Intro to Business: Chapter 13 - Marketing: Helping Buyers Buy

the consumer market consists of 70 million households, but...

there are few customers in the B2B market of an industry like auto manufacturing

the four Ps (marketing mix)

1) product 2) price 3) place 4) promotion - vital component factors of marketing

marketing in the united states has passed through four eras:

1) production 2) selling 3) marketing concept 4) customer relationship

a brand name is an important use of words, letters, or groups of words or letters because it ___ your products from others

differentiates

product specifications

business buyers use this to guide rational buying choices and look at the total product offer

consumer market

consists of all the individuals or households that want goods and services for personal consumption or use and have the resources to buy them

the b2b market is larger than the __ market

consumer

primary data

data that you gather yourself (not from secondary sources such as books and magazines) ex: telephone surveys, online surveys, mail surveys, and personal interviews are the most common forms of gathering, interview

one to one marketing

developing a unique mix of goods and services for each individual customer ex: travel agencies often develop such packages, including airline reservations, hotel reservations, rental cars, restaurants, and admission to attractions

tire manufacturers sell ___ to auto manufacturers, but use ___ to sell to ultimate consumers.

directly; intermediaries

geographic segmentation

dividing a market by cities, counties, states, or regions

demographic segmentation

dividing the market by age, income, and education level, gender

benefit segmentation

dividing the market by determining which benefits of the product to talk about dividing the market based on specific features of the product that will appeal to different groups

volume (or usage) segmentation

dividing the market by usage (volume of use)

psychographic segmentation

dividing the market using groups' values, attitudes, and interests ex: tv shows they like, personalities they like

as the ___ slowed, marketers had to adapt by offering products that were less expensive and more tailored to consumers with modest incomes

economy

in the united states, most but not all companies have evolved by passing through the four ___ of marketing

eras

product factor

ex: auto companies truly seem to be listening to customers who are environmentally concerned by offering more fule-efficient cars. they are adjusting the product factor of the marketing mix.

stakeholders

groups such as customers, employees, dealers, shareholders, customers and others that provide some of the research that companies gather through market research

the increase in the number of older adults creates a growth in demand for:

health care

target marketing

marketing directed toward those groups (market segments) an organization decides it can serve profitably (p 366) business selects groups or segments that they can serve most profitably

relationship marketing

marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements

the marketing process with the four p's

p 358

selected sources of primary and secondary information

p 362 PRIMARY sources: - interviews, surveys, observation, focus groups, online surveys, questionaires, customer comments, letters from customers SECONDARY sources: - gov't publications - commercial publications - magazines - newspapers - internal sources: company records, balance sheets, income statements - general sources: internet searches, google-type searches, commercial databases

the marketing environment

p 364

consumer decision making process

p 369 1) problem recognition 2) information search 3) secondary data to seek advice (ex. consumer reports) 4) evaluate alternatives 5) purchase decision study of *consumer behavior*: marketing researchers investigation of consumer thought processes - learning - reference group - culture - subculture - cognitive dissonance steps in consumer decision making process from first to last (learn smart): 1) problem recognition 2) information search 3) alternative evaluation 4) purchase decision 5) postpurchase evaluation

market research

paying attention to the needs of stakeholders such as customers, shareholders, employees, dealers, consumer advocates, and media representatives

psychological influences of decision making are:

perceptions, attitudes, and motivation

when a business purchases the services of a public accounting firm to perform an audit of their financial data they are engaging in:

b2b market

selling era

- by 1920s, businesses had developed mass production techniques (such as automobile assembly lines) - production capacity often exceeded the immediate market demand - most companies emphasized selling and advertising tin an effort to persuade consumers to buy existing products; few offered extensive service after the sale

important function of marketing is to:

- communicate the benefits of the product/service - facilitate exchange - deliver the product/service

the internet allows a company to provide customers easy access to:

- communicate with them directly - inform them of product problems - research information about their products

the broad and varied group of people that provide market research information are called:

- consumers - stakeholders - shareholders

the business to business (b2b) market is made of all ___ and ___ that want goods and services for production, sales to others.

individuals and businesses

oil drilling bits, cash registers, office desks, and business software are considered:

industrial goods

managers may not understand marketing and/or data collection techniques, so marketers must collect the data, interpret it, and convert it to useful ___ for managers.

