BusCh13

Marketing
The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Marketing concept
A three-part business philosophy: 1) a customer orientation, 2) a service orientation, and 3) a profit organization
Customer relationship management CRM
The process of learning as much as possible about customers and doing everything you can to satisfy them, or even exceed their expectations, with goods and services
Marketing mix
The ingredients that go into a marketing program: product, price, place, and promotion
Product
Any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers, such as the brand
Test marketing
The process of testing products among potential users
Brand name
A word, letter, or group of words or letters that differentiates one seller’s goods and services from those of competitors
Promotion
All the techniques sellers use to inform people about and motivate them to buy their products or services
Marketing research
The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions
Secondary data
Information that has already been compelled by others and published in journals and books or made available online
Primary data
Data that you gather yourself, not from secondary sources such as books and magazines
Focus group
A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, it’s products, or other given issues
Environmental scanning
The process of identifying the factors that can affect marketing success
Consumer market
All the individuals or households that want goods and services for personal consumption or use
Business-to-business B2B market
All the individuals and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others
Market segmentation
The process of dividing the total market into groups whose members have similar characteristics
Target marketing
Marketing directed toward those groups, market segments, an organization decides it can serve profitably
Geographic segmentation
Dividing a market by cities, counties, states, or regions
Demographic segmentation
Dividing the market by age, income, and education level
Psychographic segmentation
Dividing the market using groups’ values, attitudes, and interests
Benefit segmentation
Dividing the market by determining which benefits of the product to talk about
Volume, or usage, segmentation
Dividing the market by usage, volume of use
Niche marketing
The process of finding small but profitable market segments and designing or finding products for them
One-to-one marketing
Developing a unique mix of goods and services for each individual customer
Mass marketing
Developing products and promotions to please large groups of people
Relationship marketing
Marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements
“Power pull”
A shift in marketing from “helping the seller sell” to “helping the buyer buy”;
The marketing effort provides as much information to the buyer as possible to help make a buying decision
1 product
2 price for
3 place of
4 promoting of
Four factors-marketing mix
Effective marketing
“Learn about your customers and exceed their expectations”; customer orientation
Four eras of marketing
1. the production era
2. the selling era
3. the marketing concept era
4. the customer relationship era
Market research
Helps identify what products customers have purchased in the past and what changes have occurred to alter what they want now and what they’re likely to want in the future
Global
Technological
Sociocultural
Competitive
Economic
Factors of environmental scanning
Growth of consumer databases, blogs, and social networks
The most important technological change likely to affect marketing success of many firms
Characteristic of B2B market
Business buyers are generally more rational and less emotional than individual customers. They use product specifications to guide buying choices, and weigh the total product offer