AS MEETING CUSTOMER NEEDS
- A BRIEF HISTORY OF
THE MARKETING CONCEPT.
- In the 1930s and
1940s, emphasis in marketing was on selling and advertising.
- The baby boom after
WWII created a tremendous market.
scrambled to capture their share.
- Businesses knew
they needed to respond to consumers need.
- The MARKETING
- A CONSUMER
- A SERVICE
ORIENTATION—the training of employees from all departments in
A PROFIT ORIENTATION.
- During the 1980s
businesses began to more aggressively to apply the marketing concept.
RELATIONSHIP MANAGEMENT (CRM) is learning as much as possible about
customers and doing everything you can to satisfy them or even delight
them with goods and services over time.
is the process of
determining customer wants and needs and then providing customers with
goods and services that meet or exceed their expectations.
FIND A NEED AND
FILL IT—A more simple description of the marketing process.
ORGANIZATIONS USE MARKETING ALSO.
- Knowing what
customers need and want is much easier today because purchases can be
recorded in a database.
- Retailers can
build a close relationship with its customers and provide them goods and
services made specifically for their
MARKETING MANAGEMENT AND THE MARKETING MIX.
- Marketing is a
crucial part of almost all organizations, profit and nonprofit.
churches, politicians, states, and many other organizations all use
To present an
overview of the marketing process, the text takes a hypothetical product (a
cereal called FIBERRIFIC) through THE
MANAGEMENT is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create mutually
- The idea is to
please customers AND make a profit.
- Managing the
marketing process involves FOUR FACTORS:
- Designing a
- Setting a
PRICE for the product.
- Distributing the
product to a PLACE where people will buy it.
- These four factors
have become known as the FOUR Ps OF MARKETING or the MARKETING
- The MARKETING
MIX is the ingredients that go into a marketing program: product,
price, place, and promotion.
- The next step is to
develop a product to fill that need.
- A PRODUCT is
any physical good, service, or idea that satisfies a want or need.
- CONCEPT TESTING
involves developing an accurate description of your product and asking
people whether or not the concept (the idea of the cereal) appeals to
are samples of the product that you take to consumer to test their
- TEST MARKETING
is the process of testing products among potential users.
is the allocation of production and other functions to outside firms.
- Once the product is
made, you have to DESIGN A PACKAGE, think up a BRAND NAME
for the product, and set a PRICE.
- A BRAND NAME
is a word, letter, or group of words or letters that differentiates one
seller’s goods and services from those of competitors.
PRODUCT TO CUSTOMERS.
- The price depends
on a number of factors.
- You also have to
consider the costs of producing, distributing, and promoting the product.
EFFECTIVE PROMOTIONAL STRATEGY.
- Once the product is
manufactured, you have to choose how to get it to the consumer.
- You may want to
sell your product through INTERMEDIARIES, organizations that
specialize in distributing food products, or MARKETING MIDDLEMEN.
PROVIDING MARKETERS WITH INFORMATION.
PROMOTION consists of all the
techniques sellers use to motivate people to buy products or services.
BUILDING WITH CUSTOMERS includes responding to any suggestions they
may make to improve the product or the marketing of the product.
- Marketing is an
THE CONSUMER MARKET
- MARKETING RESEARCH
is the analysis of markets to determine opportunities and challenges, and to
find the information needed to make good decisions.
- One goal is to
determine exactly what consumers want and need, now and in the future.
- Because consumer
wants and needs are constantly changing, marketing must maintain close
relationships with customers.
- Businesses need
information to compete effectively, and marketing research is the activity
that gathers that information.
- THE MARKETING
- STEP 1.
DEFINING THE PROBLEM AND DETERMINE THE PRESENT SITUATION.
- STEP 2:
- Research can be
quite expensive, so SOME TRADE-OFF must be made between
information needs and the cost.
DATA, sources of information that have been published previously
(journals, trade associations, etc.), are less expensive.
- Usually secondary
research doesn’t provide all the necessary information, so marketers
must do their own studies.
