*Chapter

Thirteen

*
Marketing:
Helping
Buyers Buy

McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
 *
CRICKET LEE Profile

Fitlogic
*
• Developed a system of
clothes sizing called Fitlogic.

• Lee’s system standardizes

sizes and provides flexibility.

• Though she has an excellent

idea, Lee must market her
product.

13-2
 *What is
WHAT’S MARKETING? Marketing?

LG1
*
• 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.

13-3
 *What is
FOCUS of CONTEMPORARY Marketing?
MARKETING LG1
*
• Marketing today involves helping the buyer buy
through:
- Websites that help buyers find the best price,
identify product features, and question sellers.
- Blogs and social
networking sites that
cultivate consumer
relationships.

13-4
 *
FIND A NEED AND FILL IT
Spotlight on Small Business
*
• Lance Fried was an electrical engineer who went
into business after he built a waterproof MP3
player.
• Focused his marketing plan on
small surf shops instead of large
stores.
• Now, Fried attends trade shows
and runs a website to help sell
more products.
13-5
 *The Evolution
FOUR ERAS of U.S. MARKETING of Marketing

LG1
*
• Production Era

• Selling Era

• Marketing Concept Era

• Customer Relationship
Era

13-6
 *The Evolution
The PRODUCTION and of Marketing
SELLING ERAS LG1
*
• The general philosophy was
“Produce what you can
because the market is
limitless.”
• After mass production, the
focus turned from production
to persuasion.

13-7
 *The Evolution
The MARKETING CONCEPT ERA of Marketing

LG1
*
• After WWII, a consumer spending boom
developed.
• Businesses knew they needed to be responsive
to consumers if they wanted their business.

13-8
 *The Evolution
APPLYING the of Marketing
MARKETING CONCEPT LG1
*
• 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.

13-9
 *The Evolution
The CUSTOMER of Marketing
RELATIONSHIP ERA LG1
*
• 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.

13-10
 *Nonprofit
NONPROFIT MARKETING Organizations
and Marketing
LG1
*
• Nonprofit marketing tactics include:
- Fundraising
- Public Relations
- Special Campaigns
- Ecological practices
- Changing public opinions and
attitudes
- Increasing organizational
membership

13-11
 *Nonprofit
MARKETING STRATEGIES for Organizations
and Marketing
NONPROFITS LG1
*
• Nonprofit marketing strategies include:
- 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.

13-12
 *
Designing a

DEVELOPING a PRODUCT Product to Meet

Consumer
Needs
LG2
*
• Product -- A good, service, or
idea that satisfies a consumer’s
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 seller’s
goods from a competitor’s.
13-13
 *Setting an
PRICING and Appropriate
Price
PLACING a PRODUCT LG2
*
• 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.
13-14
 * Developing an

PROMOTING the PRODUCT Effective

Promotional
Strategy
LG2
*
• 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
13-15
 *Progress
PROGRESS ASSESSMENT Assessment

*
• What does it mean to “help the buyer buy?”

• What are the three parts of the marketing

concept?

• What are the Four P’s of the Marketing Mix?

13-16
 *Providing
SEARCHING for INFORMATION Marketers with
Information
LG3
*
• 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.

13-17
 *
The Marketing
FOUR STEPS in the MARKETING Research
Process
RESEARCH PROCESS LG3
*
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.

13-18
 * Defining the

DEFINING the PROBLEM or Question and

Determining the
Present Situation
OPPORTUNITY LG3
*
• What’s the present situation?

• What are the alternatives?

• What information is needed?

• How should the information be

gathered?

13-19
 *
COLLECTING SECONDARY Collecting
Data
RESEARCH DATA LG3
*
• Secondary Data -- Existing data that has
previously been collected by sources like the
government.
• Secondary data incurs no
expense and is usually
easily accessible.
• Secondary data doesn’t
always provide all the
needed information for
marketers.
13-20
 *
COLLECTING PRIMARY Collecting
Data
RESEARCH DATA LG3
*

• 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.

13-21
 *
FOCUS GROUPS Collecting
Data
LG3
*
• Focus Group -- A group of people who meet under
the direction of a discussion leader to communicate
opinions.

