Chapter 13 - Marketing : Helping buyers Buy
attributes typically used to differentiate consumer groups
-income -education -age
the broad and varied group of people that provide market research information are called
-shareholders -consumers -stakeholders
factors that are part of the technological environment
bar codes, data interchange, and telecommunications
examples of geographic segmentation
by states, by city, and by region
in the 950s, a philosophy emerged where a business recognized the need to be responsive to consumers if they wanted to get their business -this philosophy is referred to as
marketing concept
characteristics of the United States cultural values:
-freedom -diversity -education
a focus group
is a group of people who meet under the direction of a discussion leader to communicate their opinions about an organization
factors that affect consumer behavior include the following: -cognitive dissonance
is a type of psychological conflict that can occur after a purchase
economic factors: markets must pay attention to the economic environment
as the economy slowed, marketers had to adapt by offering products that were less expensive and more tailored to consumers with modest incomes
secondary data are what markets gather first to avoid
incurring unnecessary expense
online communication provide
opportunities to observe people ( customers and others) interacting with one another, expressing their own opinions, forming relationships, and commenting on various goods and services.
when setting price, a company must consider many factor including the costs of
-distribution -promotion -production
order the fowlling steps that involves the marketing mix
1-design a product to meet the need based on research 2- determine a brand name, design a package, and set a price 3- select a distribution system 4-design a promotional program
managing the controllable parts of the marketing process means
1-designing a want-satisfying product 2-setting a price for the product 3-putting the product in a place where people will buy it 4-promoting the product the 4 factors are called the marketing mix because businesses blend them together in a well-designed marketing program
we can divide much of what marketing teams do into 4 factors, called marketing mix
1-product 2-price 3-place 4-promotion
marketing in the U.S. has passed through 4 eras:
1-production 2-selling 3-marketing concept 4-customer relationship today, a new era is quickly emerging: mobile/on-demand marketing
sociocultural factors: marketers must monitor social trends to maintain their
close relationship with customers, since population growth and changing demographics cna have an effect on sales -one of the fastest growing segments of the US population is people over 65. The increase in the number of older adults creates growing demand for retirement communities, health care, prescription drugs, recreation, continuing education, and more
The Emerging Mobile/On-Demand Marketing Era: as digital technology continues to grow, consumer demands are likely to rise in 4 areas -simple
consumers expect all interactions to be easy
The Emerging Mobile/On-Demand Marketing Era: as digital technology continues to grow, consumer demands are likely to rise in 4 areas -now
consumers want to interact anywhere, anytime
factors that affect consumer behavior include the following: -leading
creates changes in an individual's behaviors resulting from previous experiences and information.
the total potential consumer market consists of the billions of people in global markets. Because consumer groups
differ greatly by age, education level, income, and taste, a business usually can't fill the needs of every group. It might decide which groups to survive, and then develop products and services tailored to their needs -finding the right target market
geographic segmentation
dividing the market by cities, counties, states, or regions
benefit segmentation
dividing the market by determining which benefits of the product to talk about
volume ( or usage) segmentation
dividing the market by usage (volume of use)
psychographic segmentation
dividing the market using the group's values, attitudes, and interests
besides listening to customers, marketing researchers laos pay attnetion to what
employees, shareholders, dealers, consumer advocates, media representatives, and other stakeholders have to say.
the marketing concept had 3 parts: 1-a customer orientation
find out what consumers want and provide it for them
the marketing concept had 3 parts: -a 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
the production era
from the time the first european settlers began their struggle to survive in America, general philosophy was "Produce as much as you can, because there is a limitless market for it" -given the limited production capability and vast demand for products in those days, that production physiology was both logical and profitable -business owners were mostly farmers, carpenters, and trade workers. -they needed to produce more and more, so their goals centered on production
such intermediaries are the middle links in a series of organization ( also called middlemen)
getting the product to consumers when and where they want it is critical to market success
although the mass marketing-led many firms to success, marketing managers often
got so caught up with their products and competition that they became less responsive to the market
marketers in the U.S. have changed their products to meet the tastes and preferences of what groups whose numbers have increased?
