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Marketing: Helping Buyers Buy - Coggle Diagram
Marketing: Helping
Buyers Buy
WHAT IS MARKETING?
The American Marketing Association
has defined marketing as the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large.
The Evolution of Marketing
The Production Era
From the time the first European settlers began their
struggle to survive in America until the early 1900s, the general philosophy of business was “Produce as much as you can, because there is a limitless market for it.”
The Selling Era
By the 1920s, businesses had developed mass-production
techniques (such as automobile assembly lines),and production capacity often exceeded the immediate market demand.Most companies emphasized selling and advertising in an effort to persuade consumers to buy existing products; few
offered extensive service after the sale.
The Marketing Area
The marketing concept had three parts:
A service orientation. Make sure everyone in the organization has the same objective: customer satisfaction.
A profit orientation. Focus on those goods and services that will earn
the most profit and enable the organization to survive and expand to
serve more consumer wants and needs.
A customer orientation. Find out what consumers want and provide it for them.
The Customer Relationship Era
is the process of learning as much as possible about present customers and doing everything you can over time to satisfy
them—or even to exceed their expectations—withgoods and services.
The Emerging Mobile/On-Demand Marketing Era
As digital technology continues to grow, consumer demands are likely to
rise in four areas: 8
Now. Consumers want to interact anywhere, anytime.
Can I? They want to do new things with different kinds of information in
ways that create value for them. For example, a couple wanting to know if they can afford to buy a house they walk by could simply snap a photo and instantly see the sale price and other property information; while at the same time the device automatically accesses their financial information, contacts mortgagers, and obtains loan preapproval.
For me. Consumers expect all data stored
about them to be used to personalize what
they experience.
Simple. Consumers expect all interactions
to be easy.
Designing a Product to Meet
Consumer Needs
Product
It is any physical good, service, or idea that satisfies a want or need, plus anything that would enhance the product in the eyes of consumers, such as the brand name.
Brand name
is a word, letter, or group of words or letters that
differentiates one seller’s goods and services from those of competitors.
Test Marketing
It’s a good idea at this point to do concept testing. That is, you develop an accurate description of your restaurant and ask people,in person or online, whether the idea of the restaurant and the kind of meals you intend to offer
appeals to them.
Developing an Effective Promotional Strategy
Promotion
consists of all the techniques sellers use to inform people about and motivate them to buy their products or services.Promotion includes advertising; personal selling; public relations; publicity; word of mouth (viral marketing); and various sales
promotion efforts, such as coupons, rebates, samples, and cents-off deals.
PROVIDING MARKETERS WITH INFORMATION
Marketing research helps identify what products customers have purchased in the past, and what changes have occurred to alter what they want now and what they’re likely to want in the future. Marketers also conduct research on business trends, the ecological impact of their decisions, global trends and more.
The Marketing Research Process
A simplified marketing research process consists of at least four key steps:
Collecting research data.
Analyzing the research data.
Defining the question (the problem or opportunity) and determining
the present situation.
Choosing the best solution and implementing it.
THE MARKETING ENVIRONMENT
Environmental scanning
is the process of identifying factors that can affect marketing success.
Sociocultural Factors
Marketers must monitor social trends to maintain their close relationship with customers since population growth and changing demographics can have an effect on sales.
Competitive Factors
Many brick-and-mortar companies must be aware of new competition from the Internet, including firms that sell automobiles, insurance, music, and clothes.
Technological Factos
The most important technological changes also relate to the Internet. Using consumer databases, blogs, social networking, and the like, companies can develop products and services that closely match consumers’ needs.
Global Factors
Using the Internet, businesses can reach many of the world’s consumers relatively easily and carry on a dialogue with them about the goods and services they want (see the Reaching Beyond Our Borders box).
Economic Factors
As the economy slowed, marketers had to adapt by offering products that were less expensive and more tailored to consumers with modest incomes.
THE CONSUMER MARKET
The process of dividing the total market into groups with similar characteristics is called market segmentation. Selecting which groups or segments an organization can serve profitably is target marketing. For example, a shoe store may choose to sell only women’s shoes, only children’s shoes, or only athletic shoes.The issue is finding the right target market—the most profitable
segment—to serve.
Building Marketing Relationships
Mass Marketing
Means developing
products and promotions to please large groups of people.
Relationship marketing
Tends to lead away from mass production and
toward custom-made goods and services. The goal is to keep individual customers over time by offering them new products that exactly meet their requirements.
YOUR PROSPECTS IN MARKETING
There is a wider variety of careers in marketing than in most business disciplines. If you major in marketing, an array of career options will be available to you. You could become a manager in a retail store like Saks or Target. You
could do marketing research or work in product management. You could go into selling, advertising, sales promotion, or public relations. You could work
in transportation, storage, or international distribution. You could design interactive websites.