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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The PRODUCTION and
SELLING ERAS
• The general philosophy
was “Produce what you
can because the market
is limitless.”
• After mass production,
the focus turned from
production to persuasion.
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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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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 by building long-term relationships.
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MANY MIXES
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THE MARKETING MIX
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The FOUR P’s
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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
- High or low price strategies
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PLACE (Distribution)
Chapter 15
13-17
PLACE
•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
13-20
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
- Word of mouth
- 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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The CONSUMER and
B2B MARKET
• Consumer Market -- All the individuals or
households that want goods and services for
personal use or consumption 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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SEGMENTING the
CONSUMER MARKET
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SEGMENTING the
CONSUMER MARKET
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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
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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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