hispanics and asians
of course, helping the buyer buy also helps the seller buy
in industries like this, the role of marketing is to make sure that a company's products or services are easily found online, and that the company responds effectively to potential customers
the consumer market is made up of
individuals and households
once you've researched consumer needs and found a target market for your product, the four P's of marketing come into play -you start by developing a product or products product
is 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 name
marketing managers must be aware of the surrounding environment when making marketing mix decisions -environmental scanning
is the process of identifying factors that can affect marketing success
customer relationship management ( CRM)
is the process of learning as much as possible about present customers and doing everything you can overtime to satisfy them - or even to exceed their expectations - with goods and services. -the idea is to enhance customer satisfaction and stimulate long-term customer loyalty
factors that affect consumer behavior include the following: -subculture
is the set of values, attitudes, and ways of doing things that results from belonging to a certain ethnic, racial, or other group with which one cloesly identifies -ex/ teenagers
factors that affect consumer behavior include the following: -culture
is the set values, attitudes, and ways of doing things transmitted from one generation to another in a given society
the B2B market is larger than the consumer market because
items are sold and resold several times in the B2B process before they reach the final consumer
relationship marketing tends to
lead away from mass production and toward custom made goods and services. -the goal is to keep individual customers over time by offering them new products that exactly meet their requirements. -technology and social media enable sellers to work with individual buyers to determine their wants and needs and to develop goods and services specifically designed for them
the marketing concept had 3 parts: -a service orientation
make sure everyone in the organization has the same objective: customer sanctification. -this should be a total and integrated organizational effort.
business to business ( B2B) marketers include
manufacturers ; intermediaries, such as retailers like hospitals, schools, and nonprofits; and the government
much of the future of marketing lies in mining such as online conversations and responding appropriately. -ex/
marketers are learning why online shoppers will add goods to their shopping carts, but then leave before they give their credit card information
analyzing the research data
marketers must turn the data they collect in the research process into useful information -careful, honest interpretation of the data can help a company find useful alternatives to specific marketing challenges
defining the question and determining the present situation
marketing researchers need the freedom to discover what the present situation is, what the problems or opportunities are, what the alternatives are, what information they need, and how to go about gathering and analyzing data.
the marketing environment: competitive factors
markets must pay attention to the dynamic competitive environment
in the world of mass production following the industrial revolution, marketers responded by practicing mass marketing. -mass marketing
means developing products and promotions to please large groups of people. -that is, there is little market segmentation. That means using mass media such as TV, radio, and online ads to reach them.
today consumers are able to share, compare, and rate experiences 24/7 in the new marketing era known as the
mobile/on-demand era
phone surveys, online surveys, mail surveys, and personal interviews are the
most common forms of primary data collection. -focus groups are another popular method of surveying individuals
collecting data: usable information is vital to the marketing research process. -research can become quite expensive, however, so marketers must often make a trade-off between the need for information and the cost of obtaining it.
normally the least expensive method is to gather information already compiled by others and published in journals and books or made avlaaible online such existing data are called secondary data since you aren't the first one to gather them
target market
one or more specific groups of potential consumers toward which an organization directs its marketing program
global factors: by going online, businesses can
reach many of the world's consumers relatively easily and carry on a dialogue with them about the goods and services they want -the galvanization process puts more pressure on those whose responsibility it is to deliver products to these global customers
marketing is described as 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 -also as the activities buyers and sellers perform to facilitate mutually satisfying exchanges
the best segmentation strategy is to use all the variables to come up with a consumer profile that represents a
sizeable, reachable, and profitable target market. -that may mean not segmenting the market at all and instead going after the total market ( everyone. Or it may mean going after the ever-smaller segments
much of research now being gathered online through ( marketing research)
social media
the customer relationship era
some managers extended the marketing concept by adopting the practice of customer relationship management -the idea is to enhance customer satisfaction and stimulate long-term customer loyalty
sources of primary data collection
surveys and focus groups
selecting which groups or segments an organization can serve profitably is
target marketing
promotion consists of all the
techniques sellers use to inform people about and motivate them to buy their products or services
the porcess of testing products among potential users is called
test marketing
concept testing
testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal -developing an accurate description -if consumers like the products and agree they would buy them, you have the information you need to find investors and look for a convenient location to open a restaurant
promotion often includes relationship building with customers
that means responding to suggestions consumers make to improve the products or their marketing, including price and packaging -listening to customers and responding to their needs is the key to the ongoing process that is marketing
the emerging mobile/ on-demand marketing age
the digital age is increasing consumers power and pushing marketing toward being on demand, not just always "on" -Consumers are demanding relevant information exactly when they want it, without all the noise of unwanted messages -consumers share , compare, and rate experiences through social media; and mobile devices make it all available 24/7 -developments such as inexpensive mircortrasmitters embedded in products will allow consumers to search by image, voice, or gestures
the marketing concept era
the postwar years ( after world war II) launched the sudden increase in the birthrate that we call the baby boom, and also a boom in consumer spending -competition for the consumer's dollar was fierce. Businesses recognized that they needed to be responsive to consumers if they wanted to get their business, and a physiology emerged called the marketing concept
often, secondary data don't provide all the information managers need for important business decisions. -to gather additional in-depth information, marketers must do their own research
the results of such new studies are called primary data -one way to gather primary data is to conduct a survey
every decision in the marketing process depends on information. -when marketers conduct marketing research,
they analyze markets to determine opportunities and challenges, and to find the information they need to make good decisions
The Emerging Mobile/On-Demand Marketing Era: as digital technology continues to grow, consumer demands are likely to rise in 4 areas -Can I?
