2. PowerPoint Presentation by Charlie Cook Copyright © 2005 Prentice Hall, Inc. All rights reserved. Chapter 10 Understanding Marketing Processes and Consumer Behavior

3. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–2 Key Topics Definition of marketing The external marketing environment Segmentation and target marketing The consumer buying process Organizational markets and buying behavior Consumer and industrial products Branding and packaging

4. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–3 What Is Marketing? “Planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives” Finding a need and filling it! OR

5. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–4 The Influence of Marketing Permeates Everyday Life Goods  Consumer  Industrial Services Ideas Relationship marketing emphasizes lasting relationships with customers and suppliers

6. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–5 Marketing Environment Political and Legal Social and cultural Technological Economic Competititive

7. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–6 The Competitive Environment Drives Marketing Decisions Substitute product competition Brand competition International competition

8. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–7 Marketing Mix: The “Four P’s” (Distribution) roductroduct ricingricing romotionromotion lacelace

9. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–8 The Promotional Mix Advertising Personal Selling Sales Promotions Public Relations

10. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–9 Market Segmentation and Target Marketing Market Segmentation  Dividing a market into customer categories Target Marketing  Selecting a category of customers with similar wants and needs who are likely to respond to the same products

11. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–10 Identifying Market Segments Psychographic Variables Geographic Variables Demographic Variables

12. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–11 Consumer Behavior Psychological Influences Personal Influences Social Influences Cultural Influences Why do consumers purchase and consume products?

13. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–12 Organizational Markets Industrial Market Government and Institutional Market Reseller Market

14. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–13 What is a product? Every product is a “value package” that provides benefits to satisfy the needs and wants of consumers. Value package is a product marketed as a bundle of value adding attributes, including reasonable cost

15. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–14 Classifying Products Consumer  Convenience Goods  Shopping Goods  Specialty Goods Industrial  Expense Items  Capital Items

16. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–15 Product Offerings Product Line  A group of similar products, intended for similar buyers, who will use them in similar ways. Product Mix  The total group of products that a company offers for sale.

17. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–16 Creating Product Brands Branding  Using symbols to communicate the qualities of a given product to create loyal consumers Types of Brands:  National Brands  Licensed Brands  Private Brands

18. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–17 The International Marketing Mix PRODUCTS PRICING PROMOTION DISTRIBUTION

19. Copyright © 2005 Prentice Hall, Inc. All rights reserved.10–18 Chapter Review Define marketing. Describe the forces of the external marketing environment. Explain market segmentation and target marketing. Describe the consumer buying process. Discuss the organizational market categories.