Chap013 - Marlington Local Schools
Transcript Chap013 - Marlington Local Schools
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
1. Define marketing, and apply the marketing concept
to both for-profit and nonprofit organizations.
2. Describe the four P’s of marketing.
3. Summarize the marketing research process.
4. Show how marketers use environmental scanning
to learn about the changing marketing
5. Explain how marketers apply the tools of market
segmentation, relationship marketing and the study
of consumer behavior.
6. Compare the business-to-business market and the
• In 2010, Jimenez became
the first American CEO of
• Jimenez sees Novartis as
more than just a
• To exemplify marketing at its
best, social responsibility
needs to be part of the
NAME that COMPANY
Where’s the beef? Many people don’t care about
the answer to that question anymore. As the
trend toward vegetarianism grows, this wellknown company in Canada offers a vegan
version of its chicken sandwich in 500 of its 750
Name that company!
• 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.
FOCUS of CONTEMPORARY
• Marketing today involves helping the buyer buy
- Websites that help buyers find the best price,
identify product features, and question sellers.
- Blogs and social networking sites that cultivate
LET’S GO to the MOVIES
(Spotlight on Small Business)
• Many theaters provide food with movies.
• It may turn out that
such theaters only
appeal to a niche
market and may not
• Do you have other
suggestions for how to
improve the moviegoing experience?
Photo Courtesy of: A.D. Wheeler
FOUR ERAS of U.S. MARKETING
• Production Era
• Selling Era
• Marketing Concept Era
• Customer Relationship
The PRODUCTION and
• The general philosophy
was “Produce what you
can because the market
• After mass production,
the focus turned from
The MARKETING CONCEPT ERA
• After WWII, a consumer spending boom
• Businesses knew they needed to be responsive
to consumers if they wanted their business.
• 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
3. Profit Orientation -- Focusing on the goods and
services that will earn the most profit.
• Customer Relationship Management (CRM) -Learning as much as you can about customers and
doing what you can to satisfy or exceed their
• 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.
SERVICE with a SMILE
Six Steps for Keeping Your Customers Happy
• The cost of acquiring a new customer is 5x the
cost of retaining one. Here’s how to keep them:
1. Build trust
2. Emphasize the long term
4. Treat your customers like stars
5. Show appreciation
6. Remember employees are
Source: Inc. Guidebook, Vol. 2 No. 5 and Entrepreneur, February 2010.
• Nonprofit marketing tactics include:
- Public Relations
- Special Campaigns
- Ecological practices
- Changing public opinions and
- Increasing organizational
MARKETING STRATEGIES for
• 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
HOW GREEN is GREEN?
• The clothing industry is
developing software to help
measure the environmental
impact of their apparel.
• Would you look at a label to
determine whether or not
you would buy tennis shoes
or a garment based on its
The FOUR P’s
Product to Meet
DEVELOPING a PRODUCT
• 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
PLACING a PRODUCT
• Pricing products depends on many factors:
- Competitors’ prices
- Production costs
- High or low price strategies
• Middlemen are important in place strategies
because getting a product to consumers is
PROMOTING the PRODUCT
• Promotion -- All the techniques sellers use to
inform people about their products and motivate them
to purchase those products.
• Promotion includes:
- Personal selling
- Public relations
- Word of mouth
- Sales promotions
Photo Courtesy of: Uri Baruchin
How to Get Customers to Need Your Product
• Get customers emotional about your product:
- Make your product “built to love.”
- Use emotion-laden advertising.
• Be a likeable salesperson:
- Have confidence.
- Be intriguing.
- Show interest in others.
- Be enthusiastic and
Sources: Entrepreneur, February 2011 and Entrepreneur, March 2010.
TANGLED WEB of PROMOTION
Seven Sins of Web Design
• Too much clutter
• Too difficult to navigate
• Stale information
• Ignoring the needs of your
Photo Courtesy of: Cortes de Cima
• Not analyzing data
• Refusing to get outside help
Source: Entrepreneur, January 2011.
