SOM 122 Exam 2 (Marketing)

Marketing, Finance, Accounting

What do companies market?

products, product lines, and a product mix

Marketing Concept

focuses on customer satisfaction, service, and profitability

Customer satisfaction

the concept of offering a product to please buyers by meeting their expectations

Focus on Serving Customers

Everyone in the organizatin-from top management to entry-level associates-focuses on the same goal of satisfying the customer

Emphasis on Profitability, Not Sales

focus on offering the goods and service that are most profitable, not on offering the entire range of products and not on total sales

Customer Relationship Management (CRM)

Finding out everything possible about customers and then using that info to satisfy and even exceed their expectations in order to build customer loyalty over the long term

Value

a customer’s perception that a certain product offers a better relationship between costs and benefits than competitors’ products do

Product

a good or service that can satisfy customer needs

Product Line

a collection of products designed for a similar market or that are physically similar

Product Mix

the combination of all product lines that a firm offers

Consumer Buying Process

1. Problem Recognition

2. Information Search

3. Evaluating Alternatives

4. Purchase Decision

5. Postpurchase Evaluation

What Effects Consumer Buying Behavior?

1. Culture and Subculture

2. Social Class

3. Reference Groups

4. Personal Image

5. Situational Matters

Culture and Subculture

The Influence of Values and Attitudes

• earlier generations of whatever nationality we are (culture) and

• the ethic, religious, age, education, gender, and other groups we belong to (subculture)

Social Class

The Influence of Our Socioeconomic Group

• whether lower, middle, or upper

Reference Groups

The influence of Groups We Identify With

• family, friends, fellow students, coworkers, music lovers, faternity/sorority member, and so on

Personal Image

The Look We Wish To Project

Situational Matters

The Effects of Timing, Moods, Impulse, and Expectations

marketing strategy plan

1. identifying the target market among segments

2. creating the right marketing mix to reach that target market

3. dealing with important forces in the external marketing environment

market segmentation

dividing a market into groups whose members have similar characteristics or wants and needs

target marketing strategy

consisting of marketing directly to such segamant-the target market

consumer attributes

• a particular need that the firm can serve

• not already served by too many competitors

• have enough money to afford the firm’s product

• have decision-making power to buy the product

• have access to the product

what are the 5 segments consumers are divided into?

• geographic

• demographic

• psychographic

• benefit

• user-rate

geographic

dividing the market by location

demographic

dividing the market by age, gender, or income

psychographic

diving the market by psychological characteristics, values, and lifestyles

Benefit

dividing the market by benefits that people seek in a product

user rate

dividing the market by frequency of customer usage

Niche marketing

dividing market segments even further to micro segments for which sales may be profitable

one-to-one marketing

reducing market segmentation to the smallest part-individual customers

business-to-business (B2B) market (industrial or organizational market)

business individuals and organizations that want business goods and services that will help them produce or supply their own business good and services

what are the “4 Ps”

• product

• price

• place

• promotion

New product

a product that either

1. is a significant improvement over existing products

2. performs a new functiont for the consumer

Reasons to Develop New Products

1. to stay ahead of or match the competition

2. to continue to expand revenue and profits

3. to fill out a product line

4. to take advantage of an opportunity

once a new product is determined what are the next challenges?

• to conduct research to determine opportunities and challenges

• to identify the target market

• to determine the strategies for the marketing mix

Marketing mix involves (steps of the marketing process)

1. conducting research and determining the target market

2. developing a product that will fill consumer wants

3. pricing the product

4. distributing the product to a place where consumers will buy it

5. promoting the product

Steps of the Marketing Research Process

1. Define the Problem

2. Collect Facts

3. Analyze the Data

4. Take Action

What question are Marketers asking during the “define the problem” step of the marketing research process?

• what is the present problem

• what are the opportunities

• what information is needed

• how show we collect and analyze data

What is secondary data in the marketing research process?

information acquired and published by others

• ex.) U.S. Census Bureau data, various government publications, newspapers, magazines, academic journals, internet searches, and blogs

What is primary data in the marketing research process?

data derived from original research, such as that which you might conduct yourself

• ex.) direct observation, interviews, surveys, questionnaires, customer comment cards, and concept testing

Focus Groups (primary data)

small groups of people who meet with a discussion leader and give their opinions about a product or other matters

Databases (primary data)

integrated collection of data stored in computer systems

Neuromarketing (primary data)

the study of how people’s brains respond to advertising and other brand-related messages by scientifically monitoring brainwave activity, eye tracking, and skin response

Marketing environment

the outside forces that can influence the success of marketing programs

What are the outside forces of the marketing environment?

1. global

2. economic

3. sociocultural

4. technological

5. competitive

6. political

7. legal and regulatory

Global forces (marketing environment)

consist of influences brought about by all out global interconnections

Economic forces (marketing environment)

recessions, inflations, interest rates, unemployment rates, economic growth, consumer income,

Sociocultural forces (marketing environment)

cultural changes reflecting customs, beliefs, and lifestyle of groups that differ in social class, ethnicity, age

Technological forces (marketing environment)

consist of influence both highly visible that affect retailing,

• such as being able to quickly build online r-commerce sites to launch products and companies

and less visible that affect manufacturing and distribution

• such as automation, which change the nature of delivering goods and services

Competitive forces (marketing environment)

consis of the actions of competing firms, industries, or countries

Political forces (marketing environment)

influences that occur because of the decisions of politicians and public officials

Legal and Regulatory forces (marketing environment)

consist of laws and government regulations designed to protect consumers and restrain anti-competitive business behavior

environmental scanning

looking at the wider world around them and identifying what factors can affect the marketing program

Customer relationship Management (CRM)

a pivotal technology that empowers businesses to manage and nurture customer relationships effectively

What does CRM systems capture?

valuable customer data, streamline sales processes, and foster seamless organizational communication

3 main areas of CRM

• strategic CRM

• operational CRM

• analytical CRM

Strategic CRM

plans and tactics related to winning, retaining, and keeping customers

Operational CRM

marketing, sales, and service automation

Analytical CRM

data mining and predictive/prescriptive analytics