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McGraw-Hill/Irwin

Marketing: Helping Buyers Buy

CHAPTER 13

LEARNING OBJECTIVES

13-*

Define marketing, and apply the marketing concept to both for-profit and nonprofit organizations.
Describe the four P’s of marketing.
Summarize the marketing research process.

LEARNING OBJECTIVES

13-*

Show how marketers use environmental scanning to learn about the changing marketing environment.
Explain how marketers apply the tools of market segmentation, relationship marketing and the study of consumer behavior.
Compare the business-to-business market and the consumer market.

DAYMOND JOHN
FUBU

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Started sewing wool hats in his apartment in 1989 and sold them on the street.
He started designing other products and created the brand FUBU.
After many rocky years, John has earned millions and advises others on Shark Tank.

NAME that COMPANY

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This company studies population growth and regional trends as it expands its product line for specific regions of the country. Its research led to the creation of Creole flavors targeted primarily in the South and spicy nacho chees flavors mad especially for Texas and California.

Name that company!

Company: Campbell Soup

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.

WHAT’S MARKETING?

13-*

LO 13-1

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

Simply put, marketing is activities buyers and sellers perform to facilitate mutually beneficial exchanges.

FOCUS of CONTEMPORARY MARKETING

13-*

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.

LO 13-1

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

FOUR ERAS of U.S. MARKETING

13-*

Production Era
Selling Era
Marketing Concept Era
Customer Relationship Era

LO 13-1

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

In the United States, marketing has evolved through four eras: (1) production, (2) selling, (3) marketing concept, and (4) customer relationship.

The PRODUCTION and
SELLING ERAS

13-*

The general philosophy was “Produce what you can because the market is limitless.”
After mass production, the focus turned from production to persuasion.

LO 13-1

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

After WWII, a consumer spending boom developed.
Businesses knew they needed to be responsive to consumers if they wanted their business.

The MARKETING CONCEPT ERA

13-*

LO 13-1

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

APPLYING the
MARKETING CONCEPT

13-*

LO 13-1

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.

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

The CUSTOMER
RELATIONSHIP ERA

13-*

LO 13-1

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 Priceline and Travelocity use CRM that allow customers to build a relationship with the suppliers.

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

The EMERGING
MOBILE MARKETING ERA

13-*

LO 13-1

As digital technology continues to grow, consumer demands are expected to rise in:
Now: Consumers want to interact anywhere, anytime.
Can I?: They want to use information in new ways that create value for them.
For me: Consumers expect personalized experiences.
Simply: Consumers want all interactions to be easy.

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

The cost of acquiring a new customer is 5x the cost of retaining one. Here’s how to keep them:

SERVICE with a SMILE
Six Steps for Keeping Your Customers Happy

13-*

Source: Inc. Guidebook, Vol. 2 No. 5.

LO 13-1

Build trust
Emphasize the long term
Listen
Treat your customers like stars
Show appreciation
Remember employees are customers too!

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

Service with a Smile

It’s important for companies to keep hold of their customer base. It’s too costly to keep searching out new customers.
Ask students: What has a company done to keep you coming back? What has a company done to you that ensures you’ll never leave?

MAKING SUSTAINABILITY
JUST PEACHY

13-*

Campbell Soup is one of the 100 Most Sustainable Corporations in the World.
They work with local farmers in New Jersey to use peaches unfit for purchase.
Campbell’s manufactures peach salsa at no cost and donates proceeds to the Food Bank of South Jersey.

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

Nonprofit marketing tactics include:

NONPROFIT MARKETING

13-*

LO 13-1

Fundraising
Public Relations
Special Campaigns
Ecological practices
Changing public opinions and attitudes
Increasing organizational membership

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

Nonprofit Marketing

This slide identifies marketing tactics nonprofits can use to market their organizations.
Nonprofits must effectively market their causes in order to reach their target audience.
Ask students: How is the marketing of a nonprofit different from the marketing of a for-profit product? (Students should be able to identify that there is little difference between the two.)

