Marketing: Helping Buyers Buy (Evolution and Marketing Mix) PDF

Marketing: Helping Buyers Buy (Evolution and Marketing Mix) Chapter 3 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Thirteen...

Marketing: Helping Buyers Buy (Evolution and Marketing Mix) Chapter 3 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. 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. 13-2 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 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. 13-4 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. 13-5 The Evolution of Marketing FOUR ERAS of U.S. MARKETING LG1 Production Era Selling Era Marketing Concept Era Customer Relationship Era 13-6 The Evolution of Marketing The PRODUCTION and LG1 SELLING ERAS 1. The production era until the early 1900s The general philosophy was “Produce what you can because the market is limitless.” After mass production, the focus turned from production to persuasion. 13-7 2) The selling era By the 1920s, businesses had developed mass –production techniques (such as automobile assembly lines), and production capacity often exceeded the immediate market demand. Therefore, the business philosophy turned from producing to selling. Most companies emphasized selling and advertising in an effort to persuade consumers to buy existing products few offers extensive service after the sale. 3) The marketing concept era after World War II ended in 1945, generated a tremendous demand for goods and service. Businesses recognized that they needed to be responsive to consumers if they wanted to get their business, and a philosophy emerged in 1950s called the marketing concept. Marketing concept had three parts: (1) A customer orientation (2) A service orientation (3) A profit orientation. 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 PricelineToday firms like Priceline and Travelocity use CRM that allow customers to build a relationship with the suppliers. 13-10 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. 13-11 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 13-12 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 13-13 The Marketing Mix The FOUR P’s LG2 13-14 Designing a Product to Meet Consumer Needs DEVELOPING a PRODUCT 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. 13-15 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. 13-16 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 13-17