MGMT 1 Chapter 13
What are the 4 P's of Marketing Mix?
- 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
- Production - Selling - Marketing concept - Customer relationship - Today, a new era is emerging: mobile/on-demand marketing
Eras of Marketing in the United States
- Prices of related businesses to stay competitive - New businesses may charge less to attract customers - High-quality products for a higher price - Costs of production, distributing, and promoting the product
Factors of Price
Business-to-business (B2B) marketers include manufacturers, intermediaries, institutions, and the government
True
Other shifts in the US population are creating new challenges for marketers as they adjust their products to meet the tastes and preferences of Hispanic, Asian, and other growing ethnic groups
True
Primary data includes surveys (telephone, online, mail), personal interviews, and focus groups
True
Promotion includes advertising; personal selling; public relations; publicity; word of mouth (viral marketing); and various sales promotion efforts
True
Secondary data doesn't always provide all the information managers need for important business decisions
True
Secondary data includes government publications and magazines
True
Secondary data is what marketers should gather first to avoid incurring unnecessary expense
True
True or False: Because consumer groups differ greatly by age, education level, income, and taste, a business usually can't fill the needs of every group and must decide which groups to serve, and then develop products and services specially tailored to their needs
True
True or False: Marketers research on business trends, the ecological impact of their decisions, global trends and more
True
"Produce as much as you can, because there is a limitless market for it"
True motto of the Production Era
customer thought processes and behaviors at each stage in a purchase to determine the best way to help the buyer buy
consumer behavior
all the individuals or households that want goods and services for personal consumption or use
consumer market
find out what consumers want and provide it for them
consumer orientation
the set of values, attitudes, and ways of doing things transmitted from one generation to another in a given society
culture
Definition: Idea is to enhance customer satisfaction and stimulate long-term customer loyalty
customer relationship management (CRM)
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
a three-part business philosophy: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation
marketing concept
- Defining the question (the problem or opportunity) and determining the present situation - Collecting research data - Analyzing the research data - Choosing the best solution and implementing it
marketing research process
dividing the market by usage (volume of use)
volume (or usage) segmentation
By the 1920s, mass-production techniques and production capacity often exceeded the immediate market demand, therefore business philosophy changed from producing to selling
True
Environmental scanning includes global, technological, sociocultural, competitive, and economic influences
True
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
True
One of the fastest-growing segments of the US population in the 21st century is people over 65
True
States use marketing to attract new businesses and tourists
True
Technological factors include computers, telecommunications, bar codes, data interchange, and Internet changes
True
There is a wider variety of careers in marketing than in most business disciplines
True
dividing the market by determining which benefits of the product to talk about
benefit segmentation
a word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors
brand name
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
business-to-business (B2B) market
Definition: when you develop an accurate description of your business and ask people, in person or online, whether the idea of business you intend to offer appeals to them
concept testing
- Problem recognition - Information search - Evaluate alternatives and make a purchase decision - Postpurchase evaluation
consumer behavior
dividing the market by age, income, and education level
demographic segmentation
the process of identifying the factors that can affect marketing success
environmental scanning
- Customers in the B2B market are relatively few - Business customers are relatively large - B2B markets tend to be geographically concentrated - Business buyers are generally more rational and less emotional than ultimate consumers, use product specifications to guide buying choices, and often more carefully weigh the total product offer, including quality, price, and service - B2B sales tend to be direct, but not always - Consumer promotions are based more on advertising, while B2B sales are based on personal selling
factors that make B2B marketing different
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
focus group
dividing a market by cities, counties, states, or regions
geographic segmentation
creates changes in an individual's behavior resulting from previous experiences and information
learning
the process of dividing the total market into groups whose members have similar characteristics
market segmentation
developing products and promotions to please large groups of people
mass marketing
intermediaries in a series of organizations that distribute goods from producers to consumers
middlemen
the process of finding small but profitable market segments and designing or finding products for them
niche marketing
developing a unique mix of goods and services for each individual customer
one-to-one marketing
data that you gather yourself (not from secondary sources such as books and magazines)
primary data
any physical good, service, or idea that satisfied a want or need plus anything that would enhance the product in the eyes of consumers, such as the brand
product
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
profit orientation
all the techniques sellers use to inform people about and motivate them to buy their products or services
promotion
dividing the market using groups' values, attitudes, and interests
psychographic segmentation
marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements
relationship marketing
information that has already been compiled by others and published in journals and books or made available online
secondary data
make sure everyone in the organization has the same objective: customer satisfaction
service orientation
the set of values, attitudes, and ways of doing things that results from belonging to a certain ethnic group, racial group, or other group with which one closely identifies
subculture
marketing directed toward those groups (market segments) an organization decides it can serve profitably
target marketing
the process of testing products among potential users
test marketing