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Evolution of MarketingEvolution of Marketing• Production Era - Up to early 1900sProduction Era - Up to early 1900s
• Selling Era - 1920s-1950sSelling Era - 1920s-1950s
• Marketing Concept Era - 1950s - Marketing Concept Era - 1950s - 1980s1980s• CustomerCustomer
• ServiceService
• ProfitProfit
• Customer Relationship Era - 1990s+Customer Relationship Era - 1990s+
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I.I. WHAT IS MARKETING?WHAT IS MARKETING?Learning goal 1Learning goal 1
Define Define marketingmarketing and explain how the marketing and explain how the marketing concept applies in both for-profit and nonprofit concept applies in both for-profit and nonprofit
organizations.organizations.
The Evolution of the Field of MarketingThe Evolution of the Field of Marketing
The Production EraThe Production Era
The Selling EraThe Selling Era
The Marketing Concept EraThe Marketing Concept Era
The Customer Relationship EraThe Customer Relationship Era
Nonprofit Organizations and MarketingNonprofit Organizations and Marketing
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Describe the marketing research process, and explain Describe the marketing research process, and explain how marketers use environmental scanning to learn how marketers use environmental scanning to learn
about the changing marketing environment.about the changing marketing environment.
The Marketing Research ProcessThe Marketing Research Process
The Marketing EnvironmentThe Marketing Environment
Global FactorsGlobal Factors
Technological FactorsTechnological Factors
Sociocultural FactorsSociocultural Factors
Competitive FactorsCompetitive Factors
Economic FactorsEconomic Factors
Two Different Markets: Consumer and Two Different Markets: Consumer and Business-to-Business (B2B)Business-to-Business (B2B)
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Marketing ProcessMarketing Process
1.1. Find OpportunityFind Opportunity
2.2. Conduct ResearchConduct Research
3.3. Identify Target Identify Target MarketMarket
4.4. Design ProductDesign Product
5.5. Product TestingProduct Testing
6.6. Brand Name, Design Brand Name, Design & Price& Price
7.7. Develop Distribution Develop Distribution SystemSystem
8.8. Design Promotional Design Promotional ProgramProgram
9.9. Build Relationship Build Relationship With CustomerWith Customer
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III.III.THE CONSUMER MARKETTHE CONSUMER MARKETLearning goal 4Learning goal 4
Explain how marketers meet the needs of the consumer Explain how marketers meet the needs of the consumer market through market segmentation, relationship market through market segmentation, relationship marketing, and the study of consumer behavior.marketing, and the study of consumer behavior.
Segmenting the Consumer MarketSegmenting the Consumer Market
Reaching Smaller Market SegmentsReaching Smaller Market Segments
Moving toward Relationship MarketingMoving toward Relationship Marketing
Forming Communities of BuyersForming Communities of Buyers
The Consumer Decision-Making ProcessThe Consumer Decision-Making Process
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IV.IV. THE BUSINESS-TO-BUSINESS MARKETTHE BUSINESS-TO-BUSINESS MARKETLearning goal 5Learning goal 5
List ways in which the business-to-business market List ways in which the business-to-business market differs from the consumer market.differs from the consumer market.
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WHAT IS MARKETING?WHAT IS MARKETING?
Learning goal 1Learning goal 1
Define Define marketing marketing and explain how the marketing and explain how the marketing concept drives both for-profit and nonprofit concept drives both for-profit and nonprofit
organizations.organizations.
MARKETINGMARKETING is the process of planning and executing the is the process of planning and executing the
conception, pricing, promotion, and distribution of conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that goods and services to facilitate exchanges that satisfy individual and organizational objectives.satisfy individual and organizational objectives.
Selling and advertising are only part of marketing.Selling and advertising are only part of marketing.
Marketing activities depend on what needs to be done Marketing activities depend on what needs to be done to fill customers’ needs.to fill customers’ needs.
