1. Business Essentials 9e Ebert/Griffin Marketing Processes and Consumer Behavior chapter eleven

2. Topics: 1.The concept of marketing and identify the five forces that constitute the external marketing environment. 2.The marketing plan and identify the four components of the marketing mix. 3.Segmentation and how it is used in target marketing. 4.Key factors that influence the consumer buying process. 11-2

3. After reading this chapter, you should be able to: 5.The three categories of organizational markets. 6.Definition of a product as a value package and classify goods and services. 7.Key considerations in the new product development process, and explain the importance of branding and packaging. 8.Discuss the marketing mix as it applies to international and small business. 11-3

4. What Is Marketing?  Marketing └ organizational function and a set of processes for creating, communicating, and delivering value to customers, and for managing customer relationships in ways that benefit the organization and its stakeholders 11-4

5. Delivering Value  Value └ relative comparison of a product’s benefits versus its costs 11-5

6. Delivering Value A company may:  develop an entirely new product that performs better than existing products  keep a store open longer hours during a busy season  offer price reductions  offer information that explains how a product can be used in new ways 11-6

7. Value and Utility  Utility └ ability of a product to satisfy a human want or need 11-7

8. Razor Wars 11-8

9. Goods, Services, and Ideas 11-9  Consumer Goods └ physical products purchased by consumers for personal use  Industrial Goods └ physical products purchased by companies to produce other products  Services └ products having nonphysical features, such as information, expertise, or an activity that can be purchased

10. Relationship Marketing and Customer Relationship Management  Relationship Marketing └ marketing strategy that emphasizes building lasting relationships with customers and suppliers  Customer Relationship Management (CRM) └ organized methods that a firm uses to build better information connections with clients, so that stronger company-client relationships are developed 11-10 Sell. Service. Market. Succeed. Connect to your customers, employees, partners and products in a whole new way

11. The External Marketing Environment 11-11 Marketing professions must understand the external forces that significantly impact the company

12. Competitive Environment  substitute products  brand competition  international competition 11-12

13. Strategy: The Marketing Mix  Marketing Plan └ detailed strategy for focusing marketing efforts on consumers’ needs and wants  Marketing Mix └ combination of product, pricing, promotion, and place (distribution) strategies used to market products 11-13

14. Strategy: The Marketing Mix  Product └ good, service, or idea that is marketed to fill consumers’ needs and wants  Product Differentiation └ creation of a product feature or product image that differs enough from existing products to attract customers 11-14 Blackberry Z10Apple iPhone

15. Strategy: The Marketing Mix  Pricing └ process of determining the best price at which to sell a product  Place (Distribution) └ part of the marketing mix concerned with getting products from producers to consumers  Promotion └ aspect of the marketing mix concerned with the most effective techniques for communicating information about products 11-15

16. Integrated Strategy  Integrated Marketing Strategy └ strategy that blends together the Four Ps of marketing to ensure their compatibility with one another, as well as with the company’s non- marketing activities 11-16

17. Target Marketing and Market Segmentation  Target Market └ group of people who have similar wants and needs and can be expected to show interest in the same products  Market Segmentation └ process of dividing a market into categories of customer types, or “segments” 11-17

18. Identifying Market Segments  Geographic Variables └ geographic units that may be considered in developing a segmentation strategy  Demographic Variables └ characteristics of populations that may be considered in developing a segmentation strategy Age, income, gender, ethnic background, marital status, religion, etc.  Geo-Demographic Variables └ combination of geographic and demographic traits used in developing a segmentation strategy 11-18

19. Demographic Variables 11-19

20. Identifying Market Segments  Psychographic Variables └ consumer characteristics, such as lifestyles, opinions, interests, and attitudes that may be considered in developing a segmentation strategy └ Think Facebook and other Social Media Platforms…  Behavioral Variables └ behavioral patterns displayed by groups of consumers and that are used in developing a segmentation strategy 11-20

21. Understanding Consumer Behavior  Consumer Behavior └ study of the decision process by which people buy and consume products Cameras in Target and Wal-Mart…..  Brand Loyalty └ pattern of regular consumer purchasing based on satisfaction with a product’s performance 11-21