13-22
 *Analyzing the
ANALYZING the DATA and Research Data

IMPLEMENTING the DECISION LG3

*
• Marketers must turn data into useful information.

• Must use their analysis to plan strategies and

make recommendations.
• Finally, marketers
must evaluate their
actions and
determine if further
research is needed.

13-23
 *Analyzing the
KEY BENEFITS of MARKETING Research Data

RESEARCH LG3
*
• 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.

13-24
 *Analyzing the
WAYS to FIND OUT WHAT Research Data

CONSUMERS THINK LG3

*
• Conduct informal consumer surveys.
• Host a customer focus
group.
• Listen to competitor’s
customers.
• Survey your sales force.
• Become a “phantom”
customer.
13-25
 *The Marketing
SCANNING the MARKETING Environment

ENVIRONMENT LG4
*
• 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
13-26
 *The Marketing
The MARKETING ENVIRONMENT Environment

LG4
*

13-27
 *
SOCIAL MARKETING
GOES GLOBAL
(Reaching Beyond Our Borders) *
• Debra Wexler and Brian Gavin
founded Whiteflash, an online
diamond dealer.
• About 10,000 worldwide users
visit their site each month.
• Wexler started a social
marketing campaign and is
planning an interactive website
to help customers buy.
13-28
 *The Marketing
The ABC’s of MARKETING Environment

LG4
*
• 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.
13-29
 * Two Different

The CONSUMER and Markets:

Consumer and
B2B
B2B MARKET LG4
*
• 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.

13-30
 *Progress
PROGRESS ASSESSMENT Assessment

*
• What are the four steps in the marketing research
process?

• What’s environmental scanning?

• What factors are included in environmental

scanning?

13-31
 *The Consumer
MARKETING to CONSUMERS Market

LG5
*
• 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.

13-32
 *Segmenting
SEGMENTING the CONSUMER the Consumer
Market
MARKET LG5
*
• 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)
13-33
 *Segmenting
SEGMENTING the CONSUMER the Consumer
Market
MARKET
(continued)
LG5
*

• Benefit Segmentation -- Dividing the market

according to product benefits the customer prefers.

• Volume (Usage) Segmentation -- Dividing the

market by the volume of product use.

13-34
 *Reaching
MARKETING to Smaller Market
Segments
SMALL SEGMENTS LG5
*
• 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.

13-35
 *
Moving Toward
MASS MARKETING vs. Relationship
Marketing
RELATIONSHIP MARKETING LG5
*
• 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.

13-36
 * Moving Toward
KEYS to SUCCESSFUL Relationship
Marketing
RELATIONSHIP MARKETING LG5
*
• 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

13-37
 *
The Consumer
STEPS in the CONSUMER Decision-Making
Process
DECISION-MAKING PROCESS LG5
*
1. Problem recognition

2. Search for information

3. Evaluating alternatives

4. Purchase decision

5. Postpurchase evaluation

13-38
 * The Consumer
The CONSUMER DECSION MAKING Decision-Making
Process
PROCESS AND OUTSIDE INFLUENCES
LG5
*

13-39
 *The Business-
KEY FACTORS in CONSUMER to-Business
Market
DECISION-MAKING LG6
*
• Learning

• Reference Groups

• Culture

• Subcultures

• Cognitive Dissonance

13-40
 *The Business-
BUSINESS-to-BUSINESS to-Business
Market
MARKET (B2B) LG6
*
• B2B marketers include:
- Manufacturers
- Wholesalers and retailers
- Hospitals, schools and charities
- Government

• Products are often sold and resold several times

before reaching final consumers.

13-41
 *The Business-
B2B MARKET DIFFERENCES to-Business
Market
LG6
*
• There are relatively few customers.
• Customers tend to be large buyers.
• Markets are geographically concentrated.
• Buyers are more rational than emotional.
• Sales are direct.
• Promotions focus
heavily on personal
selling.

13-42
 *Progress
PROGRESS ASSESSMENT Assessment

*
• Define the terms consumer market and business-
to-business market.

• Name and describe five ways to segment the

consumer market.

• What’s niche marketing and how does it differ

from one-to-one marketing?

• What are four key factors that make B2B markets

different from consumer markets?
13-43