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THE EVOLUTION OF THE FIELD OF THE EVOLUTION OF THE FIELD OF MARKETINGMARKETING
THE PRODUCTION ERATHE PRODUCTION ERA
Until the early 1900s, the general philosophy was to Until the early 1900s, the general philosophy was to “produce as much as you can because there is a “produce as much as you can because there is a
limitless market.”limitless market.”
The goals of business The goals of business CENTERED ON PRODUCTION.CENTERED ON PRODUCTION.
The greatest marketing need was for distribution and The greatest marketing need was for distribution and storage.storage.
THE SELLING ERATHE SELLING ERA
By the 1920s, the business philosophy turned to an By the 1920s, the business philosophy turned to an EMPHASIS ON SELLING AND ADVERTISING to sell EMPHASIS ON SELLING AND ADVERTISING to sell
existing products.existing products.
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THE MARKETING ERATHE MARKETING ERA
The BABY BOOM after WWII created a tremendous The BABY BOOM after WWII created a tremendous demand for goods and services.demand for goods and services.
Competition for the consumer’s dollar was fierce.Competition for the consumer’s dollar was fierce.
If they wanted to get their business, businesses had to If they wanted to get their business, businesses had to be be
RESPONSIVE TO CONSUMERS.RESPONSIVE TO CONSUMERS.
The MARKETING CONCEPT emerged in the 1950s.The MARKETING CONCEPT emerged in the 1950s.
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The Marketing EnvironmentThe Marketing Environment
EconomicEconomic
SocialSocial
TechnologTechnologyy
GlobalGlobal
CustomeCustomerr
CompetitivCompetitivee
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The The MARKETING CONCEPTMARKETING CONCEPT is a three-part business philosophy:is a three-part business philosophy:
A CUSTOMER ORIENTATION: Find out what consumers A CUSTOMER ORIENTATION: Find out what consumers want and provide it.want and provide it.
A SERVICE ORIENTATION: Make sure everyone in the A SERVICE ORIENTATION: Make sure everyone in the organization has the same objective–CUSTOMER organization has the same objective–CUSTOMER
SATISFACTION.SATISFACTION.
A PROFIT ORIENTATION: Focus on those goods and A PROFIT ORIENTATION: Focus on those goods and services that will earn the most profit.services that will earn the most profit.
During the 1980s, business began to apply the marketing During the 1980s, business began to apply the marketing concept more aggressively.concept more aggressively.
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THE CUSTOMER RELATIONSHIP ERATHE CUSTOMER RELATIONSHIP ERA
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)CUSTOMER RELATIONSHIP MANAGEMENT (CRM) is the process of learning as much as possible about is the process of learning as much as possible about custo mers and doing everything you can to satisfy custo mers and doing everything you can to satisfy
them–or even exceed their expectations–with goods and them–or even exceed their expectations–with goods and services over time.services over time.
The goal is to enhance customer satisfaction and The goal is to enhance customer satisfaction and stimulate long-term customer loyalty.stimulate long-term customer loyalty.
NONPROFIT ORGANIZATIONS AND MARKETINGNONPROFIT ORGANIZATIONS AND MARKETING
Marketing is a crucial part of almost all organizations, Marketing is a crucial part of almost all organizations, profit and nonprofit.profit and nonprofit.
Charities, churches, politicians, states, and many other Charities, churches, politicians, states, and many other organizations all use marketing.organizations all use marketing.
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THE MARKETING MIXTHE MARKETING MIX
Learning goal 2Learning goal 2
List and describe the four Ps of marketing.List and describe the four Ps of marketing.
Pleasing customers has become a priority.Pleasing customers has become a priority.
