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The Four Ps
The Four Ps are also known as the marketing mix.
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Developing a Product
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Pricing and Placing a Product
Chapter 13 – Marketing: Helping Buyers Buy
PPT 13–21
Promoting the Product
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Perfect Promotion
1. Companies are working more to create products
that are “built to love.” These products, like the
iPad, create excitement and loyalty from the get-go.
2. Customers, in addition to looking for an amazing
product, look for salespeople who they feel are their
friends. The key to repeat business is the likability
factor.
3. Ask the students, Have you ever gone back to a
specific store because of a particular salesperson? If
you were in sales, what would you do to increase
your likability factor?
PPT 13–23
Tangled Web of Promotion
1. Companies often create websites because they be-
lieve they have to. However, if it’s not done right, it
could cause you to lose customers.
2. Not enough emphasis is put on checking the analyt-
ics. As noted in this chapter, market research is ex-
tremely important. The same goes for Web re-
search.
3. Ask the students, Can you think of other things to
add to this list? What are some companies that have
good websites? Bad websites?
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Calling All Businesses!
Some retailers are hoping to use social media to enter the
mobile market. Although many companies use social media
to create awareness, there is a trend now of setting up direct
outlets on social platforms. JCPenney and Delta Airlines
have been in talks for months about obtaining a direct pres-
ence on Facebook.
PPT 13–25
Progress Assessment
1. In the past, marketing focused entirely on helping
the seller sell the product. Today, marketing has
changed from selling to instead helping the buyer
buy. It is critical that organizations do everything to
help buyers make decisions.
2. The three parts of the marketing concept are cus-
tomer orientation, service orientation, and a profit
orientation.
3. The four Ps of the marketing mix are (1) product,
(2) price, (3) place, and (4) promotion.
PPT 13–26
Searching for Information
To understand customer wants and needs, it is critical to
conduct market research. Good market research will identi-
fy products consumers have used and want to use in the fu-
ture, and market trends.
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Four Steps in the Marketing
Research Process
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Defining the Problem or Opportunity
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Collecting Secondary Research Data
Secondary research is cheaper and often easier to gather
than primary research, but may be outdated.
13–45
Chapter 13 – Marketing: Helping Buyers Buy
PPT 13–33
Key Benefits of Marketing Research
1. This slide identifies the key benefits of marketing
research.
2. As discussed early in the chapter, marketing is
about understanding customers’ wants and needs.
To accomplish this goal marketers must conduct
marketing research.
3. Ask the students, How has the Internet changed the
way market research is conducted? (The Internet
has made gathering both primary and secondary
information easier and quicker. Also, information
can now be gathered via blogs and social net-
works.)
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Ways to Find Out What
Consumers Think
1. The goal of market research is to better understand
what consumers are thinking.
2. This slide addresses some of the ways that organi-
zations can discover consumer wants and needs.
PPT 13-35
Scanning the Marketing Environment
Environmental scanning is the process of identifying fac-
tors that affect marketing success. The environment of mar-
keting is changing faster than at any time in history. Com-
panies that don’t keep up will fail to survive. Today’s mar-
keting environment is influenced by the global marketplace
and the explosion of the information age. To be fully pre-
pared, a company must recognize and understand cultural
influences; governmental and political influences; demo-
graphic and lifestyle trends; local, national, and world eco-
nomic trends; the strengths of multinational competitors;
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The Marketing Environment
To effectively understand the marketing environment, it
is critical that companies continually scan the environment
PPT 13–37
The ABCs of Marketing
1. This slide identifies keys to marketing success.
2. One point on this slide mentions the empowerment
of employees. Ask the students, Why is empower-
ing employees a key to successful marketing? (An-
swers will vary, but should focus on how empow-
erment should lead to greater employee motivation,
creating a more customer-focused environment.)
3. A key to marketing is understanding the organiza-
tion’s strengths and weaknesses and its ultimate
customer.
