Download Marketing: Helping Buyers Buy

Chapter 13
Marketing:
Helping
Buyers Buy
McGraw-Hill/Irwin
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
Thirteen
NAME that COMPANY
Where’s the beef? Many people don’t care
about the answer to that question anymore. As
the trend toward vegetarianism grows, this
well-known company in Canada offers a vegan
version of its chicken sandwich in 500 of its 750
stores.
Name that company! KFC Canada
13-5
What is
Marketing?
WHAT’S MARKETING?
LG1
Marketing –
The activity, set of institutions and processes for
creating, communicating, delivering, and exchanging
offerings with value for customers, clients, partners,
and society at large.
Mutually beneficial exchanges …
13-6
The Evolution
of Marketing
LG1
FOUR ERAS of U.S. MARKETING
Production
Selling
Marketing
Concept
Customer
Relationship
The general philosophy
was “Produce what you
can because the market
is limitless.”
13-8
The Evolution
of Marketing
LG1
FOUR ERAS of U.S. MARKETING
Production
Selling
Marketing
Concept
Customer
Relationship
After mass production,
the focus turned from
production to persuasion.
13-9
The Evolution
of Marketing
LG1
FOUR ERAS of U.S. MARKETING
Production
Selling
Marketing
Concept
Customer
Relationship
Company-wide strategy designed to
optimize profitability and customer
satisfaction
1. Customer Orientation – Identify and provide what
customers want
2. Service Orientation -- Everyone in the firm is committed
to customer satisfaction
3. Profit Orientation -- Focusing on the goods and services
that will earn the most profit
13-10
The Evolution
of Marketing
LG1
FOUR ERAS of U.S. MARKETING
Production
Selling
Marketing
Concept
Customer
Relationship
Customer Relationship Management (CRM)
• Satisfy or exceed their
expectations
Satisfy
• Learning as much as you
can about customers
Learning
• Build long-term relationships
Relationship
Can you think of a company
that has done this for you?
The Evolution
of Marketing
SERVICE with a SMILE
Six Steps for Keeping Your Customers Happy
LG1
The cost of acquiring a new customer is 5x the cost
of retaining one. Here’s how to keep them:
1. Build trust
2. Emphasize the long term
3. Listen
4. Treat your customers like stars
5. Show appreciation
6. Remember employees are
customers too!
Source: Inc. Guidebook, Vol. 2 No. 5 and Entrepreneur, February 2010.
13-12
Making the
Green
Connection
ARE YOUR BLUE JEANS
” JEANS?
“GREEN”
The clothing industry is
developing software to help
measure the environmental
impact of their apparel.
Would you buy tennis
shoes or a garment based
on its eco-friendliness?
13-15
The
Marketing Mix
The FOUR P’s
LG2
Marketing Mix
Product
Ch. 14
Price
Ch. 14
Distribution
(Place)
Ch. 15
Promotion
Ch. 16
The FOUR P’s
The
Marketing Mix
LG2
Product
Price
Distribution
Promotion
Good, service, or idea that satisfies a consumer’s need.
• Test Marketing –
Testing product concepts
among potential users
• Brand Name –
Word, letter, or a group of words
or letters that differentiates one
seller’s goods from a competitor’s
The FOUR P’s
The
Marketing Mix
LG2
Product
Price
Pricing products depends on
many factors:
- Competitor prices
- Production costs
- Distribution
- High or low price strategies
Distribution
Promotion
The FOUR P’s
The
Marketing Mix
LG2
Product
Price
Middlemen are important in
place strategies because getting
a product to consumers is
critical
Distribution
Promotion
The FOUR P’s
The
Marketing Mix
LG2
Product
Price
Distribution
Promotion
Promotion -- Techniques used to inform people about
their products and motivate them to purchase those
products
Promotion includes:
- Advertising
- Personal selling
- Public relations
- Word of mouth
- Sales promotions
Photo Courtesy of: Uri Baruchin
Developing an
Effective
Promotional
Strategy
PERFECT PROMOTION
How to Get Customers to Need Your Product
LG1
• Get customers emotional about your product:
- Make your product “built to love”
- Use emotion-laden advertising
• Be a likeable salesperson:
-
Have confidence
Be intriguing
Show interest in others
Be enthusiastic and respectful
Did you ever buy something, and later wonder why?
Sources: Entrepreneur, www.entrepreneur.com, accessed November 2012.
