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.