* * Chapter Thirteen Marketing: Helping Buyers Buy Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

WHAT’S MARKETING? * * What is Marketing? 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. LG1 13-2

The Evolution of Marketing The Production Era The Selling Era The Marketing Concept Era The Customer Relationship Era

DEVELOPING a PRODUCT * * Designing a Product to Meet Consumer Needs Product -- A good, service, or idea that satisfies a consumer’s want or need. Price -- consider the costs of producing, distributing and promoting the product, which all influence the price. Promotion -- advertising, personal selling; public relations, publicity; word of mouth and various sales promotion efforts. Place -- Getting the product to consumers when and where they want is critical to market success Brand Name -- A word, letter, or a group of words or letters that differentiates one seller’s goods from a competitor’s. LG2 13-4

SEARCHING for INFORMATION * * Providing Marketers with Information Test Marketing -- Testing product concepts among potential product users. 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. LG3 13-5

COLLECTING SECONDARY RESEARCH DATA * * Collecting Data Secondary Data -- Existing data that has previously been collected by sources like the government. LG3 Secondary data incurs no expense and is usually easily accessible. Secondary data doesn’t always provide all the needed information for marketers. 13-6

COLLECTING PRIMARY RESEARCH DATA * * Collecting Data 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. LG3 13-7

Marketing Research * * Defining the question/problem/opportunity and determining the present situation. Collecting research data. Analyzing the research data. Choosing the best solution and implementing it LG3 13-8

The MARKETING ENVIRONMENT * * The Marketing Environment LG4 13-9

The CONSUMER and B2B MARKET * * Two Different Markets: Consumer and B2B Consumer Market -- All the individuals or households that want goods and services for personal use and have the resources to buy them. LG4 Business-to-Business (B2B) -- Individuals and organizations that buy goods and services to use in production or to sell, rent or supply to others

MARKETING to CONSUMERS * * The Consumer Market 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. LG

MARKET Segmentation geographic segmentation -Dividing a market by cities, countries, states or regions. demographic segmentation - Age, income and education level, religion, race, life stage, nationality and occupation. psychographic segmentation - groups’ values, attitudes and interests benefit segmentation - comfort, convenience, durability, economy, health, luxury, safety, and status. volume/usage segmentation - Separating the market by volume of product. * * The Consumer Market LG

The best segmentation strategy is to use all the variables to come up with a consumer profile that represents a sizable, reachable, and profitable target market

MARKET Segmentation. * * The Consumer Market LG Reaching smaller market segments Niche Marketing -BMW cars, Apple computers. One to one marketing - Developing a unique mix of goods and services for each individual customer. -travel agency. Moving towards Relationship marketing Mass marketing - using mass media, such as TV, radio and news paper. Relationship marketing tends to lead away from mass production and towards custom made goods and services.

Even large companies and organizations that offer products and services that are widely used and mass marketed often use niche marketing techniques. Most major car companies, for example, now offer energy-efficient hybrid models of their automobiles that appeal to niche segments of the population—environmentalists and urban drivers with long commutes

The CONSUMER DECSION MAKING PROCESS AND OUTSIDE INFLUENCES * * LG5 The Consumer Decision-Making Process 13-16

The CONSUMER DECSION MAKING PROCESS AND OUTSIDE INFLUENCES * * LG5 The Consumer Decision-Making Process 13-17

KEY FACTORS in CONSUMER DECISION-MAKING * * The Business- to-Business Market Learning Reference Groups Culture Subcultures Cognitive Dissonance LG

B2B MARKET DIFFERENCES. * * The Business- to-Business Market There are relatively few customers. Customers tend to be large buyers. Markets are geographically concentrated. Buyers are more rational than emotional. LG6 Sales are direct. Promotions focus heavily on personal selling