Marketing Helping Buyers To Buy

1. MarketingHelping Buyers To Buy Chapter 13

2. Goals • Define Marketing • 4 Ps (Product, Price, Place, Promotion) • Marketing Research • Environmental Scanning • Marketing Tools: • Market Segmentation • Relationship Marketing • Study of Consumer Behavior • B2B and Consumer Markets

3. Define Marketing • Watching people to see what their needs are and getting a new idea to satisfy those needs, developing, testing, pricing, promoting, distributing the product or service. Then listening to people after they have the product or service and starting all over • Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that satisfy individual and organizational objectives • Helping the Buyer to Buy

4. Define Marketing • American Marketing Association • The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large • Wikipedia: • Marketing is the process by which companies determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

5. Helping the Buyer to Buy • In the past: • Marketing helped the seller to sell • Advertising and promotion • In-store displays • Salesman sold cars, TVs, appliances

6. The Trend Now Is Towards: • Marketing helps buyers to buy • Do you show up high in Google shopping results • Vehix.com or autoweb.com or autobytel.com for cars • Manufacturers and dealers better be listed • Videos playing at your web site to show off products and services (littlehardhats or YouTube search 1 or YS2) • Business should have a Facebook and YouTube account and Blog) • In all cases, the business must know how to tag search results (text, web sites, videos, pictures, blogs) with appropriate keywords to gain high search results. • Monitor search results, Facebook, Blogs to gage customer reactions • Web site is easy to navigate

7. Marketing History

8. Marketing History • Production • Produce as much as you can because there was a limitless market • Limited production capacity and vast demand • Greatest marketing need was: distribution and storage. • Sales • Production capacity began to exceed demand • Mass production for fist time • Marketing began to emphasize selling and advertising • Most business did not offer service after the sale.

9. Marketing History • Marketing Concept • Customer demand and competition amongst businesses increase dramatically and the emphasis switched to the Marketing Concept: • A customer orientation (customer's needs) • Service orientation (Total organizational effort to meet customer's needs) • A profit orientation (focus on goods and services that are most profitable) • Customer Relationship • Learn as much as possible about customers so you can meet and exceed customer's expectations • Goal: build long-term loyalty • Online tools such as Facebook, Local Review Blogs, YouTube

10. Marketing Is Done By All Entities And In Many Ways • Businesses MrExcel Consulting • Politicians Obama used the web effectively • Museums Seattle Art museum has videos playing at web site • Churches Marketing article about Marketing for churches • Temples • New Years Celebration to bring people in to Temple

11. Much Of What Marketers Do: 4 Ps • Product • Design want-satisfying product • Price • Set price that is not too high or too low • Place • Place product where people will buy it • Promotion • Ad or article in magazine • Coupon • Placement in movie • Word of mouth • Personal selling • YouTube video 4 Ps = Marketing Mix

12. Goals: Please Customer & Make Profit Place Product Computer 'R Us Marketing Program Buy at Computers ‘R Us Promotion Price

13. Marketing Process

14. Marketing Terms • Product • Any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of the consumer, such as brand • Test marketing • The process of testing products among potential users • Brand name • A word, letter, or group of words or letters that differentiates one seller’s goods and service from those of competitors • Promotion • All the techniques sellers use to motivate people to buy their products or services

15. Marketing Research • The analysis of markets to determine opportunities and challenges • Find the information needed to make good decisions • What have customers purchased in the past • What are business or global trends? • What do employees and other stakeholders think? • Secondary data • Information that has already been complied by others and published in journals and books or made available online. • Primary data • Data that you gather yourself

16. Marketing Research

17. Marketing Research Process • Define the question (problem or opportunity) and determine the present situation • Marketing researchers should be given the freedom to go in any direction they need to in order to find the question/problem/opportunity • Collect data • Secondary (apply it uniquely), primary (find the unique data) • Analyze data to create useful information • Compile primary and secondary data into useful information that helps to make business decision • Choose the best solution and implementing it • Choose solution, see if solution works, start over

18. Marketing Terms • Focus group • A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues • Environmental scanning • The process of identifying the factors that can affect marketing success

19. Top of Search Results Marketing Environment Recession Small Business can sell globally Online Everything Databases

20. Flat World For Marketers • The world is now integrated economically • Thanks to technologies such as: • Internet • Efficient global distribution channels • Learning new cultures, finding opportunities through market research: • China McDonalds: • Since many Chinese restaurants were not clean and did not let you stay as long as you want, McDonalds provided clean restaurants that allowed you to stay as long as you wanted • Starbucks Paris: • Since 50 million tourists visited the city that has 7 million residents, they opened coffee bars in tourists areas

21. Two Different Markets (Who Is End User?) • Markets • People with unsatisfied needs and wants that have both the resources and willingness to buy • Consumer market • All the individuals or households that want goods and services for personal consumption or use • Buy candy bar to eat or tax return service • Business-to-business (B2B) markets • 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 • Selling candy bar machines, or audit services

22. Market Segmentation • Market Segmentation • The process of dividing the total market into groups whose members have similar characteristics • Target marketing • Marketing directed toward those groups (market segments) an organization decides it can serve profitably • Finding the right target market for your business: • The one that is the most profitable • The one that meets other objectives

23. Market Segmentation • Target Marketing • Geographic • Demographic • Psychographic • Benefit • Volume • Use all variables and come up with consumer profile (target market) that is sizable, reachable and profitable

24. Market Segmentation • Geographic segmentation • Dividing the market by geographic area • Demographic segmentation • Dividing the market by age, income, education level, race, life stage, occupation, much more… • Does the add use music from 1960s, 70s, 80s, 90s, 00s? • Psychographic segmentation • Dividing the market using the group’s personality, values, attitudes, and interests (Extroverted, upscale, moderate) • Benefit segmentation • Dividing the market by determining which benefits of the product to talk about (Comfort, Convenience, Durability, Economic, Healthy) • Volume, or usage, segmentation • Dividing the market by usage (volume of use)

25. Small Markets • Niche marketing • The process of finding small but profitable market segments and designing or finding products for them • Internet allows more niche businesses • Amazon can stock low volume items (long tail of the internet) • One-to-one marketing • Developing a unique mix of goods and services for each individual customer • Dell • Travel agent

26. Opposites • Mass marketing • Developing products and promotions to please large groups of people • Relationship marketing • Marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements • Small businesses have always had to do this • Large business now do this and call it CRM (Customer Relationship Management) • Technology like Databases, the internet and ERM systems help business to collect data about customers and connect with them later

27. Consumer Decision Making • Sociocultural • Reference groups • Family • Social class • Culture • Subculture • Marketing mix • Product • Price • Place • Promotion • Decision-Making Process • Problem Recognition • Information Search • Alternative evaluation • Purchase decision • Postpurchase evaluation • (cognitive dissonance) • Psychological • Perception • Attitudes • Learning • Motivation • Situational • Type of Purchase • Social surroundings • Physical surroundings • Previous experience

28. Influences On Consumer Behavior • Learning • Previous experiences • Reference Groups • People you talk to freely • Culture • Values, attitudes that are passed to you from earlier generations in your society • Subculture • Small part of larger culture • Cognitive dissonance • Uncomfortable feeling caused by holding two contradictory ideas simultaneously (after purchase)

29. Fewer B2B customers than total consumers B2B markets are larger than consumer markets B2B markets tend to be geographic concentration (Silicon valley) B2B buyers are thought to be more rational B2B sales tend to be direct sales Personal selling, more than advertising Buyers are trained Products can be very technical and require a lot of customization Negotiations are the norm Business-to-business (B2B)