Chapter Thirteen Marketing: Helping Buyers Buy McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies, Inc All rights reserved WHAT’S MARKETING? • 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 • Helping the buyer buy 13-2 FOUR ERAS of U.S. MARKETING 13-3 1. The PRODUCTION ERA • The general philosophy was “Produce what you can because the market is limitless.” 13-4 2. The SELLING ERA • After mass production arrived, the focus turned from production to persuasion 13-5 3. 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 13-6 APPLYING the MARKETING CONCEPT • The Marketing Concept includes three parts: Customer Orientation Finding out what customers want and then providing it Service Orientation Making sure everyone in an organization is committed to customer satisfaction Profit Orientation Focusing on the goods and services that will earn the most profit 13-7 4. The CUSTOMER 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 longterm relationships 13-8 THE MARKETING MIX 13-9 ELEMENTS IN THE MARKETING MIX Plac Product e Computer 'R Us Marketin g Program Pric e Buy at Computers ‘R Us Promotio n 13-10 DIFFERENT MARKETS 13-37 TWO MARKETS Consumer – B2C BusinesstoBusiness – B2B 13-38 The CONSUMER and B2B MARKET • Consumer Market All the individuals or households that want goods and services for personal use and have the resources to buy them • BusinesstoBusiness (B2B) Individuals and organizations that buy goods and services to use in production or to sell, rent, or supply to others 13-39 CONSUMER MARKET 13-40 MARKETING to CONSUMERS • 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 13-41 SEGMENTING the CONSUMER 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, interests, and opinions 13-42 SEGMENTING the CONSUMER 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 13-43 13-44 MASS MARKETING vs. 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 custommade goods and services for customers 13-45 STEPS in the CONSUMER DECISIONMAKING PROCESS Problem recognition Search for information Evaluating alternatives Purchase decision Postpurchase evaluation (cognitive dissonance) 13-47 The CONSUMER DECSION MAKING PROCESS AND OUTSIDE INFLUENCES 13-48 BUSINESS MARKET 13-49 BUSINESStoBUSINESS 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 13-50 B2B MARKET DIFFERENCES • There are relatively few customers • Customers tend to be large buyers • Markets are geographically concentrated • Buyers are more rational than emotional • Sales are direct • Promotions focus heavily on personal selling 13-51 YOUR PROSPECTS IN MARKETING There is a wider variety of careers in marketing than in most business areas 13-52 ... and exchanging offerings with value for customers, clients, partners, and society at large • Helping the buyer buy 13-2 FOUR ERAS of U.S. MARKETING 13-3 1. The PRODUCTION ERA • The general philosophy was “Produce what you can ... satisfaction building longterm relationships 13-8 THE MARKETING MIX 13-9 ELEMENTS IN THE MARKETING MIX Plac Product e Computer 'R Us Marketin g Program Pric e Buy at Computers ‘R Us Promotio n 13-10 PRODUCT Chapter 14 13-11 PRODUCT... 3. 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 13-6 APPLYING the MARKETING CONCEPT