Busn 101 Chapter 13

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Busn 101 Chapter 13

• Marketing Building Customer Relationships

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Goals

• Marketing
• Marketing history
• Marketing concept
• Four Ps of marketing (Product, Price, Place,
  Promotion)
• Marketing research process
• Learn about the changing marketing environment
  with environmental scanning
• Meet the needs of customers with
• Market segmentation
• Relationship marketing
• Study of consumer behavior
• How is the business-to-business market different
  from the consumer market?

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Marketing (P 350 Text)

• The process of planning and executing the
  conception, pricing, promotion, and distribution
  of goods and services to facilitate exchanges
  that satisfy individual and organizational
  objectives
• Watching people to see what their needs are and
  getting a new idea to satisfy those needs,
  developing, testing, pricing, promoting,
  distributing the product or service. Then
  listening to people after they have the product
  or service and starting all over

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Marketing History
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Production

• Produce as much as you can because there was a
  limitless market
• Limited production capacity and vast demand
• Greatest marketing need was distribution and
  storage.

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Sales

• Production capacity began to exceed demand
• Mass production for fist time
• Marketing began to emphasize selling and
  advertising
• Most business did not offer service after the
  sale.

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Marketing Concept

• Customer demand and competition amongst
  businesses increase dramatically and the emphasis
  switched to the Marketing Concept
• A customer orientation (customer's needs)
• Service orientation (Total organizational effort
  to meet customer's needs)
• A profit orientation (focus of goods and services
  that are most profitable)

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Customer Relationship

• Learn as much as possible about customers so you
  can meet and exceed customer's expectations
• Goal build long-term loyalty

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Marketing Is Done By All Entities And In Many Ways

• Businesses
• Politicians
• Knocking on doors to get your vote
• Videos on YouTube
• Art museums, http//seattlepi.nwsource.com/visuala
  rt/384477_sabadeb23.html?sourcemypi
• Business, http//flightline.highline.edu/mgirvin/P
  ersonal/NTTimes.htm
• Churches, http//findarticles.com/p/articles/mi_pw
  wi/is_200809/ai_n28120444
• Temples
• New years celebrations

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Marketing Terms

• Marketing concept
• Three part business philosophy
• A customer orientation
• Service orientation
• A profit orientation
• Customer relationship management (CRM)
• The process of learning as much as possible about
  customers and doing everything you can to satisfy
  them or even exceed their expectations with
  goods and services over time

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Marketing Mix (Four Ps)

• Product
• Design want-satisfying product
• Price
• Set price that is not too high or too low
• Place
• Place product where people will buy it
• Promotion
• Ad or article in magazine
• Coupon
• Placement in movie
• Word of mouth
• Personal selling
• YouTube video

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Marketing Terms

• 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 consumer,
  such as brand
• Test marketing
• The process of testing products among potential
  users
• Brand name
• A word, letter, or group of words or letters that
  differentiates one sellers goods and service
  from those of competitors
• Promotion
• All the techniques sellers use to motivate people
  to buy their products or services

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Marketing Process
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Marketing Research

• Marketing research
• The analysis of markets to determine
  opportunities and challenges, and to find the
  information needed to make good decisions
• What have customers purchased in the past, and
  what situational changes have occurred to alter
  the sale now and in the future?
• What are business or global trends?
• What do employees and other stakeholders think?
• Secondary data
• Information that has already been complied by
  others and published in journals and books or
  made available online.
• Primary data
• Data that you gather yourself

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Marketing Terms

• Focus group
• A small group of people who meet under the
  direction of a discussion leader to communicate
  their opinions about an organization, its
  products, or other given issues

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Marketing Research Process

• Define the question (problem or opportunity) and
  determine the present situation
• Marketing researchers should be given the freedom
  to go in any direction they need to in order to
  find the question/problem/opportunity
• Collect data
• Secondary (apply it uniquely), primary (find the
  unique data)
• Analyze data to create information
• Compile primary and secondary data into useful
  information that helps to make business decision
• Choose the best solution and implementing it
• Choose solution, see if solution works, start over

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Marketing Terms

• Environmental scanning
• The process of identifying the factors that can
  affect marketing success
• Environmental trends in marketing
• Growth Internet
• Consumer databases (provide products to more
  closely match the needs of consumers)
• Social trends
• Competition
• Economic environment

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Marketing Environment
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Flat World For Marketers

• The world is now integrated economically
• Thanks to technologies such as
• Internet
• Efficient global distribution channels
• Learning new cultures, finding opportunities
  through market research
• China McDonalds
• Since many Chinese restaurants were not clean and
  did not let you stay as long as you want,
  McDonalds provided clean restaurants that allowed
  you to stay as long as you wanted
• Starbucks Paris
• Since 50 million tourists visited the city that
  has 7 million residents, they opened coffee bars
  in tourists areas

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Two Different Markets (Who Is End User?)

