Chapter 13 Marketing

What is Marketing? Marketing is about filling a need. Set of activities to communicate, create, deliver, and exchange offerings that have value. “Helping the buyer buy” – virtual tours, web info Began with emphasis on producing everything you could, and it would sell, because there was nothing else! The Production Era – up to 1920

The Marketing Concept is Born From production era to selling era to the marketing concept era. The Marketing Concept Customer orientation – what do customers want? Service orientation – how can we serve the customer? Profit orientation – let’s make things that turn a profit Nowadays, the buzz is customer relationship management

Today’s Marketing Concept – Customer Relationship Management Learn as much as possible about the customer Provide everything you possibly can to delight them Work on long-term customer loyalty Only 6.8% of marketers feel they know their customers excellently. Know your customer!Know your customer!

The Marketing Mix 13-5 Product Marketing Program Place Promotion Price

The Marketing Process Phase I Find opportunities Conduct research on them Identify a target market Product Make a product or service that fits the target market Do product testing Price Decide on a name Design the package Set a price Place Select a distribution system Promotion Design a program to promote Build relationships with customers

Doing Market Research 1. Figure out what information you’re looking for. 2. Collect data 3. Analyze the data. 4. Come up with an optimal solution. Sources Primary Interviews Surveys Observation Focus Groups Secondary Magazines Newspapers Internet searches Government publications Industry reports

Scanning the Environment Global – trade, competition, legislation Technological – knowledge, information management, communications Competitive – speed, service, price, costs, product Economic – GDP, confidence, unemployment, power of the dollar Sociocultural – demographics, attitudes and values, trends

The Consumer Responds to parts of the marketing mix Belongs to groups (segmentation, “tribes,” targeting) Responds to the purchase situation Evaluates and makes decisions What decisions do you make when going to the grocery?

Ways to Segment the Consumer Market 1. Geography 2. Demography Gender, age, education, race 3. Psychography Personality, lifestyle, values 4. By Benefits Desired Convenience, safety, status 5. By Volume-Based Behavior Usage, loyalty

Consumer Behavior Patterned decision-making process: 1. Problem recognition 2. Information search 3. Evaluate alternatives 4. Purchase decision is made 5. Follow-up comparison for opinion-forming

Business-2-Business (B2B) Marketing Fewer in number than consumers, but larger in spending power Why is this not such a bad thing? (Think size of purchase) Geographically concentrated More rational than emotional; however, personal selling is much more important!

The Importance of Value Cost/price/value relationships Creating value in the mind of the purchaser The total product offer Everything a customer evaluates when purchasing a product

Promotion Advertising Television commercials The Power of Humor? Idea Diffusion – the world of promotion is changing! Idea Diffusion Word of mouth