Chapter
Thirteen
Marketing:
Helping Buyers Buy
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
WHAT’S 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.
• Helping the buyer buy
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FOUR ERAS of U.S. MARKETING
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1. The PRODUCTION ERA
• The general philosophy was
“Produce what you can
because the market is
limitless.”
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2. The SELLING ERA
• After mass production
arrived, the focus turned
from production to
persuasion.
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3. The MARKETING CONCEPT ERA
• After WWII, a consumer spending boom
developed.
• Businesses knew they needed to be responsive
to consumers if they wanted their business.
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APPLYING the
MARKETING CONCEPT
• 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.
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4. The CUSTOMER RELATIONSHIP ERA
• 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.
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THE MARKETING MIX
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ELEMENTS IN
THE MARKETING MIX
Place
Product
Marketing
Program
Buy at
Computers
‘R Us
Price
Promotion
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PRODUCT
Chapter 14
13-11
PRODUCT
Any physical good, service, or idea that
satisfies a want or need; plus anything that
would enhance the product in the eyes of
the consumers, such as the brand
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DEVELOPING a PRODUCT
•Concept Testing
•Prototypes
•Test Marketing
•Package Design/Brand Name
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DEVELOPING a PRODUCT
• 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.
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PRICE
Chapter 14
13-15
PRICING a PRODUCT
• Pricing products depends on many factors:
- Competitors’ prices
- Production costs
- Distribution
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PRICING STRATEGIES
•Cost-Plus
• Skimming
•Value-Based
• Discount
•Competitive
• Loss-Leader
•High/Low Price
Strategies
• Psychological
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PLACE
Chapter 15
13-18
PLACE (Distribution)
•Getting the product to the right place
•Once the product is
manufactured, you must choose
how to get it to the consumer
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PLACING a PRODUCT
Marketing Intermediaries
are important in place
strategies because
getting a product to
consumers is critical.
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PROMOTION
Chapter 16
13-21
PROMOTING the PRODUCT
• 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
- Sales promotions
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PROVIDING MARKETERS
WITH INFORMATION
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SEARCHING for INFORMATION
• Marketing Research and Forecasting -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 forecast what, and how
much, they want in the future.
• Research uncovers market trends and attitudes
held by company insiders and stakeholders.
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FOUR STEPS in the MARKETING
RESEARCH PROCESS
1. Defining the problem or opportunity and
determining the present situation.
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DEFINING the PROBLEM or
OPPORTUNITY
• What’s the present situation?
• What are the alternatives?
• What information is needed?
• How should the information be
gathered?
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FOUR STEPS in the MARKETING
RESEARCH PROCESS
2. Collecting research data.
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COLLECTING SECONDARY
RESEARCH DATA
• Secondary Data -- Existing data that has
previously been collected by sources like the
government.
• Secondary data incurs little
or no expense and is usually
easily accessible.
• Secondary data doesn’t
always provide all the
needed information for
marketers.
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COLLECTING PRIMARY
RESEARCH 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.
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FOUR STEPS in the MARKETING
RESEARCH PROCESS (cont.)
3. Organizing and Analyzing the data.
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ORGANIZING and ANALYZING
the DATA
• Marketers must first organize the data
• Marketers then turn the data into useful
information.
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FOUR STEPS in the MARKETING
RESEARCH PROCESS (cont.)
4. Choosing the best solution and
implementing it.
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IMPLEMENTING the DECISION
• Must use their analysis to plan strategies and
make recommendations.
• Finally, marketers must evaluate their actions and
determine if further research is needed.
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DIFFERENT MARKETS
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TWO MARKETS
1. Consumer – B2C
2. Business-to-Business – B2B
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The CONSUMER and
B2B MARKET
• 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.
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CONSUMER MARKET
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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.
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SEGMENTING the CONSUMER
MARKET
• 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.
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SEGMENTING the CONSUMER
MARKET
(continued)
• Benefit Segmentation -- Dividing the market
according to product benefits the customer prefers.
• Volume (Usage) Segmentation -- Dividing the
market by the volume of product use.
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MASS MARKETING vs.
RELATIONSHIP MARKETING
• 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.
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STEPS in the CONSUMER
DECISION-MAKING PROCESS
1. Problem recognition
2. Search for information
3. Evaluating alternatives
4. Purchase decision
5. Post-purchase evaluation (cognitive dissonance)
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The CONSUMER DECSION MAKING
PROCESS AND OUTSIDE INFLUENCES
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BUSINESS MARKET
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BUSINESS-to-BUSINESS
MARKET (B2B)
• B2B marketers include:
- Manufacturers
- Wholesalers and retailers
- Hospitals, schools and charities
- Government
• Products are often sold and resold several times
before reaching final consumers.
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B2B MARKET DIFFERENCES
• 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.
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YOUR PROSPECTS
IN MARKETING
There is a wider variety of
careers in marketing than
in most business areas
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