Chapter 13 - Chapter 13 Marketing Marketing Developing...

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Unformatted text preview: Chapter 13 Marketing Marketing Developing & implementing Developing customer oriented marketing plans Evolution of Field of Evolution of Field of Marketing: The Product Era: Until 1900s “produce as much as u can as the market is limitless” The selling Era: By 1920s emphasis was moved from production to selling due to mass production *1930s & 1940s: most companies emphasized selling and advertising and didn’t pay much attention to what consumers wanted or needed The Marketing Concept Era: After world war ii , after the baby boom in the early 1950s: the marketing concept (philosophy) emerged, it had three parts: The Marketing Concept The A customer orientation, find out what consumers want and provide it for them. A service orientation: make sure everyone in the organization has the same objective­ customer satisfaction even if they are not in the customer service department. A profit orientation: market those goods and services that will earn the firm a profit *1990s: adopting the customer relationship management (CRM) which is learning as much as possible about customers and doing everything they can to satisfy them or even delight them with goods and services (TQM) TQM looks at all stakeholders not only at the customer­TQM applies competitive benchmarking which is comparing one’s company to the best in the industry­TQM maintains the same profit orientation. Defining marketing Defining Marketing is the process of determining customer needs and wants and then providing the customers with goods and services that meet or exceed their expectations. The goal of the marketing process is: FIND A NEED AND SATISFY (FILL) IT Note: nonprofit organizations use marketing techniques too. For example charities use marketing to raise funds. Marketing Mix (4 Ps) Product Price Place Promotion Marketing management Is the process of planning and executing the conception, pricing, promotion, and distribution (place) of ideas, goods and services to create mutually beneficial exchanges. – – – – – – – – – – Applying the marketing process (development and sale of a product) and Research the customer needs Develop a product to satisfy the need Concept testing: develop and accurate description of your product and ask people whether the concept (idea) appeals to them. Go to out sourcing a manufacturer who has the equipment and skills to design such a product and begin making prototypes; samples of the product that you take to the customers to test their reactions Test marketing: the process of testing product prototypes among potential users Start the production process Determine and design: 1­ package 2­ brand name 3­ price Setting an appropriate price Getting the product to the right place when and where the customer want it , through intermediaries who distribute goods from producers to consumers. (middlemen) Developing effective promotional strategy Providing marketing with information information Marketing research: is the analysis of markets to determine opportunities and challenges and to find the information needed to make good decisions. The marketing research process: The 1­ Defining the problem or determining the present situation 2­Collecting data Secondary data: information that has been already complied by others and published in journals or books or made available online. Primary data: in depth information gathered through marketing research by 1­ observation method method 2-survey telephone, mail, in person face to face surveys telephone, mail, in are common 3­focus groups which is a small group of people (8 to 14 individuals) who meet under the direction of a discussion leader to communicate their opinions about the products of a specific co. Marketing Research Cont. Marketing Research Cont. 3­Analyzing the research data (using statistical techniques) 4­Choosing the best solution 5­Conducting follow up to be sure that the solution chosen solved the problem Consumer markets and business-to-business markets business-to-business Market: consists of people with unsatisfied needs and wants who have both the resources and the willingness to buy There are 2 major markets in business: The consumer market: consists of all the individuals or households that want goods and services for personal consumption Business to business (B2B) markets: consists of all the individuals and organizations that want goods and services to use them in producing other goods and service to sell at a profit Differences between consumer and business to business (B2B) markets business The number of customers in the B2B market is relatively few as compared to customers who are millions. The size of B2B market is relatively large ie businesses buy in large quantities or in bulk. B2B markets tend to be geographically concentrated while consumers are wide spread all over the country. Business buyers generally are more rational ie not much influenced by culture and other factors ie trained buyers. B2B sales tend to be direct no middlemen are involved. The consumer market The Market segmentation: It is the process of dividing the total Segmenting the consumer market market into several groups whose members have similar characteristics. Target marketing: marketing directed toward those groups (market segments) that the organization thinks it can serve profitably. There are several ways a firm can segment or divide the consumer There are several ways a firm can segment or divide the consumer market: Geographic segmentation: dividing the market by geographic area Demographic segmentation: dividing the market by age, income, and education level Psychographic: dividing the market using the groups values, attitudes, and interests Reaching smaller market segments Reaching Niche marketing: the process of finding small but profitable market segments and designing custom made products for them One to one marketing: developing a unique mix of goods and services for each individual customer. Moving away from mass marketing towards relationship Moving marketing marketing Mass marketing: means developing products and promotions to please large groups of people. The mass marketer tries to sell products to as many people as possible. That means using mass media such as TV, radio, and newspapers. Relationship marketing: tends to lead away from mass production and toward custom­made goods and services. The goal is to keep individual customers over time by offering them products and goods that exactly meet their requirements. The latest in technology enables sellers to work with individual buyers to determine their wants and needs to develop goods and services specifically designed for them. The consumer decision making process The The different influences that The influence the consumer buying behavior: behavior: Marketing mix influences: product, price, place, promotion Socio cultural influences: reference groups, family, social class, culture, subculture Psychological influences: perception, attitudes, learning, motivation Situational influences: type of purchase. Social surroundings, physical surroundings, previous experience Decision making process: Problem recognition Information search Alternative evaluation Purchase decision Post purchase evaluation ( cognitive dissonance) ...
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This note was uploaded on 01/29/2012 for the course BUSINESS A bus102 taught by Professor Samia during the Spring '11 term at MSA University.

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