CH 13Marketers: Helping Buyers Buy

Service orientation

Make sure everyone in the organization has the same objective: Customer satisfaction. That is, everyone from the president of the company to the delivery people should be customer-oriented.

Analyzing the Research data

Marketers must turn data into useful information through careful, honest interpretation. - can help a company find useful alternatives to a specific marketing challenges

Defining the Question and Determining the Present Situation

What's the present situation? What are the problems or opportunities? What are the alternatives? What information is needed? How should the information be gathered?

Consumer decision making process

1.Problem recognition 2.Information search 3.Evaluate alternatives 4.Purchase decision 5.Postpurchase evaluation

The business to business market

- Customers in the B2B market are relatively few - B2B tend to be geographically concentrated - Business buyers are generally more rational and less emotional than ultimate consumers - B2B sales tend to be direct - B2B sales are based on perosnal selling -Relatively few potential customers -Larger purchases -Geographically concentrated -Require technical, complex products -Frequently require customization -Frequently require technical advice, delivery, and after-sale service -Buyers are trained -Negotiate details of most purchases -Follow objective standards -Often buy from multiple sources

Technological Factors

- Internet. Using consumer databases, blogs, social networking sites, and the like, companies can develop products and services that closely match consumers' needs. - can produce customized goods and services as mass-produced flexible manufacturing and mass customization are also major influences on marketers - Computers -telecommunications - Bar codes - data interchange - internet changes

Collecting Data

- Marketers often make a trade-off between the need for information and the cost of obtaining it -Secondary data: Information that has already been complied by others and published in journals,books, online -Secondary data incurs no expense and is usually easily accessible. Secondary data doesn't always provide all the needed information for marketers. - Primary data: Data gathered yourself. Phone surveys, online surveys, mail surveys, and personal interviews. More expensive -Focus group: A small group of people who meet under the direction of a discussion leader to communicate opinions.

Global Factors

- Online, businesses can reach many of the world's consumers and carry on a dialogue with them about goods and services they want. - Trade agreements - Competition -Trends - Opportunities - Internet

Designing a product to meet consumer needs

- Research consumer needs and find target market to develop a product - Concept testing: test around to potential users if product is appealing to them -Brand name: a word, letter or group of words/letters that differentiate one seller's goods and services from those of competitors

setting an appropriate price

- consider the costs of producing, distributing and promoting the product or competition

Sociocultural factors

-Marketers must monitor social trends to maintain their close relationship with customers, since population growth and changing demographics can have an effect on sales. - Other shifts in the US population are creating new challenges for marketers as they adjust their products to meet tastes and preferences of other growing ethnicities. -To appeal to diverse groups, marketers must listen better and be more responsive to unique ethnic needs. - population shifts - values - attitudes - trends

Competitive factors

-marketers must pay attention to the dynamic competitive environment. Physical store companies must be aware of online competition -Since consumers can literally search the world for the best buys online, marketers must continuously adjust their pricing, delivery, and services accordingly - speed - services - price - selection

Marketing Concept Era

After WWII, a consumer spending boom developed. Businesses knew they needed to be responsive to consumers if they wanted their business. Marketing concept emerged - Customer orientation - Service orientation - profit orientation

Consumer market

All the individuals or households that want goods and services for personal consumption or use.

Production era

America until the early 1900s The general philosophy was "Produce as much as you can, because there is a limitless market for it." Business owners were mostly farmers, carpenters, and trade workers. They needed to produce more and more, so their goals centered on production.

Economic factors

As the economy slowed, marketers had to adapt by offering products that were less expensive and more tailored to consumers with modest incomes. - GDP - disposable income - competition - unemployment

The marketing mix

Businesses blend them together in a well-designed marketing program Product, Price, Place, Promotion

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. Most companies emphasized selling and advertising in an effort to persuade consumers to buy existing products.

