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Chap013
- 1. Chapter 13 Marketing: Helping Buyers Buy McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
- 2. Chapter Thirteen LEARNING GOALS 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. 13-2
- 3. Chapter Thirteen LEARNING GOALS 4. Show how marketers use environmental scanning to learn about the changing marketing environment. 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 consumer market. 13-3
- 4. Profile JOSEPH JIMENEZ Novartis • In 2010, Jimenez became the first American CEO of Swiss-based Novartis. • Jimenez sees Novartis as more than just a pharmaceutical company. • To exemplify marketing at its best, social responsibility needs to be part of the Novartis mission. 13-4
- 5. Chapter Thirteen 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 well- known company in Canada offers a vegan version of its chicken sandwich in 500 of its 750 stores. Name that company! 13-5
- 6. What is Marketing? WHAT’S MARKETING? LG1 • 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. 13-6
- 7. What is Marketing? FOCUS of CONTEMPORARY LG1 MARKETING • Marketing today involves helping the buyer buy through: - Websites that help buyers find the best price, identify product features, and question sellers. - Blogs and social networking sites that cultivate consumer relationships. 13-7
- 8. 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 prove profitable. • Do you have other suggestions for how to Photo Courtesy of: A.D. Wheeler improve the movie- going experience? 13-8
- 9. The Evolution of MarketingFOUR ERAS of U.S. MARKETING LG1 • Production Era • Selling Era • Marketing Concept Era • Customer Relationship Era 13-9
- 10. The Evolution of Marketing The PRODUCTION and LG1 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. 13-10
- 11. The Evolution of MarketingThe MARKETING CONCEPT ERA LG1 • After WWII, a consumer spending boom developed. • Businesses knew they needed to be responsive to consumers if they wanted their business. 13-11
- 12. The Evolution of Marketing APPLYING the LG1 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. 13-12
- 13. The Evolution of Marketing The CUSTOMER LG1 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. • Today firms like Priceline and Travelocity use CRM that allow customers to build a relationship with the suppliers. 13-13
- 14. The Evolution of Marketing SERVICE with a SMILE Six Steps for Keeping Your Customers Happy LG1 • 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 3. Listen 4. Treat your customers like stars 5. Show appreciation 6. Remember employees are customers too! Source: Inc. Guidebook, Vol. 2 No. 5 and Entrepreneur, February 2010. 13-14
- 15. Nonprofit Organizations and Marketing NONPROFIT MARKETING LG1 • Nonprofit marketing tactics include: - Fundraising - Public Relations - Special Campaigns - Ecological practices - Changing public opinions and attitudes - Increasing organizational membership 13-15
- 16. Nonprofit Organizations and Marketing MARKETING STRATEGIES for LG1 NONPROFITS • 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 13-16
- 17. HOW GREEN is GREEN? (Thinking 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 eco-friendliness? 13-17
- 18. The Marketing Mix The FOUR P’s LG2 13-18
- 19. Designing a Product to Meet Consumer DEVELOPING a PRODUCT Needs LG2 • 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 competitor’s. 13-19
- 20. Setting an Appropriate Price PRICING and LG2 PLACING a PRODUCT • Pricing products depends on many factors: - Competitors’ prices - Production costs - Distribution - High or low price strategies • Middlemen are important in place strategies because getting a product to consumers is critical. 13-20
- 21. Developing an Effective Promotional Strategy PROMOTING the PRODUCT LG2 • 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 Photo Courtesy of: Uri Baruchin 13-21
- 22. Developing an Effective Promotional Strategy PERFECT PROMOTION How to Get Customers to Need Your Product LG1 • 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 respectful. Sources: Entrepreneur, February 2011 and Entrepreneur, March 2010. 13-22
- 23. Developing an Effective Promotional Strategy TANGLED WEB of PROMOTION LG1 Seven Sins of Web Design • Too much clutter • Too difficult to navigate • Stale information • Copycatting • Ignoring the needs of your customer base Photo Courtesy of: Cortes de Cima • Not analyzing data • Refusing to get outside help Source: Entrepreneur, January 2011. 13-23
- 24. 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 costly. • mShopper helps retailers break into the mobile market with the Mobile Commerce Platform, or mStore. 13-24
- 25. Progress Assessment PROGRESS ASSESSMENT • What does it mean to “help the buyer buy?” • What are the three parts of the marketing concept? • What are the Four P’s of the Marketing Mix? 13-25