MARKETING STRATEGIES for NONPROFITS

13-*

LO 13-1

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

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

Marketing Strategies in Non-Profit Organizations

This slide identifies many ideas for developing a successful marketing strategy for non-profit organizations.
Regardless of the type or size of the organization, nonprofits will need marketing strategies and techniques to maximize their effectiveness.
Marketing tactics nonprofits may consider as a part of an overall marketing program include the following: newspaper inserts, cross promotions, packaging promotions, and corporate newsletters.
Public relations will play an important role with recognition and support for building strong community goodwill. Based on the following statistics, nonprofit organizations are very successful:
During the past 10 years the number of reporting “public charities” grew by 6.3 percent annually.
The nonprofit sector includes more than 1 million organizations that spend nearly $500 billion each year – more than the GDP of Brazil, Russia or Australia.
Approximately 6 percent of all organizations in the United States are nonprofits, and one in every 15 people works for a nonprofit.

The FOUR P’s

13-*

LO 13-2

See Learning Objective 2: Describe the four P’s of marketing.

The Four P’s are also known as the marketing mix.

Product -- A good, service, or idea that satisfies a consumer’s want or need.

DEVELOPING a PRODUCT

13-*

LO 13-2

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.

See Learning Objective 2: Describe the four P’s of marketing.

PRICING and
PLACING a PRODUCT

13-*

LO 13-2

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.

See Learning Objective 2: Describe the four P’s of marketing.

PROMOTING the PRODUCT

13-*

Photo Courtesy of: Uri Baruchin

LO 13-2

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

See Learning Objective 2: Describe the four P’s of marketing.

Get customers emotional about your product:
Make your product “built to love.”
Use emotion-laden advertising.

PERFECT PROMOTION
How to Get Customers to Need Your Product

13-*

Sources: Entrepreneur, www.entrepreneur.com, accessed November 2014.

LO 13-2

Be a likeable salesperson:
Have confidence.
Be intriguing.
Show interest in others.
Be enthusiastic and respectful.

See Learning Objective 2: Describe the four P’s of marketing.

Perfect Promotion

Companies are working more to create products that are “built to love.” These products, like the iPad, create excitement and loyalty from the get go.
Customers, in addition to looking for an amazing product, look for salespeople who they feel are their friends. The key to repeat business is the likability factor.
Ask students: Have you ever gone back to a specific store because of a particular salesperson? If you were in sales, what would you do to increase your likability factor?

TANGLED WEB of PROMOTION
Seven Sins of Web Design

13-*

Source: Entrepreneur, www.entrepreneur.com, accessed November 2014.

Photo Creditf: Cortes de Cima

LO 13-2

Too much clutter
Too difficult to navigate
Stale information
Copycatting
Ignoring the needs of your customer base
Not analyzing data
Refusing to get outside help

See Learning Objective 2: Describe the four P’s of marketing.

Tangled Web of Promotion

Companies often create web sites because they believe they have to. However, if it’s not done right, it could cause you to lose customers.
Not enough emphasis is put on checking the analytics. As noted in this chapter, market research is extremely important. The same goes for web research.
Ask students: Can you think of other things to add to this list? What are some companies that have good web sites? Bad web sites?

TEST PREP

13-*

What does it mean to “help the buyer buy?”
What are the three parts of the marketing concept?
What are the Four P’s of the Marketing Mix?

In the past marketing focused entirely on helping the seller sell the product. Today marketing has changed from selling to instead helping the buyer buy. It is critical today that organizations do everything to help buyers make decisions.

The three parts of the marketing concept are: (1) customer orientation, (2) service orientation, and (3) a profit orientation.

The Four P’s of the marketing mix are: (1) Product, (2) Price, (3) Place, and (4) Promotion.

SEARCHING for INFORMATION

13-*

LO 13-3

Marketing Research -- Analyzing markets to determine challenges and opportunities, and finding the information needed to make good decisions.
Research is used to identify products consumers have used in the past and what they want in the future.
Research uncovers market trends and attitudes held by company insiders and stakeholders.

See Learning Objective 3: Summarize the marketing research process.

To understand customer wants and needs, it is critical to conduct market research. Good market research will identify products consumers have used, want to use in the future and market trends.

FOUR STEPS in the MARKETING RESEARCH PROCESS

13-*

LO 13-3

Defining the problem or opportunity and determining the present situation.
Collecting research data.
Analyzing the data.
Choosing the best solution and implementing it.

See Learning Objective 3: Summarize the marketing research process.

DEFINING the PROBLEM or OPPORTUNITY

13-*

LO 13-3

What’s the present situation?
What are the alternatives?
What information is needed?
How should the information be gathered?

See Learning Objective 3: Summarize the marketing research process.

Secondary Data -- Existing data that has previously been collected by sources like the government.

