Download CHAPTER 5 Small Business and the Entrepreneur

12
chapter
Marketing and
Consumer
Behavior
Better Business
2nd Edition
Solomon (Contributing Editor) ·
Poatsy · Martin
© 2012 Pearson Education, Inc.
Publishing as Prentice Hall
12-1
Learning Objectives
1.
2.
3.
4.
5.
6.
7.
How has marketing evolved over the production concept era, the sales
concept era, the marketing concept era, and the customer relationship era?
What are the benefits of marketing to customers, sellers, investors,
employees, and society at large, and what are the criticisms of marketing?
What are the two basic elements of a marketing strategy and the 4 Ps of
the marketing mix?
How do firms implement a marketing strategy by applying the marketing
process?
How do the various factors in the marketing environment influence a
firm’s ability to manipulate its marketing mix?
What is the marketing research process and what are the elements of a
good marketing plan?
How do the buying decisions and marketing processes in B2B markets
compare to those in the consumer market?
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Marketing Fundamentals
• Marketing
o An organizational function
o A set of processes for creating, communicating,
and delivering value to customers
o Management of customer relationships in ways
that benefit the organization and its stakeholders
• Product
o Any tangible good, service, or idea available for
purchase in a market
o Plus any intangible benefits derived from its
consumption
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The Evolution of Marketing
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Production Era &
Sales Concept Era
Production Era
• Industrial Revolution
until 1920s
• Limited supplies and
strong demand
• A good-quality product
sold itself
Sales Concept Era
• Mid 1920s to early 1950s
• Production greater
than demand
• Greater competition
for customers
• Heavy public advertising
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Marketing Concept Era
1. Identify customer needs before product is designed
2. Align all functions of the organization to meeting or
exceeding customer needs
3. Realize a profit by satisfying customers long term
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Customer Relationship Era
• Customer relationship management (CRM)
• Since the late 1990s
• Focuses a company’s efforts on long-term
customer satisfaction
• Combines computer information
technology with customer service and
marketing communications
• Encourages customers to buy similar or
supplementary products
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Nontraditional Marketing
• Not-for-profit organizations must market
their events, causes, locations, or
individuals
o Charitable organizations
o Countries, states, and cities
o Churches
o Museums
o People
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Benefits of Marketing
• Customers
•
•
•
•
o Utility
• Form
• Ownership
• Time
• Place
Investors
Employees
Society
Sellers
o Value = benefits/costs
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Criticisms of Marketing
• Misuse of personal
information
• Hidden Fees
• Consequences of
purchase
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Marketing Strategy
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The 4 Ps
Product
Price
Promotion
Place
• Product differentiation
• Brand
• Cover costs
• Competitively priced
• Inform and persuade customers to buy
• Build positive customer relationships
• Distribution channel
• Distributors and wholesalers
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The
Marketing
Process
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The Marketing Environment
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Marketing Research & Planning
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Primary and Secondary
Sources of Data
Primary Sources of Data
• Observation
• Questionnaires
• Surveys
• Focus groups
• Interviews
• Customer feedback
• Sampling
• Controlled experiments
Secondary Sources of Data
• Government publications
• Commercial publications
• Organizational
publications
• Magazines
• Newspapers
• Internal sources
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The Marketing Plan
A written document with:
• A clearly written marketing objective
• Performance of situational SWOT analysis
• Selection of a target market
• Implementation, evaluation, and control
of the marketing mix (the 4 Ps)
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The 5 Cs of Marketing
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Target Markets
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Consumer Behavior
• The ways individuals or organizations
search for, evaluate, purchase, use, and
dispose of goods and services
• Consumer behavior is different in the
consumer market vs. the B2B market
• Knowledge of consumer behavior helps
marketers:
o Select the most profitable target markets
o Implement the marketing mix (4 Ps)
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Consumer Markets
1. Need recognition
2. Information
search
3. Evaluation of
alternatives
4. Purchase or no
purchase decision
5. Post-purchase
evaluation
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What Influences Consumer Decision
Making?
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Differences Between B2B and
Consumer Markets
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Business Buying Decisions
• Steps are similar to the five steps in the consumer
decision-making process
• 4 Ps of the marketing mix remain relevant for a business
purchase
• Business purchases are generally more rational,
reasoned, and objective, based on influences such as:
o The state of the economy
o Technological factors
o The degree of competition facing the company
o Political and regulatory concerns
o Organizational objectives, policies, and procedures
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Chapter Summary
1.
2.
3.
4.
5.
6.
7.
How has marketing evolved over the production concept era, the
sales concept era, the marketing concept era, and the customer
relationship era?
What are the benefits of marketing to customers, sellers, investors,
employees, and society at large, and what are the criticisms of
marketing?
What are the two basic elements of a marketing strategy and the 4 Ps
of the marketing mix?
How do firms implement a marketing strategy by applying the five
steps of the marketing process?
How do the various factors in the marketing environment influence a
firm’s ability to manipulate its marketing mix?
What are the five steps of the marketing research process and the four
elements of a good marketing plan?
How do the buying decisions and marketing processes in business-tobusiness markets compare to those in the consumer market?
© 2012 Pearson Education, Inc.
Publishing as Prentice Hall
12-25
© 2012 Pearson Education, Inc.
Publishing as Prentice Hall
12-26