they want to do new things with different kinds of information in ways that create value for them
technological factors: relate to the internet
using consumer database, blogs, social networking sites, and the like, companies can develop products and services that closely match consumers' needs
identify some of the factors used to divide the market in psychographic segmentation
values, attitudes, and interests
a product includes anything that would enhance it in the eyes of consumers, such as the
warranty, package, and brand
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 -marketers also conduct research on business trends, the ecological impact of their decisions, global trends, and more -business need information to compete effectively, and marketing research is the activity that gathers it
what markets do at any particular time depends on
what they need to do to fill customer's' needs and wants, which are continually changing
niche marketing is
identifying small but profitable market segments and designing or finding products for them. -because it so easily offers an unlimited choice of goods, online retail transformed a consumer culture once based on big hits and best-sellers into one that supports more specialized niche products
sociocultural factors: other shifts in the US population are creating new challenges for markets as they adjust their products to meet the tastes and preferences of Hispanic, Asian, and other growing ethnicities
to appeal to diverse groups, markets must listen better and be more responsive to unique needs
demographic segmentation
dividing the market by age, income, education level, religion, race, and occupation
the marketing environment: sociocultural
-population shifts -values -attitudes -trends
the marketing environment: economic
-GDP -disposable income -competition -unemployment
marketers must pay attention to the dynamic competitive environment because
-change is occurring more rapidly -the internet gives consumers information instantly
the marketing environment: technological
-computers -telecommunications -bar codes -data interchange -internet changes
B2B marketing is different from consumer marketing because B2B
-customers are generally more rational -customers are large
businesses use market research to segment the consumer market using such characteristics as:
-demographic information -personality differences
the four P's of marketing please customers by doing what
-designing the product so it is something customers want -selling an acceptable price for customers -engaging in promotional strategies to attract the customer to the product
websites have helped the buyer buy
-not only are customers spread searching one dealership after another to find the best price, but manufacturers and dealers are eager to participate so that they don't lose customers. -the future of marketing is doing everything you can to help the buyer buy. The easier a marketer makes the purchase decision process, the more that marketer will sell
what are some of the industries that will benefit from the increase in the over 65 population
-prescription drugs -recreation -nursing homes
if a student majors in marketing, which career options will be available?
-public relations -retail store manager -advertising
the internet allows a company to provide customers easy access to
-research information about their products -inform them of product problems -communicate with them directly
the selling era
By the 1920s, businesses had developed mass-production techniques (such as automobile assembly lines), and production capacity often exceeded the immediate market demand. Therefore, the business philosophy turned from producing to selling. Most companies emphasized selling and advertising in an effort to persuade consumers to buy existing products; few offered extensive service after the sale.
