Marketing: Helping Buyers Buy

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1 Chapter Thirteen Marketing: Helping Buyers Buy

2 WHAT S MARKETING? What is Marketing? Marketing -- The activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings with value for customers, clients, partners, and society at large. LG1 13-2

3 WHAT S MARKETING? What is Marketing? The management process that brings goods and services from concept to the customer. LG1 13-3

4 FOCUS of CONTEMPORARY MARKETING What is Marketing? LG1 Marketing today involves helping the buyer buy through: - Websites that help buyers find the best price, identify product features, and question sellers. - Blogs and social networking sites that cultivate consumer relationships. 13-4

5 FIND A NEED AND FILL IT Spotlight on Small Business Lance Fried was an electrical engineer who went into business after he built a waterproof MP3 player. Focused his marketing plan on small surf shops instead of large stores. Now, Fried attends trade shows and runs a website to help sell more products. 13-5

6 FOUR ERAS MARKETING The Evolution of Marketing LG1 Production Era Selling Era Marketing Concept Era Customer Relationship Era 13-6

7 The PRODUCTION and SELLING ERAS The Evolution of Marketing LG1 The general philosophy was Produce what you can because the market is limitless. After mass production, the focus turned from production to persuasion. 13-7

8 The MARKETING CONCEPT ERA After WWII, a consumer spending boom developed. The Evolution of Marketing Businesses knew they needed to be responsive to consumers if they wanted their business. LG1 13-8

9 APPLYING the MARKETING CONCEPT The Evolution of Marketing LG1 The Marketing Concept includes three parts: 1. Customer Orientation -- Finding out what customers want and then providing it. 2. Service Orientation -- Making sure everyone in an organization is committed to customer satisfaction. 3. Profit Orientation -- Focusing on the goods and services that will earn the most profit. 13-9

10 The CUSTOMER RELATIONSHIP ERA The Evolution of Marketing LG1 Customer Relationship Management (CRM) -- Learning as much as you can about customers and doing what you can to satisfy or exceed their expectations. Organizations seek to enhance customer satisfaction building long-term relationships. Today firms use CRM that allow customers to build a relationship with the suppliers

11 NONPROFIT MARKETING Nonprofit marketing tactics include: Nonprofit Organizations and Marketing LG1 - Fundraising - Public Relations - Special Campaigns - Ecological practices - Changing public opinions and attitudes - Increasing organizational membership 13-11

12 MARKETING STRATEGIES for NONPROFITS Nonprofit Organizations and Marketing LG1 Nonprofit marketing strategies include: - Determine the firm s goals and objectives. - Focus on long-term marketing. - Find a competent board of directors. - Exercise strategic planning. - Train and develop long-term volunteers. - Carefully segment the target market

13 DEVELOPING a PRODUCT Product -- A good, service, or idea that satisfies a consumer s want or need. Designing a Product to Meet Consumer Needs LG2 Test Marketing -- Testing product concepts among potential product users. Brand Name -- A word, letter, or a group of words or letters that differentiates one seller s goods from a competitor s

14 PRICING and PLACING a PRODUCT Setting an Appropriate Price LG2 Pricing products depends on many factors: - Competitors prices - Production costs - Distribution - High or low price strategies Middlemen are important in place strategies because getting a product to consumers is critical

PROMOTING the PRODUCT Developing an Effective Promotional Strategy Promotion -- All the techniques sellers use to inform people about their products and

15 PROMOTING the PRODUCT Developing an Effective Promotional Strategy Promotion -- All the techniques sellers use to inform people about their products and motivate them to purchase those products. Promotion includes: - Advertising - Personal selling - Public relations - Viral marketing - Sales promotions LG

16 PROGRESS ASSESSMENT Progress Assessment What does it mean to help the buyer buy? What are the three parts of the marketing concept? What are the Four P s of the Marketing Mix? 13-16

