*

*Chapter Thirteen

Marketing: Helping

Buyers Buy

Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

*

*What is 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.

WHAT’S MARKETING?LG1

13-2

*

*Designing a Product to Meet Consumer Needs

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

• 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.

DEVELOPING a PRODUCT

LG2

13-3

*

*Providing Marketers with Information

• 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.

SEARCHING for INFORMATION

LG3

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*

*Collecting Data

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

COLLECTING SECONDARY RESEARCH DATA

LG3

• Secondary data incurs no expense and is usually easily accessible.

• Secondary data doesn’t always provide all the needed information for marketers.

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*

*Collecting Data

• 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.

COLLECTING PRIMARY RESEARCH DATA

LG3

13-6

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*The Marketing EnvironmentThe MARKETING ENVIRONMENT

LG4

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*

*Two Different Markets: Consumer and B2B

• 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

LG4

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

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*The Consumer Market

• 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.

MARKETING to CONSUMERS

LG5

13-9

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*The CONSUMER DECSION MAKING

PROCESS AND OUTSIDE INFLUENCESLG5

The Consumer Decision-Making Process

13-10

*

*The Business-to-Business Market

• Learning

• Reference Groups

• Culture

• Subcultures

• Cognitive Dissonance

KEY FACTORS in CONSUMER DECISION-MAKING

LG6

13-11

.

*

*The Business-to-Business Market

• There are relatively few customers.

• Customers tend to be large buyers.

• Markets are geographically concentrated.

• Buyers are more rational than emotional.

B2B MARKET DIFFERENCES

LG6

• Sales are direct.

• Promotions focus heavily on personal selling.

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