BUSINESS 1 Understanding Marketing Processes and Consumer Behavior

BUSINESS 2 What Is Marketing? Process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives

BUSINESS 3 What Is Relationship Marketing? Marketing strategy that emphasizes lasting relationships with customers and suppliers

BUSINESS 4 Who Are Marketing Managers? Manager who plans and implements the marketing activities that result in the transfer of products or services from producer to consumer

BUSINESS 5 What Is a Marketing Plan? Detailed strategy for focusing marketing efforts on consumer needs and wants

BUSINESS 6 Marketing: Providing Value and Satisfaction  Value and Benefits  Value is the relative comparison of a products benefits versus its costs  Benefits include the functions of the product and the emotional satisfactions associated with owning, experiencing or possessing it

BUSINESS 7 Marketing: Providing Value and Satisfaction  Value and Utility  Utility is the ability of a product to satisfy a human want or need. Four kinds:  Time Utility  Place Utility  Ownership Utility  Form Utility

BUSINESS 8 Marketing: Goods, Services and Ideas  Consumer goods are products purchased by consumers for personal use  Industrial goods are products used by companies to produce other products  Services are intangible products that can be purchased

BUSINESS 9 The Marketing Environment External environment is the outside factors that influence marketing programs by posing opportunities and threats. Five environmental factors:  Political–Legal Environment  Social–Cultural Environment  Technological Environment  Economic Environment  Competitive Environments

BUSINESS 10 The External Marketing Environment

BUSINESS 11 Competitive Environment  Substitute products differ from those of competitors but can fill the same need

BUSINESS 12 Competitive Environment  Brand competition occurs between similar products

BUSINESS 13 Competitive Environment  International competition matches domestic products against foreign products

BUSINESS 14 What Is the Marketing Mix (or the “Four P’s”)? Combination of product, pricing, promotion and distribution (place) strategies used to market products

BUSINESS 15 What Is a Product? A product is a good, service or idea designed to fill a consumer need or want.

BUSINESS 16 What Is a Product? Product differentiation is the creation of a product feature or product image that differs enough from competing products to attract consumers How do they differentiate themselves?

BUSINESS 17 What Is Pricing? Pricing is selecting the best price at which to sell a product.  Prices must support a variety of costs  Prices must be competitive  Low- and high-price strategies can be effective in different situations

BUSINESS 18 What Is Distribution (Place)? Distribution is part of the marketing mix concerned with getting products from producers to consumers.  Decisions about warehousing, inventory control and transportation options  Decisions about channels

BUSINESS 19 What Is Promotion? Promotion is the techniques for communicating information about products. Four promotional tools:  Advertising  Personal Selling  Sales Promotions  Public Relations

BUSINESS 20 What Is Target Marketing and Market Segmentation?  Target markets are groups of people with similar wants and needs  Market segmentation is the process of dividing a market into categories of customer types

BUSINESS 21 Identifying Market Segments  Geographic variables are geographical units  Demographic variables are characteristics of populations

BUSINESS 22 Demographic Variables

BUSINESS 23 Identifying Market Segments  Psychographic variables are consumer characteristics such as lifestyles, opinions, interests and attitudes  Behavioral variables are consumer characteristics based on the use of a product, benefits sought from it, reasons for its purchase and brand loyalty Toothpaste w/ -Whiteners -Fluoride -etc.

BUSINESS 24 What Is Marketing Research? Study of consumer needs and wants and the ways in which sellers can best meet them

BUSINESS 25 The Research Process 1. Study the current situation 2.Select a research method 3.Collect data Secondary data are already available from previous research Primary data are developed through new research 4. Analyze the data 5.Prepare a report

BUSINESS 26 Research Methods  Observation involves watching and recording consumer behavior  Survey uses a questionnaire either mailed to individuals or used as the basis of interviews

BUSINESS 27 Research Methods  Focus group involves a small gathering of people that are presented with an issue and asked to discuss it in depth  Experimentation compares the responses of the same or similar people under different circumstances

BUSINESS 28 What Is Consumer Behavior? Study of the decision process by which people buy and consume products

BUSINESS 29 Influences on Consumer Behavior Psychological influences: individual’s motivations, perceptions and attitudes Personal influences: lifestyle, personality and economic status Social influences: family, opinion leaders and reference groups Cultural influences: culture, subculture and social class

BUSINESS 30 What Is Brand Loyalty? Pattern of regular consumer purchasing based on satisfaction with a product

BUSINESS 31 Consumer Buying Behavior