4. Once you have identified your strengths and weak-
nesses, what you really sell and to whom, and have
reviewed your communication to the target market,
you need to ensure that the message resonates with
the consumer positively. You can do that by engag-
ing in savvy public relations (newsletters, press re-
leases, etc.).
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The Consumer and B2B Market
The buyer’s intended end use of the product determines
whether a product is consumer or B2B.
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Progress Assessment
1. The steps in the marketing research process are as
follows:(1) Define the problem and determine the
present situation, (2) collect the research data,(3)
analyze the research data, and(4) choose the best
solution and then implement it.
2. Environmental scanning is the process of identify-
ing factors that can affect marketing success. The
factors in environmental scanning include global,
technological, sociocultural, competitive, and eco-
nomic influences.
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Marketing to Consumers
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Segmenting the Consumer Market
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Segmenting the Consumer Market
Chapter 13 – Marketing: Helping Buyers Buy
Mass marketing uses little market segmentation. The goal
of relationship marketing is to keep customers happy by
offering products that meet their exact expectations.
1. Relationship marketing is all about moving away
from mass production and toward custom-made
goods and services.
2. This slide identifies the keys to successful relation-
ship marketing.
3. The goal of relationship marketing is to retain indi-
vidual customers over time by offering them new
products that meet their expectations.
4. Nike uses relationship marketing by creating cus-
tom-made shoes via NikeiD. Explore NikeiD in
class at www.nike.com to see relationship market-
ing in action.
Chapter 13 – Marketing: Helping Buyers Buy
• Learning: Creates changes in consumer behavior
through experiences and information
• Reference groups: Reference points in forming be-
liefs, attitudes, values. or behaviors
• Culture: The set of values, attitudes, and ways of
doing things passed from generations
13–52
Chapter 13 – Marketing: Helping Buyers Buy
1. The consumer market consists of all the individuals
or households that want goods and services for per-
sonal consumption or use and have the resources to
buy them. Business-to-business markets consist of
all the individuals and organizations that want
goods and services to use in producing other goods
and services or to sell, rent, or supply goods to oth-
ers.
2. Geographic segmentation is the process of dividing
the market by cities, counties, states, or regions.
Demographic segmentation involves dividing the
market by age, income, education level, religion,
race, and occupation. Psychographic segmentation
is the process of dividing the market by values, atti-
tudes, and interests. Benefit segmentation involves
determining which benefits to promote. Volume or
usage segmentation is the process of determining
how your customers purchase and use the product.
3. Niche marketing is identifying small but profitable
market segments and designing or finding products
for them. One-to-one marketing means developing
a unique mix of goods and service for each individ-
ual customer.
4. The four key factors that make B2B markets differ-
B2B marketplace sales are based on personal sell-
ing.
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lecture
links
“Consumers are statistics. Customers are people.”
Bill Gates
“It’s really hard to design products by focus groups. A lot of times, people don’t
know what they want until you show it to them.”
Steve Jobs
lecture link 13-1
UPDATING THE MARKETING CONCEPT
FROM PROVIDING CUSTOMER SATISFACTION TO EXCEEDING EXPECTATIONS
Marketing’s goal in the past was to provide customer satisfaction. Today, the goal of some Six
Sigma quality firms is to exceed customer expectations by providing goods and services that exactly meet
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BENCHMARKING AND UNITING ORGANIZATIONS
As we explained in Chapter 8, determining whether organizations are providing world-class ser-
vice and quality is done through competitive benchmarking. That means that companies compare their
MAINTAINING A PROFIT ORIENTATION
Marketing managers must make sure that everyone in the organization understands that the pur-
pose behind pleasing customers and uniting organizations is to ensure a profit for the firm. Using that
lecture link 13-2
PAT CROCE’S TEN COMMANDMENTS
Pat Croce, a minority owner and former president of the Philadelphia 76er NBA team, can be de-
scribed as the fusion of promotion and customer service. He is best known for revitalizing the failing
franchise through promotional stunts and “wanton acts of customer and employee pampering.” He once
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CROCE’S TEN COMMANDMENTS WITH HIS COMMENTS
• Every customer gets a hello and a goodbye. “It’s common courtesy. I love it when someone
says hello to me. Goodbye requires a little more caring and passion. If I make all the guards say
• Communicate clearly. “It’s the back half of ‘listen, listen, listen.’ You have to communicate so
that you don’t leave any windows of miscommunication open.”
