Marketing and Consumer Behavior

© 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-1

ch

ap

ter 12

Better Business

2nd Edition Solomon (Contributing Editor) ·

Poatsy · Martin

Learning Objectives

1. How has marketing evolved over the production concept era, the sales concept era, the marketing concept era, and the customer relationship era?

2. What are the benefits of marketing to customers, sellers, investors, employees, and society at large, and what are the criticisms of marketing?

3. What are the two basic elements of a marketing strategy and the 4 Ps of the marketing mix?

4. How do firms implement a marketing strategy by applying the marketing process?

5. How do the various factors in the marketing environment influence a firm’s ability to manipulate its marketing mix?

6. What is the marketing research process and what are the elements of a good marketing plan?

7. How do the buying decisions and marketing processes in B2B markets compare to those in the consumer market?

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Marketing Fundamentals

• Marketing o An organizational function o A set of processes for creating, communicating,

and delivering value to customers o Management of customer relationships in ways

that benefit the organization and its stakeholders

• Product o Any tangible good, service, or idea available for

purchase in a market o Plus any intangible benefits derived from its

consumption

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The Evolution of Marketing

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Production Era &

Sales Concept Era

Production Era

• Industrial Revolution until 1920s

• Limited supplies and strong demand

• A good-quality product sold itself

Sales Concept Era

• Mid 1920s to early 1950s

• Production greater than demand

• Greater competition for customers

• Heavy public advertising

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Marketing Concept Era

1. Identify customer needs before product is designed

2. Align all functions of the organization to meeting or exceeding customer needs

3. Realize a profit by satisfying customers long term

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Customer Relationship Era

• Customer relationship management (CRM)

• Since the late 1990s

• Focuses a company’s efforts on long-term customer satisfaction

• Combines computer information technology with customer service and marketing communications

• Encourages customers to buy similar or supplementary products

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Nontraditional Marketing

• Not-for-profit organizations must market their events, causes, locations, or individuals

o Charitable organizations

o Countries, states, and cities

o Churches

o Museums

o People

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Benefits of Marketing

• Customers

o Utility

• Form

• Ownership

• Time

• Place

o Value = benefits/costs

• Investors

• Employees

• Society

• Sellers

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Criticisms of Marketing

• Misuse of personal information

• Hidden Fees

• Consequences of purchase

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Marketing Strategy

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The 4 Ps

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• Product differentiation

• Brand Product

• Cover costs

• Competitively priced Price

• Inform and persuade customers to buy

• Build positive customer relationships Promotion

• Distribution channel

• Distributors and wholesalers Place

The

Marketing

Process

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The Marketing Environment

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Marketing Research & Planning

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Primary and Secondary

Sources of Data

Primary Sources of Data

• Observation

• Questionnaires

• Surveys

• Focus groups

• Interviews

• Customer feedback

• Sampling

• Controlled experiments

Secondary Sources of Data

• Government publications

• Commercial publications

• Organizational publications

• Magazines

• Newspapers

• Internal sources

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The Marketing Plan

A written document with:

• A clearly written marketing objective

• Performance of situational SWOT analysis

• Selection of a target market

• Implementation, evaluation, and control of the marketing mix (the 4 Ps)

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The 5 Cs of Marketing

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Target Markets

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Consumer Behavior

• The ways individuals or organizations search for, evaluate, purchase, use, and dispose of goods and services

• Consumer behavior is different in the consumer market vs. the B2B market

• Knowledge of consumer behavior helps marketers: o Select the most profitable target markets

o Implement the marketing mix (4 Ps)

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Consumer Markets

1. Need recognition

2. Information search

3. Evaluation of alternatives

4. Purchase or no purchase decision

5. Post-purchase evaluation

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What Influences Consumer Decision

Making?

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Differences Between B2B and

Consumer Markets

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Business Buying Decisions

• Steps are similar to the five steps in the consumer decision-making process

• 4 Ps of the marketing mix remain relevant for a business purchase

• Business purchases are generally more rational, reasoned, and objective, based on influences such as:

o The state of the economy

o Technological factors

o The degree of competition facing the company

o Political and regulatory concerns

o Organizational objectives, policies, and procedures

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Chapter Summary

1. How has marketing evolved over the production concept era, the sales concept era, the marketing concept era, and the customer relationship era?

2. What are the benefits of marketing to customers, sellers, investors, employees, and society at large, and what are the criticisms of marketing?

3. What are the two basic elements of a marketing strategy and the 4 Ps of the marketing mix?

4. How do firms implement a marketing strategy by applying the five steps of the marketing process?

5. How do the various factors in the marketing environment influence a firm’s ability to manipulate its marketing mix?

6. What are the five steps of the marketing research process and the four elements of a good marketing plan?

7. How do the buying decisions and marketing processes in business-to-business markets compare to those in the consumer market?

© 2012 Pearson Education, Inc. Publishing as Prentice Hall

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