Marketing: Helping Buyers Buy - · PDF fileMarketing: Helping Buyers Buy ... - Personal...

*

*Chapter

Thirteen

Marketing:

Helping

Buyers Buy

Visit https://grandemareopenseatoknowledge.wordpress.com/

*

*What is

Marketing?

• 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.

WHAT’S MARKETING?

LG1

13-2Visit https://grandemareopenseatoknowledge.wordpress.com/

*

*What is

Marketing?

• The management process that brings

goods and services from concept to the

customer.

WHAT’S MARKETING?

LG1


*

*What is

Marketing?

• 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

MARKETINGLG1

- Blogs and social

networking sites that

cultivate consumer

relationships.


*

*

• Lance Fried was an electrical engineer who went

into business after he built a waterproof MP3

player.

FIND A NEED AND FILL ITSpotlight on Small Business

• 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.


*

*The Evolution

of Marketing

• Production Era

• Selling Era

• Marketing Concept Era

• Customer Relationship

Era

FOUR ERAS MARKETING

LG1


*

*The Evolution

of Marketing

• 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 ERASLG1


*

*The Evolution

of Marketing

• 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

LG1


*

*The Evolution

of Marketing

• 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 LG1


*

*The Evolution

of Marketing

• 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 use CRM that allow customers to

build a relationship with the suppliers.

The CUSTOMER

RELATIONSHIP ERALG1


*

*

• Nonprofit marketing tactics include:

NONPROFIT MARKETINGNonprofit

Organizations

and Marketing

LG1

- Fundraising

- Public Relations

- Special Campaigns

- Ecological practices

- Changing public opinions and

attitudes

- Increasing organizational

membership


*

*

• 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.

MARKETING STRATEGIES for

NONPROFITS

Nonprofit

Organizations

and Marketing

LG1


*

*Designing a

Product to Meet

Consumer

Needs

• 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.

DEVELOPING a PRODUCT

LG2


*

*Setting an

Appropriate

Price

• 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 PRODUCTLG2


*

*Developing an

Effective

Promotional

Strategy

• 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

LG2


*

*Progress

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?

PROGRESS ASSESSMENT


*

*Providing

Marketers with

Information

• 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

LG3


*

*The Marketing

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.

FOUR STEPS in the MARKETING

RESEARCH PROCESSLG3


*

*Defining the

Question and

Determining the

Present Situation

• What’s the present situation?

• What are the alternatives?

• What information is needed?

• How should the information be

gathered?

DEFINING the PROBLEM or

OPPORTUNITYLG3


*

*Collecting

Data

• Secondary Data -- Existing data that has

previously been collected by sources like the

government.

COLLECTING SECONDARY

RESEARCH DATALG3

• 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

Data

• 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 DATALG3


*

*Collecting

Data

• Focus Group -- A group of people who meet under

the direction of a discussion leader to communicate

opinions.

FOCUS GROUPS

LG3


*

*Analyzing the

Research Data

• Marketers must turn data into useful information.

• Must use their analysis to plan strategies and

make recommendations.

ANALYZING the DATA and

IMPLEMENTING the DECISIONLG3

• Finally, marketers

must evaluate their

actions and

determine if further

research is needed.


*

*

• 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

RESEARCHLG3

Analyzing the

Research Data


*

*

• Conduct informal consumer surveys.

WAYS to FIND OUT WHAT

CONSUMERS THINKLG3

Analyzing the

Research Data

• Host a customer focus

group.

• Listen to competitor’s

customers.

• Survey your sales force.

• Become a “phantom”

customer.


*

*The Marketing

Environment

• 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

ENVIRONMENTLG4


*

*The Marketing

EnvironmentThe 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.

The ABC’s of MARKETING

LG4

The Marketing

Environment


*

*

• Highly knowledgeable and informated.

• Internationally minded and internet savvy

• Just in time reliability and resourcefulness.

• Key concepts and language ability.

• Leadership and innovation.

• Managing resources, internal and external.

• Never stay still but embrace changes


LG4

The Marketing

Environment


*

*

• Openmindness and originality.

• Planner, programmatic, progressive,

promoting, participative

• Qualitative in output against quantitative

inputs.

• Ready to learn and challenge yourself

• Strategic in screening, searching, selecting,

selling ideas and information.

• Tactical and thoughtful about consequences

of your marketing.

• Never stay still but embrace changes


LG4

The Marketing

Environment


*

*

• Unique in originality and Universal in Communication.

