Chapter 13 Marketing: Helping Buyers Buy BUS 100 PDF

Because learning changes everything. ® Chapter 13 Marketing: Helping Buyers Buy BUS 100 – Introduction to Business Alaa Hamade © 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the...

Because learning changes everything. ® Chapter 13 Marketing: Helping Buyers Buy BUS 100 – Introduction to Business Alaa Hamade © 2022 McGraw Hill. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw Hill.  What Is Marketing? 1 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. Marketing used to be about helping the seller sell. 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. Helping buyers buy will ultimately help sellers sell. © McGraw Hill 2  What Is Marketing? 2 The Evolution of Marketing The Production Era. The general philosophy was “Produce as much as you can, because there is a limitless market for it.” Since production capacity was limited, this was profitable. The Selling Era. Mass production became common. Most companies emphasized selling and advertising in an effort to persuade consumers to buy existing products. © McGraw Hill 3  What Is Marketing? 3 The Evolution of Marketing continued 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. Marketing concept — A three-part business philosophy. 1. Customer orientation – emphasis on meeting consumer needs 2. Service orientation – customer satisfaction is an organization-wide objective and not just sales or marketing 3. Profit orientation – focus on what is most profitable © McGraw Hill 4  What Is Marketing? 4 The Evolution of Marketing continued The Customer Relationship Era. Customer relationship management (C RM) — Learning as much as possible about customers and doing everything you can to satisfy or exceed their expectations. Organizations seek to stimulate long-term customer loyalty. relationship building using Social networks, online communities, and blogs. © McGraw Hill 5  What Is Marketing? 5 The Evolution of Marketing continued The Emerging Mobile/On-Demand Marketing Era. As digital technology continues to grow, consumer demands are expected to rise in: 1. Now. Consumers want to interact anywhere, anytime. 2. Can I? They want to use information in new ways that create value for them. E.g. Can I buy/afford this house? 3. For me. Consumers expect personalized experiences. 4. Simple. Consumers expect all interactions to be easy. © McGraw Hill 6  What Is Marketing? 6 Nonprofit Organizations and Marketing Nonprofit marketing includes: Fundraising. Obtaining resources. Promoting their message. Attracting new members. Creating awareness of social issues. © McGraw Hill 7  The Marketing Mix 1 Marketing Mix The ingredients that go into a marketing program; also known as the four Ps: 1. Product. 2. Price. 3. Place. 4. Promotion. © McGraw Hill 8  The Marketing Mix 2 Designing a Product to Meet Consumer Needs Product — Any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers. Test marketing — Testing products among potential users. Brand name — A word, letter, or group of words or letters that differentiates one seller’s goods and services from those of competitors. © McGraw Hill 9  The Marketing Mix 3 Setting an Appropriate Price Pricing products depends on many factors: Competitors’ prices. Production costs. Distribution. Promotion. Getting the Product to the Right Place Intermediaries are important because getting a product to consumers when and where they want is critical. © McGraw Hill 10  The Marketing Mix 4 Developing an Effective Promotional Strategy Promotion — All the techniques sellers use to inform people about and motivate them to buy their products or services. Promotion includes: Advertising. Personal selling. Public relations. Publicity. Word of mouth. Sales promotions. © McGraw Hill 11  Providing Marketers with Information 1 Marketing Research The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions. Why is marketing research used? Research is used to identify products consumers have used in the past and what they want in the future. Research uncovers business trends, the ecological impact of decisions, global trends, and more. © McGraw Hill 12  Providing Marketers with Information 2 The Marketing 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. © McGraw Hill 13  Providing Marketers with Information 3 The Marketing Research Process continued Defining the Question and Determining the Present Situation: What’s the present situation? What are the problems or opportunities? What are the alternatives? What information is needed? How should the information be gathered? © McGraw Hill 14  Providing Marketers with Information 4 The Marketing Research Process continued Collecting Data. Secondary data — Information that has already been compiled. by others and published in journals and books or made available online. Secondary data incurs no expense and is usually easily accessible. Secondary data doesn’t always provide all the needed information for marketers. © McGraw Hill 15  Providing Marketers with Information 5 The Marketing Research Process continued Collecting Data continued. Primary data — Data that you gather yourself (not from secondary sources). Telephone, online and mail surveys, personal interviews, and focus groups are ways to collect primary data. Focus group — A small group of people who communicate opinions and meet under the direction of a discussion leader. © McGraw Hill 16  Providing Marketers with Information 6 The Marketing Research Process continued Analyzing the Research Data. Marketers must turn data into useful information through careful, honest interpretation. Choosing the Best Solution and Implementing It. Marketers use their analysis to plan strategies and make recommendations. Finally, marketers must evaluate their actions and determine if further research is needed. Marketing research is a continuous process. © McGraw Hill 17  The Marketing Environment Environmental Scanning The process of identifying factors that can affect marketing success. Influences involved in the environmental scan include: Economic factors.