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