- PRIMARY DATA
are facts and figures not previously published that you gather for a
surveys, mail surveys, and personal interviews are the most common
methods of gathering survey information.
- A FOCUS
GROUP consists of a small group of people who meet under the
direction of a discussion leader to communicate their opinions about
an organization or its product.
- Marketers can now
gather both secondary and primary data online.
- STEP 3:
ANALYZING THE RESEARCH DATA—The data collected must be turned into
- STEP 4:
CHOOSING THE BEST SOLUTIONS.
present alternative strategies and make recommendations as to which
strategy may be best.
- Company websites
have vastly improved the marketing research process.
- Consumers are
becoming more demanding for ethical behavior from companies.
- The last steps in a
research effort involve FOLLOWING UP on the actions taken to see if
the results were as expected.
- THE MARKETING
ENVIRONMENTAL SCANNING is the process
of identifying the factors that can affect marketing success.
- GLOBAL FACTORS
include the growth of the Internet and the globalization of marketing.
FACTORS include the Internet, the growth of consumer databases,
flexible manufacturing, and mass customization.
- SOCIAL FACTORS
include population growth and changing demographics.
companies must adjust to new competition from the Internet.
- Competitors can
now delivery products quickly.
- ECONOMIC FACTORS.
Marketers must pay close attention to the economic environment in the U.S.
DIFFERENT MARKETS: CONSUMER AND BUSINESS-TO-BUSINESS.
- Marketers must know
as much as possible about the market they wish to serve.
- THERE ARE TWO
- The CONSUMER
MARKET consists of all the individuals who want goods and services
for personal consumption or use.
BUSINESS-TO-BUSINESS (B2B) MARKET consists of all the individuals
and organizations that want goods and services to produce other goods
and services, also known as INDUSTRIAL GOODS AND SERVICES.
- The buyer’s reason
for buying and the end use of the product determine whether it is
considered a consumer product or an industrial product.
- Consumer groups
differ greatly in age, education level, income, and taste.
- Marketers must
learn to select different consumer groups to develop products and services
specially tailored to their needs.
- The process of
dividing the total market into several groups (segments) that have similar
characteristics is called MARKET SEGMENTATION.
- TARGET MARKETING
is marketing directly toward those groups (market segments) an
organization decides it can serve profitably.
- SEGMENTING THE
SEGMENTATION is dividing the market by geographic area.
- Segmentation by
age, income, and education level are ways of DEMOGRAPHIC SEGMENTATION.
- Segmentation based
on the group’s values, attitudes, and interests is PSYCHOGRAPHIC
- Determining which
benefits are preferred and using those benefits to promote a product is
called BENEFIT SEGMENTATION.
- Separating the
market by usage is called VOLUME SEGMENTATION.
- The best
segmentation strategy is to use all the variables to come up with a
consumer profile that’s sizable, reachable, and profitable.
- REACHING SMALLER
- NICHE MARKETING
is the process of finding small, but profitable market segments and
designing custom-made products for those groups.
MARKETING means developing a unique mix of goods and services for each
- This is easier to
do in B2B markets, but mass customization is making it possible to do so
in consumer markets.
- THE MOVEMENT AWAY
FROM MASS MARKETING TOWARD RELATIONSHIP MARKETING.
- MASS MARKETING
means developing products and promotions that are designed 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.
Marketing's goal is to keep individual customers over time by offering
them products that exactly meet their requirements.
marketing is more concerned with retaining old customers than creating
- One-way messages
in mass media give way to a personal dialogue among participants.
MARKETING moves away from mass production toward CUSTOM-MADE GOODS.
- The latest in
TECHNOLOGY enables sellers to work with buyers to determine their
individual wants and needs and to develop goods and services specifically
designed for those individuals.
COMMUNITIES OF BUYERS.
- A database can be
established so that every contact with consumers results in more
information about them.
- Over time, the
seller knows more and more about consumers and can custom-design products
to meet their specific needs.