(gdp) Technological factors. Competitive factors.(price, service) Sociocultural factors.(population values) Global factors.(trends) (know all of them) © McGraw Hill 18  Figure 13.5 The Marketing Environment Access the text alternative for slide images. © McGraw Hill 19  Two Different Markets: Consumer and Business-to-Business (B2B) Consumer market — All the individuals or households that want goods and services for personal consumption or use. Business-to-business (B2B) market — 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. The buyer’s reason for buying—that is, the end use of the product—determines whether a product is a consumer product or a B2B product. © McGraw Hill 20  The Consumer Market 1 Consumer Markets The size and diversity of the consumer market forces marketers to decide which groups they want to serve. Market segmentation — Dividing the total market into groups whose members have similar characteristics. Target marketing — Marketing directed toward those groups an organization decides it can serve profitably. © McGraw Hill 21  The Consumer Market 2 Segmenting the Consumer Market Geographic segmentation — Dividing the market by cities, counties, states, or regions. Demographic segmentation — Dividing the market by age, income, and education level. Psychographic segmentation — Dividing the market using the group’s values, attitudes, and interests. Benefit segmentation — Dividing the market by determining which benefits of the product to talk about. (Panadol) Volume (or usage) segmentation — Dividing the market usage (volume of use). © McGraw Hill 22  The Consumer Market 3 Reaching Smaller Market Segments Niche marketing — Finding small but profitable market segments and designing or finding products for them. (lactose intolerant milk for small groups) One-to-one marketing — Developing a unique mix of goods and services for each individual consumer. © McGraw Hill 23  The Consumer Market 4 Building Marketing Relationships Mass marketing — Developing products and promotions to please large groups of people.(ketchup) Uses little market segmentation. Relationship marketing — Keeping individual customers over time by offering them products that exactly meet their requirements. Tends to lead away from mass production and toward custom-made goods and services. © McGraw Hill 24  The Consumer Market 5 The Consumer Decision-Making Process 1. Problem recognition. 2. Information search. 3. Evaluate alternatives. 4. Purchase decision. 5. Post purchase evaluation. © McGraw Hill 25  The Consumer Market 6 The Consumer Decision-Making Process continued Factors that affect consumer behavior: Learning – experience from trying the product or service before (buying a product liking it and going back to it l2na 7baiteeh) Reference group – influencers and role models Culture – national, religious (passed down through generations) (vimto) Subculture – ethnic, racial, or other groups you identify with through hobbies or other interests Cognitive dissonance – internal conflict after the purchase © McGraw Hill 26  The Business-to-Business Market Business-to-Business Markets B2B marketers include: Manufacturers. Retailers. Hospitals, schools, and nonprofits. Government. Products are often sold and resold several times before reaching final consumers. © McGraw Hill 27  Figure 13.7 Comparing Business-to-Business and Consumer Buying Behavior Business-to-Business Market Consumer Market Market Structure Relatively few potential customers Many potential customers Larger purchases Smaller purchases Geographically concentrated Geographically dispersed Products Require technical, complex products Require less technical products Frequently require customization Sometimes require customization Frequently require technical advice, Sometimes require technical advice, delivery, and after-sale service delivery, and after-sale service Buyers are trained No special training Buying Procedures Negotiate a lot about the purchase Accept purchase standard terms for details of most most Follow objective standards Use personal judgment Formal process involving specific Informal process involving household employees members Closer relationships between Impersonal relationships between marketers and buyers marketers and consumers Often buy from multiple sources Rarely buy from multiple sources © McGraw Hill 28  Find a Need and Fill it The text emphasizes that marketing is not a matter of taking a product and selling it, but of finding a need and filling it. Look around you—around your campus, your home, or your job: Do you see a need that is unfilled? If you’re having trouble finding a need, try to remember the times you’ve said, “Somebody ought to do_____,” or “Somebody ought to make______.” That somebody is going to be you! Fill the need you have identified by following the steps listed below. Write down what you would do at each step. 1. Find a need: 2. Design a product or service: 3. Test your concept: 4. Make up a prototype and test market your product or service: 5. Design packaging, think of a name, and set a price: 6. Decide how to distribute the product to consumers: 7. Develop a promotional strategy: © McGraw Hill 29