- 26. Providing Marketers with Information SEARCHING for INFORMATION LG3 • 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 future. • Research uncovers market trends and attitudes held by company insiders and stakeholders. 13-26
- 27. The Marketing Research Process FOUR STEPS in the MARKETING LG3 RESEARCH PROCESS 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. 13-27
- 28. The Marketing Research Process DEFINING the PROBLEM or LG3 OPPORTUNITY • What’s the present situation? • What are the alternatives? • What information is needed? • How should the information be gathered? 13-28
- 29. The Marketing Research Process COLLECTING SECONDARY LG3 RESEARCH DATA • Secondary Data -- Existing data that has previously been collected by sources like the government. • Secondary data incurs no expense and is usually easily accessible. • Secondary data doesn’t always provide all the needed information for marketers. 13-29
- 30. The Marketing Research Process COLLECTING PRIMARY LG3 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. 13-30
- 31. The Marketing Research Process FOCUS GROUPS LG3 • Focus Group -- A group of people who meet under the direction of a discussion leader to communicate opinions. 13-31
- 32. The Marketing Research Process ANALYZING the DATA and LG3 IMPLEMENTING the DECISION • Marketers must turn data into useful information. • Must use their analysis to plan strategies and make recommendations. • Finally, marketers must evaluate their actions and determine if further research is needed. 13-32
- 33. The Marketing Research Process KEY BENEFITS of MARKETING LG3 RESEARCH • Analyze customer needs and satisfaction. • Analyze current markets and opportunities. • Analyze the effectiveness of marketing strategies. • Analyze marketing process and tactics currently used. • Analyze the reasons for goal achievement or failure. 13-33
- 34. The Marketing Research Process WAYS to FIND OUT WHAT LG3 CONSUMERS THINK • Conduct informal consumer surveys • Host a customer focus group • Listen to competitor’s customers • Survey your sales force • Become a “phantom” customer 13-34
- 35. The Marketing Environment SCANNING the MARKETING LG4 ENVIRONMENT • 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 13-35
- 36. The Marketing Environment The MARKETING ENVIRONMENT LG4 13-36
- 37. The Marketing Environment The ABC’s of MARKETING LG4 • A lways be customer-focused. • Benchmark against the best firms. • C ontinuously improve performance. • D evelop the best value package. • E mpower your employees. • F ocus on relationship building. • G oal achievement is the reward. 13-37
- 38. Two Different Markets: Consumer and The CONSUMER and B2B LG4 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. 13-38
- 39. Progress Assessment PROGRESS ASSESSMENT • What are the four steps in the marketing research process? • What’s environmental scanning? • What factors are included in environmental scanning? 13-39
- 40. The Consumer Market MARKETING to CONSUMERS LG5 • 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. 13-40
- 41. Segmenting the Consumer Market SEGMENTING the CONSUMER LG5 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, attitudes, and interests. (continued) 13-41
- 42. Segmenting the Consumer Market SEGMENTING the CONSUMER LG5 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. 13-42
- 43. Reaching Smaller Market Segments MARKETING to LG5 SMALL SEGMENTS • Niche Marketing -- Identifies small but profitable market segments and designs or finds products for them. • One-to-One Marketing-- Developing a unique mix of goods and services for each individual consumer. 13-43
- 44. Moving Toward Relationship Marketing MASS MARKETING vs. LG5 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. 13-44
- 45. Moving Toward Relationship Marketing KEYS to SUCCESSFUL LG5 RELATIONSHIP MARKETING • 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 13-45
- 46. The Consumer Decision-Making Process STEPS in the CONSUMER LG5 DECISION-MAKING PROCESS 1. Problem recognition 2. Search for information 3. Evaluating alternatives 4. Purchase decision 5. Postpurchase evaluation 13-46
- 47. The Consumer The CONSUMER DECISION MAKING Decision-Making Process LG5 PROCESS AND OUTSIDE INFLUENCES 13-47
- 48. The Consumer Decision-Making Process KEY FACTORS in CONSUMER LG5 DECISION-MAKING • Learning • Reference Groups • Culture • Subcultures • Cognitive Dissonance Photo Courtesy of: Peter Hilton 13-48
- 49. The Business- to-Business Market BUSINESS-to-BUSINESS LG6 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. 13-49
- 50. The Business- to-Business Market B2B MARKET DIFFERENCES LG6 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. 13-50
- 51. Progress Assessment PROGRESS ASSESSMENT • Define the terms consumer market and business- to-business market. • Name and describe five ways to segment the consumer market. • 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? 13-51
Notes de l'éditeur
- See Learning Goal 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.
