Chapter 14: Marketing: Helping Buyers Buy Flashcards
Marketing
A set of business practices designed to plan for and present an organizations products or services in ways that build effective customer relationships
MEETING NEEDS PROFITABLY
Evolution of marketing
Production Sales Marketing concept Market orientation Social media marketing
Marketing concept
Three part business philosophy
3 parts of marketing concept
Customer orientation
Service orientation
Profit orientation
Market orientation (oh boy)
Focussing efforts on:
1) continuously collecting information about customers needs and competitors capabilities
2) sharing this information throughout the organization
3) using the information to create value, ensure customer satisfaction, and develop customer relationships
Customer relationship management
The process of building long term relationships with customers by delivering customer value and satisfaction
Social media marketing
Customer generated online marketing efforts to promote brands and companies for which they are fans, and the use by marketers of online tools and platforms to promote their brands and organizations
4 P’s of marketing
Product
Price
Place
Promotion
Marketing mix
Ingredients that do into a marketing program
Product, price, place, promotion
Product
Physical good, service, or idea that satisfies wants and needs
Testing market
The process of testing products among potential users
Brand name
Word, letter, or group of words or letters that differentiates one sellers goods and services from those of competitors
Promotion
All of the techniques sellers use to motivate customers to buy their products
Marketing research
The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions
Marketing research process
1) defining the question and determining the present situation
2) collecting research data
3) analyzing the research data
4) choosing the best solution and implementing it
Secondary data
Information that has already been complied by others and published in journals and books or made available online
Primary data
Data you gather yourself
Focus group
A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, issue, or product
Observation
Involves watching how people behave
Big data
Large amounts of data collected from a variety of sources and analyzed with sophisticated technology
Environmental scanning
The process of identifying the factors that can affect marketing success
Consumer market
All individuals or households that want goods and services for personal consumption or use
Business to business market (B2B)
All individuals and organizations that want goods and services to use in producing other goods and services to sell, rent, or supply goods to others
Market segmentation
The process of dividing the total market into groups with similar characteristics
Geographic segmentation
Dividing the market by geographic area
Demographic segmentation
Dividing the market by age, income, and education level
Psychographic segmentation
Dividing the market using the groups values, attitudes, and interests
80/20 rule
80 percent of your business is likely to come from 20 percent of your customers
Target marketing
Marketing directed towards those markets an organization decides it can serve profitability
Shoe store only sells women shoes
Mass marketing
Developing products and promotions to please large groups of people
Niche marketing
The process of finding small but profitable market segments and designing or finding products for them
Canadian tire focussing on 30-49 year olds and young famalies
One to one marketing (micro marketing)
Developing a unique mix of goods and services for each individual customer
Product positioning
The place an offering occupies on customers minds on important attributes relative to competitive products
Positioning statement
Expresses how a company wants to be perceived by customers
Consumer behaviour
When marketing research investigate consumer thought processes and behavior at each stage on a purchase to determine the best way to help the buyer buy
Another way to look at marketing:
Meeting needs profitably
Four P’s of marketing mix
Product
Price
Place
Promotion
Primary data
Freshly collected data
Secondary data
Pre-existing data from elsewhere, not conducted by you
Qualitative data
Words! Observed not measured
quantitative Data
Number! Can be measured
Types of Research methods (FIOSE)
Focus group, interviews, observations, surveys, experiments
Which research methods are quantitative and which are qualitative
Focus Group: Qualitative Interview: Qualitative Observation: Both Survey: Quantitative Experiment: Quantitative
four steps to marketing research
1) Defining the question and determining the present solution
2) collecting research data
3) Analyzing the research data
4) choosing best solution and implementing it
STP startegies
segmentation: dividing the market into segments targeting: serve the most profitable groups
positioning: mental image of the product
