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