- Company: KFC Canada
- See Learning Goal 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations. Simply put, marketing is activities buyers and sellers perform to facilitate mutually beneficial exchanges.
- See Learning Goal 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.
- See Learning Goal 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.
- See Learning Goal 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations. In the United States, marketing has evolved through four eras: (1) production, (2) selling, (3) marketing concept, and (4) customer relationship.
- See Learning Goal 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.
- See Learning Goal 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.
- See Learning Goal 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.
- See Learning Goal 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.
- See Learning Goal 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations. Service with a Smile It ’s important for companies to keep hold of their customer base. It’s too costly to keep searching out new customers. Ask students: What has a company done to keep you coming back? What has a company done to you that ensures you ’ll never leave?
- See Learning Goal 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations. Nonprofit Marketing This slide identifies marketing tactics nonprofits can use to market their organizations. Nonprofits must effectively market their causes in order to reach their target audience. Ask students: How is the marketing of a nonprofit different from the marketing of a for-profit product? ( Students should be able to identify that there is little difference between the two.)
- See Learning Goal 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations. Marketing Strategies in Non-Profit Organizations This slide identifies many ideas for developing a successful marketing strategy for non-profit organizations. Regardless of the type or size of the organization, nonprofits will need marketing strategies and techniques to maximize their effectiveness. Marketing tactics nonprofits may consider as a part of an overall marketing program include the following: newspaper inserts, cross promotions, packaging promotions, and corporate newsletters. Public relations will play an important role with recognition and support for building strong community goodwill. Based on the following statistics, nonprofit organizations are very successful: During the past 10 years the number of reporting “public charities” grew by 6.3 percent annually. The nonprofit sector includes more than 1 million organizations that spend nearly $500 billion each year – more than the GDP of Brazil, Russia or Australia. Approximately 6 percent of all organizations in the United States are nonprofits, and one in every 15 people works for a nonprofit.
- See Learning Goal 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.
- See Learning Goal 2: Describe the four P ’s of marketing. The Four P ’s are also known as the marketing mix.
- See Learning Goal 2: Describe the four P ’s of marketing.
- See Learning Goal 2: Describe the four P ’s of marketing.
- See Learning Goal 2: Describe the four P ’s of marketing.
- See Learning Goal 2: Describe the four P ’s of marketing. Perfect Promotion Companies are working more to create products that are “built to love.” These products, like the iPad, create excitement and loyalty from the get go. Customers, in addition to looking for an amazing product, look for salespeople who they feel are their friends. The key to repeat business is the likability factor. Ask students: Have you ever gone back to a specific store because of a particular salesperson? If you were in sales, what would you do to increase your likability factor?
- See Learning Goal 2: Describe the four P ’s of marketing. Tangled Web of Promotion Companies often create web sites because they believe they have to. However, if it ’s not done right, it could cause you to lose customers. Not enough emphasis is put on checking the analytics. As noted in this chapter, market research is extremely important. The same goes for web research. Ask students: Can you think of other things to add to this list? What are some companies that have good web sites? Bad web sites?
- See Learning Goal 2: Describe the four P ’s of marketing. Some retailers are hoping to use social media to enter the mobile market. Although many companies use social media to create awareness, there is a trend now of setting up direct outlets on social platforms. J.C. Penney and Delta Airlines have been in talks for months about obtaining a direct presence on Facebook.
- In the past marketing focused entirely on helping the seller sell the product. Today marketing has changed from selling to instead helping the buyer buy. It is critical today that organizations do everything to help buyers make decisions. The three parts of the marketing concept are: (1) customer orientation, (2) service orientation, and (3) a profit orientation. The Four P ’s of the marketing mix are: (1) Product, (2) Price, (3) Place, and (4) Promotion.
- See Learning Goal 3: Summarize the marketing research process. To understand customer wants and needs, it is critical to conduct market research. Good market research will identify products consumers have used, want to use in the future and market trends.
- See Learning Goal 3: Summarize the marketing research process.
- See Learning Goal 3: Summarize the marketing research process.
- See Learning Goal 3: Summarize the marketing research process. Secondary research is cheaper and often easier to gather than primary research, but may be outdated.
- See Learning Goal 3: Summarize the marketing research process. Primary data is timely, but can be expensive and time consuming to gather.
- See Learning Goal 3: Summarize the marketing research process.
- See Learning Goal 3: Summarize the marketing research process.