22. Influences on Consumer Behavior 11-22 individual’s motivations, perceptions, ability to learn, and attitudes lifestyle, personality, and economic status family, opinion leaders (people whose opinions are sought by others), and such reference groups as friends, coworkers, and professional associates the way of living that distinguishes one large group from another), subculture (smaller groups with shared values),

23. The Consumer Buying Process 11-23

24. The Consumer Buying Process  Evoked Set (or Consideration Set) └ group of products consumers will consider buying as a result of information search  Rational Motives └ reasons for purchasing a product that are based on a logical evaluation of product attributes  Emotional Motives └ reasons for purchasing a product that are based on nonobjective factors 11-24

25. Business Marketing  Industrial Market └ organizational market consisting of firms that buy goods that are either converted into products or used during production  Reseller Market └ organizational market consisting of intermediaries that buy and resell finished goods 11-25

26. Business Marketing  Institutional Market └ organizational market consisting of such nongovernmental buyers of goods and services as hospitals, churches, museums, and charitable organizations 11-26

27. What Is a Product?  Product Features └ tangible and intangible qualities that a company builds into its products  Value Package └ product marketed as a bundle of value-adding attributes, including reasonable cost 11-27

28. Categories of Consumer Products 11-28

29. Organizational Products 11-29

30. The Product Mix  Product Mix └ group of products that a firm makes available for sale…… Black and Decker: Toasters, ovens, electric drills  Product Line └ group of products that are closely related because they function in a similar manner or are sold to the same customer group who will use them in similar ways Apple Computers: 11-30

31. Product Life Cycle  Product Life Cycle (PLC) └ series of stages in a product’s commercial life └ introduction, growth, maturity, decline 11-31

32. Branding Products  Branding └ process of using symbols to communicate the qualities of a product made by a particular producer  Brand Awareness └ extent to which a brand name comes to mind when a consumer considers a particular product category 11-32

33. 11-33 What are the most Iconic Brands? See next slide…..

34. 34 Click the image to see the Other 29…..

35. Branding Products  Product Placement └ a promotional tactic for brand exposure in which characters in television, film, music, magazines, or video games use a real product with its brand visible to viewers └ Do Super Bowl ads work….? └ Cigarettes in Movies… └ Video Games (watch this high schooler’s You Tube) Video Games 11-35 Renee Zellweger in Bridget Jones Diary Penelope Cruz and Scarlett Johansson in Vicky Cristina Barcelona movie Al Pacino smoking scene in Scarface

36. Branding Products  Buzz Marketing └ promotional method that relies on word of mouth to create buzz about products and ideas  Viral Marketing └ type of buzz marketing that relies on the Internet to spread information like a “virus” from person to person about products and ideas └ Notice how the “Viral” video below has an opening ad…….. 11-36 http://www.youtube.com/watch?v=xcv82ntxJO8

37. Branding Products  Corporate Blogs └ comments and opinions published on the web by or for an organization to promote its activities └ http://www.nikeblog.com/ http://www.nikeblog.com/ └ http://www.baylorfans.com/forums/blog.php?s=88e82eedb141c47a8a52fe836848b26d http://www.baylorfans.com/forums/blog.php?s=88e82eedb141c47a8a52fe836848b26d  National Brand └ brand-name product produced by, widely distributed by, and carrying the name of a manufacturer See next slide…… 11-37

38. National Brands 11-38

39. Branding Products  Brand Extension └ a company’s use of a national brand on several additional related products  Licensed Brand └ brand-name product for whose name the seller has purchased the right from an organization or individual └ Department 56 Department 56 11-39

40. Branding Products  Private Brand (Private Label) └ brand-name product that a wholesaler or retailer has commissioned from a manufacturer └ Think of your local grocery store Food Lion Milk vs. Coble,  Packaging └ physical container in which a product is sold, advertised, or protected 11-40

41. Brand Awareness via Social Video Seeding…. 11-41

42. Small Business and the Marketing Mix  Small-Business Products └ product failures due to lack of market potential or marketing to the wrong target market segments  Small-Business Pricing └ losses due to pricing errors resulting from underestimating operating expenses  Small-Business Distribution └ poor location choice fails to attract customers  Small-Business Promotion └ careful promotion can reduce expenses 11-42

43. End.. 4311-43