• Markets
• People with unsatisfied needs and wants that have
  both the resources and willingness to buy
• Consumer market
• All the individuals or households that want goods
  and services for personal consumption or use
• Buy candy bar to eat or tax return service
• Business-to-business (B2B) markets
• All the individuals and organizations that want
  goods and services to use in producing other
  goods and services or to sell, rent, or supply
  goods to others
• Selling candy bar machines, or audit services

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Market Segmentation

• Market Segmentation
• The process of dividing the total market into
  groups whose members have similar characteristics
• Target marketing
• Marketing directed toward those groups (market
  segments) an organization decides it can serve
  profitably
• Finding the right target market for your
  business
• The one that is the most profitable
• The one that meets other criteria

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Market Segmentation

• Target Marketing
• Geographic
• Demographic
• Psychographic
• Benefit
• Volume

• Use all variables and come up with consumer
  profile (target market) that is sizable,
  reachable and profitable

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Market Segmentation

• Geographic segmentation
• Dividing the market by geographic area
• Demographic segmentation
• Dividing the market by age, income, education
  level
• Psychographic segmentation
• Dividing the market using the groups
  personality, values, attitudes, and interests
  (Extroverted, upscale, moderate)
• Benefit segmentation
• Dividing the market by determining which benefits
  of the product to talk about (Comfort,
  Convenience, Durability, Economic, Healthy)
• Volume, or usage, segmentation
• Dividing the market by usage (volume of use)

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Small Markets

• Niche marketing
• The process of fining small but profitable market
  segments and designing of finding products for
  them
• Boomerang manufacturer
• One-to-one marketing
• Developing a unique mix of goods and services for
  each individual customer
• Dell
• Travel agent

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Opposites

• Mass marketing
• Developing products and promotions to please
  large groups of people
• Relationship marketing
• Marketing strategy with the goal of keeping
  individual customers over time by offering them
  products that exactly meet their requirements
• Small businesses have always had to do this
• Large business now do this and call it CRM
  (Customer Relationship Management)
• Technology like Databases, the internet and ERM
  systems help business to collect data about
  customers and connect with them later

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Consumer Decision Making

• Sociocultural
• Reference groups
• Family
• Social class
• Culture
• Subculture

• Marketing mix
• Product
• Price
• Place
• Promotion

• Decision-Making Process
• Problem Recognition
• Information Search
• Alternative evaluation
• Purchase decision
• Postpurchase evaluation
  
• (cognitive dissonance)

• Psychological
• Perception
• Attitudes
• Learning
• Motivation

• Situational
• Type of Purchase
• Social surroundings
• Physical surroundings
• Previous experience

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Influences On Consumer Behavior

• Learning
• Previous experiences
• Reference Groups
• People you talk to freely
• Culture
• Values, attitudes that are passed to you from
  earlier generations in your society
• Subculture
• Small part of larger culture
• Cognitive dissonance
• Uncomfortable feeling caused by holding two
  contradictory ideas simultaneously (after
  purchase)
• http//en.wikipedia.org/wiki/Cognitive_dissonance

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Business-to-business (B2B)

• Fewer B2B customers than total consumers
• B2B Markets are larger than Consumer Markets
• B2B markets tend to be geographic concentration
  (Silicon valley)
• B2B buyers are thought to be more rational
• B2B sales tend to be direct sales
• Personal Selling, more than advertising

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Marketing

• Watching people to see what their needs are and
  getting the new idea to satisfy those needs,
  developing, testing, pricing, promoting,
  distributing the product or service. Then
  listening to people after they have the product
  or service and starting all over

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Marketing History
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Marketing Concept

• A customer orientation
• Customer's needs
• Service orientation
• Total organizational effort to meet customer's
  needs
• A profit orientation
• Focus of goods and services that are most
  profitable

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Four Ps Of Marketing
Place
Product
Computer 'R Us
Marketing Program
Buy at Computers R Us
Promotion
Price
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Marketing Research Process

• Define the question (problem or opportunity) and
  determine the present situation
• Collect data
• Analyze data to create information
• Choose the best solution and implementing it

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Learn About The Changing Marketing Environment
With Environmental Scanning
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Meet The Needs Of Customers With

• Market segmentation
• The process of dividing the total market into
  groups whose members have similar characteristics
• Relationship marketing
• Marketing strategy with the goal of keeping
  individual customers over time by offering them
  products that exactly meet their requirements
• Study of consumer behavior
• Learning
• Reference Groups
• Culture/Subculture
• Cognitive dissonance

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Study of consumer behavior

• Sociocultural
• Reference groups
• Family
• Social class
• Culture
• Subculture

• Marketing mix
• Product
• Price
• Place
• Promotion

• Decision-Making Process
• Problem Recognition
• Information Search
• Alternative evaluation
• Purchase decision
• Postpurchase evaluation
  
• (cognitive dissonance)

• Psychological
• Perception
• Attitudes
• Learning
• Motivation

• Situational
• Type of Purchase
• Social surroundings
• Physical surroundings
• Previous experience

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Mass V. Relationship Marketing

• Mass Marketing
• Making things to please a large group of people
• Relationship Market
• Away from Mass marketing and toward custom-made
  goods and services

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How Is The Business-to-business Market Different
From The Consumer Market?

• B2B Business sell to business
• Number of B2B is small, but size of business is
  large
• Geographically concentrated
• More rational buying
• Sales are direct and done by persons instead of
  advertising