Ch. 13 Marketing: Helping Buyers Buy

Factors in the economic environment

- unemployment - disposable income

Consumer Decision-Making Process

1. Problem Recognition 2. Information Search 3. Alternative Evaluation 4. Purchase Decision 5. Postpurchase Evaluation

What are the four eras of marketing?

1. Production Era 2. Sales Era 3. Marketing Concept Era 4. Customer Relationship Era

4 Elements of the Marketing Mix

1. product 2. price 3. place 4. promotion

Steps of the marketing mix

1. product design 2. design/name, and price 3. set distribution system (place) 4. design promotional program

"Indirect sales" is specific to the B2B market, true or false?

False

Is the B2B market smaller or larger than the consumer market and why?

Larger, because items are often sold and resold several times before reaching the final consumer

marketing

activities, sets of institutions, and processes that add value for customers

online communities

allows companies to observe customers interacting, forming opinions and relationships, and giving feedback on goods and services

Marketing Concept Era

business philosophy that emerged in 1950 where business recognized need to be responsive to consumers in order to get their business, and involves 3 orientations (customer, service, profit)

learning

changes in an individual's behavior resulting from previous experiences

Production Era

concept: produce as much as you can because there is an unlimited market for the product

key objective of the service orientation

customer satisfaction

primary data

data you gather by yourself to meet a specific need

activities of marketing

describing: - benefits - where to buy - value proposition

benefit segmentation

determining which benefits customers prefer and using them to promote a product

concept testing

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

mass marketing

developing products & promotions to appeal to large groups of people

benefit segmentation

dividing market based on specific product features that will appeal to different groups

market segmentation

dividing total market into groups whose members have similar characteristics

customer relationship management

doing everything possible to satisfy customers or even exceed their expectations

key objective of the customer orientation

emphasis on meeting consumer demand rather than on promotion and sales

secondary data

existing data gathered by other sources

Sociocultural, competitive, economic, global, and technological influences are all factors influencing:

marketing environment

profit orientation

marketing goods/services that will earn a profit and enable the firm to survive and expand to serve more consumer wants/needs

relationship marketing

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

target marketing

marketing towards groups (market segments) the organization thinks it can serve profitably

consumer behavior

observing consumer thought processes and behavior at each stage in a purchase to determine best way to help buyers buy

intermediaries

organizations that assist in moving goods/services from producers to businesses (B2B) and businesses to consumers (B2C)

Key factors under psychological influence of decision making

perceptions, attitudes, motivation

Selling Era

persuading customers to purchase existing products, focus on selling with little service afterward and less customization

sociocultural factors

population shifts, values, attitudes, and trends

environmental scanning

process of identifying factors that can affect marketing success

brand name

important use of words, letter, or groups of words or letters that distinguishes one brand's product from another's

marketing research

includes paying attention to needs of stakeholders (e.g. customers, employees, shareholders, dealers, consumer advocates, media representatives)

Are there more or less customers in the B2B market than in the consumer market?

less

volume segmentation

separating the market by usage

culture

set of values, attitudes, and ways of doing things carried from one generation to the next

subculture

set of values, attitudes, and ways of doing things that results from belonging to a specific ethnic, racial, or other group

focus group

small group of people who meet under direction of a discussion leader to communicate opinions about a product

Since population growth and changing demographics can affect company sales, what must marketers monitor?

social trends

Teenagers, Hispanics, and Generation Y are example of what?

subcultures

test marketing

testing a product among potential users

key function of intermediaries

to assist with getting a product to a customer when and where they want it

Starting key component in the marketing mix

to design and offer a want-satisfying product

target marketing

when a business selects groups or segments that they can serve most profitably

3 Parts of the Marketing Concept

1. Customer orientation 2. Service orientation 3. Profit orientation

Customer Relationship Era

extended the marketing concept by learning as much as possible about present customers

Consumer Market

focus on goods and services for personal consumption

one-to-one marketing

focuses on developing unique mix of goods/services for each individual customer

reference group

group that an individual identifies with and that influences beliefs, attitudes, values, or behavior

niche marketing

when a company finds a small but profitable market segment and designs products just for them

cognitive dissonance

when consumers have doubts after a major purchase about whether or not they got the product at the best price

Components of the Consumer Market

- 80 million households - individuals

psychographic segmentation

- attitudes - interests - lifestyle - personality

B2B Market

- buyers are well-trained, more professional - focus on goods and services to be used in production

Broad and varied group of people that provide market research information

- consumers - stakeholders - shareholders

Important functions of marketing

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

activities involved in marketing

- developing the exchange process - advertising

Values of the U.S. culture

- education - freedom - diversity

customer orientation

- find out what consumers want and provide it for them (consumer needs > promotion/sales)

What is market research conducted on?

- global trends - ecological impact of decisions - business trends

Components of the B2B Market

- government - institutions - manufacturers

demographic segmentation

- income - education - age

promotion

- informing people about products and benefits - motivating potential customers to buy - describing value proposition of product/service

secondary sources of data

- magazines - government publications

service orientation

- make sure everyone has same objective: customer satisfaction - customer-oriented

What is included in a product that would enhance it in the eyes of consumers?

- package - brand - warranty

Major factors that affect both consumer and B2B markets

- product - market structure - buying procedures

What must be considered when setting price?

- promotion - production - distribution

Why do nonprofits use marketing?

- raise funds to meet objectives - increase awareness of their cause(s)

How business buyers make decisions

- rational processes - total product offer - product specifications

Why is it important to properly define the question during the marketing research process?

- recognize current situation - identify question as problem or opportunity - determine what info is needed

Careers in marketing

- retail store management - public relations - marketing advertising

What is specific to the B2B market?

- sales based on personal selling - buyers are less emotional than consumers - markets are geographically concentrated

technological innovations companies can use

- social networking - data bases - blogs

geographic segmentation

- state - city - region

Two main groups that states try to attract through marketing

- tourists - new businesses

4 Steps of the Marketing Research Process

1. Define question 2. Collect research data 3. Analyze research data 4. Choose & Implement best solution