17 SEARCHING for INFORMATION Providing Marketers with Information Marketing Research -- Analyzing markets to determine challenges and opportunities, and finding the information needed to make good decisions. Research is used to identify products consumers have used in the past and what they want in the future. Research uncovers market trends and attitudes held by company insiders and stakeholders. LG

18 FOUR STEPS in the MARKETING RESEARCH PROCESS 1. Defining the problem or opportunity and determining the present situation. 2. Collecting research data. 3. Analyzing the data. The Marketing Research Process LG3 4. Choosing the best solution and implementing it

19 DEFINING the PROBLEM or OPPORTUNITY Defining the Question and Determining the Present Situation LG3 What s the present situation? What are the alternatives? What information is needed? How should the information be gathered? 13-19

COLLECTING SECONDARY RESEARCH DATA Collecting Data LG3 Secondary Data -- Existing data that has previously been collected by sources like the government.

20 COLLECTING SECONDARY RESEARCH DATA Collecting Data LG3 Secondary Data -- Existing data that has previously been collected by sources like the government. Secondary data incurs no expense and is usually easily accessible. Secondary data doesn t always provide all the needed information for marketers

21 COLLECTING PRIMARY RESEARCH DATA Collecting Data LG3 Primary Data -- In-depth information gathered by marketers from their own research. Telephone, online and mail surveys, personal interviews, and focus groups are ways to collect primary data

22 FOCUS GROUPS Collecting Data LG3 Focus Group -- A group of people who meet under the direction of a discussion leader to communicate opinions

23 ANALYZING the DATA and IMPLEMENTING the DECISION Analyzing the Research Data LG3 Marketers must turn data into useful information. Must use their analysis to plan strategies and make recommendations. Finally, marketers must evaluate their actions and determine if further research is needed

24 KEY BENEFITS of MARKETING 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. Analyzing the Research Data LG

25 WAYS to FIND OUT WHAT CONSUMERS THINK Analyzing the Research Data LG3 Conduct informal consumer surveys. Host a customer focus group. Listen to competitor s customers. Survey your sales force. Become a phantom customer

26 SCANNING the MARKETING ENVIRONMENT Environmental Scanning -- The process of identifying factors that affect marketing success. Factors involved in the environmental scan include: - Global factors - Technological factors - Sociocultural factors - Competitive factors - Economic factors The Marketing Environment LG

27 The Marketing Environment The MARKETING ENVIRONMENT LG

28 The ABC s of MARKETING Always be customer-focused. The Marketing Environment LG4 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

29 The ABC s of MARKETING Highly knowledgeable and informated. The Marketing Environment LG4 Internationally minded and internet savvy Just in time reliability and resourcefulness. Key concepts and language ability. Leadership and innovation. Managing resources, internal and external. Never stay still but embrace changes 13-29

30 The ABC s of MARKETING Openmindness and originality. Planner, programmatic, progressive, promoting, participative The Marketing Environment LG4 Qualitative in output against quantitative inputs. Ready to learn and challenge yourself Strategic in screening, searching, selecting, selling ideas and information. Tactical and thoughtful about consequences of your marketing

31 The ABC s of MARKETING Unique in originality and Universal in Communication. Value diversity and cultural differences as the foundations of your marketing career Xtra efforts lead to extraordinary results and performances. Be the X factor Winning is all that matters in the marketing war Yields and returns are perfect KPI of marketingtrategic in screening, searching, selecting, selling ideas and information. Zero competition is not good but do not allow the competition to reduce you to zero The Marketing Environment LG

32 PROGRESS ASSESSMENT Progress Assessment What are the four steps in the marketing research process? What s environmental scanning? What factors are included in environmental scanning? 13-32

The CONSUMER and B2B MARKET Two Different Markets: Consumer and B2B Market people with unsatisfied wants and needs who are willing and able to buy.

