Business Ch 13

one-to-one marketing

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

focus group

A small group of individuals who are led in discussion by a professional consultant in order to gather opinions on and responses to candidates and issues.

Marketing Concept

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

Business-to-business (B2B)

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.

- geographic segmentation- Dividing a market by cities, countries, states, or regions - demographic segmentation- Age, income, religion, race, occupation, and education level are criteria. - psychographic segmentation- to study the group's values, attitudes, and interest. - Benefit segmentation- Determining which product benefits your target market prefers and using those benefits to promote a product. - Volume (or usage) segmentation- Separating the market by volume of product use.

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

The idea behind the four Ps is to design a PRODUCT people want, PRICE it competitively, PLACE it where consumers can find it easily, and PROMOTE it so consumers know it exists.

How do marketers implement the four Ps?

During the production era marketing was largely a distribution function. Emphasis was on producing as many goods as possible and getting them to markets. By the early 1920s, during the selling era, the emphasis turned to selling and advertising to persuade customers to buy the existing goods produced by mass production. After WWII, the tremendous demand for goods and services led to the marketing concept era, when businesses recognized the need to be responsive to customers' needs. During the 1990s, marketing entered the customer relationship era, focusing on enhancing customer satisfaction and stimulating long-term customer loyalty. Today marketers are using mobile/on-demand marketing to engage customers.

How has marketing changes over time?

Marketing Mix

The ingredients that go into a marketing program: product, price, place, and promotion.

Market Segmentation

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

Factors that influence the consumer decision-making process include learning, reference group, culture, subculture, and cognitive dissonance.

What are some of the factors that influence the consumer decision-making process?

The most important global and technological change is probably the growth of the internet and mobile marketing. Another is the growth of consumer databases, with which companies can develop products and services that closely match consumers' needs. Marketers must monitor social trends like population growth and shifts to maintain their close relationship with customers. They must also monitor the dynamic competitive and economic environments.

What are some of the more important environmental trends in marketing?

Geographic segmentation means dividing the market into different regions. Segmentation by age, income, and education level is demographic segmentation. We study a group's values, attitudes, and interests using psychographic segmentation. Determining which benefits customers prefer and using them to promote a product is benefit segmentation. Separating the market by usage is called volume segmentation. The best segmentation strategy is to use all the variables to come up with a consumer profile for a target market that's sizable, reachable, and profitable.

What are some of the ways marketers segment the consumer market?

1. Product 2. Price 3. Place 4. Promotion

What are the four Ps of the marketing mix?

1- defining the question (the problem or opportunity) and determining the present situation. 2- Collecting research data 3- Analyzing the research data 4- Choosing the best solution and implementing it

What are the four steps in the marketing research process?

1- define the problem or opportunity and determine the present situation 2- collect data 3- analyze the data 4- choose the best solution

What are the steps in conducting marketing research?

1- customers orientation 2- a service orientation 3- a profit orientation (that is, marketing goods and services that will earn a profit and enable the firm to survive and expand)

What are the three parts of the marketing concept?

1. Customer Orientation 2. Service Orientation 3. Profit Orientation

What are the three parts of the marketing concept?

It is the easier the marketer makes the purchase decision process. the more that marketer will sell.

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

-global -technological -sociocultural -competitive - economic influences.

What factors are included in environmental scanning?

Environmental scanning is the process of identifying factors that can affect marketing success. Marketers pay attention to all the environmental factors that create opportunities and threats.

What is environmental scanning?

Is the process of identifying factors that can affect marketing success.

What is environmental scanning?

marketing is 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.

What is marketing

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 services for each individual customer.

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

mass marketing means developing products and promotions to please large groups of people. Relationship marketing tends to lead away from mass production and toward custom-made goods and services. Its goal is to keep individual customers over time by offering them products or services that meet their needs.

What is the difference between mass marketing and relationship marketing?

All kinds of organizations use marketing for-profit and nonprofit organizations like states, charities, churches, politicians, and schools.

What kinds of organizations are involved in marketing?

Customers in the B2B market are relatively few and large. B2B markets tend to be geographically concentrated, and industrial buyers generally are more rational than ultimate consumers in their selection of goods and services. B2B sales tend to be direct, and there is much more emphasis on personal selling than in consumer markets.

What makes the business-to-business market different from the consumer market?

brand name

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

Consumer Market

all the individuals or households that want goods and services for personal consumption or use

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 name

Mass Marketing

developing products and promotions to please large groups of people

geographic segmentation

dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods

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)

demographic segmentation

dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

psychographic segmentation

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

secondary data

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

Target Market

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

relationship marketing

marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements

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

Marketing Research

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

Niche Marketing

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

environmental scanning

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

test marketing

the process of testing products among potential users

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. B2B markets consist 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.

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

B2B are a smaller market so to speak compared to 80 million people, they are rational/less emotional buyers, personal selling, and usually geographically concentrated

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

primary data

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