Chapter 13: Marketing
The Selling Era
by the 1920s we had mass production and business philosophy switched form producing to selling
Learning
creates changes in an individual's behavior resulting from previous experiences and information
Primary Data
data that you gather yourself (not form secondary sources such as magazines or books)
Niche Marketing
the process of finding small but profitable market segments and designing or finding products for them
Test Marketing
the process of testing products among potential users
Non Profit Marketing
used to raise funds, gain new members, or get votes
Brand Name
word, letter, or group of words/letters that differentiates one seller's goods and services from those of competitors
Subculture
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
B2B Marketing Strategies
1. Customers are relatively few 2. Markets tend to be geographically concentrated 3. More rational/less emotional 4. Sales tend to be direct (no intermediaries) 5. Sales are based on personal selling not advertising - fewer customers demand more personal service
Evolution of Marketing
1. Production 2. Selling 3. Marketing Concept 4. Customer Relationship -new era of moblie/on demand emerging
Cognitive Dissonance
a type of psychological conflict that can occur afar a purchase - consumers who make a major purchase may have doubts about whether they got the best product at the best price
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
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
Market Research
analysis of markets to determine opportunities and challenges and to find the information needed to make good decisions
Product
any physical good, service or idea that satisfies a want/need plus anything that would enhance the product in the eyes of consumers, such as the brand
Demographic Segmentation
dividing the market by age, income, and education level
Benefit Segmentation
dividing the market by determining which benefits of the product to talk about
Volume (usage) Segmentation
dividing the market by usage or volume of use
Psychographic
dividing the market using group's values, attitudes, and interests
The Production Era
early American philosophy was produce as much as you can because there is an unlimited market
Customer Orientation
find out what consumers want and provide it for them
The Customer Relationship Era
focus on CRM to enhance customer satisfaction and stimulate long-term customer loyalty
Profit Orientation
focus on goods and services that will earn the most profit and enable the firm to survive and expand to serve more customers
Secondary Data
information that has already been compiled by others and published in journals and books or made available online
Target Marketing
marketing directed toward those groups (market segments) and organization decides it can serve profitably
Relationship Marketing
marketing strategy with the goal of keeping individual cutovers over time by offering them products that exactly meet their requirements
Customer Relationship Management (CRM)
process of learning as much as possible about present customers and doing everything you can over time to satisfy them or exceed expectations with goods and services
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.
Reference Group
the group an individual uses as a reference point in forming beliefs, attitudes, values of behavior
Market Segmentation
the process of dividing the total market into groups whose members have similar characteristics
Environmental Scanning
the process of the factors that can affect marketing success
Culture
the set of values, attitudes and ways of doing things transmitted from one generation to another in a given society.
Intermediaries
"middle man" middle links in a series of organizations that distribute goods from producers to consumers
Marketing Concept
1. Customer Orientation 2. Service Orientation 3. Profit Orientation
Marketing Research Process
1. Define question 2. Collect Research Data 3. Analyze Research Data 4. Choose best solution and implement it
The Four P's of Marketing (Marketing Mix)
1. Product 2. Price 3. Place 4. Promotion Designing a want-satisfying product Setting a price for the product Putting the product where people will buy Promoting product
Service Orientation
Goal is to achieve complete customer satisfaction from president to delivery people
The Marketing Concept Era
Post WWII and baby boom made businesses realize they needed to be responsive to consumers - came up with marketing concept
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
Geographic Segmentation
dividing a market by cities, counties, states, or regions
Focus Group
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.