COLLECTING SECONDARY RESEARCH DATA

13-*

LO 13-3

Secondary data incurs no expense and is usually easily accessible.
Secondary data doesn’t always provide all the needed information for marketers.

See Learning Objective 3: Summarize the marketing research process.

Secondary research is cheaper and often easier to gather than primary research, but may be outdated.

COLLECTING PRIMARY
RESEARCH DATA

13-*

LO 13-3

Primary Data -- In-depth information gathered by marketers from their own research.
Telephone, online and mail surveys, personal interviews, and focus groups are ways to collect primary data.

See Learning Objective 3: Summarize the marketing research process.

Primary data is timely, but can be expensive and time consuming to gather.

Focus Group -- A group of people who meet under the direction of a discussion leader to communicate opinions.

FOCUS GROUPS

13-*

LO 13-3

See Learning Objective 3: Summarize the marketing research process.

ANALYZING the DATA and IMPLEMENTING the DECISION

13-*

LO 13-3

Marketers must turn data into useful information.
Must use their analysis to plan strategies and make recommendations.
Finally, marketers must evaluate their actions and determine if further research is needed.

See Learning Objective 3: Summarize the marketing research process.

KEY BENEFITS of MARKETING RESEARCH

13-*

LO 13-3

Analyze customer needs and satisfaction.
Analyze current markets and opportunities.
Analyze the effectiveness of marketing strategies.
Analyze marketing process and tactics currently used.
Analyze the reasons for goal achievement or failure.

See Learning Objective 3: Summarize the marketing research process.

Key Benefits of Marketing Research

This slide identifies the key benefits of marketing research.
As discussed early in the chapter, marketing is about understanding customers wants and needs. To accomplish this goal marketers must conduct marketing research.
Ask students: How has the Internet changed the way market research is conducted? (The Internet has made gathering both primary and secondary information easier and quicker. Also, information can now be gathered via blogs and social networks.

Conduct informal consumer surveys

WAYS to FIND OUT WHAT CONSUMERS THINK

13-*

LO 13-3

Host a customer focus group
Listen to competitor’s customers
Survey your sales force
Become a “phantom” customer

See Learning Objective 3: Summarize the marketing research process.

Ways to Find Out What Consumers Think

The goal of market research is to better understand what consumers are thinking.
This slide addresses some of the ways that organizations can discover consumer wants and needs.

Environmental Scanning -- The process of identifying factors that affect marketing success.

SCANNING the MARKETING ENVIRONMENT

13-*

LO 13-4

Factors involved in the environmental scan include:
Global factors
Technological factors
Sociocultural factors
Competitive factors
Economic factors

See Learning Objective 4: Show how marketers use environmental scanning to learn about the changing marketing environment.

Environmental scanning is the process of identifying factors that affect marketing success. The environment of marketing is changing faster than at any time in history. Companies that don’t keep up, will fail to survive. Today’s marketing environment is influenced by the global marketplace and the explosion of the information age. To be fully prepared, a company must recognize and understand: cultural influences; governmental and political influences; demographic and lifestyle trends; local, national, and world economic trends; the strengths of multi-national competitors; and the influence of technology on physical distribution.

TWO is BETTER THAN ONE

13-*

China is setting aside its strict one-child policy and allowing two children if one of the spouses is an only child.
Legos are far more expensive in China and part of that is due to distribution costs.
By building a factory near Shanghai, Lego hopes to take advantage of the potential market growth and lessen the price for families.

See Learning Objective 4: Show how marketers use environmental scanning to learn about the changing marketing environment.

The MARKETING ENVIRONMENT

13-*

LO 13-4

See Learning Objective 4: Show how marketers use environmental scanning to learn about the changing marketing environment.

To effectively understand the marketing environment, it is critical companies continually scan the environment.

The ABC’s of MARKETING

13-*

LO 13-4

Always be customer-focused.
Benchmark against the best firms.
Continuously improve performance.
Develop the best value package.
Empower your employees.
Focus on relationship building.
Goal achievement is the reward.

See Learning Objective 4: Show how marketers use environmental scanning to learn about the changing marketing environment.

The ABC’s of Marketing

This slide identifies keys to marketing success.
One point on this slide mentions the empowerment of employees. Ask students: Why is empowering employees a key to successful marketing? (Answers will vary, but should focus on how empowerment should lead to greater employee motivation, creating a more customer focused environment.)
A key to marketing is understanding the organization’s strengths and weaknesses and your ultimate customer.