The FOUR FACTORS OF MARKETING are:The FOUR FACTORS OF MARKETING are:
ProductProduct
PricePrice
PlacePlace
PromotionPromotion
CONTROLLABLE PARTS of the marketing process CONTROLLABLE PARTS of the marketing process involve:involve:
Designing a want-satisfying PRODUCTDesigning a want-satisfying PRODUCT
Setting a PRICE for the productSetting a PRICE for the product
Placing the product in a PLACE where people will buy itPlacing the product in a PLACE where people will buy it
PROMOTING the productPROMOTING the product 13-13
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Elements in the Marketing Elements in the Marketing MixMix
ProductProduct
MarketinMarketing g
ProgramProgram
PlacPlacee
PromotioPromotionn
Buy at Buy at Computers Computers
‘R Us‘R Us
PricPricee
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These four factors have become known as the These four factors have become known as the MARKETING MIXMARKETING MIX
the ingredients that go into a marketing program: the ingredients that go into a marketing program: product, price, place, and promotion.product, price, place, and promotion.
APPLYING THE MARKETING PROCESSAPPLYING THE MARKETING PROCESS
To present an overview of the marketing process, the text To present an overview of the marketing process, the text takes a hypothetical vegetarian restaur ant through takes a hypothetical vegetarian restaur ant through
THE MARKETING PROCESS. THE MARKETING PROCESS.
The process involves:The process involves:
Recognizing a needRecognizing a need
researching the marketresearching the market
Identifying the TARGET MARKETIdentifying the TARGET MARKET
The text uses the example of a start-up vegetarian The text uses the example of a start-up vegetarian restaurant, Very Vegetarian.restaurant, Very Vegetarian.
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DESIGNING A PRODUCT TO MEET NEEDSDESIGNING A PRODUCT TO MEET NEEDS
First, develop a product to fill the identified need.First, develop a product to fill the identified need.
A A PRODUCTPRODUCT is any physical good, service, or idea that satisfies a is any physical good, service, or idea that satisfies a want or need plus anything that would enhance the want or need plus anything that would enhance the
product in the eye of consumers, such as the brand. product in the eye of consumers, such as the brand.
The next step is The next step is CONCEPT TESTINGCONCEPT TESTING developing an accurate description of your product developing an accurate description of your product
and asking people whether or not the concept (the idea and asking people whether or not the concept (the idea of the cereal) appeals to them. of the cereal) appeals to them.
TEST MARKETINGTEST MARKETING is the process of testing products among potential is the process of testing products among potential
users.users.
Next, decide which brand names should be offered to Next, decide which brand names should be offered to attract customers.attract customers.
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Product DesignProduct Design
• Concept TestConcept Test
• Test MarketTest Market
• Package Design/Brand NamePackage Design/Brand Name
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A BRAND NAME is a word, letter, or group of words or letters that differentiates
one seller’s goods and services from those of competitors.
These steps create THE FIRST “P”—PRODUCT.
SETTING AN APPROPRIATE PRICE (the second “P”)The price depends on a number of factors, such as the price of
competing restaurants.
You also have to consider the costs of pro ducing, distributing, and promoting the product.
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GETTING THE PRODUCT TO THE RIGHT PLACE(the third “P”)
Once the product is manufactured, you have to decide how to get it to the consumer.
You may want to sell your product through INTERMEDIARIES, (MARKETING MIDDLEMEN,)
organizations that specialize in distributing goods from producer to customer.
DEVELOPING AN EFFECTIVE PROMOTIONAL STRATEGY (the fourth “P”)
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PROMOTION consists of all the techniques sellers use to
motivate people to buy products or services.
RELATIONSHIP BUILDING WITH CUSTOMERS
includes responding to any suggestions they may make to improve the product or the
marketing of the product.
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Marketing is an ONGOING PROCESS; companies must continually adapt to changes in the market.
Listening to customers is the key to marketing.
PROVIDING MARKETERS WITH INFORMATIONLearning goal 3
Describe the marketing research process, and explain how marketers use environmental scanning to learn about the changing marketing environment.
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MARKETING RESEARCH is the analysis of markets to determine opportunities and
challenges, and to find the information needed to make good decisions.
One goal is to determine exactly what consumers want and need, now and in the future.
Businesses need information to compete effectively, and
MARKETING RESEARCH is the activity that gathers that information.
