1. Chapter 1

2. 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
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Key Terms & Definitions

3. 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

4. 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
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5. 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

6. 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

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

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

9. 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

10. 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

11. 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

12. 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
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Key Terms & Definitions

13. 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
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Key Terms & Definitions

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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
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Key Terms & Definitions
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