4. Once you have identified your strengths and weaknesses, what you really sell and to whom, and have reviewed your communication to the target market, you need to ensure that the message resonates with them positively. You can do that by engaging in savvy public relations (newsletters, press releases, etc.).

Consumer Market -- All the individuals or households that want goods and services for personal use and have the resources to buy them.

The CONSUMER and
B2B MARKET

13-*

LO 13-4

Business-to-Business (B2B) -- Individuals and organizations that buy goods and services to use in production or to sell, rent, or supply to others.

See Learning Objective 4: Show how marketers use environmental scanning to learn about the changing marketing environment.

The buyer’s intended end use of the product determines whether a product is consumer or B2B.

TEST PREP

13-*

What are the four steps in the marketing research process?
What’s environmental scanning?
What factors are included in environmental scanning?

The steps in the marketing research process are as follows: (1) Define the problem and determine the present situation, (2) Collect the research data, (3) Analyze the research data, and (4) Choose the best solution and then implement it.

Environmental scanning is the process of identifying factors that can affect marketing success.

The factors in environmental scanning include: global, technological, sociocultural, competitive, and economic influences.

MARKETING to CONSUMERS

13-*

LO 13-5

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.

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

SEGMENTING the
CONSUMER MARKET

13-*

LO 13-5

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, attitudes, and interests.

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

SEGMENTING the
CONSUMER MARKET

13-*

LO 13-5

Benefit Segmentation -- Dividing the market according to product benefits the customer prefers.
Volume (Usage) Segmentation -- Dividing the market by the volume of product use.

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

SEGMENTING the
CONSUMER MARKET

13-*

LO 13-5

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

SEGMENTING the
CONSUMER MARKET

13-*

LO 13-5

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

Niche Marketing -- Identifies small but profitable market segments and designs or finds products for them.

MARKETING to
SMALL SEGMENTS

13-*

LO 13-5

One-to-One Marketing-- Developing a unique mix of goods and services for each individual consumer.

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

MASS MARKETING vs.
RELATIONSHIP MARKETING

13-*

LO 13-5

Mass Marketing -- Developing products and promotions to please large groups of people.
Relationship Marketing-- Rejects the idea of mass production and focuses toward custom-made goods and services for customers.

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

Mass marketing uses little market segmentation.

The goal of relationship marketing is to keep customers happy by offering products that meet exact expectations

KEYS to SUCCESSFUL RELATIONSHIP MARKETING

13-*

LO 13-5

Effective relationship marketing is built on:
Open communication
Consistently reliable service
Staying in contact with customers
Trust, honesty, and ethical behavior
Showing that you truly care

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

Keys to Successful Relationship Marketing

Relationship marketing is all about moving away from mass production and toward custom-made goods and services.
This slide identifies the keys to successful relationship marketing.
The goal of relationship marketing is to retain individual customers over time by offering them new products that meet their expectations.
Nike uses relationship marketing creating custom made-shoes via NikeiD. Explore NikeiD in class at www.nike.com to see relationship marketing in action.

STEPS in the CONSUMER
DECISION-MAKING PROCESS

13-*

LO 13-5

Problem recognition
Search for information
Evaluating alternatives
Purchase decision
Postpurchase evaluation

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

TURNING NEGATIVES to POSITIVE

13-*

Online product reviews have changed the consumer decision-making process.
But the reviews are not always valid because they could be written about the experience instead of the product.
Amazon hopes to correct this issue and has started a program in which the site’s most trusted reviewers are sent products to write about.

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

KEY FACTORS in CONSUMER DECISION-MAKING

13-*

Photo Credit: Peter Hilton

LO 13-5

Learning
Reference Groups
Culture
Subcultures
Cognitive Dissonance

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

Learning - Creates changes in consumer behavior through experiences and information.
Reference groups - Reference points in forming beliefs, attitudes, values or behaviors.
Culture - The set of values, attitudes and ways of doing things passed from generations.
Subculture - Values, attitudes and ways of doing things from belonging to a certain group.
Cognitive dissonance - Psychological conflict that may occur after a purchase.

TOP MARKETING CHALLENGES

13-*

LO 13-5

Marketing can be challenging in both the B2C and B2B markets.
Common issues are:
Brand awareness
Social media
Converting leads into customers
Budgeting
Increasing profit

Source: Entrepreneur, www.entrepreneur.com, accessed November 2014.

