MGMT6058 – Introduction to

Management and Business

Week 9 - Marketing: Helping Buyers Buy
 Learning Outcomes
• Define marketing and apply the marketing concept to
both for-profit and non-profit organizations.
• Describe the four P’s of marketing
• Summarize the marketing research process
• Show how marketers use environmental scanning to
learn about the changing marketing environment
• Explain how marketers apply the tools of market
segmentation, relationship marketing, and the study
of consumer behavior
• Compare the business-to-business market and the
consumer market
 WHAT’S MARKETING?

• Marketing -- The activity, set of institutions and

processes for creating, communicating, delivering,
and exchanging offerings with value for customers,
clients, partners, and society at large.
 FOCUS of CONTEMPORARY
MARKETING

• Marketing today involves helping the buyer buy

through:
- Websites that help buyers find the best price,
identify product features, and question sellers.
- Blogs and social
networking sites that
cultivate consumer
relationships.
 The Evolution of
MARKETING

• Production Era

• Selling Era

• Marketing Concept Era

• Customer Relationship Era

 *
The PRODUCTION
*
and SELLING ERAS

• The general
philosophy was
“Produce what you
can because the
market is limitless.”
• After mass production,
the focus turned from
production to
persuasion.
 *
The MARKETING
CONCEPT ERA*

• After WWII, a consumer spending boom

developed.
• Businesses knew they needed to be
responsive to consumers if they wanted
their business.
 *
The CUSTOMER
RELATIONSHIP ERA
• Customer Relationship Management (CRM) -
- Learning as much as you can about
customers and doing what you can to satisfy or
exceed their expectations.
• Organizations seek to enhance customer
satisfaction building long-term relationships.
• Today firms like Priceline and Travelocity use
CRM that allow customers to build a
relationship with the suppliers.
 NONPROFIT MARKETING

- Fundraising
- Public Relations
- Special Campaigns
- Ecological practices
- Changing public opinions and
attitudes
- Increasing organizational
membership
 MARKETING STRATEGIES
for NONPROFITS

• Nonprofit marketing strategies include:

- Determine the firm’s goals and objectives.
- Focus on long-term marketing.
- Find a competent board of directors.
- Exercise strategic planning.
- Train and develop long-term volunteers.
- Carefully segment the target market.
 *
DEVELOPING a
PRODUCT*
• Product -- A good, service,
or idea that satisfies a
consumer’s want or need.

• Test Marketing -- Testing

product concepts among
potential product users.

• Brand Name -- A word, letter,

or a group of words or letters
that differentiates one seller’s
goods from a competitor’s.
 PRICING and
PLACING a PRODUCT

• Pricing products depends on many factors:

- Competitors’ prices
- Production costs
- Distribution
- High or low price strategies

• Middlemen are important in place strategies

because getting a product to consumers is
critical.
 PROMOTING the PRODUCT

• Promotion -- All the techniques sellers use to

inform people about their products and motivate
them to purchase those products.
• Promotion includes:
- Advertising
- Personal selling
- Public relations
- Viral marketing
- Sales promotions
 SEARCHING for
INFORMATION

• Marketing Research -- Analyzing markets to

determine challenges and opportunities, and finding
the information needed to make good decisions.

• Research is used to identify products consumers

have used in the past and what they want in the
future.

• Research uncovers market trends and attitudes held

by company insiders and stakeholders.
 FOUR STEPS in the MARKETING
RESEARCH PROCESS

1. Defining the problem or opportunity and

determining the present situation.

2. Collecting research data.

3. Analyzing the data.

4. Choosing the best solution and implementing it.

 *
DEFINING the
PROBLEM or *
OPPORTUNITY
• What’s the present
situation?

• What are the alternatives?

• What information is
needed?

• How should the

information be gathered?
 *
COLLECTING
SECONDARY
RESEARCH DATA
• Secondary Data -- Existing data that has
previously been collected by sources like the
government.
• Secondary data incurs no
expense and is usually
easily accessible.
• Secondary data doesn’t
always provide all the
needed information for
marketers.
 *
COLLECTING
PRIMARY
*
RESEARCH DATA

• Primary Data -- In-depth information gathered

by marketers from their own research.

• Telephone, online and mail surveys, personal

interviews, and focus groups are ways to
collect primary data.
 *
FOCUS GROUPS
*

• Focus Group -- A group of people who

meet under the direction of a discussion
leader to communicate opinions.
 *
ANALYZING the DATA
and IMPLEMENTING *
the DECISION
• Marketers must turn data into useful information.

• Must use their analysis to plan strategies and

make recommendations.
• Finally, marketers
must evaluate their
actions and
determine if further
research is needed.
 WAYS to FIND OUT WHAT
CONSUMERS THINK
• Conduct informal consumer surveys.
• Host a customer focus
group.
• Listen to competitor’s
customers.
• Survey your sales force.
• Become a “phantom”
customer.
 SCANNING the MARKETING
ENVIRONMENT

• Environmental Scanning -- The process of

identifying factors that affect marketing success.

• Factors involved in the environmental scan

include:
- Global factors
- Technological factors
- Sociocultural factors
- Competitive factors
- Economic factors
The MARKETING
ENVIRONMENT
 *
The CONSUMER and
B2B MARKET

• Consumer Market -- All the individuals or

households that want goods and services
for personal use and have the resources to
buy them.
• Business-to-Business
(B2B) -- Individuals and
organizations that buy
goods and services to use
in production or to sell,
rent, or supply to others.
 *
MARKETING to
CONSUMERS *

• The size and diversity of the consumer market

forces marketers to decide which groups they
want to serve.

• Market Segmentation -- Divides the total

market into groups with similar characteristics.

• Target Marketing -- Selecting which segments

an organization can serve profitably.
 SEGMENTING the CONSUMER
MARKET

• Geographic Segmentation -- Dividing the market by cities,

counties, states, or regions.

• Demographic Segmentation -- Dividing the market by age,

income, education, and other demographic variables.

• Psychographic Segmentation -- Dividing the market by group

values, interests, and opinions.

• Benefit Segmentation -- Dividing the market according to product

benefits the customer prefers.

• Volume (Usage) Segmentation -- Dividing the market by the

volume of product use.
 MARKETING to
SMALL SEGMENTS

• Niche Marketing -- Identifies small but profitable

market segments and designs or finds products for
them.
• One-to-One
Marketing--
Developing a unique
mix of goods and
services for each
individual consumer.
 MASS MARKETING vs.
RELATIONSHIP MARKETING

• Mass Marketing -- Developing

products and promotions to
please large groups of people.

• Relationship Marketing--
Rejects the idea of mass
production and focuses toward
custom-made goods and services
for customers.
 STEPS* in the
CONSUMER
DECISION-MAKING *
PROCESS
1. Problem recognition

2. Search for information

3. Evaluating alternatives

4. Purchase decision

5. Post-purchase evaluation
 *
The CONSUMER DECSION
MAKING PROCESS AND
OUTSIDE INFLUENCES
 *
KEY FACTORS in
CONSUMER
LG6
*
DECISION-MAKING
• Learning

• Reference Groups

• Culture

• Subcultures

• Cognitive Dissonance
 • Nickels, Williams G, James M. Mc Hugh,
Susan M. McHugh (2010),Understanding
Business, 9th Edition, Mc Graw- Hill, ISBN :
978-0-07-735546-3

•Bina Nusantara University •32