- See Learning Goal 3: Summarize the marketing research process. Key Benefits of Marketing Research This slide identifies the key benefits of marketing research. As discussed early in the chapter, marketing is about understanding customers wants and needs. To accomplish this goal marketers must conduct marketing research. Ask students: How has the Internet changed the way market research is conducted? ( The Internet has made gathering both primary and secondary information easier and quicker. Also, information can now be gathered via blogs and social networks.
- See Learning Goal 3: Summarize the marketing research process. Ways to Find Out What Consumers Think The goal of market research is to better understand what consumers are thinking. This slide addresses some of the ways that organizations can discover consumer wants and needs.
- See Learning Goal 4: Show how marketers use environmental scanning to learn about the changing marketing environment. Environmental scanning is the process of identifying factors that affect marketing success. The environment of marketing is changing faster than at any time in history. Companies that don ’t keep up, will fail to survive. Today’s marketing environment is influenced by the global marketplace and the explosion of the information age. To be fully prepared, a company must recognize and understand: cultural influences; governmental and political influences; demographic and lifestyle trends; local, national, and world economic trends; the strengths of multi-national competitors; and the influence of technology on physical distribution.
- See Learning Goal 4: Show how marketers use environmental scanning to learn about the changing marketing environment. To effectively understand the marketing environment, it is critical companies continually scan the environment.
- See Learning Goal 4: Show how marketers use environmental scanning to learn about the changing marketing environment. The ABC ’s of Marketing This slide identifies keys to marketing success. One point on this slide mentions the empowerment of employees. Ask students: Why is empowering employees a key to successful marketing? ( Answers will vary, but should focus on how empowerment should lead to greater employee motivation, creating a more customer focused environment.) A key to marketing is understanding the organization ’s strengths and weaknesses and your ultimate customer. 4. Once you have identified your strengths and weaknesses, what you really sell and to whom, and have reviewed your communication to the target market, you need to ensure that the message resonates with them positively. You can do that by engaging in savvy public relations (newsletters, press releases, etc.).
- See Learning Goal 4: Show how marketers use environmental scanning to learn about the changing marketing environment. The buyer ’s intended end use of the product determines whether a product is consumer or B2B.
- The steps in the marketing research process are as follows: (1) Define the problem and determine the present situation, (2) Collect the research data, (3) Analyze the research data, and (4) Choose the best solution and then implement it. Environmental scanning is the process of identifying factors that can affect marketing success. The factors in environmental scanning include: global, technological, sociocultural, competitive, and economic influences.
- See Learning Goal 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.
- See Learning Goal 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.
- See Learning Goal 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.
- See Learning Goal 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.
- See Learning Goal 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior. Mass marketing uses little market segmentation. The goal of relationship marketing is to keep customers happy by offering products that meet exact expectations
- See Learning Goal 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior. Keys to Successful Relationship Marketing Relationship marketing is all about moving away from mass production and toward custom-made goods and services. This slide identifies the keys to successful relationship marketing. The goal of relationship marketing is to retain individual customers over time by offering them new products that meet their expectations. Nike uses relationship marketing creating custom made-shoes via NikeiD. Explore NikeiD in class at www.nike.com to see relationship marketing in action.
- See Learning Goal 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.
- See Learning Goal 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.
- See Learning Goal 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior. Learning - Creates changes in consumer behavior through experiences and information. Reference groups - Reference points in forming beliefs, attitudes, values or behaviors. Culture - The set of values, attitudes and ways of doing things passed from generations. Subculture - Values, attitudes and ways of doing things from belonging to a certain group. Cognitive dissonance - Psychological conflict that may occur after a purchase.
- See Learning Goal 6: Compare the business-to-business market and the consumer market.
- See Learning Goal 6: Compare the business-to-business market and the consumer market.
- The consumer market consists of all the individuals or households that want goods and services for personal consumption or use and have the resources to buy them. Business-to-business markets consist of all the individual and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others. Geographic segmentation is the process of dividing the market by cities, counties, states, or regions. Demographic segmentation involves dividing the market by age, income, education level, religion, race, and occupation. Psychographic segmentation is the process of dividing the market by values, attitudes, and interests. Benefit segmentation involves determining which benefits to promote. Volume or usage segmentation is the process of determining how your customers purchase and use the product. 3. Niche marketing is identifying small but profitable market segments and designing or finding products for them. One-to-one marketing means developing a unique mix of goods and service for each individual customer. The four key factors that make B2B markets different from consumer markets are: (1) Customers in B2B markets are relatively few as compared to households in the consumer market, (2) B2B customers tend to be geographically centered, (3) B2B sales tend to be direct, and (4) In the B2B marketplace sales are based on personal selling.