BUS2000 - Chapter 13 Marketing

marketing definition

the process of planning the concept/pricing/promotion/distribution of ideas/goods/services to create exchanges that satisfy individual and organizational goals. (defined by The American Marketing Association)

marketing today

helps the buyer buy through:

• websites to find the best price, product features, and question sellers

• blogs and social networking sites that create consumer relationships

Marketing Eras in the US

1. production

2. selling

3. marketing concept

4. customer relationship

5. mobile/on-demand marketing (new era emerging)

The Production Era

“produce as much as you can, because there is a limitless market for it”

The Selling Era

most companies emphasized selling and advertising in an effort to persuade consumers to buy existing products

The Marketing Concept Era

• After WWII, a consumer spending boo,

• businesses knew they had to respond to consumers if they wanted to keep their business

• marketing concept business philosophy:

  • customer orientation

  • service orientation

  • profit orientation

The Customer Relationship Era

• Customer Relationship Management (CRM)

• organizations seek to stimulate long-term customer loyalty

• social networks, online communities, and blogs are used to build relationships

Customer Relationship Management (CRM)

learning as much as possible about customers and doing everything you can to satisfy/exceed their expectations

The Emerging Mobile/On-demand Marketing Era

digital technology continues to grow, consumer demand are expected to rise in:

• consumers want to interact anywhere/anytime

• consumers use information in new ways to create value for them

• consumers expect personalized experiences

• consumers expect all interactions to be easy

past vs current marketing

previously: focused only on helping the seller sell the product

now: focuses on helping the buyer buy/make decisions

Six Steps for Keeping Your Customers Happy

1. build trust

2. be open about mistakes

3. listen

4. promise only what you can deliver

5. show appreciation

6. remember employees are customers too!

importance of keeping customers happy

the cost of acquiring a new customer is 5 times the cost of retaining one

nonprofit organizations use marketing to:

• fundraising

• obtaining resources

• promoting their message

• attracting new members

• creating new members

• creating awareness of social issues

The marketing Mix

the ingredients that go into a marketing program

1. product

2. place

3. price

   1. promotion

marketing mix: product

the good or service offered to the customer

1. find opportunities

2. conduct research

3. identify a target market

4. design a product to meet the need

5. do product testing

test marketing

testing products among potential users

marketing mix: place

where the product can be purchased

• select a distribution system

  • important because getting a product to consumers when/where they want is important

marketing mix: price

the amount of money charged to the customer for purchasing the product

• determine a brand name

• design a package

• set a price

marketing mix: price dependants

• competitors’ prices

• production costs

• distribution

• promotion

marketing mix: promotion

efforts to make the customer aware of the product

• design a promotional system

• build a relationship with customers

examples of promotion

• advertising

• personal selling

• public relations

• publicity

• word of mouth

• sales promotions

marketing mix goals

• to please customers

• make a profit

  • (non-profits don’t make profit, but will reinvest excess revenue into the organization to maintain their operations)

how to get customers to need your products

• get customers emotional about your product

  • emphasizing the product’s benefit

  • emotion-laden advertising

• appeal to your customers

  • be confident

  • show interst

  • create exclusitivity

7 potential problems of Web Design that Fail to Promote

1. unorganized or stale information

2. improper use of animation

3. tiny fonts and poor color schemes

4. ignoring the needs of your customer base

5. using outdated methods

6. not burying dead links

7. inconsistent style

market research

the analysis of markets to determine opportunities and challenges. to find the information needed to make good decisions

market research identifies

• product consumes have used in the past

  • what they want in the future

market research uncovers

• bussiness trends

• ecological impact of decisions

  • global trends

the market research process:

1. defining the problem or opportunity and determining the present situation

2. collecting research data

3. analyzing the research data

4. choosing the best solution and implementing it

2. collecting the research data

primary and secondary data

secondary data

information that has already been compiled by others and published in journals and books or made available online

• doesn’t always provide all the needed information for marketers

primary data

data that you gather yourself (not from secondary sources)

• collected through: telephone/online/mail surveys, personal interviews, and focus groups

3. analyzing the research data

marketers must turn data into useful information through careful and honest interpretation

4. choosing the best solution and implementing it

• marketers use their analysis to plan strategies and make recommendations

• marketers must evaluate their actions and determine if further research is needed

benefits of market research

• analyze customer needs and satisfaction

• analyze current markets and opportunities

• analyze the effectiveness of marketing strategies

• analyze marketing process and tactics currently used

• analyze the reasons for goal achievement or failure

ways to find out what consumers think

• conduct informal consumer surveys

• host a customer focus group

• listen to competitor’s customers

• go to the store as a mystery customer

environmental scanning

the process of identifying factors that can affect marketing success

• used to learn about the changing marketinf environment

environmental scan influences

• sociocultural factors

• economic factors

• global factors

• competitive factors

• technological factors

environmental factors: sociocultural factors

• population shifts

• values

• attitudes

• trends

environmental factors: economic factors

• GDP

• disposable income

• competition

• unemployment

environmental factors: global factors

• trade agreements

• competition

• trends

• opportunities

  • internet

environmental factors: competitive factors

• speed

• service

• price

• selection

environmental factors: technological factors

• computers

• telecommunication

• bar codes

• data interchange

• internet changes

the ABC’s of Marketing (keys to marketing success)

• always be customer focused

• benchmark against the best firms

• continuously improve performance

• develop the best value package

• empower your employees

• focus on relationship building

• goal achievement is the reward

keys to successful “relationship marketing”

• open communication

• consistently reliable service

• staying in contact with customers

• trust, honesty, and ethical behaviors

• showing that you truly care

two kinds of markets

consumer markets

business to business markets

business to business market

B2B

all the individuals and organizations that want goods and services to use in producing other goods and services or to sell/rent/supply goods to others

• companies whose customers are other companies

consumer market definition

all the individuals or households that want goods and services for personal consumption or use

• companies that target this market are sometimes called “B2C” (Business to consumer)

• the size and diversity of the consumer market forces marketers to decide which groups they want to serve

segmenting the consumer market

• geographic segmentation

• demographic segmentation

• psychographic segmentation

• benefit segmentation

• volume (or useage) definition

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

targeting market definition

marketing directed toward those groups an organization decides it can serve profitability

reaching smaller market segments in the consumer market

• niche marketing

• one-to-one marketing

niche marketing definition

finding small but profitable market segments and deisgning or finding products for them

one-to-one marketing definition

developing a unique mix of goods and services for each individual consumer

building market relationships in the consumer market

mass marketing

relationship marketing

mass marketing definition

developing products and promotions to please large groups of people

• uses little market segmentation

relationship marketing definition

keeping individual customers over time by offering them products that exactly meet their requirements

• tends to lead away from mass production and toward custom-made goods and services

the consumer decision-making process in the consumer market

• problem recognition

• information search

• evaluate alternatives

• purchase decision

• post purchase evaluation