Business 101 Marketing Chapter 13-16

Facilitation
Meeting- set of activities carried out before, during, and after meetings to help achieves its own outcomes
facilitator
leader to help ensure team achieves goals
six roles of a team
organizer, innovator, doer, challenger, team builder, connector
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 in the past focused on
helping sellers sell
marketing in the present focused on
helping buyers buy
production era
produce as much as you can bc vast demand for products
selling era
we got good as hell at producing so this era focused on persuasive selling
market concept era
began to be very responsive to customers’ needs and wants
customer relationship era
building long term relationships w customers with that good ass customer service
marketing concept
customer oriented, service oriented, and profit oriented
customer relationship management (CRM)
process of learning as much as possible to meet and exceed customer expectations w/ goods and services
the emerging mobile/on demand marketing era
always on demand, customers want it now, for them, always, and simple
how to keep ur customers
build trust, emphasize long term, listen, show appreciation, and treat employees well
nonprofit marketing tactics
marketing, PR, ecological practices, changing public opinion
nonprofit marketing strategies
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
four P’s of marketing
product, place, promotion, price
product
good, service or idea that satisfies customers wants with a brand name and possible test marketing results
brand name
word or phrase or group of letters that differentiates product
target market
ppl u target for ur good or service
test marketing
process of testing product among potential users
price
will depend on production and distribution costs, competitors prices, high or low price strategies
place
where can people buy ur product
middlemen or intermediaries are important bc they get the product from production to consumer
promotion
any technique used to inform people about a product to motivate consumer to buy
market research
analyze markets to determine opportunities or challenges and to find the info the need to make a good decision
what does market research look at?
past purchases, changes that occur to alter what they want now or what they will want in the future, business trends, ecological impact
Steps in market research process
1. Defining the problem or opportunity and determining the present
situation.
2. Collecting research data.
3. Analyzing the data.
4. Choosing the best solution and implementing it.
primary data
In-depth information gathered by marketers from their own
research.
o Telephone, online and mail surveys, personal interviews, and
focus groups are ways to collect primary data.
secondary data
Existing data that has previously been collected by
sources like the government.
usually cheap or free and easy to access
benefits of market research
o Analyze customer needs and satisfaction.
o Analyze current markets and opportunities.
o Analyze the effectiveness of marketing strategies.
o Analyze marketing process and tactics currently used.
o Analyze the reasons for goal achievement or failure.
how do you find out what customers think?
o Conduct informal consumer surveys
o Host a customer focus group
o Listen to competitor’s customers
o Survey your sales force
o Become a “phantom” customer
environmental scanning
The process of identifying factors that affect marketing success
factors involved in environmental scan include
o Technological factors
o Sociocultural factors
o Competitive factors
o Economic factors
global factors
consumer market
All the individuals or households that want goods and services for personal use and have the
resources to buy them
Business-to-Business (B2B)
Individuals and organizations that buy goods and services to use in production or to sell, rent, or
supply to others.
o Manufacturers
o Wholesalers and retailers
o Hospitals, schools and charities
o Government
Marketing segmentation
Divides the total market into groups with similar characteristics.
geographic segmentation
Dividing the market by cities, counties, states, or regions.
demographic segmentation
Dividing the market by age, income, education
psychographic segmentation
Dividing the market by group values, attitudes, and interests.
benefit segmentation
Dividing the market according to product benefits the customer prefers.
volume (or usage) segmentation
Dividing the market by the volume of product use
niche marketing
Identifies small but profitable market segments and designs or finds products for them
one to one marketing
Developing a unique mix of goods and services for each individual consumer
mass marketing
Developing products and promotions to please large groups of people
relationship marketing
Rejects the idea of mass production and focuses
toward custom-made goods and services for customers.
The Consumer Decision making process
1. prob recognition
2. info search (look at reviews)
3. evaluate alternatives
4. purchase decision
Bundling
Grouping two or more products together and pricing them as a unit.
Brand
Name, symbol, or design that identifies the goods or services and distinguishes them from competitors’ offerings
Trademark
A brand that has exclusive legal protection for both its brand name and design.
