Download Marketing - Ridgeview High School

*Chapter
Thirteen
*
Marketing:
Helping
Buyers Buy
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
*
CRICKET LEE
Fitlogic
Profile
*
• Developed a system of
clothes sizing called Fitlogic.
• Lee’s system standardizes
sizes and provides flexibility.
• Though she has an excellent
idea, Lee must market her
product.
13-2
WHAT’S MARKETING?
*What is
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.
13-3
FOCUS of CONTEMPORARY
MARKETING
*What is
Marketing?
LG1
*
• Marketing today involves helping the buyer buy
through:
- Websites that help buyers find the best price,
identify product features, and question sellers.
- Blogs and social
networking sites that
cultivate consumer
relationships.
13-4
*
FIND A NEED AND FILL IT
Spotlight on Small Business
*
• Lance Fried was an electrical engineer who went
into business after he built a waterproof MP3
player.
• Focused his marketing plan on
small surf shops instead of large
stores.
• Now, Fried attends trade shows
and runs a website to help sell
more products.
13-5
FOUR ERAS of U.S. MARKETING
*The Evolution
of Marketing
LG1
*
• Production Era
• Selling Era
• Marketing Concept Era
• Customer Relationship
Era
13-6
The PRODUCTION and
SELLING ERAS
*The Evolution
of Marketing
LG1
*
• The general philosophy was
“Produce what you can
because the market is
limitless.”
• After mass production, the
focus turned from production
to persuasion.
13-7
The MARKETING CONCEPT ERA
*The Evolution
of Marketing
LG1
*
• After WWII, a consumer spending boom
developed.
• Businesses knew they needed to be responsive
to consumers if they wanted their business.
13-8
APPLYING the
MARKETING CONCEPT
*The Evolution
of Marketing
LG1
*
• The Marketing Concept includes three parts:
1. Customer Orientation -- Finding out what
customers want and then providing it.
2. Service Orientation -- Making sure everyone in
an organization is committed to customer
satisfaction.
3. Profit Orientation -- Focusing on the goods and
services that will earn the most profit.
13-9
The CUSTOMER
RELATIONSHIP ERA
*The Evolution
of Marketing
*
LG1
• Customer Relationship Management (CRM) -Learning as much as you can about customers and
doing what you can to satisfy or exceed their
expectations.
• Organizations seek to enhance customer
satisfaction building long-term relationships.
• Today firms like Priceline and Travelocity use
CRM that allow customers to build a relationship
with the suppliers.
13-10
NONPROFIT MARKETING
*Nonprofit
Organizations
and Marketing
LG1
*
• Nonprofit marketing tactics include:
- Fundraising
- Public Relations
- Special Campaigns
- Ecological practices
- Changing public opinions and
attitudes
- Increasing organizational
membership
13-11
MARKETING STRATEGIES for
NONPROFITS
*Nonprofit
Organizations
and Marketing
LG1
*
• Nonprofit marketing strategies include:
- Determine the firm’s goals and objectives.
- Focus on long-term marketing.
- Find a competent board of directors.
- Exercise strategic planning.
- Train and develop long-term volunteers.
- Carefully segment the target market.
13-12
*
DEVELOPING a PRODUCT
Designing a
Product to Meet
Consumer
Needs
LG2
• Product -- A good, service, or
*
idea that satisfies a consumer’s
want or need.
• Test Marketing -- Testing
product concepts among
potential product users.
• Brand Name -- A word, letter,
or a group of words or letters
that differentiates one seller’s
goods from a competitor’s.
13-13
PRICING and
PLACING a PRODUCT
*Setting an
Appropriate
Price
LG2
*
• Pricing products depends on many factors:
- Competitors’ prices
- Production costs
- Distribution
- High or low price strategies
• Middlemen are important in place strategies
because getting a product to consumers is
critical.
13-14
*
PROMOTING the PRODUCT
Developing an
Effective
Promotional
Strategy
*
LG2
• Promotion -- All the techniques sellers use to
inform people about their products and motivate them
to purchase those products.
• Promotion includes:
- Advertising
- Personal selling
- Public relations
- Viral marketing
- Sales promotions
13-15
*
PROGRESS ASSESSMENT
Progress
Assessment
*
• What does it mean to “help the buyer buy?”
• What are the three parts of the marketing
concept?
• What are the Four P’s of the Marketing Mix?
13-16
SEARCHING for INFORMATION
*Providing
Marketers with
Information
*
LG3
• Marketing Research -- Analyzing markets to
determine challenges and opportunities, and finding
the information needed to make good decisions.
• Research is used to identify products consumers
have used in the past and what they want in the
future.
• Research uncovers market trends and attitudes
held by company insiders and stakeholders.
13-17
FOUR STEPS in the MARKETING
RESEARCH PROCESS
*
The Marketing
Research
Process
*
LG3
1. Defining the problem or opportunity and
determining the present situation.
2. Collecting research data.
3. Analyzing the data.
4. Choosing the best solution and implementing it.
13-18
DEFINING the PROBLEM or
OPPORTUNITY
*
Defining the
Question and
Determining the
Present Situation
LG3
*
• What’s the present situation?
• What are the alternatives?
• What information is needed?
• How should the information be
gathered?
13-19
COLLECTING SECONDARY
RESEARCH DATA
*
Collecting
Data
LG3
*
• Secondary Data -- Existing data that has
previously been collected by sources like the
government.
• Secondary data incurs no
expense and is usually
easily accessible.
• Secondary data doesn’t
always provide all the
needed information for
marketers.