In addition to customers, marketers should pay attention to the views of employees, shareholders, consumer advocates, and
other stakeholders.
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THE MARKETING RESEARCH PROCESS
STEP 1. Defining the problem and determining the present situation
STEP 2. Collecting data
Research can be quite expensive, so SOME TRADE-OFF must be made between information needed and the cost.
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Less expensive is Less expensive is SECONDARY DATASECONDARY DATA,, information that has already been published previously information that has already been published previously by others and published in journals and books or made by others and published in journals and books or made
available online.available online.
Often, secondary data don’t provide all the Often, secondary data don’t provide all the necessary information, so marketers must do their own necessary information, so marketers must do their own
research.research.
The result of new studies isThe result of new studies is PRIMARY DATA PRIMARY DATA, data that , data that you gather yourself (not from secondary sources such you gather yourself (not from secondary sources such
as books and magazines.)as books and magazines.)
Despite its name, secondary data should be gathered first Despite its name, secondary data should be gathered first as it is the least expensive.as it is the least expensive.
Telephone surveys, online surveys, mail surveys, and Telephone surveys, online surveys, mail surveys, and personal interviews are the most common methods of personal interviews are the most common methods of
gathering survey information.gathering survey information.
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Sources for MarketingSources for Marketing Research InformationResearch Information
Secondary DataSecondary Data
• Government Government PublicationsPublications
• Commercial Commercial PublicationsPublications
• MagazinesMagazines• NewspapersNewspapers• Internal/General Internal/General
SourcesSources
Primary DataPrimary Data• SurveysSurveys• Focus groupsFocus groups• InterviewsInterviews• ObservationObservation• Online surveysOnline surveys• QuestionnairesQuestionnaires• Customer commentsCustomer comments
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A A FOCUS GROUPFOCUS GROUP is of a small group of people who meet under the is of a small group of people who meet under the
direction of a discussion leader to communicate their direction of a discussion leader to communicate their opinions about an organization, its product, or other opinions about an organization, its product, or other
given issues.given issues.
Marketers can now gather both secondary and primary Marketers can now gather both secondary and primary data online.data online.
STEP 3.STEP 3. Analyzing the research dataAnalyzing the research data
The data collected must be turned into useful information. The data collected must be turned into useful information. Careful, honest interpretation of the data can reveal Careful, honest interpretation of the data can reveal
specific marketing challenges.specific marketing challenges.
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STEP 4. STEP 4. Choosing the best solution and implement itChoosing the best solution and implement it
Researchers determine ALTERNATIVE STRATEGIES Researchers determine ALTERNATIVE STRATEGIES and make recommendations as to which strategy may and make recommendations as to which strategy may
be best.be best.
The actions taken should be FOLLOWED UP to see if The actions taken should be FOLLOWED UP to see if results were as expected.results were as expected.
Consumers are demanding more ethical behavior from Consumers are demanding more ethical behavior from companies.companies.
THE MARKETING ENVIRONMENTTHE MARKETING ENVIRONMENT
ENVIRONMENTAL SCANNINGENVIRONMENTAL SCANNING is the process of is the process of identifying the factors that can affect marketing identifying the factors that can affect marketing
successsuccess
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Market Research ProcessMarket Research Process
• Define the QuestionDefine the Question
• Collect DataCollect Data
• Analyze the dataAnalyze the data
• Choose the best solution and Choose the best solution and implementimplement
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GLOBAL FACTORSGLOBAL FACTORS
The most important global change today is the growth of the The most important global change today is the growth of the Internet.Internet.
Globalization has also put pressure on companies that deliver Globalization has also put pressure on companies that deliver products.products.
TECHNOLOGICAL FACTORS TECHNOLOGICAL FACTORS include the Internet, the growth of consumer databases, flexible include the Internet, the growth of consumer databases, flexible
manufacturing, and mass customization.manufacturing, and mass customization.