13-21
Connecting
through Social
Media
GETTING ATTENTION
through MOBILE MARKETING
Smartphones and tablets can folks online anywhere
• WeReward engages users
on a personal level by
combining many elements
of social media.
• Users earn rewards by
checking in, buying a
product or just taking a
picture of a product.
13-23
Providing
Marketers with
Information
LG3
SEARCHING for INFORMATION
Marketing Research
Analyzing markets to determine challenges
and opportunities, and finding the information
needed to make good decisions
• Used to identify products consumers
have used and their future needs
• Uncovers market trends and attitudes
“Research needs to be part of an interlocking process that
systematically informs targeting and positioning; getting this
right the first time is more than a priority - it's a necessity.”
– Katherine Binns, Senior VP, Knowledge Networks
What do you think she meant by this?
The Marketing
Research
Process
LG3
FOUR STEPS in the MARKETING
RESEARCH PROCESS
Define the
Problem
Collect
Data
Analyze
Data
Choose
Solution
Lets look at each of these steps …
13-26
The Marketing
Research
Process
LG3
DEFINE the PROBLEM
or OPPORTUNITY
• What’s the present situation?
• What are the alternatives?
• What information is needed?
• How to gather the information?
Ever get “lost” when searching?
13-27
The Marketing
Research
Process
COLLECT DATA
LG3
Secondary Data
Primary Data
Existing data collected by
other sources
Gather information from your
own research
• Can be outdated
• Usually easily accessible
• Doesn’t always provide
require information
• Government vs. Private
•
•
•
•
•
Telephone
On-line and mail surveys
Personal interviews
Focus groups
“Phantom” customer
The Marketing
Research
Process
ANALYZE DATA
LG3
Must turn data into useful information
• Use analysis to plan strategies
and make recommendations
• Business intelligence and
competitive intelligence
https://www.scip.org/
13-29
The Marketing
Research
Process
LG3
CHOOSE SOLUTION
IMPLEMENT the DECISION
Feedback
Implement
decision
Identify
Problem
Research is a Cycle
Evaluate actions and
determine if further
research is needed
Choose
Solution
Collect
Data
Analyze
Data
13-30
The Marketing
Environment
The MARKETING ENVIRONMENT
LG4
Environmental
Scanning
identifying
factors
that
affect
marketing
achievement
13-35
Two Different
Markets:
Consumer and
B2B
LG4
The CONSUMER and
BUSINESS MARKET
• Consumer Market (B2C) -- All the individuals or
households that want goods and services for
personal use and have the resources to buy them.
• Business-to-Business
(B2B) -- Individuals and
organizations that buy goods
and services to use in
production or to sell, rent, or
supply to others.
13-37
Segmenting the
Consumer
Market
LG5
SEGMENTING the
CONSUMER MARKET
Geographic Segmentation -- Dividing the
market by cities, counties, states, or
regions.
Demographic Segmentation -- Dividing
the market by age, income, education, and
other demographic variables.
Psychographic Segmentation -- Dividing
the market by group values, attitudes, and
interests.
Behavioral
Benefit Segmentation -- Dividing the
market according to product benefits the
customer prefers.
Volume (Usage) Segmentation -Dividing the market by the volume of
product use.
13-40
Reaching
Smaller Market
Segments
LG5
MARKETING to
SMALL SEGMENTS
• Niche Marketing -- Identifies small but profitable
market segments and designs or finds products for
them.
• One-to-One
Marketing-- Developing
a unique mix of goods
and services for each
individual consumer.
13-43
The Consumer
Decision-Making
Process
LG5
The CONSUMER DECISION MAKING
PROCESS AND OUTSIDE INFLUENCES
13-47
The Businessto-Business
Market
LG6
BUSINESS-to-BUSINESS
MARKET (B2B)
• B2B marketers include:
-
Manufacturers
Wholesalers and retailers
Hospitals, schools and charities
Government
• Products are often sold and
resold several times before
reaching final customers.
1) There are relatively few
customers
2) Customers tend to be large
buyers
3) Markets are geographically
concentrated
4) Buyers are more rational
than emotional
5) Sales are direct (not many
intermediaries)
6) Promotions focus heavily
on personal selling
13-49
Film Review
CONTENT MARKETING
LG6
VIDEO – Social Media (6 min)
Why Social Media is Important
Paper:
Why use social media for business?
13-50