Manufacturers’ Brands
Brand names of manufacturers that distribute products nationally.
Dealer (Private-Label) Brands
Products that carry a retailer’s or distributor’s brand name instead of a manufacturer’s.
Generic Goods
Non-branded products that sell at a discount compared to manufacturers’ or dealers’ brands.
Knockoff Brands
Illegal copies of national brands.
Brand Equity
The value of the brand name and associated symbols.
Brand Loyalty
The degree to which consumers are satisfied and are committed to further purchases.
Brand Awareness
How quickly or easily a given brand name comes to mind when someone mentions a product category.
Brand Association
Linking a brand to other favorable images, like celebrities or a geographic area.
Brand Manager
Person responsible for a particular brand and handles all the elements of the brand’s marketing mix
Idea Generation
It takes about seven ideas to generate one commercial product. Most ideas for new industrial products come from employee suggestion & research and development.
Product Screening
Reduces the number of new products a firm is working on to focus on the most promising.
Product Analysis
Focuses on the cost estimates and sales forecasts to get an idea of potential profitability.
Development
The firm will tests many different product concepts or alternatives, then start making prototypes or samples
Concept Testing
Takes a product idea to consumers to test reactions.
Commercialization
Promoting the product to distributors and retailers and developing the promotional campaign.
Product Life Cycle
A theoretical model of what happens to sales and profits for a product over time.
product life cycle stages
introduction, growth, maturity, decline
Target Costing
Designing a product that satisfies customers and meets the firm’s targeted profit margins.
Competition-Based Pricing
A strategy based on what the competition is charging for its products.
Break-Even Analysis
The process used to determine profitability at various levels of sales. The break-even point is where revenues equals cost
product line
A group of products that are physically similar or intended for a similar market.
product mix
combo of product lines offered by a manufacturer
Value
Good quality at a fair price
Distributed Product Development
The handing off of various parts of your innovation process – often overseas
Total Product Offer
Everything consumers evaluate when deciding whether to buy something.
Product Differentiation
The creation of real or perceived product differences
Convenience Goods and Services
Products consumers purchase frequently with minimal effort.
Shopping Goods and Services
Products consumers buy only after comparing value, quality, price, and styles.
Specialty Goods and Services
Products with unique characteristics and brand identity.
Unsought Goods and Services
Products consumers aren’t aware of or haven’t thought of buying until they need them
Industrial Goods
Products used in the production of other products and sold in the B2B market.
Total Fixed Costs
All costs that remain the same no matter how much is produced or sold.
Variable Costs
Costs that change according to the level of production.
Skimming Price Strategy
Pricing new products high to recover costs and make high profits while competition is limited.
Penetration Price Strategy
Pricing products low with the hope of attracting more buyers and discouraging other companies from competing in the market.
Everyday Low Pricing (EDLP)
Setting prices lower than competitors with no special sales.
High-Low Pricing
Using regular prices that are higher than EDLP stores except during special sales when they are lower.
Psychological Pricing
Pricing products at price points that make a product seem less expensive than it is.
Marketing intermediaries
(once called middlemen) are organizations that assist in moving goods and services from producers to businesses(B2B) and from businesses to consumers(B2C). They’re called intermediaries because they’re in the middle of a series of organizations that join together to help distribute goods from producers to consumers.
Channel of distribution
consists of a set of marketing intermediaries, such as agents, brokers, wholesalers, and retailers, that join together to transport and store goods in their path (or channel) from producers to consumers.
Agents/brokers
are marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don’t take title to the goods—that is, at no point do they own the goods.
Wholesalers
are marketing intermediaries that sells to other organizations, such as retailers, manufacturers, and hospitals.
utility
the want satisfying ability or value that organizations add to goods or services by making them more useful or accessible to consumers
form utility
changing raw products to useful products
time utility
making products available when consumers need them
place utility
placing where people want them
possession utility
doing whatever is necessary to transfer ownership from one party to another (delivery, installation, follow up)
information utility
opening two way flows of info between marketing participants
service utility
fast friendly service during and after the sale and by teaching how customers use products over time
Merchant wholesalers
are independently owned firms that take title to the goods they handle. About 80 percent of wholesalers fall in this category.