33 The CONSUMER and B2B MARKET Two Different Markets: Consumer and B2B Market people with unsatisfied wants and needs who are willing and able to buy. Consumer Market -- All the people that want to buy goods and services for personal use. Business-to-Business (B2B) Businesses buy things to make money. (Make other things or sell, rent, or supply to others) LG

34 MARKETING to CONSUMERS The Consumer Market Who can I sell my products to? Companies must decide which groups they want to serve. Market Segmentation -- Divide the total market into groups of people that are similar. Target Marketing -- Choose the segments the company will serve so it can make a profit. LG

35 SEGMENTING the CONSUMER MARKET Segmenting the Consumer Market LG5 1. Geographic Segmentation -- Dividing the market by cities, counties, states, or regions. Big city medium city small city town village Cold place hot place Northeast Coast Southeast Southwest West Central 13-35

36 SEGMENTING the CONSUMER MARKET Segmenting the Consumer Market LG5 2. Demographic Segmentation -- Dividing the market by age, income, education, etc.. This is the most common way to segment the market Kids - teens college adults middle age old Rich upper middle middle lower middle poor College high school middle illiterate (Can t read) 13-36

37 SEGMENTING the CONSUMER MARKET Segmenting the Consumer Market LG5 3. Psychographic Segmentation -- Dividing the market by group values, interests, and opinions. Psych- = Mind Healthy lifestyle exercise, food Travel and adventure Love new technology Habits teahouse/ma jiang 13-37

38 SEGMENTING the CONSUMER MARKET Segmenting the Consumer Market LG5 4. Benefit Segmentation -- Dividing the market according to product benefits the customer wants. Comfort / Service / Speed Safety / Style / Reliability Carry people & things / Low cost to use 13-38

39 SEGMENTING the CONSUMER MARKET Segmenting the Consumer Market LG5 5. Volume (Usage) Segmentation -- Dividing the market by how much they use the product. Heavy user Moderate user Light user Don t use 13-39

40 MARKETING to SMALL SEGMENTS Reaching Smaller Market Segments LG5 Niche Marketing Find a small but profitable market segments and make products for them. One-to-One Marketing-- Developing something unique ( 独特 ) for each consumer

41 MASS MARKETING vs. RELATIONSHIP MARKETING Moving Toward Relationship Marketing LG5 Mass Marketing -- Developing products and promotions to please large groups of people. Relationship Marketing No mass production. Custom-made goods and services for customers

42 KEYS to SUCCESSFUL RELATIONSHIP MARKETING Moving Toward Relationship Marketing LG5 Effective relationship marketing is built on: Open communication Consistently reliable service Staying in contact with customers Trust, honesty, and ethical behavior Showing that you truly care 13-42

43 STEPS in the CONSUMER DECISION-MAKING PROCESS The Consumer Decision-Making Process LG5 1. Problem recognition 2. Search for information 3. Evaluating alternatives 4. Purchase decision 5. Postpurchase evaluation 13-43

44 The CONSUMER DECSION MAKING PROCESS AND OUTSIDE INFLUENCES Sellers The Consumer Decision-Making Process LG5 People around me My mind My situation 13-44

45 KEY FACTORS in CONSUMER DECISION-MAKING The Businessto-Business Market LG6 Learning Reference Groups Culture Subcultures Cognitive Dissonance (Buyer s remorse) 13-45

46 BUSINESS-to-BUSINESS MARKET (B2B) The Businessto-Business Market LG6 B2B marketers include: - Manufacturers - Wholesalers and retailers - Hospitals, schools and charities - Government Products are often sold and resold several times before reaching final consumers

47 B2B MARKET DIFFERENCES Fewer customers. Customers can be large buyers. Markets are geographically concentrated. Buyers are more rational than emotional. Sales are direct. Promotions focus heavily on personal selling. The Businessto-Business Market LG

48 PROGRESS ASSESSMENT Progress Assessment Define the terms consumer market and businessto-business market. Name and describe five ways to segment the consumer market. What s niche marketing? What are four key factors that make B2B markets different from consumer markets? 13-48

Section 10.1 Introduction to Marketing

10 Marketing Section 10.1 Introduction to Marketing Objectives Describe marketing and its focus on the customer. Explain marketing strategies. Essential Question How can marketing contribute to the success