SOCIOCULTURAL FACTORS SOCIOCULTURAL FACTORS include population growth and changing demographics, such as include population growth and changing demographics, such as
the aging population and the preferences of various ethnic the aging population and the preferences of various ethnic groups.groups.
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COMPETITIVE FACTORSCOMPETITIVE FACTORS
Brick-and-mortar companies must adjust to new competition from Brick-and-mortar companies must adjust to new competition from the Internet.the Internet.
They have to adapt to competitors, who can deliver products quickly They have to adapt to competitors, who can deliver products quickly or provide excellent service.or provide excellent service.
ECONOMIC FACTORSECONOMIC FACTORS Marketers must pay close attention to the economic environment Marketers must pay close attention to the economic environment
in the U.S. and globally.in the U.S. and globally.
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TWO DIFFERENT MARKETS: CONSUMER AND BUSINESS-TWO DIFFERENT MARKETS: CONSUMER AND BUSINESS-TO-BUSINESS (B2B)TO-BUSINESS (B2B)
THERE ARE TWO MAJOR MARKETS:THERE ARE TWO MAJOR MARKETS:
The The CONSUMER MARKETCONSUMER MARKET consists of all the individuals or consists of all the individuals or households that want goods and services for personal households that want goods and services for personal
consumption or use.consumption or use.
TheThe BUSINESS-TO-BUSINESS (B2B) MARKETBUSINESS-TO-BUSINESS (B2B) MARKET consists of consists of all the individuals and organizations that want goods and all the individuals and organizations that want goods and services to use in producing other goods and services or services to use in producing other goods and services or to sell, rent, or supply goods to others (traditionally called to sell, rent, or supply goods to others (traditionally called
INDUSTRIAL GOODS.)INDUSTRIAL GOODS.)
The buyer’s REASON FOR BUYING and the END USE of the The buyer’s REASON FOR BUYING and the END USE of the product determine whether it is considered a consumer product determine whether it is considered a consumer
product or a B2B product.product or a B2B product.
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Business-to-Business (B2B)Business-to-Business (B2B)
1.1. NumberNumber
2.2. SizeSize
3.3. Geographic Geographic ConcentrationConcentration
4.4. RationalRational
5.5. Direct SalesDirect Sales
6.6. Personal SellingPersonal Selling
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THE CONSUMER MARKETTHE CONSUMER MARKET
Consumer groups differ greatly in age, education level, Consumer groups differ greatly in age, education level, income, and taste.income, and taste.
Marketers must first decide which group to serve and Marketers must first decide which group to serve and then develop products and services specially tailored then develop products and services specially tailored
to their needs to their needs (as Campbell Soup Company does.)(as Campbell Soup Company does.)
MARKET SEGMENTATIONMARKET SEGMENTATION is the process of dividing the total market into groups is the process of dividing the total market into groups
whose members have similar characteristics.whose members have similar characteristics.
TARGET MARKETINGTARGET MARKETING is marketing directly toward those groups (market is marketing directly toward those groups (market
segments) an organization decides it can serve segments) an organization decides it can serve profitably.profitably.
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SEGMENTING THE CONSUMER MARKETSEGMENTING THE CONSUMER MARKETLearning goal 4Learning goal 4
Explain how marketers meet the needs of the consumer Explain how marketers meet the needs of the consumer market through market segmentation, relationship market through market segmentation, relationship marketing, and the study of consumer behavior.marketing, and the study of consumer behavior.
GEOGRAPHIC SEGMENTATIONGEOGRAPHIC SEGMENTATION is dividing the market by geographic area. is dividing the market by geographic area.
DEMOGRAPHIC SEGMENTATIONDEMOGRAPHIC SEGMENTATION is dividing the market by age, income, and education is dividing the market by age, income, and education
level.level.
PSYCHOGRAPHIC SEGMENTATIONPSYCHOGRAPHIC SEGMENTATION is dividing the market using the group’s values, is dividing the market using the group’s values,
attitudes, and interests.attitudes, and interests.
