Marketing

Aspect
Marketing Aspect
MARKETING
ASPECT
PRODUCTION
ASPECT
ECONOMIC
ASPECT
FINANCIAL
ASPECT
ORGANISATION
AND
MANAGEMENT
SOCIAL AND
ENVIRONMENT
RISK ASPECT

Marketing -- The activity, set of institutions and
processes for creating, communicating, delivering,
and exchanging offerings with value for customers,
clients, partners, and society at large.
WHATS MARKETING?
13-3
*
Marketing today involves helping the buyer buy
through:
- Websites that help buyers find the best price,
identify product features, and question sellers.
FOCUS of CONTEMPORARY
MARKETING
- Blogs and social
networking sites that
cultivate consumer
relationships.

13-4
Production Era
Selling Era
Marketing Concept Era
Customer Relationship
Era
FOUR ERAS of U.S. MARKETING
13-5
The general philosophy was
Produce what you can
because the market is
limitless.
After mass production, the
focus turned from production
to persuasion.
The PRODUCTION and
SELLING ERAS
13-6
After WWII, a consumer spending boom
developed.
Businesses knew they needed to be responsive
to consumers if they wanted their business.
The MARKETING CONCEPT ERA
13-7
The Marketing Concept includes three parts:
1. Customer Orientation -- Finding out what
customers want and then providing it.
2. Service Orientation -- Making sure everyone in
an organization is committed to customer
satisfaction.
3. Profit Orientation -- Focusing on the goods and
services that will earn the most profit.
APPLYING the
MARKETING CONCEPT
13-8
Customer Relationship Management (CRM) --
Learning as much as you can about customers and
doing what you can to satisfy or exceed their
expectations.
Organizations seek to enhance customer
satisfaction building long-term relationships.
Today firms like Priceline and Travelocity use
CRM that allow customers to build a relationship
with the suppliers.
The CUSTOMER
RELATIONSHIP ERA
13-9
Nonprofit marketing strategies include:
- Determine the firms 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.
MARKETING STRATEGIES for
NONPROFITS
13-10
Product -- A good, service, or
idea that satisfies a consumers
want or need.
Test Marketing -- Testing
product concepts among
potential product users.
Brand Name -- A word, letter,
or a group of words or letters
that differentiates one sellers
goods from a competitors.
DEVELOPING a PRODUCT
13-11
Pricing products depends on many factors:
- Competitors prices
- Production costs
- Distribution
- High or low price strategies
Middlemen are important in place strategies
because getting a product to consumers is
critical.
PRICING and
PLACING a PRODUCT
13-12
Promotion -- All the techniques sellers use to
inform people about their products and motivate them
to purchase those products.
Promotion includes:
- Advertising
- Personal selling
- Public relations
- Viral marketing
- Sales promotions
PROMOTING the PRODUCT
13-13
Marketing Research -- Analyzing markets to
determine challenges and opportunities, and finding
the information needed to make good decisions.
Research is used to identify products consumers
have used in the past and what they want in the
future.
Research uncovers market trends and attitudes
held by company insiders and stakeholders.
SEARCHING for INFORMATION
13-14
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.
FOUR STEPS in the MARKETING
RESEARCH PROCESS
13-15
Whats the present situation?
What are the alternatives?
What information is needed?
How should the information be
gathered?
DEFINING the PROBLEM or
OPPORTUNITY
13-16
Secondary Data -- Existing data that has
previously been collected by sources like the
government.
COLLECTING SECONDARY
RESEARCH DATA
Secondary data incurs no
expense and is usually
easily accessible.
Secondary data doesnt
always provide all the
needed information for
marketers.
13-17
Primary Data -- In-depth information gathered by
marketers from their own research.
Telephone, online and mail surveys, personal
interviews, and focus groups are ways to collect
primary data.
COLLECTING PRIMARY
RESEARCH DATA
13-18
Focus Group -- A group of people who meet under