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

BUSINESS-to-BUSINESS
MARKET (B2B)

13-*

LO 13-6

B2B marketers include:
Manufacturers
Wholesalers and retailers
Hospitals, schools and charities
Government
Products are often sold and resold several times before reaching final consumers.

See Learning Objective 6: Compare the business-to-business market and the consumer market.

B2B MARKET DIFFERENCES

13-*

LO 13-6

See Learning Objective 6: Compare the business-to-business market and the consumer market.

TEST PREP

13-*

Define the terms consumer market and business-to-business market.
Name and describe five ways to segment the consumer market.
What is niche marketing and how does it differ from one-to-one marketing?
What are four key factors that make B2B markets different from consumer markets?

The consumer market consists of all the individuals or households that want goods and services for personal consumption or use and have the resources to buy them. Business-to-business markets consist of all the individual and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others.

Geographic segmentation is the process of dividing the market by cities, counties, states, or regions. Demographic segmentation involves dividing the market by age, income, education level, religion, race, and occupation. Psychographic segmentation is the process of dividing the market by values, attitudes, and interests. Benefit segmentation involves determining which benefits to promote. Volume or usage segmentation is the process of determining how your customers purchase and use the product.

3. Niche marketing is identifying small but profitable market segments and designing or finding products for them. One-to-one marketing means developing a unique mix of goods and service for each individual customer.

The four key factors that make B2B markets different from consumer markets are: (1) Customers in B2B markets are relatively few as compared to households in the consumer market, (2) B2B customers tend to be geographically centered, (3) B2B sales tend to be direct, and (4) In the B2B marketplace sales are based on personal selling.

Company: Campbell Soup

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

Simply put, marketing is activities buyers and sellers perform to facilitate mutually beneficial exchanges.

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

In the United States, marketing has evolved through four eras: (1) production, (2) selling, (3) marketing concept, and (4) customer relationship.

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

Service with a Smile

It’s important for companies to keep hold of their customer base. It’s too costly to keep searching out new customers.
Ask students: What has a company done to keep you coming back? What has a company done to you that ensures you’ll never leave?

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

Nonprofit Marketing

This slide identifies marketing tactics nonprofits can use to market their organizations.
Nonprofits must effectively market their causes in order to reach their target audience.
Ask students: How is the marketing of a nonprofit different from the marketing of a for-profit product? (Students should be able to identify that there is little difference between the two.)

See Learning Objective 1: Define marketing and apply the marketing concept to both for-profit and non-profit organizations.

Marketing Strategies in Non-Profit Organizations

This slide identifies many ideas for developing a successful marketing strategy for non-profit organizations.
Regardless of the type or size of the organization, nonprofits will need marketing strategies and techniques to maximize their effectiveness.
Marketing tactics nonprofits may consider as a part of an overall marketing program include the following: newspaper inserts, cross promotions, packaging promotions, and corporate newsletters.
Public relations will play an important role with recognition and support for building strong community goodwill. Based on the following statistics, nonprofit organizations are very successful:
During the past 10 years the number of reporting “public charities” grew by 6.3 percent annually.
The nonprofit sector includes more than 1 million organizations that spend nearly $500 billion each year – more than the GDP of Brazil, Russia or Australia.
Approximately 6 percent of all organizations in the United States are nonprofits, and one in every 15 people works for a nonprofit.

See Learning Objective 2: Describe the four P’s of marketing.

The Four P’s are also known as the marketing mix.

See Learning Objective 2: Describe the four P’s of marketing.

Perfect Promotion

Companies are working more to create products that are “built to love.” These products, like the iPad, create excitement and loyalty from the get go.
Customers, in addition to looking for an amazing product, look for salespeople who they feel are their friends. The key to repeat business is the likability factor.
Ask students: Have you ever gone back to a specific store because of a particular salesperson? If you were in sales, what would you do to increase your likability factor?

See Learning Objective 2: Describe the four P’s of marketing.

Tangled Web of Promotion

Companies often create web sites because they believe they have to. However, if it’s not done right, it could cause you to lose customers.
Not enough emphasis is put on checking the analytics. As noted in this chapter, market research is extremely important. The same goes for web research.
Ask students: Can you think of other things to add to this list? What are some companies that have good web sites? Bad web sites?