The Emerging Mobile/On-Demand Marketing Era: as digital technology continues to grow, consumer demands are likely to rise in 4 areas -For me
Consumers expect all data stored about them to be used to personalize what they experience
consumers today spend hours searching online for good deals -wise marketers provide
a health of information online and even cultivate customer relationship using blogs and social networking sites such as Facebook and Twitter.
one of the best ways to understand the entire marketing process is to take
a product or group of products and follow the process that led to their development and sale
there are 2 major markets in business: the consumer market and the business-to-business market. -business to business ( B2B) market
consists of 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 -oil drilling bits, cash registers, display cases, office desks, public accounting audits, and business software are B2B goods and services. traditionally, they have been known as industrial goods and services because they are used in industry
there are 2 major markets in business: the consumer market and the business-to-business market. -the consumer market
consists of all the individuals or households that want goods and services for personal consumptions or use and have the resources to buy them
the B2B market is larger than the
consumer market
a market consists of
people with unsatisfied wants and needs who have both the resources and the willingness to buy
choosing the best solution and implementing it: after collecting and analyzing dta, marketing researchers determine alternative stragies and make recommendations about which may be best and why
this final step in a research effort also includes following up on actions taken to see whether the results were what was expected -if not, the company can take corrective action and conducts new studies in its ongoing attempt to provide consumer satisfaction at the lowest level
after you've decided what products and services you want to offer consumers, you have to set appropriate prices
those prices depend on a number of factors. -may charge to stay competitive -may charge less to being more customers in -or may offer high quality products for which consumers are willing to pay a little more may also consider the costs of producing, distributing, and promoting the product, which all influence your price
states use marketing to attract many groups. Choose the 2 main groups from the list that states try to attract:
tourists and new businesses
the marketing environment: global
-trade agreements -competition -trends -opportunities -internet
one of the fastest-growing segments of the U.S. population is people over the age of
65
a brand name is
a word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors
promotion includes
advertising; personal selling; public relations; publicity; word of mouth ( virtual marketing) ; and various sales promotion efforts, such as coupons, rebates, samples, and cents-off-deals
even though the marketing concept emphasizes a profit orientation, marketing is a critical part of
almost all organizations, including nonprofits
one-to-one marketing means
developing a unique mix of goods and services for each individual customers -travel agencies often develop packages, including airline reservations, hotel reservations, rental cars, restaurants, and admission to museums and other attractions for individual customers
influences on the marketing environment
global, economic, and competitive
the process of dividing the total market into groups with similar characteristics is called
market segmentation
a firm can segment the consumer market several ways
-geographic segmentation -demographic segmentation -psychological segmentation -benefit segmentation -volume ( or usage) segmentation
the B@B market includes:
-government -institutions -manufacturers
what are examples of a subculture
-hispanics -teenagers -Gen Y
it is important to properly define the question during the marketing research process to
-identify the question as a problem or opportunity -determines what information is needed -recognize the current situation
factors that affect consumer behavior include the following:
-learning -reference group -culture -subculture -cognitive dissonance
the marketing environment: competitive
-speed -service -price -selection
major factors in the marketing environment
-technological factors -global factors - competitive factors
the customer decision making process
-the first step in the consumer decision-making process is problem recognition. this leads to an information system -after completing all this information you evaluate alternatives and make a purchase decision -Market researches investigate these consumer thought processes and behavior at each stage in purchase to determine the best way to help the buyer buy. this area of study is called consumer behavior
there is a wide variety of careers in marketing than in most business disciples
-you could become a manager in a retail store -you could do marketing research or work in product management -you could go into selling, advertising, sales promotion, or public relations -you could work in transportation, storage, or international distribution -you could make websites
B2B marketing strategies also differ from consumer marketing because business buyers have their own decision-making process. -several factors make b2B marketing different, including
1- consumers in the B2B market are relatively few 2-business customers are relatively large 3-B2B markets tend to be geographically concentrated 4-business buyers are generally more rational and less emotional than ultimate consumers 5- B2B sales tend to be direct, but not always 6- whereas consumer promotions are based more on advertising, B2B sales are based on personal selling
list the 4 steps of the marketing research process in order from first to last
1- defining the question ( the problem or opportunity) and determining the present situation 2- collecting research data 3-analyzing the research data 4-choosing and implementing the best solution
a focus group is a group of people who meet under the direction of a discussion leader and:
express their concerns about specific issues and express their opinions about an organization or product
the important thing to remember is that the buyers reason for buying-that is the end use of the product- determines whether a product
is a consumer product or B2B product
what are some of the acitvites invovled in marketing?
developing the exchange process and advertising
factors that affect consumer behavior include the following: -reference group
is the group an individual uses as a reference point in forming beliefs, attitudes, values, or behavior