the direction of a discussion leader to communicate
opinions.
FOCUS GROUPS
13-19
Marketers must turn data into useful information.
Must use their analysis to plan strategies and
make recommendations.
ANALYZING the DATA and
IMPLEMENTING the DECISION
Finally, marketers
must evaluate their
actions and
determine if further
research is needed.
13-20
*
Analyze customer needs and satisfaction.
Analyze current markets and opportunities.
Analyze the effectiveness of marketing strategies.
Analyze marketing process and tactics currently
used.
Analyze the reasons for goal achievement or
failure.
KEY BENEFITS of MARKETING
RESEARCH
13-21
Conduct informal consumer surveys.
WAYS to FIND OUT WHAT
CONSUMERS THINK
Host a customer focus
group.
Listen to competitors
customers.
Survey your sales force.
Become a phantom
customer.
13-22
Environmental Scanning -- The process of
identifying factors that affect marketing success.
Factors involved in the environmental scan
include:
- Global factors
- Technological factors
- Sociocultural factors
- Competitive factors
- Economic factors
SCANNING the MARKETING
ENVIRONMENT
13-23
The MARKETING ENVIRONMENT
13-24
Always be customer-focused.
Benchmark against the best firms.
Continuously improve performance.
Develop the best value package.
Empower your employees.
Focus on relationship building.
Goal achievement is the reward.
The ABCs of MARKETING
13-25
Consumer Market -- All the individuals or
households that want goods and services for
personal use and have the resources to buy them.
The CONSUMER and
B2B MARKET
Business-to-Business
(B2B) -- Individuals and
organizations that buy goods
and services to use in
production or to sell, rent, or
supply to others.
13-26
The size and diversity of the consumer market
forces marketers to decide which groups they
want to serve.
Market Segmentation -- Divides the total market
into groups with similar characteristics.
Target Marketing -- Selecting which segments an
organization can serve profitably.
MARKETING to CONSUMERS
13-27
Geographic Segmentation -- Dividing the market
by cities, counties, states, or regions.
Demographic Segmentation -- Dividing the
market by age, income, education, and other
demographic variables.
Psychographic Segmentation -- Dividing the
market by group values, interests, and opinions.
(continued)
SEGMENTING the CONSUMER
MARKET
13-28
Benefit Segmentation -- Dividing the market
according to product benefits the customer prefers.
Volume (Usage) Segmentation -- Dividing the
market by the volume of product use.
SEGMENTING the CONSUMER
MARKET
(continued)
13-29
Niche Marketing -- Identifies small but profitable
market segments and designs or finds products for
them.
MARKETING to
SMALL SEGMENTS
One-to-One
Marketing--
Developing a unique
mix of goods and
services for each
individual consumer.
13-30
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.
MASS MARKETING vs.
RELATIONSHIP MARKETING
13-31
Effective relationship marketing is built on:
Open communication
Consistently reliable service
Staying in contact with customers
Trust, honesty, and ethical behavior
Showing that you truly care
KEYS to SUCCESSFUL RELATIONSHIP
MARKETING
13-32
1. Problem recognition
2. Search for information
3. Evaluating alternatives
4. Purchase decision
5. Postpurchase evaluation
STEPS in the CONSUMER
DECISION-MAKING PROCESS
13-33
The CONSUMER DECSION MAKING
PROCESS AND OUTSIDE INFLUENCES
13-34
Learning
Reference Groups
Culture
Subcultures
Cognitive Dissonance
KEY FACTORS in CONSUMER
DECISION-MAKING
13-35
B2B marketers include:
- Manufacturers
- Wholesalers and retailers
- Hospitals, schools and charities
- Government
Products are often sold and resold several times
before reaching final consumers.
BUSINESS-to-BUSINESS
MARKET (B2B)
13-36
There are relatively few customers.
Customers tend to be large buyers.
Markets are geographically concentrated.
Buyers are more rational than emotional.
B2B MARKET DIFFERENCES
Sales are direct.
Promotions focus
heavily on personal
selling.
13-37