In the past marketing focused entirely on helping the seller sell the product. Today marketing has changed from selling to instead helping the buyer buy. It is critical today that organizations do everything to help buyers make decisions.

The three parts of the marketing concept are: (1) customer orientation, (2) service orientation, and (3) a profit orientation.

The Four P’s of the marketing mix are: (1) Product, (2) Price, (3) Place, and (4) Promotion.

See Learning Objective 3: Summarize the marketing research process.

To understand customer wants and needs, it is critical to conduct market research. Good market research will identify products consumers have used, want to use in the future and market trends.

See Learning Objective 3: Summarize the marketing research process.

Secondary research is cheaper and often easier to gather than primary research, but may be outdated.

See Learning Objective 3: Summarize the marketing research process.

Primary data is timely, but can be expensive and time consuming to gather.

See Learning Objective 3: Summarize the marketing research process.

Key Benefits of Marketing Research

This slide identifies the key benefits of marketing research.
As discussed early in the chapter, marketing is about understanding customers wants and needs. To accomplish this goal marketers must conduct marketing research.
Ask students: How has the Internet changed the way market research is conducted? (The Internet has made gathering both primary and secondary information easier and quicker. Also, information can now be gathered via blogs and social networks.

See Learning Objective 3: Summarize the marketing research process.

Ways to Find Out What Consumers Think

The goal of market research is to better understand what consumers are thinking.
This slide addresses some of the ways that organizations can discover consumer wants and needs.

See Learning Objective 4: Show how marketers use environmental scanning to learn about the changing marketing environment.

To effectively understand the marketing environment, it is critical companies continually scan the environment.

See Learning Objective 4: Show how marketers use environmental scanning to learn about the changing marketing environment.

The ABC’s of Marketing

This slide identifies keys to marketing success.
One point on this slide mentions the empowerment of employees. Ask students: Why is empowering employees a key to successful marketing? (Answers will vary, but should focus on how empowerment should lead to greater employee motivation, creating a more customer focused environment.)
A key to marketing is understanding the organization’s strengths and weaknesses and your ultimate customer.

See Learning Objective 4: Show how marketers use environmental scanning to learn about the changing marketing environment.

The buyer’s intended end use of the product determines whether a product is consumer or B2B.

The steps in the marketing research process are as follows: (1) Define the problem and determine the present situation, (2) Collect the research data, (3) Analyze the research data, and (4) Choose the best solution and then implement it.

Environmental scanning is the process of identifying factors that can affect marketing success.

The factors in environmental scanning include: global, technological, sociocultural, competitive, and economic influences.

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

Mass marketing uses little market segmentation.

The goal of relationship marketing is to keep customers happy by offering products that meet exact expectations

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

Keys to Successful Relationship Marketing

Relationship marketing is all about moving away from mass production and toward custom-made goods and services.
This slide identifies the keys to successful relationship marketing.
The goal of relationship marketing is to retain individual customers over time by offering them new products that meet their expectations.
Nike uses relationship marketing creating custom made-shoes via NikeiD. Explore NikeiD in class at www.nike.com to see relationship marketing in action.

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

Learning - Creates changes in consumer behavior through experiences and information.
Reference groups - Reference points in forming beliefs, attitudes, values or behaviors.
Culture - The set of values, attitudes and ways of doing things passed from generations.
Subculture - Values, attitudes and ways of doing things from belonging to a certain group.
Cognitive dissonance - Psychological conflict that may occur after a purchase.

See Learning Objective 5: Explain how marketers apply the tools of market segmentation, relationship marketing, and the study of consumer behavior.

See Learning Objective 6: Compare the business-to-business market and the consumer market.

The consumer market consists of all the individuals or households that want goods and services for personal consumption or use and have the resources to buy them. Business-to-business markets consist of all the individual and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others.

Geographic segmentation is the process of dividing the market by cities, counties, states, or regions. Demographic segmentation involves dividing the market by age, income, education level, religion, race, and occupation. Psychographic segmentation is the process of dividing the market by values, attitudes, and interests. Benefit segmentation involves determining which benefits to promote. Volume or usage segmentation is the process of determining how your customers purchase and use the product.

The four key factors that make B2B markets different from consumer markets are: (1) Customers in B2B markets are relatively few as compared to households in the consumer market, (2) B2B customers tend to be geographically centered, (3) B2B sales tend to be direct, and (4) In the B2B marketplace sales are based on personal selling.