• Be neat, clean, and fit. “Everyone likes an environment conducive to business. I don’t care if it’s
• Extend compliments. “When you feel better about yourself and the world, you’re more apt to
lecture link 13-3
SMALL BUSINESSES GOING MOBILE
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Translating a company’s current online presence into something suited for a smartphone isn’t dif-
ficult for large retailers with vast resources. For small businesses, however, migrating to the mobile medi-
lecture link 13-4
DISCONTINUING DISCOUNTS
Although the recession technically ended in 2010, its effects are likely to linger for years to come.
But for many of the companies that slashed prices during the downturn, sticking with those discounts un-
Sometimes a clever promotion can keep prices competitive without resorting to versioning. In the
automotive industry, rampant price cuts didn’t help move many cars as consumers felt wary of such a
large investment even with a discount. To counter these fears, Hyundai initiated its Assurance program
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lecture link 13-5
MARKETING IS MORE LISTENING THAN PERSUADING
It is often fun to play what might be called “the psychologist’s game” in class. The professor says
sky and the students say blue. Fish and water. Then the professor says marketing. What words come up?
A man from a nonprofit organization drives by and notices the woman. He immediately thinks
that she would be a major asset to his organization. He thinks that it would be a good idea to hire her and
have her tell people what to do. He has seen her at work (on the road) and knows she is effective at per-
suasion. So her hires her and puts her back next to the road. Except this time, she is telling people what
nonprofit organizations want people to do. She is saying, “Drive 55! Wear your seat belts! Save a whale!”
No one seems to be paying attention. Why? Before, she was telling people what to do and they all seemed
to be doing it. Now, she was standing at the same spot, but people were ignoring her. She was waving
them in one direction and they were going in the other. Why?
The answer is that people will do what you tell them to do if you tell them to do what they al-
ready are doing or want to do. On the other hand, they rarely do what they don’t want to do—no matter
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lecture link 13-6
KFC’S IDENTITY CRISIS
Recently KFC angered its franchisees with an Oprah-sponsored grilled chicken giveaway.
Though the promotion failed, KFC’s corporate offices continued to heavily market grilled chicken and its
line of sandwiches in order to distract health conscious customers from the “fried” part of Kentucky Fried
lecture link 13-7
THE COLA WARS IN INDIA
When it comes to global branding, nobody beats Coca-Cola. The soft drink is the de facto name
for soda in dozens of countries, consistently besting both local and multinational competitors to become
the world’s most recognized brand. That is, with one notable exception: In India, Pepsi—not Coke—is
the catchall word for all cold, fizzy drinks.
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Pepsi earned this rare honor simply by arriving in the Indian market before Coke did. Technical-
ly, Coke was the first Western soft drink to hit India’s shores after it set up a small presence there in the
lecture link 13-8
DEWALT IDENTIFIES ITS TARGET MARKET
By the late 1980s the DeWalt brand of power tools was failing. The production of the line was
halted, and the brand was shelved. Makita, a Japanese tool company, had taken over the market. It “had
eaten our lunch throughout the ‘80s,” says Nola Archibald, CEO of Black & Decker, which owns the
DeWalt name. “So we started doing a bunch of research.” The findings were surprising. Consumers were
lukewarm about DeWalt tools, but professional tool users had a high regard for the brand. “The light went
on,” says Archibald. Black & Decker launched a line of portable electric power tools under the DeWalt
name in 1992, and then an innovative line of cordless tools two years later.
In a short time, the company has become one of Black & Decker’s most profitable divisions.
With $1 billion in annual sales, it commands a 35% share of the professional-tool market.
How did DeWalt fix itself? The company decided to market DeWalt primarily to professionals—