BA Chpt 11

Marketing
A group of activities designed to expedite transactions by creating, distributing and promoting goods, services and ideas.
Marketing is NOT
Manipulation to force consumers to buy what they don’t need
Exchange
The act of giving up one this: money, labor, credit, goods etc in exchange for something else
In an exchange the buyer must
Feel good about the purchase or the exchange will not continue
Functions of marketing
Buying
Selling
Transporting
Storing
Grading
Financing
Research
Risk taking
Buying
Everyone who shops for products decides whether and what to buy a marketer must understand buyers needs and desires to determine what products to make available
Selling
The exchange process is expedited through selling marketers view selling as a persuasive activity that is accomplished through promotion: advertising, personal selling, sales promotion, publicity, packaging
Transporting
The process of moving products from the seller to the buyer. Marketers focus on transportation costs and services
Storing
Storing is part of the physical distribution of products
Time utility
Related to storing being able to satisfy consumers demand in a timely manner
Grading
Standardizing products by dividing them into subgroups to display and label them. SO consumers understand nature and quality.
Financing
Large items new homes fridges, cars etc the marketer arranges credit to expedite the purchase
Marketing research
Marketers find the need for new goods and services by gathering information they detect new trends and changes in consumer tastes
Risk Taking
Risk is the chance of loss associated with marketing decisions
Customer costs
Anything the buyer gives up to obtain the benefits of the product. Monetary is the most obvious non monetary are things like time, time and effort
The larger the customer cost the more important to market strategically.
Value
Customers subjective assessment of benefits relative to costs in determining the worth of a product
Marketing Concept
The idea that an organization should try to satisfy customers needs through coordinated activities that also allow it to achieve it’s own goals
To implement the marketing concept
A firm must have good information about what consumers want and coordinate it’s efforts throughout the entire organization.
Successful implementation of marketing requires that
a business views that customers perception of value as the ultimate measure of work performance and improving value and the rate at which it is done as the measure of success.
Sales orientation
Realization that supply caught up with demand and businesses will have to sell products to customers belief that the most important marketing activities were personal selling and advertising
Market orientation
Realization the businesses must determine what customers want and then produce. approach requiring organizations to gather information about customers needs and share the information to help build long term relationships with customers
It is more efficient to
Retain customers and and increase the amount of business customers provide rather than find new customers
CRM
Customer relationship management: essential to market orientation results in loyal profitable customers
Market strategy
Plan of action for developing pricing, distributing and promoting products that meet the needs of specific customers
Market
Group of people who have a need, purchasing power and the desire and authority to spend money on goods, services and ideas
Target market
A specific group of consumers whose needs and wants a company focuses it’s marketing efforts on
Market segmentation
A strategy whereby a firm divides the total market into groups of people who have relatively similar needs.
Market segment
Collection of individuals, groups or organizations who share one or more characteristics and thus have relatively similar product needs and desires
Concentration approach
Market segmentation where a company develops one marketing strategy for a single market
Can be effective when firm identifies and develops products for a segment ignored by other companies in the industry
Multisegment approach
Marketers aims it;s efforts at two or more segments and develops strategy for each.
Niche Marketing
Narrow segment focus when efforts are on one small well defined group that has a unique set of needs
To use concentration or multisegment approach firms must have
1. consumers needs for the product must be heterogeneous
2. Segments must be identifiable and divisible
3. Total market must be divided in a way that allows estimated sales, potential cost and profits of segments to be compared
4. At least one segment must have enough profit potential to justify developing and maintaing a special marketing strategy
5. Firm must be able to reach the chosen market segment with a market strategy
Bases for segmenting markets
Demographic: age, race sex, ethnicity, income, occupation religion, social class etc
Geographic: climate, terrain, natural resources, population density
Psychographic: personality characteristics motives, lifestyles,
Behaviroistic: characteristics of the consumers behavior toward the product
Marketing Mix the 4 Ps
Four marketing activities that the firm can control to achieve goals within a dynamic market environment
Product, price, promotion, distribution
Price
value placed on an object exchanged between a buyer and a seller
Distribution (place)
Making products available to customers in the quantities desired
Pomotion
persuasive form of communication that attempts to expedite a marketing exchange by influencing individuals, groups and organization to accept goods, services and ideas.
Marketing research
Systematic objective process of getting information about potential customers to guide marketing decisions.
Marketing information system
Framework for accessing information about customers from sources both inside and outside the organization
Two types of date available to decision makers
primary data and secondary data
Primary data
Marketing information that is observed, recorded or collected directly from respondents
Secondary data
Information compiled inside or outside an organization for some purpose other than changing the current situation
Buying Behavior
The decision process and actions of people who purchase and use products
Psychological variables in buying behavior
Perception
Motivation
Learning
Attitude
Personality
Social variables for buying behavior
Social Rolls
Reference groups
Social classes
Culture
External forces in the marketing environment
Political legal and regulatory
Social forces
Competitive and economic forces
Technological forces