information

secondary data

information that has already been compiled by others and published in journals and books or made available online

a reference group

is a group that you look up to in forming your beliefs, attitudes, values, or behaviors

the key advantage of secondary data is the cost of collecting data is ___ than for primary data

less than

since population growth and changing demographics can have an effect on company sales, marketers must monitor:

social trends

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

marketing research

the analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions when information is gathered on business trends, global trends, and consumer buying patterns marketing research process: 1) defining the question 2) collecting research data 3) analyzing the research data 4) choosing the best solution and implementing it

sociocultural influence

the influence on the consumer decision process that includes reference groups, family, and social class - when evaluating the marketing environment a company looks at population shifts, values, attitudes, and trends

marketing mix

the ingredients that go into a marketing program: product, price, place, and promotion 1) find opportunities 2) conduct research 3) identify a target market

market segmentation

the process of dividing the total market into groups whose members have similar characteristics chart p 367

niche marketing

the process of finding small but profitable market segments and designing or finding products for them

environmental scanning

the process of identifying the factors that can affect marketing success include: global, technological, sociocultural, competitive, and economic influences (p 364-365)

test marketing

the process of testing products among potential users

production era

until early 1900s, "produce as much as you can, because there is a limitless market for it"

education, freedom, and diversity are ___ of the US culture

values

subculture

when values, attitudes, and ways of doing things result from belonging to a specific ethnic, racial, or other group that one identifies closely with ex: Generation Y, teenagers, Hispanics

the technological innovations that companies can use to develop products and services that match consumers' wants and needs more effectively:

- data bases - blogs - social networking

factors of technological environment

- data interchange - bar codes - RFID chips - telecommunications

influences in the marketing environment

- economic - global - competitive

US culture values

- education - diversity - freedom

consumer groups are differentiated by these attributed:

- education - income - age

two most common methods of segmenting markets

- geographic - demographics

marketers in the US have changed their products to meet the tastes and preferences of which of the following groups which have increased in size?

- hispanics - asians - other ethnic groups

promotion involves:

- informing people about products - motivating potential customers to buy

B2B market includes:

- institutions - government - manufacturers

states us marketing to attract many groups. the two main groups try to attract are:

- new businesses - tourists

major factors that affect both B2B and consumer markets:

- product - buying procedures - market structure

when setting a price, a company must consider many factors including:

- production - distribution - promotion

if a student majors in marketing, which career options will be available:

- public relations - retail store manager - marketing advertising

two online sources that allow for market research information:

- social networks - blogs

marketers must pay attention to the dynamic competitive environment because

- the internet gives consumers information instantly - change is occurring more rapidly

the factors in the economic environment:

- unemployment - disposable income

a product includes anything that would enhance it in the eyes of consumers such as:

- warranty - package - brand

ABC's of Marketing

-Always be customer-focused. -Benchmark against the best firms. -Continuously improve performance. -Develop the best value package. -Empower your employees. -Focus on relationship building. -Goal achievement is the reward.

one of the fastest growing segments of the US population is people over the age of

65

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

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) customer orientation: find out what consumers want and provide it for them 2) service orientation: make sure everyone in organization has same objective: customer satisfaction 3) profit orientation: focus on those goods and services that will earn most profit and enable organization to survive and expand to serve more consumer wants and needs

cognitive dissonance

a type of psychological conflict that can occur after a major purchase

brand name

a word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors

marketing concept era

after WWII ended in 1945, there was a tremendous demand for goods and services - businesses recognized that they needed to be responsive to consumers if they wanted to get their business, and a philosophy emerged in *1950s* called the marketing concept

setting an appropriate price

after you've decided what products and services you want to offer consumers, you have to set appropriate prices

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

promotion

all the techniques sellers use to inform people about and motivate them to buy their products or services includes: - public relations - advertising - word of mouth - personal sales / selling vital component of marketing, which involves letting customers know the product/service, where you can buy it, and describing the value proposition of the product/service

concept testing

developing an accurate description of your product and asking people if they like the idea

mass marketing

developing products and promotions to please large groups of people

intermediaries

ex: selling products in supermarkets or health-food stores, or through organizations that specialize in distributing products - middle links in a series of organizations that distribute goods and producers to consumers - these people perform many of the activities required to move products efficiently from producers to consumers or industrial buyers and are often wholesalers or retailers

business to business market vs consumer market chart

p 371 B2B - customers in b2b market are relatively few - business customers are relatively large (big organizations) - tend to be geographically concentrated - buyers generally more rational and less emotional that ultimate consumers - sales tend to be direct - more personal selling than in consumer markets / more personal service b2b buyers are more professional and trained

customer relationship

present marketing era: takes time and financial resources to learn as much as a company can about its customers and what factors satisfy them

often secondary data does not provide all the information managers need for decision making, and they must gather:

primary data

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 even to exceed their expectations--with goods and services idea is to enhance customer satisfaction and stimulate long term customer loyalty

the consumer market concentrates on goods and service for personal consumption, and the business to business (b2b) focuses on goods and services to be used in:

production

the consumer market concentrates on goods and service for personal consumption, and the business to business (b2b) market focuses on goods and services to be used in:

production

culture

the set of values, attitudes, and ways of doing things transmitted from one generation to another

learning

the study of changes in an individual's behavior resulting from previous experiences and information

text mining tools

the tools that help companies measure online conversations about their products and their personnel