BENEFIT SEGMENTATIONBENEFIT SEGMENTATION is dividing the market by determining which benefits of is dividing the market by determining which benefits of
the product to talk about.the product to talk about.13-34
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Market SegmentationMarket Segmentation
• Target MarketingTarget Marketing
• GeographicGeographic• DemographicDemographic• PsychographicPsychographic• BenefitBenefit• VolumeVolume
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VOLUME, OR USAGE, SEGMENTATIONVOLUME, OR USAGE, SEGMENTATION is is
dividing the market by usage (volume of use.)dividing the market by usage (volume of use.)
The best segmentation strategy is to USE ALL THE The best segmentation strategy is to USE ALL THE VARIABLES to come up with a consumer profile that’s VARIABLES to come up with a consumer profile that’s
sizable, reachable, and profitable.sizable, reachable, and profitable.
REACHING SMALLER MARKET SEGMENTSREACHING SMALLER MARKET SEGMENTS
NICHE MARKETINGNICHE MARKETING is the process of finding small but profitable market is the process of finding small but profitable market segments and designing custom-made products for segments and designing custom-made products for
them.them.
ONE-TO-ONE MARKETINGONE-TO-ONE MARKETING means developing a unique mix of goods and services means developing a unique mix of goods and services
for each individual customer.for each individual customer.
This is easier to do one-to-one marketing in B2B markets, This is easier to do one-to-one marketing in B2B markets, but is becoming possible in consumer markets as well.but is becoming possible in consumer markets as well.
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Different MarketsDifferent Markets
• ConsumerConsumer• NicheNiche• One-to-OneOne-to-One
• Business-to-Business-to-Business (B2B)Business (B2B)
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MOVING TOWARD RELATIONSHIP MARKETINGMOVING TOWARD RELATIONSHIP MARKETING
MASS MARKETINGMASS MARKETING means developing products and means developing products and promotions to please large groups of people.promotions to please large groups of people.
The mass marketer tries to sell products to as many The mass marketer tries to sell products to as many people as possible.people as possible.
That means using mass media, such as TV, radio, and That means using mass media, such as TV, radio, and newspapers.newspapers.
RELATIONSHIP MARKETINGRELATIONSHIP MARKETING is a marketing strategy with is a marketing strategy with the goal of keeping individual customers over time by the goal of keeping individual customers over time by
offering them products that exactly meet their offering them products that exactly meet their requirements.requirements.
RELATIONSHIP MARKETING moves away from mass RELATIONSHIP MARKETING moves away from mass production toward CUSTOM-MADE GOODS. production toward CUSTOM-MADE GOODS.
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Pricing StrategiesPricing Strategies
• Cost-PlusCost-Plus
• Value-BasedValue-Based
• CompetitiveCompetitive
• Going-RateGoing-Rate
• SkimmingSkimming
• DiscountDiscount
• Loss-LeaderLoss-Leader
• PsychologicalPsychological
Source: Perdue University, May 2005
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Influences onInfluences onConsumer BehaviorConsumer Behavior
CultureCulture
SubculturSubculturee
Reference Reference
GroupGroup
Cognitive Cognitive
DissonanceDissonance
CustomeCustomerr
LearningLearning
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SOCIOCULTURAL INFLUENCES such as reference groups and culture
Consumer behavior is also influenced by other factors:LEARNING
involves changes in an individual’s behavior resulting from previous experiences and information.
A REFERENCE GROUP is the group that an individual uses as a reference point in
formation of his or her beliefs, attitudes, values, or behavior.CULTURE
is the set of values, attitudes, and ways of doing things that are transmitted from one generation to another in a given
society..
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SUBCULTURE is the set of values, attitudes, and ways of doing things that
results from belonging to a certain group with which one closely identifies.
COGNITIVE DISSONANCE is the type of psychological conflict that can occur after a
purchase—such as doubts about whether they got the best product at the best price.
