Chapter 10
Understanding
Marketing Processes
and Consumer
Behavior
PowerPoint Presentation by Charlie Cook
Copyright © 2005 Prentice Hall, Inc.
All rights reserved.
Key Topics
• Definition of marketing
• The external marketing environment
• Segmentation and target marketing
• The consumer buying process
• Organizational markets and buying behavior
• Consumer and industrial products
• Branding and packaging
Copyright © 2005 Prentice Hall, Inc. All rights reserved.
10–2
What Is Marketing?
“Planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and
services to create exchanges that satisfy
individual and organizational objectives”
OR
Finding a need and filling it!
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10–3
The Influence of Marketing Permeates
Everyday Life
• Goods
 Consumer
 Industrial
• Services
• Ideas
Relationship marketing
emphasizes lasting
relationships with
customers and suppliers
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10–4
The Competitive Environment
Drives Marketing Decisions
• Substitute product competition
• Brand competition
• International competition
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10–5
Marketing Mix: The “Four P’s”
roduct
ricing
lace
romotion
(Distribution)
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10–6
The Promotional Mix
Personal
Selling
Advertising
Sales
Promotions
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Public
Relations
10–7
Market Segmentation and Target
Marketing
• Market Segmentation
 Dividing a market into customer
categories
• Target Marketing
 Selecting a category of
customers with similar wants
and needs who are likely to
respond to the same products
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10–8
Identifying Market Segments
Geographic Demographic
Variables
Variables
Psychographic
Variables
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10–9
Consumer Behavior
• Psychological Influences
• Personal Influences
• Social Influences
• Cultural Influences
Why do consumers
purchase and
consume products?
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10–10
Organizational Markets
Industrial
Market
Reseller
Market
Government and
Institutional Market
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10–11
Organizational Buying Behavior
• Differences in buyers
 Professionals
 Specialists
 Experts
• Differences in buyer/seller
relationships
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10–12
Classifying Products
• Consumer
 Convenience Goods
 Shopping Goods
 Specialty Goods
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• Industrial
 Expense Items
 Capital Items
10–13
Product Offerings
• Product Line
 A group of similar products, intended for similar
buyers, who will use them in similar ways.
• Product Mix
 The total group of products that a company offers
for sale.
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10–14
Developing New Products
• The New Product Development Process
• Product Mortality Rates
Strategy of introducing new products to respond
quickly to customer or market changes
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10–15
Creating Product Brands
• Branding
 Using symbols to communicate the qualities of a
given product to create loyal consumers
• Types of Brands:
 National Brands
 Licensed Brands
 Private Brands
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10–16
Product Packaging
• Attracts consumers
• Displays brand name
• Protects contents
• Supplies information
• Communicates features and
benefits
• Provides features and
benefits (e.g. easy pour
spout)
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10–17
The International Marketing Mix
PRODUCTS
DISTRIBUTION
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PRICING
PROMOTION
10–18
Small Business and the Marketing Mix
• Products
• Pricing
• Promotion
• Distribution
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10–19
Chapter Review
• Define marketing.
• Describe the forces of the external marketing
environment.
• Explain market segmentation and target
marketing.
• Describe the consumer buying process.
• Discuss the organizational market categories.
Copyright © 2005 Prentice Hall, Inc. All rights reserved.
10–20
Chapter Review (cont’d)
• Define product and distinguish between
consumer and industrial products.
• Explain the importance of branding and
packaging.
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10–21