TEST 3, Chapter 13 (Marketing – Helping Buyers Buy) TEXT

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; the activities buyers and sellers perform to facilitate mutually satisfying exchanges; helping the buyer buy
the future of marketing
doing everything you can to help the buyer buy; mining online conversations (blogs) and responding appropriately
4 eras of marketing
(1) production, (2) selling, (3) marketing concept, (4) customer relationship
the production era
general philosophy of business was ‘produce as much as you can, because there is a limitless market for it’; limited production capability, vast demand; goals centered on production; same process still occurs in the oil industry today; greatest marketing need in this industry is for more production and less expensive distribution and storage
the selling era
emphasized selling and advertising in an effort to persuade customers to buy existing products
marketing concept
(1) a customer orientation – find out what customers want and provide it, (2) a service orientation – everyone in the organization has the same objective of customer satisfaction, and (3) a profit orientation – focus on those goods and services that will earn the most profit
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; the idea is to enhance customer satisfaction and stimulate long-term customer loyalty
customer-managed relationships (CMR)
the idea is to give the customer the power to build relationships with suppliers
marketing mix
the ingredients that go into a marketing program; product, price, place, and promotion
the marketing process
(1) find opportunities,
(2) conduct research,
(3) identify a target market,
(4) design a product to meet the need based on research,
(5) do product testing,
(6) determine a brand name, design a package, set a price,
(7) select a distribution system,
(8) design a promotional program,
(9) build a relationship with customers
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
intermediaries (middlemen)
middle links in a series of organizations that distribute goods from producers to consumers
promotion
all the techniques sellers use to inform people about and motivate them to buy their products or services; includes advertising, personal selling, public relations, publicity, word of mouth (viral marketing), and various sales promotion efforts; often includes relationship building with customers
market research
the analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions; helps identity 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
steps in the marketing research process
(1) defining the question/problem/opportunity, and determining the present situation,
(2) collecting research data,
(3) analyzing the research data,
(4) choosing the best solution and implementing it
secondary data
information that has already been compiled by others and published in journals and books, or made available online; marketers should gather this first to avoid incurring unnecessary expense
primary data
data that you gather yourself (not from secondary sources such as books and magazines); surveys, interviews, focus groups, etc.
focus group
a small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues
marketers can now gather both primary and secondary data ___
online
marketing research is a ___ process of responding to changes in the marketplace and in consumer preferences
continuous
environmental scanning
the process of identifying the factors that can affect marketing success; include global, technological, sociocultural, competitive, and economic influences
sociocultural factors that affect marketing
population shifts, values, attitudes, trends
competitive factors that affect marketing
speed, service, price, selection
economic factors that affect marketing
GDP, disposable income, competition, unemployment
global factors that affect marketing
trade agreements, competition, trends, opportunities, Internet
technological factors that affect marketing
computers, telecommunications, bar codes, data interchange, Internet changes
market
people with unsatisfied wants and needs who have both the resources and willingness to buy
2 major markets in business
(1) consumer market, (2) business-to-business market
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 gods and services or to sell, rent, or supply goods to others
What determines whether a product is a consumer product or B2B product?
the buyer’s reason for buying – that is, the end use of the product
market segmentation
the process of dividing the total market into groups whose members have similar characteristics; includes geographic, demographic, psychographic, benefit, and volume segmentations
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, education level, religion, race, occupation
psychographic segmentation
dividing the market using the group’s values, attitudes, and interests
benefit segmentation
dividing the market by determining which benefits of the product to talk about
volume (usage) segmentation
dividing the market by usage (volume of use)
the best segmentation strategy is …
use all the variable to come up with a consumer profile that represents a sizable, reachable, and profitable target market
long tail
a term describing companies selling more products with lower demand so that it can easily compete with (or even surpass) those solely dependent on big sellers
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; relatively easy to do in B2B markets where each customer may buy in large volume
mass marketing
developing products and promotions to please large groups of people; little market segmentation; less responsive to the market
relationship marketing
marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements
consumer behavior
study of consumer thought processes and behavior at each stage in a purchase
important influences on consumer behavior
(1) learning,
(2) reference group,
(3) culture,
(4) subculture,
(5) cognitive dissonance – a type of psychological conflict that can occur after a purchase
consumer decision-making process
(1) problem recognition,
(2) information search,
(3) alternative evaluation,
(4) purchase decision,
(5) postpurchase (cognitive dissonance)
Which type of market (B2B vs. consumer) is larger? Why?
The B2B market is larger than the consumer market because items are often sold and resold several times in the B2B process before they reach the final consumer
What are some factors that make the B2B market different from the consumer market?
(1) customers in the B2B market are relatively few,
(2) business customers are relatively large,
(3) B2B markets tend to be geographically concentrated, thus, B2B marketers can concentrate their efforts on a particular area and minimize distribution problems by locating warehouses near industrial centers,
(4) business buyers are generally more rational and less emotional than ultimate consumers,
(5) B2B sales tend to be direct,
(6) whereas consumer promotions are based on advertising, B2B sales are based on selling – there are fewer customers and they usually demand more personal service