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The latest in TECHNOLOGY enables sellers to work with The latest in TECHNOLOGY enables sellers to work with buyers to determine their individual wants and needs buyers to determine their individual wants and needs
and to develop goods and services specifically and to develop goods and services specifically designed for those individuals.designed for those individuals.
One-way messages in mass media are replaced by a One-way messages in mass media are replaced by a personal dialogue among participants.personal dialogue among participants.
The text uses two examples: service firms such as The text uses two examples: service firms such as airlines, rental car companies, and hotels; and the Hard airlines, rental car companies, and hotels; and the Hard
Rock Café.Rock Café.
THE CONSUMER DECISION-MAKING PROCESSTHE CONSUMER DECISION-MAKING PROCESS
Studying consumer behavior centers on studying the Studying consumer behavior centers on studying the CONSUMERCONSUMER
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PURCHASE DECISION PROCESS:PURCHASE DECISION PROCESS:
Problem recognitionProblem recognition
Information searchInformation search
Evaluate alternativesEvaluate alternatives
Make purchase decisionMake purchase decision
Postpurchase evaluationPostpurchase evaluation
Consumer behavior researchers also study the various Consumer behavior researchers also study the various INFLUENCES THAT IMPACT CONSUMER BEHAVIOR.INFLUENCES THAT IMPACT CONSUMER BEHAVIOR.
MARKETING MIX VARIABLES (the four Ps)MARKETING MIX VARIABLES (the four Ps)
PSYCHOLOGICAL INFLUENCES such as perception and PSYCHOLOGICAL INFLUENCES such as perception and attitudesattitudes
SITUATIONAL INFLUENCES such as the type of purchase SITUATIONAL INFLUENCES such as the type of purchase and physical surroundingsand physical surroundings
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Several factors make BUSINESS-TO-BUSINESS MARKETING
DIFFERENT NUMBER: There are relatively FEW CUSTOMERS compared to the
consumer market.
SIZE Though few in number, industrial customers are
relatively VERY LARGE.
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GEOGRAPHICALLY CONCENTRATED: B2B markets tend to be CONCENTRATED in certain areas of
the country.
RATIONAL Business buyers are generally MORE RATIONAL in their
purchase decisions.
DIRECT B2B sales tend to be DIRECT.
PERSONAL SELLING There is much more emphasis in personal selling than in the
consumer market.
YOUR PROSPECTS IN MARKETINGThere is a wider variety of careers in marketing than in most
business areas.
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Marketing Strategies inMarketing Strategies inNon-Profit OrganizationsNon-Profit Organizations
• Find a productive Find a productive board of trustees board of trustees (Directors)(Directors)
• Make marketing Make marketing the focus; not the focus; not short-term salesshort-term sales
• Know your Know your mission and mission and review mission review mission strategy regularlystrategy regularly
• Practice strategic Practice strategic planningplanning
• Carefully segment Carefully segment target markettarget market
• Train & develop Train & develop volunteers for long-volunteers for long-termterm
• Be frugal- know Be frugal- know how to manage how to manage financesfinances
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Where They GotWhere They Got Their NamesTheir Names
• Taco BellTaco Bell Glen BellGlen Bell
• Days InnDays Inn Cecil DayCecil Day
• Bose CorpBose Corp Amar BoseAmar Bose
• Ty Inc.Ty Inc. Ty WarnerTy Warner
• Bristol-MyersBristol-Myers William Bristol William Bristol & John & John
MyersMyersSource: World Features SyndicateSource: World Features Syndicate
Founder(s)Founder(s)
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Other Things To KeepOther Things To Keep In Mind With PriceIn Mind With Price
• Payment PeriodPayment Period• AllowancesAllowances
• RegularRegular• SeasonalSeasonal
• BundlingBundling• Trade DiscountsTrade Discounts• Price FlexibilityPrice Flexibility• Credit TermsCredit Terms
• Price DifferencesPrice Differences• Target CustomersTarget Customers• Geographic AreasGeographic Areas
• Volume Discounts Volume Discounts and Wholesale and Wholesale PricingPricing
• Cash and Early Pmt Cash and Early Pmt DiscountDiscount
Source: Perdue University, May 2005
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Place DecisionsPlace Decisions
• Direct SalesDirect Sales
• Reseller SalesReseller Sales
• Market CoverageMarket Coverage• Intensive Intensive • SelectiveSelective• ExclusiveExclusive
• Inventory SizeInventory Size
• LogisticsLogistics
Source: Perdue University, May 2005
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Advertising MascotsAdvertising Mascots
• Meow Mix Cat – 35 yearsMeow Mix Cat – 35 years
• Tony the Tiger – 54 yearsTony the Tiger – 54 years
• Toucan Sam – 45 yearsToucan Sam – 45 years
• Geoffrey the Giraffe – 35 yearsGeoffrey the Giraffe – 35 years
• Coca-Cola Polar Bears – 13 yearsCoca-Cola Polar Bears – 13 years
• MGM Lion – 78 yearsMGM Lion – 78 years
Source: World Feature Syndicate
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Marketing Data: Marketing Data: Least Error MethodLeast Error Method