- Many companies have
established Web sites where customers can provide their input and talk to
- An important next
step in relationship marketing is to establish a community of customers.
- THE CONSUMER
- Studying consumer
behavior centers around studying the CONSUMER PURCHASE DECISION
- MAKE PURCHASE
- Consumer behavior
researchers also study the various influences that impact consumer
- MARKETING MIX
VARIABLES (the four Ps).
INFLUENCES such as perception and attitudes.
INFLUENCES such as the type of purchase and physical surroundings.
INFLUENCES such as reference groups and culture.
BEHAVIOR IS ALSO INFLUENCED BY:
involves changes in an individual's behavior resulting from previous
GROUP is the group that an individual uses as a reference point in
forming beliefs, attitudes, or behavior.
- CULTURE is
the set of values, attitudes, and ways of doing things that are
transmitted from one generation to another.
is the set of values, attitudes, and ways of doing things that result
from belonging to a certain group with which one identifies.
DISSONANCE means that after the purchase, consumers may have doubts
about whether they got the best product at the best price.
List several ways in which the business-to-business market differs from the
- Marketers of goods
and services to manufacturers, institutions, commercial operations, and the
government are called BUSINESS-TO-BUSINESS MARKETERS.
- Several factors make
BUSINESS-TO-BUSINESS MARKETING DIFFERENT.
There are relatively FEW INDUSTRIAL CUSTOMERS compared to
- SIZE: Though few in
number, industrial customers are VERY LARGE.
CONCENTRATED: B2B markets tend to be CONCENTRATED in certain
areas of the country.
Industrial buyers are generally MORE RATIONAL in their purchase
Industrial sales tend to be DIRECT.
- PERSONAL SELLING:
There is much more emphasis in personal selling than in the consumer
marketing has always been important in the business-to-business market.
business-to-business marketing it is more important to establish and
maintain friendly and committed relationships than to simply make the sale.
RELATIONSHIPS WITH ALL STAKEHOLDERS.
- In the 21st century
marketers have to readjust their strategies to meet the needs of modern
- FROM A CUSTOMER
ORIENTATION TO DELIGHTING CUSTOMERS AND OTHER STAKEHOLDERS.
- Marketing's goal in
the past was to provide customer satisfaction.
- Today the goal of
total quality firms is to please or DELIGHT CUSTOMERS by providing
goods and services that exactly meet their requirements.
- Most organizations
haven't yet reached the goal of delighting customers.
- Firms must also
please and delight their INTERNAL CUSTOMERS-employees.
- FROM AN ORGANIZING
SERVICE ORIENTATION TO UNITING ORGANIZATIONS.
- Determining whether
or not the various organizations are providing world-class service and
quality is done through competitive benchmarking.
BENCHMARKING means that companies compare their processes and
procedures against the best companies in the industry.
relationship management is becoming an important part of any organization
seeking to maximize profits.
- MAINTAINING A
- Marketing must make
sure that everyone in the organization understands that the purpose behind
delighting customers IS TO ASSURE A PROFIT for the firm.
- Using that profit,
the organization can then satisfy other stakeholders of the firm.
- Balancing the wants
and needs of all the firm's stakeholders is a huge challenge for marketing.
MARKETING is establishing and maintaining mutually beneficial exchange
relationships with internal and external customers and all the other
stakeholders of the organization.
- Many companies have
responded to the environmental movement by introducing
GREEN PRODUCTS, those whose production,
use, and disposal doesn't damage the environment.
RELATIONSHIP MANAGEMENT (CRM)
- The 80/20 rule says
that 80% of your business is likely to come from just 20% of your
- It is far more
expensive to get a new customer than to strengthen a relationship with an
- That is the heart
of customer relationship management (CRM).
- YOUR PROSPECTS IN
- Marketing careers
include jobs in retailing, wholesaling, marketing research, and product
management, selling, advertising, sales promotion.
- Other areas include
public relations, transportation, storage, international distribution, and