Chapter 13 – Marketing: Helping Buyers Buy
13-1
chapter
=
Marketing:
Helping Buyers Buy
what’s new in this edition 13.3
brief chapter outline and learning objectives 13.5
lecture outline and lecture notes 13.7
PowerPoint slide notes 13.37
lecture enhancers 13.56
lecture enhancer 13–1: UPDATING THE MARKETING CONCEPT 13.56
lecture enhancer 13–2: PAT CROCE’S TEN COMMANDMENTS 13.57
lecture enhancer 13–3: SMALL BUSINESSES GOING MOBILE 13.58
lecture enhancer 13–4: FAST FOOD’S SECRET MENU PROBLEM 13.59
lecture enhancer 13-5: BLACK FRIDAY SALES FALL 13.59
lecture enhancer 13-6: THE COLA WARS IN INDIA 13.60
lecture enhancer 13-7: DEWALT IDENTIFIES ITS TARGET MARKET 13.61
lecture enhancer 13-8: FAMILY LIFE CYCLE THEORY UPDATED 13.61
13
Chapter 13 – Marketing: Helping Buyers Buy
13-2
critical thinking exercises 13.64
critical thinking exercise 13–1: FIND A NEED AND FILL IT 13.64
critical thinking exercise 13-2: GOOD TO THE LAST DROP 13.66
critical thinking exercise 13-3: IDENTIFYING THE TARGET MARKET 13.70
critical thinking exercise 13-4: THE MARKETING OPPORTUNITY 13.73
critical thinking exercise 13-5: CONSUMER OR B2B GOOD? 13.75
bonus cases 13.77
bonus case 13–1: CUSTOMER-ORIENTED MARKETING CONCEPTS AT 13.77
THERMOS
bonus case 13–2: FOOD MARKETING IN THE INNER CITY 13.79
bonus case 13–3: LINING UP FOR FREE APPS 13.81
bonus case 13–4: MARKETING TO THE BABY BOOM GENERATION 13.82
Chapter 13 – Marketing: Helping Buyers Buy
13-3
what’s new in
this edition
additions to the 11th edition:
• Getting to Know Daymond John of FUBU
• Name That Company: KFC Canada
• Seeking Sustainability: Making Sustainability Just Peachy
• Reaching Beyond Our Borders: Two is Better than One
• Adapting to Change: Turing Negatives to Positive
• New subsection: The Emerging Mobile/On-Demand Marketing Era
• New section: Building Marketing Relationships
• Video Case: Energizer
revisions to the 11th edition:
• Statistical data and examples throughout the chapter were updated to reflect current information.
deletions from the 10th edition:
• Getting to Know Joseph Jimenez
• Spotlight on Small Business
• Thinking Green
• Social Media in Business
Chapter 13 – Marketing: Helping Buyers Buy
13-4
Chapter 13 – Marketing: Helping Buyers Buy
13-5
brief chapter outline
and learning objectives
CHAPTER 13
MARKETING: HELPING BUYERS BUY
Getting to Know DAYMOND JOHN of FUBU
learning objective 1
Define marketing, and apply the marketing concept to both for–profit
and nonprofit organizations.
I. WHAT IS MARKETING?
A. The Evolution of Marketing
1. The Production Era
2. The Selling Era
3. The Marketing Concept Era
4. The Customer Relationship Era
5. The Emerging Mobile/On-Demand Marketing Era
B. Nonprofit Organizations and Marketing
learning objective 2
Describe the four Ps of marketing.
II. THE MARKETING MIX
A. Applying the Marketing Process
B. Designing a Product to Meet Consumer Needs
C. Setting an Appropriate Price
D. Getting the Product to the Right Place
E. Developing an Effective Promotional Strategy
learning objective 3
Summarize the marketing research process.
III. PROVIDING MARKETERS WITH INFORMATION
A. The Marketing Research Process
learning objective 4
Show how marketers use environmental scanning to learn about the
changing marketing environment.
Chapter 13 – Marketing: Helping Buyers Buy
13-6
IV. THE MARKETING ENVIRONMENT
A. Global Factors
B. Technological Factors
C. Sociocultural Factors
D. