production era it was believed that one should produce as much as you can, because:

there is a limitless market for the product

The emphasis in those firms with a customer orientation is to meet consumer rather than on promotion and sales.

wants, needs, demand, or expectations

The B2B market not only includes manufacturers, intermediaries, and institutions, but also at the federal, state, and local levels.

governments or government

The consumer market is made up of:

individuals households

The segmentation method that develops or finds products for small, but profitable market segments is:

niche marketing

Intermediaries are the middle links in a series of organizations that distribute goods from producers to consumers.

True

Changes in an individual's behavior resulting from previous experiences and information is

learning

The activities buyers and sellers perform to facilitate mutually satisfying exchanges is:

marketing

Developing products and promotions to please large groups of people is marketing.

mass

Using the same products and promotions to appeal to large groups of people is:

mass marketing

In order to gather additional in-depth information needed for business decisions, marketers must do their own research by gathering:

primary data

A physical good, service, or idea that satisfies a want or need is called a(n):

product

Any physical good, service, or idea that satisfies a want or need is a

product

Food companies truly seem to be listening to customers who want healthy fast-food that is preservative, chemical, and antibiotic free. They are adjusting the element of the marketing mix to meet customer needs.

product

Marketers should gather data first because it is already available and to avoid incurring unnecessary expense.

secondary

Marketers use age, education level, income, and taste to markets.

segment, target, or divide

When businesses developed mass-production techniques and capacity exceeded immediate demand, the:

selling era began

Brick and mortar retailers must pay attention to the dynamic competitive environment mainly because of competition from:

the internet

What are the four steps in the marketing research process?

1. The steps in the marketing research process are as follows: (1) Define the problem and determine the present situation, (2) Collect the research data, (3) Analyze the research data, and (4) Choose the best solution and then implement it.

What is environmental scanning?

2. Environmental scanning is the process of identifying factors that can affect marketing success.

The costs of producing, distributing and promoting the product will all influence the product's:

price

Often secondary data does not provide all the information managers need for decision making, and they must gather data.

primary

All of the techniques sellers use to inform people about and motivate them to buy their products or services is called:

promotion

What factors are included in environmental scanning?

3. The factors in environmental scanning include global, technological, sociocultural, competitive, and economic influences.

Information that has already been compiled by others and published in journals, books, or online is called:

secondary data

Marketers who want to avoid incurring unnecessary expenses when researching data should first gather:

secondary data

When a company finds a small but profitable market segment and designs products just for them, the company is engaged in:

niche marketing

What are the three parts of the marketing concept?

2. The three parts of the marketing concept are: (1) customer orientation, (2) service orientation, and (3) a profit orientation.

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

1. The 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. Business-to-business markets consist of all the individual and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others.

LO 13-5 Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

Consumer Markets •The size and diversity of the consumer market forces marketers to decide which groups they want to serve. •Market segmentation — Dividing the total market into groups whose members have similar characteristics. •Target marketing — Marketing directed toward those groups an organization decides it can serve profitably. •Geographic segmentation — Dividing the market by cities, counties, states, or regions. •Demographic segmentation — Dividing the market by age, income, and education level. •Psychographic segmentation — Dividing the market using the group's values, attitudes, and interests. •Benefit segmentation — Dividing the market by determining which benefits of the product to talk about. •Volume (or usage) segmentation — Dividing the market usage (volume of use). •The best segmentation strategy is to use all the variables to come up with a consumer profile that represents a sizable, reachable, and profitable target market. •Niche marketing — Finding small but profitable market segments and designing or finding products for them. •One-to-one marketing — Developing a unique mix of goods and services for each individual consumer. The Consumer Decision-Making Process 1.Problem recognition. 2.Information search. 3.Evaluate alternatives. 4.Purchase decision. 5.Postpurchase evaluation. •Factors that affect consumer behavior: •Learning. •Reference group. •Culture. •Subculture. •Cognitive dissonance.

Marketing is the activities, sets of institutions, and processes that add ______ for customers.

value

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

4. The four key factors that make B2B markets different from consumer markets are: (1) Customers in B2B markets are relatively few as compared to households in the consumer market, (2) B2B customers tend to be geographically centered, (3) B2B sales tend to be direct, and (4) In the B2B marketplace sales are based on personal selling.

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

2. Geographic segmentation is the process of dividing the market by cities, counties, states, or regions. Demographic segmentation involves dividing the market by age, income, education level, religion, race, and occupation. Psychographic segmentation is the process of dividing the market by values, attitudes, and interests. Benefit segmentation involves determining which benefits to promote. Volume or usage segmentation is the process of determining how your customers purchase and use the product.

Consumer behavior is the study of people's decisions and the factors that influence those decisions.

buying, purchasing, or purchase

There are relatively few customers in the B2B market because there are just a few construction or mining companies compared to 128 million households in the U.S. market.

consumer or B2C

The set of values, attitudes, and ways of doing things transmitted from one generation to another is:

culture

The marketing concept that states that a business must find out what consumers want and provide it for them is called the:

customer orientation

Changes in an individual's behavior resulting from previous experiences and information creates culture.

False

LO 13-1 Define marketing and apply the marketing concept to both for-profit and nonprofit organizations.

Marketing •The activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings with value for customers, clients, partners, and society at large. •Marketing today involves helping the buyer buy through: •Websites that help buyers find the best price, identify product features, and question sellers. •Blogs and social networking sites that cultivate consumer relationships. Nonprofit Organizations and Marketing •Nonprofit marketing includes: •Fundraising. •Obtaining resources. •Promoting their message. •Attracting new members. Creating awareness of social issues.

Choose the secondary sources of data collection from the list.

Government publications Magazines

LO 13-3 Summarize the marketing research process.

Marketing Research •The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions. •Research is used to identify products consumers have used in the past and what they want in the future. •Research uncovers business trends, the ecological impact of decisions, global trends, and more.

LO 13-4 Show how marketers use environmental scanning to learn about the changing marketing environment.

Environmental Scanning •The process of identifying factors that can affect marketing success. •Influences involved in the environmental scan include: •Global factors. •Technological factors. •Sociocultural factors. •Competitive factors. Economic factors. Consumer market — All the individuals or households that want goods and services for personal consumption or use. 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. The buyer's reason for buying—that is, the end use of the product—determines whether a product is a consumer product or a B2B product.