Chapter 13 Marketing. What is Marketing? Marketing is about filling a need. Set of activities to...
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BCEN 1400 Introduction to Business Chapter 13 Marketing
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Transcript of Chapter 13 Marketing. What is Marketing? Marketing is about filling a need. Set of activities to...
BCEN 1400Introduction to Business
Chapter 13Marketing
What is Marketing?Marketing is about filling a need.
Set of activities to communicate, create, deliver, and exchange offerings that have value.
“Helping the buyer buy” – virtual tours, web info
Began with emphasis on producing everything you could, and it would sell, because there was nothing else!The Production Era – up to 1920
The Marketing Concept is BornFrom production era to selling era to the marketing
concept era.
The Marketing ConceptCustomer orientation – what do customers want?Service orientation – how can we serve the customer?Profit orientation – let’s make things that turn a profit
Nowadays, the buzz is customer relationship management
Today’s Marketing Concept – Customer Relationship ManagementLearn as much as possible about the
customer
Provide everything you possibly can to delight them
Work on long-term customer loyalty
Only 6.8% of marketers feel they know their customers excellently. Know your customer!
The Marketing Mix
13-5
Product
Marketing Program
Place
Promotion
Price
The Marketing ProcessPhase I
Find opportunitiesConduct research on
themIdentify a target
market
ProductMake a product or
service that fits the target market
Do product testing
PriceDecide on a nameDesign the packageSet a price
PlaceSelect a distribution
system
PromotionDesign a program to
promoteBuild relationships with
customers
Doing Market Research1. Figure out what
information you’re looking for.
2. Collect data3. Analyze the data.4. Come up with an
optimal solution.
SourcesPrimary
Interviews Surveys Observation Focus Groups
Secondary Magazines Newspapers Internet searches Government publications Industry reports
Scanning the EnvironmentGlobal – trade, competition, legislation
Technological – knowledge, information management, communications
Competitive – speed, service, price, costs, product
Economic – GDP, confidence, unemployment, power of the dollar
Sociocultural – demographics, attitudes and values, trends
The ConsumerResponds to parts of the marketing mix
Belongs to groups (segmentation, “tribes,” targeting)
Responds to the purchase situation
Evaluates and makes decisionsWhat decisions do you make when going to the
grocery?
Ways to Segment the Consumer Market1. Geography2. Demography
Gender, age, education, race
3. Psychography Personality, lifestyle, values
4. By Benefits Desired Convenience, safety, status
5. By Volume-Based Behavior Usage, loyalty
Consumer BehaviorPatterned decision-making process:1. Problem recognition2. Information search3. Evaluate alternatives4. Purchase decision is made5. Follow-up comparison for opinion-forming
Business-2-Business (B2B)MarketingFewer in number than consumers, but larger
in spending powerWhy is this not such a bad thing? (Think size
of purchase)
Geographically concentrated
More rational than emotional; however, personal selling is much more important!
The Importance of ValueCost/price/value relationships
Creating value in the mind of the purchaser
The total product offerEverything a customer evaluates when
purchasing a product
PromotionAdvertising
Television commercialsThe Power of Humor?
Idea Diffusion – the world of promotion is changing!Word of mouth
