BCEN 1400 Introduction to Business

1. BCEN 1400Introduction to Business Chapter 13 Marketing

2. What is Marketing? • Marketing is about filling a need. • Set of activities to communicate, create, deliver, and exchange offerings that have value. • “Helping the buyer buy” – virtual tours, web info • Began with emphasis on producing everything you could, and it would sell, because there was nothing else! • The Production Era – up to 1920

3. The Marketing Concept is Born • From production era to selling era to the marketing concept era. • The Marketing Concept • Customer orientation – what do customers want? • Service orientation – how can we serve the customer? • Profit orientation – let’s make things that turn a profit • Nowadays, the buzz is customer relationship management

4. Today’s Marketing Concept – Customer Relationship Management • Learn as much as possible about the customer • Provide everything you possibly can to delight them • Work on long-term customer loyalty • Only 6.8% of marketers feel they know their customers excellently. Know your customer!

5. The Marketing Mix Place Product Marketing Program Price Promotion

6. The Marketing Process • Phase I • Find opportunities • Conduct research on them • Identify a target market • Product • Make a product or service that fits the target market • Do product testing • Price • Decide on a name • Design the package • Set a price • Place • Select a distribution system • Promotion • Design a program to promote • Build relationships with customers

7. Doing Market Research • Figure out what information you’re looking for. • Collect data • Analyze the data. • Come up with an optimal solution. • Sources • Primary • Interviews • Surveys • Observation • Focus Groups • Secondary • Magazines • Newspapers • Internet searches • Government publications • Industry reports

8. Scanning the Environment • Global – trade, competition, legislation • Technological – knowledge, information management, communications • Competitive – speed, service, price, costs, product • Economic – GDP, confidence, unemployment, power of the dollar • Sociocultural – demographics, attitudes and values, trends

9. The Consumer • Responds to parts of the marketing mix • Belongs to groups (segmentation, “tribes,” targeting) • Responds to the purchase situation • Evaluates and makes decisions • What decisions do you make when going to the grocery?

10. Ways to Segment the Consumer Market • Geography • Demography • Gender, age, education, race • Psychography • Personality, lifestyle, values • By Benefits Desired • Convenience, safety, status • By Volume-Based Behavior • Usage, loyalty

11. Consumer Behavior • Patterned decision-making process: • Problem recognition • Information search • Evaluate alternatives • Purchase decision is made • Follow-up comparison for opinion-forming

12. Business-2-Business (B2B)Marketing • Fewer in number than consumers, but larger in spending power • Why is this not such a bad thing? (Think size of purchase) • Geographically concentrated • More rational than emotional; however, personal selling is much more important!

13. The Importance of Value • Cost/price/value relationships • Creating value in the mind of the purchaser • The total product offer • Everything a customer evaluates when purchasing a product

14. Promotion • Advertising • Television commercials • The Power of Humor? • Idea Diffusion – the world of promotion is changing! • Word of mouth