CALLING ALL BUSINESSES!
(Social Media in Business)
• Consumers have smartphones and digital tablets
that can get them online anywhere.
• Devices lack of uniform
design which is a challenge
to web designers, making it
• mShopper helps retailers
break into the mobile
market with the Mobile
Commerce Platform, or
• What does it mean to “help the buyer buy?”
• What are the three parts of the marketing
• What are the Four P’s of the Marketing Mix?
SEARCHING for 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
• Research uncovers market trends and attitudes
held by company insiders and stakeholders.
FOUR STEPS in the MARKETING
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.
DEFINING the PROBLEM or
• What’s the present situation?
• What are the alternatives?
• What information is needed?
• How should the information be
• Secondary Data -- Existing data that has
previously been collected by sources like the
• Secondary data incurs no
expense and is usually
• Secondary data doesn’t
always provide all the
needed information for
• Primary Data -- In-depth
information gathered by
marketers from their own
• Telephone, online and
mail surveys, personal
interviews, and focus
groups are ways to
collect primary data.
• Focus Group -- A group of people who meet under
the direction of a discussion leader to communicate
ANALYZING the DATA and
IMPLEMENTING the DECISION
• Marketers must turn data into useful information.
• Must use their analysis to plan strategies and
• Finally, marketers must evaluate their actions and
determine if further research is needed.
KEY BENEFITS of MARKETING
• Analyze customer needs and satisfaction.
• Analyze current markets and opportunities.
• Analyze the effectiveness of marketing strategies.
• Analyze marketing process and tactics currently
• Analyze the reasons for goal achievement or
WAYS to FIND OUT WHAT
• Conduct informal consumer surveys
• Host a customer focus
• Listen to competitor’s
• Survey your sales force
• Become a “phantom”
SCANNING the MARKETING
• 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
The MARKETING ENVIRONMENT
The ABC’s of MARKETING
• 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 CONSUMER and
• Consumer Market -- All the individuals or
households that want goods and services for
personal use and have the resources to buy them.
(B2B) -- Individuals and
organizations that buy goods
and services to use in
production or to sell, rent, or
supply to others.
• What are the four steps in the marketing research
• What’s environmental scanning?
• What factors are included in environmental
MARKETING to CONSUMERS
• 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.
SEGMENTING the CONSUMER
• Geographic Segmentation -- Dividing the market
by cities, counties, states, or regions.
• Demographic Segmentation -- Dividing the
market by age, income, education, and other
• Psychographic Segmentation -- Dividing the
market by group values, attitudes, and interests.
SEGMENTING the CONSUMER
• Benefit Segmentation -- Dividing the market
according to product benefits the customer prefers.
• Volume (Usage) Segmentation -- Dividing the
market by the volume of product use.
• Niche Marketing -- Identifies small but profitable
market segments and designs or finds products for
a unique mix of goods
and services for each
MASS MARKETING vs.
• 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.
KEYS to SUCCESSFUL RELATIONSHIP
• 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
STEPS in the CONSUMER
1. Problem recognition
2. Search for information
3. Evaluating alternatives
4. Purchase decision
5. Postpurchase evaluation
The CONSUMER DECISION MAKING
PROCESS AND OUTSIDE INFLUENCES
KEY FACTORS in CONSUMER
• Reference Groups
• Cognitive Dissonance
Photo Courtesy of: Peter Hilton
• B2B marketers include:
- Wholesalers and retailers
- Hospitals, schools and charities
• Products are often sold and resold several times
before reaching final consumers.
B2B MARKET DIFFERENCES
1) There are relatively few customers.
2) Customers tend to be large buyers.
3) Markets are geographically concentrated.
4) Buyers are more rational than emotional.
5) Sales are direct.
6) Promotions focus heavily on personal selling.
• Define the terms consumer market and businessto-business market.
• Name and describe five ways to segment the
• 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?