Nonprofit organizations and marketing

Charities use marketing to raise funds and to obtain other resources Nonprofit marketing tactics include: -Fundraising -Obtaining resources -Promotion of ecologically safe technologies -Attracting new members -Creation of awareness for social issues

The Emerging Mobile/On-Demand Marketing Era

Consumers are demanding relevant information exactly when they want it, without all the noise of unwanted messages. Search technologies have made product information pervasive. Consumers share, compare, and rate experiences through social media; and mobile devices make it all available 24/7 Now: Consumers want to interact anywhere, anytime. Can I?: They want to use information in new ways that create value for them. For me: Consumers expect personalized experiences. Simple: Consumers expect all interactions to be easy.

The Marketing Research Process

Defining the problem or opportunity and determining the present situation. Collecting research data. Analyzing the data. Choosing the best solution and implementing it.

one-to-one marketing

Developing a unique mix of goods and services for each individual customers -Ex. Travel agency packages

Mass marketing

Developing products and promotions to please large groups of people - mass marketers sell same products to as many people as possible(TV, radio, online ads) - Sometimes can lead to them annoying customers because they get caught up in their products and competition

Benefit segmentation

Dividing the market by determining which benefits of the products to talk about - product benefits your target market prefers and using those benefits to promote a product

Customer orientation

Find out what consumers want and provide it for them

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 consumers and wants and needs

Getting the product to the Right place

Getting the product to consumers when and where they want is critical to market success

Choosing the Best Solution and Implementing it

Marketers use their analysis to plan strategies and make recommendations. -Finally, marketers must evaluate their actions and determine if further research is needed. - If not, corrective action can be taken by company and conduct new studies in its ongoing attempt to provide consumer satisfaction at low price.

Target marketing

Marketing directed toward those groups (market segments) an organization decides it can serve profitably.

Developing an Effective Promotional Strategy

Promotion: All the techniques sellers use to inform people about and motivate them to buy their products or services. - Advertising, personal selling, public relations, publicity, viral marketing, and promotion efforts(coupons, samples, cents-off deals) -Includes relationship building with customers. responding to suggestions consumers have to improve products

Marketing

The activity set of institutions ans processes for creating, communicating, delivering, and exchanging offerings with value for customers, clients, partners, and society at large - activities buyers and seller perform to facilitate mutually satisfying exchanges - The easier a marketer makes the purchase decision process, the more that marketer will sell -Wise marketers provide a wealth of information online and even cultivate customer relationships using blogs and social networking sites such as Facebook and Twitter. -It is important for marketers to track what relevant bloggers are writing by doing blog searches using key terms that define their market

Marketing research

The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions - helps identify what products consumers have purchased in the past, and what they're likely to purchase in future - conduct research on business trends, ecological impacts of decisions, global trends

Niche marketing

The process of finding 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.

Environmental scanning

The process of identifying factors that can affect marketing success - Global factors - Technological factors - Sociocultural factors -competitive factors - economic factors

The customer relationship era

The process of learning as much as possible about present customers and doing everything you can over time to satisfy them- or even exceed their expectations-with goods and services. - enhance customer satisfaction and stimulate long-term customer loyalty

Your prospects in Marketing

There is a wider variety of careers in marketing than in most business disciplines. •Retail store manager •Marketing research •Product management •Selling •Advertising •Sales promotion •Public relations •Web design

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

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 B2B marketers include: •Manufacturers •Retailers •Hospitals, schools, and nonprofits •Government Products are often sold and resold several times before reaching final consumers.

geographic segmentation

dividing the market by cities, counties, states or regions

volume (or usage) segmentation

dividing the market by usage (volume of use)

demographic segmentation

dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

Psychographic segmentation

dividing the market using groups' values, attitudes, and interests - Ex. Knowing how to target millennials. Do any in depth study on values and interests - marketers talk with consumers and learn about the product from their perspective

Factors that affect consumer behavior

learning- creates changes in an individual's behavior resulting from previous experiences and information reference group- the group an individual uses as a reference point in forming beliefs, attitudes, values or behavior. culture-The set of values, attitudes, and ways of doing things transmitted from one generation to another in a given society. subculture- 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 closely identifies (e.g., teenagers). cognitive dissonance- A type of psychological conflict that can occur after a purchase. Consumers who make major purchases may have doubts after. marketers can reassure purchase well made.

Relationship Marketing

marketing strategy with the goal of keeping individual customers over time by offering them 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

Market segmentation

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups