Bus Exam 4: Marketing

What is Marketing?

Activity, set of institutions, & process of creating, communicating, delivering & exchanging offerings that have value for customers.

Production Era Focus

Farmers, Carpenters & Trade Workers needed to produce more, focusing on production.

Selling Era Focus

1920s- Focus on selling & advertising existing products

Marketing Era Focus

Competition for consumers’ dollar (1945)

Which era do most successful companies operate in today and why?

The marketing concept focuses on (3)

1. Customer Orientation

2. Service Orientation

3. Profit Orientation

Customer Orientation

Meeting consumer needs rather than on promotion or sales

Service Orientation

Makes sure everyone has same motivation: customer satisfaction

Profit Orientation

Focus on goods and services that will earn most profit & helps company expand

Why is customer important to business success?

Customer Relationship Management (CRM) + example

• Process of researching customers & exceeding customer satisfaction

• 
  

Marketing Mix 4 Elements

• Product

• Price

• Place

• Promotion

Product def & example (2)

• Physical goods, service or idea that satisfies want or need

• Ex: food, clothing

Price def & example (2)

• How you price product to attract customer

• Ex: $5 for shirt

Place (Distribution) def & example (2)

• Where to find your product & to have it when shopping (location)

• Ex: stores, warehouses, online

Promotion def & example (2)

• All techniques to get you to buy item

• Ex: Advertising, PR, Word of Mouth)

Product

Any physical good, service, or idea that satisfies want or need

Test Market

Process of testing products among potential users

Brand

Market Research

Analysis of markets to determine opportunities & challenges to find info needed to make good decisions

Why do businesses conduct market research?

To make informed & good decisions

Research Process (5)

1. Defining the question (problem/opportunity) & determine present situation

2. Collecting research data

3. Analyzing research data

4. Choosing best solution & implementing it

5. 
   

Global Factors def

Global Factors def (2)

• Trade agreements

• Trends, competition, opportunities, internet

Sociocultural Factors def

Sociocultural Factors Examples (2)

• Population shifts, values

• Attitudes, trends

Consumer Marketing

All consumers want goods & services for personal consumption or use & have resources to buy them

Business Marketing

Geographic Segmentation

Dividing market by cities, countries, states, or region

Demographic Segmentation

Dividing market by age, income & educ level

Psychographic Segmentation

Dividing market using group’s value, attitudes & interests

Consumer Behavior Influences

Reference Group

Culture / Subculture

Cognitive Dissonance

What is value? & example (2)

• Good quality, fair price

• 
  

Distributed Product Development

Handing off of various parts of innovation process - often to companies overseas

Product Planning

Total Product Offering & ex (2)

• Everything that consumers evaluate when deciding whether to buy something

• Reputation of Producer, Guarantee, Speed of delivery, Image created by advertising

Product Line

Product w similar purposes (ex: laundry detergent line)

Product Mix

Proctor & Gamble (diff types of products all made by same company)

Product Differentiation

Creation of real or perceived product differences

Consumer Goods Classification (4)

• Convenience

• Shopping

• Specialty

• Unsought

Convenience Goods

Inexpensive product bought frequently with little thought

Shopping Goods

Bought only after comparing price, quality, style & features

Specialty Goods

Either buy specific or leave with nothing (christmas gifts, etc)

Unsought Goods

Don’t expect to need (tow services, medical attention)

Industrial Goods

Products used in the production of other products (Aka business goods or B2B goods)

Branding

Bundling Products

Grouping two or more products together & pricing them as a unit

Brand

Name, symbol or design that distinguishes goods & services from competitors

Trademark

Brand that has exclusive legal protection for both its brand name & its design

Brand Equity

Value of the brand name & associated symbols

Brand Loyalty

Degree to which customers are satisfied, like the brand & are committed to further purchases.

Brand Categories

Brand Association

Linking of a brand to other favorable images

Product Life Cycle (4 Stages)

1. 
   

Key Characteristics of Each Stage of Product Life Cycle

Marketing Intermediaries

Organizations that assist in moving goods and services from B2B or B2C

Why Marketing Intermediaries are Important

Types of Intermediaries (4)

• Retailer

• Wholesaler

• Agent

• Broker

Retailer

Org that sells to ultimate consumers

Wholesaler

Marketing intermediary that sells to other orgs

Agent

Bring buyers & sellers together to assist in negotiating on exchange

Broker

Exchange Efficiency

How intermediaries make exchanges more efficient

Utility Creation (4)

• Time

• Place

• Possession

• Information

Time

Adding value to products by making them available when they’re needed

Place

Adding value to products by location

Possession

Doing whatever necessary to transfer ownership

Information

Adding value to products by opening two-way flows of info between marketing participants

Types of Wholesalers (4)

• Merchant Wholesalers

• Rack Jobbers

• Cash-and-Carry Wholesalers

• Drop Shippers

Merchant Wholesalers

Indep. owned firms that take title to the goods they handle

Rack Robbers

Wholesalers that furnish shelves & product displays to sell

Cash-and-Carry Wholesalers

Serve mostly smaller retailers with limited assortment of products

Drop Shippers

Retail Distribution Strategies (3)

• Intensive Distribution

• Selective Distribution

• Exclusive Distribution

Intensive Distribution

Puts products info as many retail outlets as possible

Selective Distribution

Sends products to only a preferred group of retailers in an area

Exclusive Distribution

Sends products to only one retail outlet in a given geographical area

Nonstore Retailing (6)

• Social Commerce

• Telemarketing

• Vending

• Kiosks

• Carts

• Pop-up Stores

Social Commerce & ex

Telemarketing & ex

Vending & ex

Kiosks & ex

Carts & ex

Pop-up Stores & ex

Direct Marketing Methods (3)

• Direct Selling

• Multilevel Marketing

• Direct Marketing

Direct Selling

Selling to consumers in their homes or where they work

Multilevel Marketing

Direct Marketing

Channel Systems (6)

• Corporate

• Contractual

• Administered

• Supply Chain

• Logistics

Corporate

All orgs in the channel of distrib. are owned by one firm

Contractual

Members are bound to cooperate through contractual agreements

Administered

Producers manage all of the marketing functions at the retail level

Supply Chain

Linked activities that must be used to move goods from sources of raw materials to ultimate consumers.

Logistics

Freight Forwarder

Puts many small shipments together to create single shipments to be transported cost effectively to final destination

Transportation Options (5)

• Truck

• Water

• Pipeline

• Air

• Intermodal