• Value diversity and cultural differences as the

foundations of your marketing career

• Xtra efforts lead to extraordinary results and

performances. Be the X factor

• Winning is all that matters in the marketing war

• Yields and returns are perfect KPI of

marketingtrategic in screening, searching, selecting,

selling ideas and information.

• Zero competition is not good but do not allow

the competition to reduce you to zero


LG4

The Marketing

Environment


*

*Progress

Assessment

• What are the four steps in the marketing research

process?

• What’s environmental scanning?

• What factors are included in environmental

scanning?

PROGRESS ASSESSMENT


*

*Two Different

Markets:

Consumer and

B2B

• Market – people with unsatisfied wants and needs

who are willing and able to buy.

• Consumer Market -- All the people that want to

buy goods and services for personal use.

• Business-to-Business (B2B) – Businesses buy

things to make money. (Make other things or sell,

rent, or supply to others)

The CONSUMER and

B2B MARKETLG4-5


*

*The Consumer

Market

• Who can I sell my products to? Companies must

decide which groups they want to serve.

• Market Segmentation -- Divide the total market

into groups of people that are similar.

• Target Marketing -- Choose the segments the

company will serve so it can make a profit.

MARKETING to CONSUMERS

LG5


*

*Segmenting

the Consumer

Market

1. Geographic Segmentation -- Dividing the

market by cities, counties, states, or regions.

• Big city – medium city – small city – town – village

• Cold place – hot place

• Northeast – Coast – Southeast – Southwest – West

– Central

SEGMENTING the CONSUMER

MARKETLG5


*

*Segmenting

the Consumer

Market

2. Demographic Segmentation -- Dividing the

market by age, income, education, etc..

* This is the most common way to segment the market

• Kids - teens – college – adults – middle age – old

• Rich – upper middle – middle – lower middle – poor

• College – high school – middle – illiterate (Can’t read)


MARKETLG5


*

*Segmenting

the Consumer

Market

3. Psychographic Segmentation -- Dividing the

market by group values, interests, and opinions.

Psych- = Mind

• Healthy lifestyle – exercise, food

• Travel and adventure

• Love new technology

• Habits – teahouse/ma jiang


MARKETLG5


*

*Segmenting

the Consumer

Market

4. Benefit Segmentation -- Dividing the market

according to product benefits the customer wants.

• Comfort / Service / Speed

• Safety / Style / Reliability

• Carry people & things / Low cost to use


MARKET LG5


*

*Segmenting

the Consumer

Market

5. Volume (Usage) Segmentation -- Dividing the

market by how much they use the product.

• Heavy user

• Moderate user

• Light user

• Don’t’ use


MARKET LG5


*

*Reaching

Smaller Market

Segments

• Niche Marketing – Find a small but profitable

market segments and make products for them.

MARKETING to

SMALL SEGMENTSLG5

• One-to-One

Marketing--Developing something

unique (独特） for each

consumer.


*

*Moving Toward

Relationship

Marketing

• Mass Marketing -- Developing

products and promotions to

please large groups of people.

• Relationship Marketing– No

mass production. Custom-made

goods and services for

customers.

MASS MARKETING vs.

RELATIONSHIP MARKETINGLG5


*

*

• 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 MARKETINGLG5

Moving Toward

Relationship

Marketing


*

*The Consumer

Decision-Making

Process

1. Problem recognition

2. Search for information

3. Evaluating alternatives

4. Purchase decision

5. Postpurchase evaluation

STEPS in the CONSUMER

DECISION-MAKING PROCESSLG5


*

*The CONSUMER DECSION MAKING

PROCESS AND OUTSIDE INFLUENCESLG5

The Consumer

Decision-Making

Process

13-44

Sellers

My

situation

My

mind

People

around me


*

*The Business-

to-Business

Market

• Learning

• Reference Groups

• Culture

• Subcultures

• Cognitive Dissonance

(Buyer’s remorse)

KEY FACTORS in CONSUMER

DECISION-MAKINGLG6


*

*The Business-

to-Business

Market

• 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)LG6


*

*The Business-

to-Business

Market

• Fewer customers.

• Customers can be large buyers.

• Markets are geographically concentrated.

• Buyers are more rational than emotional.

B2B MARKET DIFFERENCES

LG6

• Sales are direct.

• Promotions focus

heavily on personal

selling.


*

*Progress

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?

• What are four key factors that make B2B markets

different from consumer markets?

PROGRESS ASSESSMENT


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