Rack jobbers
furnish racks or shelves full of merchandise, like music, toys, hosiery, and health and beauty aids, to retailers.
Cash-and-carry wholesalers
serve mostly smaller retailers with a limited assortment of products.
Drop shippers
solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer.
Intensive distribution
puts products into as many retail outlets as possible, including vending machines.
Selective distribution
uses only a preferred group of the available retailers in an area.
Exclusive distribution
is the use of only one retail outlet in a given geographic area. The retailer has exclusive rights to sell the product and is therefore likely to carry a large inventory, give exceptional service, and pay more attention to this brand than to others.
Electronic retailing
consists of selling goods and services to ultimate consumers online.
Social commerce
is a form of electronic commerce that involves using social media, online media that supports social interaction, and user contributions to assist in the online buying and selling of products and services
Telemarketing
is the sale of goods and services by telephone. Many companies use it to supplement or replace in-store selling and complement online selling
Direct selling
reaches consumers in their homes or workplaces
Direct marketing
includes any activity that directly links manufacturers or intermediaries with the ultimate consumer. It includes direct mail, catalog sales, and telemarketing as well as online marketing.
Corporate distribution system
one firm owns all the organizations in the channel of distribution.
Contractual distribution system
members are bound to cooperate through contractual agreements
What are the three forms of the Contractual distribution system
Franchise systems, wholesaler, retail cooperatives
Administered distribution system
a system in which producers manage all the marketing functions at the retail level.
Supply chain (or value chain)
consists of all the linked activities various organizations must perform to move goods and services from the sources of raw materials to ultimate consumers.
Logistics
is the planning, implementing, and controlling of the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
Materials handling
is the movement of goods within a warehouse, from warehouses to the factory floor, and from the factory floor to various workstations.
Podcasting
A way to distribute audio and video programs via the Internet.
Mobile Media
Marketers make use of cell phones to text customers about product offers and other company information
Push Strategy
Producers use advertising, personal selling, sales promotion, and other tools to get their products stocked on shelves.
Pull Strategy
Directs heavy advertising and sales promotions efforts towards consumers and gets the public to request their products from retailers.
Pick Economy
Refers to consumers who pick out their products from online outlets
Global Advertising
Requires marketers to develop a single product and promotional strategy to implement worldwide.
Personal Selling
The face-to-face presentation and promotion of a product, including the salesperson’s search for new prospects and follow-up service.
Prospecting
Researching potential buyers and choosing those most likely to buy.
Qualifying
Making sure customers have a need for a product, the authority to buy and the willingness to listen to a sales message.
Prospect
A customer who meets the qualifying criteria.
Public Relations (PR)
Evaluates public attitudes, changes policies and procedures in response to the public, and executes a program of action and information to earn public understanding and acceptance.
3 steps of a good PR program:
o Listen to the public o Change policies and procedures o Inform people you’re responsive to their needs Publicity Any information about an individual, product or organization that’s distributed to the public through the media and is not paid for or controlled by the seller.
Advantages of Publicity:
o Free, Reaches people who would not look at an advertisement, More believable than advertising o No control over whether the media will use a story or when they may release it. o It can be good or bad. o Once a story has been run, it isn’t likely to run again. Sales Promotion The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities.
Categories of Sales Promotions:
o B2B Sales Promotions o Consumer Sales Promotions
Viral Marketing
Paying customers to say positive things on the Internet or setting up multiple selling schemes whereby consumers get commissions.
Blog
Short for web log; an online diary that looks like a webpage, but is easier to create and update by posting text, photos, videos, or links.
Value
Good quality at a fair price.
Promotion Mix
The combination of promotional tools an organization uses.
Integrated Marketing Communication (IMC)
Combines the promotional tools into one comprehensive strategy
Advertising
Paid, non-personal communication through various media by organizations and individuals who are in some way identified in the message.
Advertising goal
Inform, Persuade, Remind
Infomercial
A full length TV program devoted exclusively to promote a particular product.
Interactive Promotion
Allows marketers to open a dialogue between buyers and sellers and let them work together to create a beneficial exchange.