BADM1103F07Ch13

1/38Marketing2/38Marketing•Definition•The process of planning and executing the conception, pricing, promotion, and distribution of goods and services3/38Evolution of the Field of Marketing •Production ERA•distribution and storage•Selling ERA•Selling and Advertising•Marketing ERA •1950s 4/38Marketing (cont.)•Marketing concept•Customer Orientation •Service Orientation •Profit Orientation 5/38Customer Relationship Era •Customer Relationship Management (CRM)•The process of learning as much as possible about customers and doing everything you can to satisfy them or even exceed their expectations6/38Marketing (cont.)•Nonprofit Organizations7/38Marketing (cont.)•Marketing MIX•Pleasing customers has become a priority •Four Factors of MarketingProduct Price Place Promotion 8/38Marketing (cont.)•Designing a want-satisfying Product •Setting a Price•Placing•Promoting9/38Marketing (cont.)•Designing a Product•Productany physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eye of consumers, such as the brand•Concept Testingdeveloping an accurate description of your product and asking people whether or not the concept appeals to them 10/38Marketing (cont.)•Test Marketingthe process of testing products among potential users•Brand Namea word, letter, or group of words or letters that differentiates one seller’s goods and services from those of competitors 11/38Marketing (cont.)•Price•Competition•Costs•Place•Intermediaries12/38Marketing (cont.)•Effective Promotional Strategies •Relationship Buildingincludes responding to any suggestions customers may make to improve the product or the marketing of the product 13/38Marketing (cont.)Marketing Research•The analysis of marketsopportunities and challengesfind the information needed to make good decisions 14/38Marketing (cont.)•Step 1. Defining the problem and determining the present situation •Step 2.Collecting data •Secondary datainformation that has already been published previously by others and published in journals and books or made available online 15/38Marketing (cont.)•Primary Datadata that you gather yourself (not from secondary sources such as books and magazines)•telephone surveys, online surveys, mail surveys, and personal interviews16/38Marketing (cont.)•Focus Groupa small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its product, or other given issues 17/38Marketing (cont.)•Step 3. Analyzing the research data •Data collected is turned into useful information •Step 4.Choosing the best solution and implement it •Alternative strategies 18/38Marketing (cont.)•Marketing Environment•Environmental Scanningthe process of identifying the factors that can affect marketing success •Internet •Globalization 19/38Marketing (cont.)•Technological Factors•Internet•Consumer databases•Flexible manufacturing•Mass customization 20/38Marketing (cont.)•Sociocultural Factors •Population growth and changing demographics, such as the aging population and the preferences of various ethnic groups 21/38Marketing (cont.)•Competitive Factors•Internet•Economic Factors•Marketers must pay close attention to the economic environment in the U.S. and globally 22/38Marketing Environment23/38B2C vs. B2B•Consumer Market •Consumer groups differ greatly in age, education level, income, and taste•Market Segmentationthe process of dividing the total market into groups whose members have similar characteristics 24/38Marketing (cont.)•Target Marketing•Marketing directly toward those groups (market segments) an organization decides it can serve profitably 25/38Marketing (cont.)•Market Segmentation •Geographic Segmentationdividing the market by geographic area •Demographic Segmentationdividing the market by age, income, and education level 26/38Marketing (cont.)•Psychographic Segmentationdividing the market using the group’s values, attitudes, and interests•Benefit Segmentationdividing the market by determining which benefits of the product to talk about 27/38Marketing (cont.)•Volume, or Usage, Segmentationdividing the market by usage (volume of use.) •The best segmentation strategy is to use all the variables -come up with a consumer profilesizablereachableprofitable 28/38Marketing (cont.)•Smaller Market Segments •Niche Marketingthe process of finding small but profitable market segments and designing custom-made products for them•One-to-One Marketingdeveloping a unique mix of goods and services for each individual customer 29/38Relationship Marketing•Mass Marketing•Developing products and promotions to please large groups of people •Relationship Marketing•A marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements 30/38Relationship… (cont.)•Moves away from mass production toward Custom-made goods •One-way messages in mass media are replaced by a personal dialogue among participants 31/38Marketing (cont.)•Consumer Decision-Making Process •Problem recognition •Information search •Evaluate alternatives •Make purchase decision •Postpurchase evaluation32/38Marketing (cont.)•Influences that impact consumer behavior 33/38Decision-making process34/38Marketing (cont.)•Learning•Changes in an individual’s behavior resulting from previous experiences and information •Reference group•The group that an individual uses as a reference point in formation of his or her beliefs, attitudes, values, or behavior 35/38Marketing (cont.)•Culture•The set of values, attitudes, and ways of doing things that are 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 group with which one closely identifies 36/38Marketing (cont.)•Cognitive dissonance•The type of psychological conflict that can occur after a purchase —such as doubts about whether they got the best product at the best price 37/38Marketing (cont.)•B2B MARKETERS •Relatively few customers •Sizethough few in number, industrial customers are relatively large•Geographically concentratedcertain areas of the country 38/38Marketing (cont.)•RationalBusiness buyers are generally more rational in their purchase decisions •Direct•Personal Sellingemphasis in personal selling