Chapter 13. Marketing: Helping Buyers Buy

Marketing Mix (4 P's)

(Product) Designing a want-satisfying product (Price) setting a price for the product (Place) putting the product in a place where people will buy it (Promotion) promoting the product

Technological factors of Marketing Environment

-Computers -Telecommunications -Bar codes -Data interchange -Internet Changes

Economical factors of Marketing Environment

-GDP -Disposable Income -Competition -Unemployment

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

Marketing

Intermediaries/middlemen

Perform many of the activities required to move products efficiently from the producers or industrial buyers and are often wholesalers or retailers

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

Price

Technological Factors

Using consumer databases, blogs, social networking, and the like, companies can develop products and services that closely match consumers' needs.

Evaluate Alternatives

What are the advantages and disadvantages of each alternative?

geographic segmentation

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

Sociocultural factors of Marketing Environment

-Popular shifts -Values -Attitudes -Trends

Marketing Concept Era of Marketing

After WWII, a consumer spending boom developed. Businesses knew they needed to be responsive to consumers if they wanted their business. The competition was fierce. Developed the philosophy of marketing concept.

State governments will use marketing in order to:

Attract new business and tourism

When marketers gather information on business trends, global trends, and consumer buying patterns they are conducting:

Market research

The idea behind CRM is to enhance customer:

Satisfaction and stimulate long-term customer loyalty

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

Secondary data

problem recognition

The first stage of the business buying process in which someone in the company recognizes a problem or need that can be met by acquiring a good or a service.

Marketing Environment

The sociological, economic, technological, competitive, and global factors that influence the market

post purchase behavior

The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction

True or false helping the buyers buy also helps the seller sell

True

Consumer Decision Making Process

a five-step process used by consumers when buying goods or services 1. need recognition 2. information search 3. evaluation of alternatives 4. purchase decision 5. post-purchase behavior (Comparing decisions), (Cognitive Dissonance)

brand name

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

Mass Marketing

developing products and promotions to please large groups of people

demographic segmentation

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

benefit segmentation

dividing the market by determining which benefits of the product to talk about

customer orientation

find out what consumers want and provide it for them

Secondary data

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

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

With marketing research, marketers analyze markets to determine:

opportunities and challenges

Conducting surveys, whether telephone, online, or mail to gather information is a source of:

primary data

Consumer Behavior

processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use

Customer Relationship Era of Marketing

started in the 1980s and occurs as firms continuously seek to satisfy the high expectations of customers.

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

test marketing

the process of testing products among potential users

Information Search

the second stage of the consumer decision process in which the consumer is motivated to search for more information

The evolution of marketing eras in the U.S

-Production Era -Selling Era -Marketing Concept Era -Customer relationship era

Competitive factors of Marketing Environment

-Speed -Service -Price -Selection

Global factors of Marketing Environment

-Trade agreements -Competition -Trends -Opportunities -Internet

Selling Era of Marketing

A period running from the 1920s to until after World War II in which the selling orientation dominated the way firms competed. Emphasized selling and advertising in an effort to buy existing products that occurred during the production era.

focus group

A small 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.

Marketing Concept

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

primary data

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

Shifts in the U.S. population have created new challenges for marketers as they adjust their products to meet the tastes and preferences of the growing number of:

Ethnic groups

True or false: the business philosophy that emphasized selling and advertising in an effort to buy existing products occurred during the production era

False (Selling Era)

People over 65 have become one of the _____ growing segments of the U.S. population

Fastest

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.

Production Era of Marketing

From the beginning of America until the early 1900s top business priority was to produce large quantities of goods as efficiently as possible, without considering customer needs

Business-to-business (B2B) Market

Individuals and organizations that buy goods and services to use in production or to sell, rent, or supply to others.

Target Marketing

Marketing directed toward those groups (market segments) an organization decides it can serve profitably.

Market Segmentation

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

Consumer Market

all the individuals and households that buy or acquire goods and services for personal consumption or use and have the resources to buy them

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

One-to-one marketing

developing a unique mix of goods and services for each individual customer

concept testing

developing an accurate description of your business idea and asking people if the idea appeals to them

volume (or usage) segmentation

dividing the market by usage (volume of use)

psychographic segmentation

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

Marketing Research

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

purchase decision

the buyer's decision about which brand to purchase

Niche Marketing

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

environmental scanning

the process of identifying 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 to satisfy them - or even exceed their expectations - with goods and services