This chapter discusses key concepts in marketing such as defining marketing as creating and delivering offerings to meet customer needs. It covers developing products through testing and branding, using marketing research to understand customers, and collecting both secondary and primary data. The chapter also discusses the marketing environment, differentiating between consumer and business-to-business markets. It explains how marketers segment and target consumer groups and the factors that influence consumer decision making. Finally, it outlines some key differences when marketing to businesses versus consumers.
2. *
*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?
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3. *
*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
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4. *
*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
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5. *
*
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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6. *
*
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
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8. *
*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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9. *
*
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
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10. *
*
The CONSUMER DECSION MAKING
PROCESS AND OUTSIDE INFLUENCES
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The Consumer
Decision-Making
Process
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12. .
*
*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
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• Sales are direct.
• Promotions focus
heavily on personal
selling.
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