Chapter 12: Marketing

Customer's Buying Decision 5 Steps

1. Customers recognize a need or want 2. Customers seek information on which to base their buying decision 3. Customers evaluate and compare their alternatives 4. Customers make the decision of what to buy or not buy based on perceived value 5. After their purchase, customers evaluate their buying decision and take actions based on their satisfaction level

Marketing Research Process 5 Steps

1. Define the research question 2. Design the research so the question can be answered 3. Collect the needed data 4. Analyze the data 5. Make strategic decisions based on the analyzed data

Laws are needed to: (3 parts)

1. Protect the customers from buying unsafe products 2. Inform the buyer what they are buying and not buying, including rights and responsibilities of both the seller and buyer 3. Protect customers from sellers who unfairly manipulate the market by making false claims, withholding information, or engaging in discriminatory pricing practices

Marketing Process 5 Steps

1. Understand the market (collection of all current and potential customers and competitors seeking to satisfy the wants and needs of all those customers 2. Positioning the product within a market 3. Select the most effective mode of distributing the product 4. Determine the price it must and can charge for the product 5. Promote the product

History of Marketing Professor Foutz

1900's-->production era 1920's-->product era 1930's-1970's-->selling era 1960's-Current-->customer era

Consumer Behavior (Cultural Factors, Social Factors, Economic Factors, Psychological Factors, Individual Factors)

Cultural Factors: relate to the factors consumers learn ie. what is acceptable and desirable regarding housing, food, clothing, and transportation Social Factors: relate to how the consumers are affected by group behavior ie. formal group such as family or informal group such as social networking Economic Factors: relate to a customer's level of income and wealth Psychological Factors: relate to a consumer's motivation, perceptions, beliefs, and knowledge Individual Factors: relate to factors such as age, health, occupation, lifestyle, and personality

Product Life Cycle Analysis 4 Stages

Introduction Stage: assumes a lot of risk hoping for large return, offering product at reduced price at start usually resulting in loss (opportunity stage) Growth Stage: risk lowered-->sales increase, competitors enter the market and try to differentiate the product (star stage) Maturity Stage: if competitors enter they lower their prices, net income begins to decrease with lower prices, more competitors enter and risk increases (cash cow stage) Decline Stage: competitors struggle to attract sales, prices continue to decrease, risk is very high, eventually no product demand (dog stage)

Four P's Of Marketing

Product: good or service to be exchanged Place: location and means of distributing the product Price: amount the customer pays the business for the sale Promotion: communication by the business to customers, designed to inform the customer of product attributes and persuade the customer to purchase the product

CVP Professor Foutz

Segment, Targeting, Position Analysis (STP) and the Perceptual Map

Sustainable Marketing

addresses the need for products to meet the current and future needs of customers

Secondary Marketing Data

already exists (information from a census, etc.)

Product Development

attempts to develop and introduce a new product to an existing market

Market Development

attempts to get new customers to buy existing products

Market Penetration

attempts to increase an existing product's share of existing markets

Segment the Market

business must understand the market for its products (ie. the competitors capabilities and the needs of customers)

Competitors

business that is attempting to sell a similar product to your current or prospective customer

B2B Market

business to business market

B2C Market

business to company market

Primary Marketing Data

created for the sole purpose of answering the marketing question

Product Differentiation

creating a different product and possessing unique qualities that make it desirable among customer alternatives

Request for Proposal (RFD)

formal process where businesses issue to inquire about selling a product

External Environment

general economic conditions, government regulations, customer needs, and competitor actions

Product Positioning

getting the customers to perceive the product is different and provides more value compared to competing products

Internal Environment

made up of the people, systems, and values used in making the purchase decision

Relationship Marketing

marketing that affects short-term and long-term sales by creating relationships with buyers and sellers

Maslow's Hierarchy of Needs

often is used to visualize how consumers prioritize buying decision 1. Food and water (psychological) 2. Security of body and property (safety) 3. Friendship and family (social) 4. Self-esteem and respect of others (esteem) 5. Morality and creativity (self-actualization)

Marketing Mix

output of the marketing process

Marketing Research

process of collecting and analyzing data regarding the current and potential customers and competitors

Marketing

process of understanding market, positioning products to meet customer needs, distributing products, pricing products, and communicating product attributes to customers (promotion)

Competitor Analysis

research which determines who the competitors are, how these competitors operate, and how customers perceive the products of their competitors

Select or Target

segment which a business believes it can create a competitive advantage