1.1. Put someone in charge.Put someone in charge.
2.2. Give everyone a method of collecting Give everyone a method of collecting data.data.
3.3. Identify the right data.Identify the right data.
4.4. Centralize the data.Centralize the data.
5.5. Use the Data.Use the Data.
Source: cmomagazine.com, September 2004
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Why Should YouWhy Should You Market To Women?Market To Women?
• Women control 80% of all household Women control 80% of all household spending.spending.
• Women purchase 81% of all products and Women purchase 81% of all products and services manufactured.services manufactured.
• 80% of all checks written are signed by 80% of all checks written are signed by women.women.
• 85% of all automobile purchases are 85% of all automobile purchases are influenced by women.influenced by women.
• In 2005, 4.7 Million women were self-In 2005, 4.7 Million women were self-employed.employed.
Source: St. Louis Small Business Monthly, May 2004
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Consumer Decision Making
Marketing mix
•Product
•Price
•Place
•Promotion
Marketing mix
•Product
•Price
•Place
•Promotion
Psychological
•Perception
•Attitudes
•Learning
•Motivation
Psychological
•Perception
•Attitudes
•Learning
•Motivation
Situational
•Type of Purchase
•Social surroundings
•Physical surroundings
•Previous experience
Situational
•Type of Purchase
•Social surroundings
•Physical surroundings
•Previous experience
Sociocultural
•Reference groups
•Family
•Social class
•Culture
•Subculture
Sociocultural
•Reference groups
•Family
•Social class
•Culture
•SubcultureDecision-Making Decision-Making ProcessProcess
•Problem RecognitionProblem Recognition
•Information SearchInformation Search
•Alternative evaluationAlternative evaluation
•Purchase decisionPurchase decision
•Postpurchase evaluationPostpurchase evaluation • (cognitive dissonance)(cognitive dissonance)
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13-55
Planning For Planning For More BusinessMore Business
• What do we do well-and not do well?What do we do well-and not do well?
• What are we really selling?What are we really selling?
• To whom do we sell?To whom do we sell?
• How do we reach our target group?How do we reach our target group?
• How can we break through the clutter?How can we break through the clutter?
Source: Investor’s Business Daily, February 9, 2004
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Business-to-ConsumerBusiness-to-ConsumerE-Commerce as % of SalesE-Commerce as % of Sales
0.00% 0.50% 1.00% 1.50% 2.00% 2.50%
2005
2004
2003
2002
2001
2000
Source: U.S. Census, May 18, 2006; http://home.earthlink.net/~lindberg_b/GECGrwth.htm, accessed August 5, 2006
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Top Marketing Tactics ofTop Marketing Tactics of Small BusinessesSmall Businesses
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Web Sites Search EngineKeywords
CommunityRelations
PublicRelations/Media
Coverage
E-mail Marketing Direct Marketing
Source: Investor’s Business Daily, June 1, 2004