13-20
COLLECTING PRIMARY
RESEARCH DATA
*
Collecting
Data
LG3
*
• Primary Data -- In-depth information gathered by
marketers from their own research.
• Telephone, online and mail surveys, personal
interviews, and focus groups are ways to collect
primary data.
13-21
*
FOCUS GROUPS
Collecting
Data
*
LG3
• Focus Group -- A group of people who meet under
the direction of a discussion leader to communicate
opinions.
13-22
ANALYZING the DATA and
IMPLEMENTING the DECISION
*Analyzing the
Research Data
LG3
*
• Marketers must turn data into useful information.
• Must use their analysis to plan strategies and
make recommendations.
• Finally, marketers
must evaluate their
actions and
determine if further
research is needed.
13-23
*Analyzing the
KEY BENEFITS of MARKETING
RESEARCH
Research Data
*
LG3
• Analyze customer needs and satisfaction.
• Analyze current markets and opportunities.
• Analyze the effectiveness of marketing strategies.
• Analyze marketing process and tactics currently
used.
• Analyze the reasons for goal achievement or
failure.
13-24
WAYS to FIND OUT WHAT
CONSUMERS THINK
*Analyzing the
Research Data
LG3
*
• Conduct informal consumer surveys.
• Host a customer focus
group.
• Listen to competitor’s
customers.
• Survey your sales force.
• Become a “phantom”
customer.
13-25
SCANNING the MARKETING
ENVIRONMENT
*The Marketing
Environment
LG4
*
• Environmental Scanning -- The process of
identifying factors that affect marketing success.
• Factors involved in the environmental scan
include:
- Global factors
- Technological factors
- Sociocultural factors
- Competitive factors
- Economic factors
13-26
The MARKETING ENVIRONMENT
*The Marketing
Environment
LG4
*
13-27
SOCIAL MARKETING
GOES GLOBAL
(Reaching Beyond Our Borders)
*
*
• Debra Wexler and Brian Gavin
founded Whiteflash, an online
diamond dealer.
• About 10,000 worldwide users
visit their site each month.
• Wexler started a social
marketing campaign and is
planning an interactive website
to help customers buy.
13-28
The ABC’s of MARKETING
*The Marketing
Environment
LG4
• 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.
13-29
The CONSUMER and
B2B MARKET
*
Two Different
Markets:
Consumer and
B2B
LG4
*
• Consumer Market -- 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.
13-30
*
PROGRESS ASSESSMENT
Progress
Assessment
*
• What are the four steps in the marketing research
process?
• What’s environmental scanning?
• What factors are included in environmental
scanning?
13-31
*
MARKETING to CONSUMERS
The Consumer
Market
LG5
*
• The size and diversity of the consumer market
forces marketers to decide which groups they
want to serve.
• Market Segmentation -- Divides the total market
into groups with similar characteristics.
• Target Marketing -- Selecting which segments an
organization can serve profitably.
13-32
SEGMENTING the CONSUMER
MARKET
*Segmenting
the Consumer
Market
*
LG5
• 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, interests, and opinions.
(continued)
13-33
SEGMENTING the CONSUMER
MARKET
*Segmenting
the Consumer
Market
(continued)
LG5
*
• Benefit Segmentation -- Dividing the market
according to product benefits the customer prefers.
• Volume (Usage) Segmentation -- Dividing the
market by the volume of product use.
13-34
MARKETING to
SMALL SEGMENTS
*Reaching
Smaller Market
Segments
LG5
*
• 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.
13-35
MASS MARKETING vs.
RELATIONSHIP MARKETING
*
Moving Toward
Relationship
Marketing
LG5
*
• Mass Marketing -- Developing
products and promotions to
please large groups of people.
• Relationship Marketing-Rejects the idea of mass
production and focuses toward
custom-made goods and services
for customers.
13-36
*
Moving Toward
Relationship
Marketing
KEYS to SUCCESSFUL RELATIONSHIP
MARKETING
LG5
*
• Effective relationship marketing is built on:
• Open communication
• Consistently reliable service
• Staying in contact with customers
• Trust, honesty, and ethical behavior
• Showing that you truly care
13-37
STEPS in the CONSUMER
DECISION-MAKING PROCESS
*
The Consumer
Decision-Making
Process
LG5
*
1. Problem recognition
2. Search for information
3. Evaluating alternatives
4. Purchase decision
5. Postpurchase evaluation
13-38
*
The CONSUMER DECSION MAKING
PROCESS AND OUTSIDE INFLUENCES
The Consumer
Decision-Making
Process
LG5
*
13-39
KEY FACTORS in CONSUMER
DECISION-MAKING
*The Businessto-Business
Market
LG6
*
• Learning
• Reference Groups
• Culture
• Subcultures
• Cognitive Dissonance
13-40
BUSINESS-to-BUSINESS
MARKET (B2B)
*The Businessto-Business
Market
LG6
*
• B2B marketers include:
- Manufacturers
- Wholesalers and retailers
- Hospitals, schools and charities
- Government
• Products are often sold and resold several times
before reaching final consumers.
13-41
B2B MARKET DIFFERENCES
• There are relatively few customers.
*The Businessto-Business
Market
LG6
*
• Customers tend to be large buyers.
• Markets are geographically concentrated.
• Buyers are more rational than emotional.
• Sales are direct.
• Promotions focus
heavily on personal
selling.
13-42
*
PROGRESS ASSESSMENT
Progress
Assessment
*
• Define the terms consumer market and businessto-business market.
• Name and describe five ways to segment the
consumer market.
• What’s niche marketing and how does it differ
from one-to-one marketing?
• What are four key factors that make B2B markets
different from consumer markets?
13-43