Chapter 1

The Nature of Marketing A definition of marketing: The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives 1-2 Key Terms & Definitions

Key Terms & Definitions The Marketing Concept The marketing concept is composed of three tenets which are interrelated: Consumer orientation Goal orientation Systems orientation Key Terms & Definitions

The Marketing Concept Consumer orientation: identification of the target market for good or service Goal orientation: focus on how target market helps meet corporate goals Systems orientation: developing the tools to monitor the target market and their market opportunities 1-4

Marketing Research Defined Marketing research is the function that links the consumer, customer, and public to the marketer through information that is used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications. Key Terms & Definitions

The Three Critical Roles of Marketing Research Descriptive: The gathering and presenting of statements of fact Diagnostic: The explanation of data or actions Predictive: The specification of how to use descriptive and diagnostic research to predict the results of a planned marketing decision Key Terms & Definitions

Opportunistic Nature Cited as Favorite Percent Cover Girl 14 Clinique 10 Maybelline and Mary Kay 8

Usage Among Young Women Age Range Product Usage Tweens (8-12) Increased Teens (13-17) Decreased Young women (18-24) Decreased

Key Terms & Definitions Research Value Return on Quality The quality being delivered is at a level desired by the target market. The quality level must have a positive impact on profitability. Key Terms & Definitions

For Customer Retention Marketing Strategy For Customer Retention A plan to guide the long-term use of a firm’s resources based on its existing and projected internal capabilities and on projected changes in the external environment The development of the means by which the firm will position itself in the eyes of the consumer while determining the best course of action to meet the firm’s objectives Key Terms & Definitions

For Customer Retention Marketing Strategy For Customer Retention Marketing research for British Airways discovered that first-class passengers really wanted to sleep over most amenities. So they: Offered premium flyers a meal on the ground before takeoff Pajamas when they board, real pillows and blankets An interruption free flight At their destination, first-class passengers can shower and dress in fresh pressed clothing as well as have breakfast Key Terms & Definitions

Key Terms & Definitions Social Media and UGC More people participating in social media User-generated content is unsolicited, candid, and passionate many times Millions of comments a day about products/brands Fifty-six percent of social media users check Facebook once a day 1-12 Key Terms & Definitions

Key Terms & Definitions Social Media and UGC 56% of social media users check Facebook once a day 12% check Facebook every two hours 48% check Facebook or Twitter before bed, during the night and when they wake up People under 25 were more likely to check social media during the night 1-13 Key Terms & Definitions

Types of Research Studies Applied Basic Research aimed at expanding the frontiers of knowledge rather than solving a specific, pragmatic problem Research aimed at solving a specific, pragmatic problem Key Terms & Definitions

Applied Research Types Research conducted to develop marketing options through market segmentation, market opportunity analyses, or consumer attitude and product usage studies. Programmatic Selective Research used to test decision alternatives. Evaluative Research done to assess program performance. Key Terms & Definitions

Applied Research Types Research conducted to develop marketing options through market segmentation, market opportunity analyses, or consumer attitude and product usage studies. Programmatic Has the target market changed? How? Does the market exhibit any new segmentation opportunities? Do some segments appear to be more likely candidates than others for the firm’s marketing efforts? What new product or service opportunities lie in the various segments? Key Terms & Definitions

Applied Research Types Selective Research used to test decision alternatives. When multiple opportunities exist, selective research can help managers make the best decision. In 1985, the Coca Cola company reformulated it’s coke product. New Coke was a marketing disaster that could have benefited from selective research. Learning from that mistake, soda companies introduce new drinks but not in place of consumer favorites. Key Terms & Definitions

Applied Research Types Evaluative Research done to assess program performance. Apple for example takes a very proactive stance with regard to their technology products. They listen to their consumers and consumer requests, allowing them to measure program and hardware performance. The company continually evaluates performance and success to apply to their next generation of cutting edge products. Key Terms & Definitions

Decision to Conduct Marketing Research Reconsider conducting marketing research under the following circumstances: The resources are lacking to do proper research. Managers cannot agree on what they need to know to make a decision. The opportunity has passed. Key Terms & Definitions

Decision to Conduct Marketing Research The decision as already been made, or will not be made. The research results might not be useful to management. Decision-making information already exists. Key Terms & Definitions

Decision to Conduct Marketing Research The research cost outweighs the benefits of the research. You do not have the time to do the research right. The research results will likely only be shelved. Key Terms & Definitions

Marketing Research helps Managers Get the right goods or services to the right people at the right time at the right price with the right promotion Work within an internal environment of an organization and the external environment over which he or she has little control. Focus on customer satisfaction and retention Key Terms & Definitions

Key Terms & Definitions Marketing Marketing Concept Customer Orientation Goal Orientation System Orientation Marketing Mix Marketing Research Descriptive Function Diagnostic Function Predictive Function Return on Quality Marketing Strategy Social Media/UGC Applied Research Basic, or Pure, Research Programmatic Research Selective Research Evaluative Research Links and button are active when in “Slide Show Mode” Key Terms & Definitions 1-22