Business: Chapter 11 – Marketing Processes and Consumer Behavior

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.
Value
compares a product’s benefits with its costs.
Benefits
include the functions and the emotional satisfaction associated with owning, experiencing, or possessing a product.
Consumer goods
Tangible goods that consumers may buy for personal use (Consumer marketing)
Industrial goods
Physical items used by companies to produce other products (Industrial marketing)
Services
Products with intangible (nonphysical) features (Service marketing)
Relationship Marketing
Building lasting relationships with customers and suppliers
Industrial Markets
Businesses that buy goods to be converted into other products or that are used up during production
Reseller Markets
Intermediaries, including wholesalers and retailers, that buy and resell finished goods
Product
A value package that provides a bundle of benefits and features to satisfy the needs and wants of customers
Product Features
Tangible and intangible qualities built into a product
Product Mix
The group of products (consumer, industrial, or both) that a company makes available for sale
Product Line
A group of products that are closely related because they function in a similar manner or are sold to the same customer group who will use them in similar ways
Branding
A process of using symbols to communicate the qualities of a particular product made by a particular producer
Brand loyalty
Consumer preference for a particular product
Brand awareness
The brand name that comes first to mind when consumers consider a particular product category
Product placement
A promotional tactic for brand exposure in which characters in television, film, music, magazines, or video games use a real product that is visible to viewers
Buzz marketing
A form of word-of-mouth marketing
Viral marketing
Relying on word-of-mouth and the Internet to spread information like a “virus” from person-to-person about products and ideas
National brands
Products that are produced by, widely distributed by, and carry the name of the manufacturer
Licensed brands
Companies (and even personalities) license (sell the rights to) other companies to put their names on products
Private brands
Carry the brand name that a wholesaler or retailer develops and has a manufacturer put it on a product
Purposes of packaging
Reduces damage, breakage, or spoilage
In-store advertisement
Displays the brand name
Identifies features and benefits
Enhances the product features and benefits
Increases the difficulty of stealing small products
International Products
Need to adapt product to foreign markets
International Pricing
Higher transportation and selling costs abroad
International Distribution
Distribution network access in foreign markets
International Promotion
Cultural sensitivity requires adjustments to the marketing mix
Small-Business Products
Product failures due to lack of market potential or marketing to the wrong target market segments
Small-Business Pricing
Losses due to pricing errors resulting from underestimating operating expenses
Small-Business Distribution
Poor location choice fails to attract customers
Small-Business Promotion
Careful promotion can reduce expenses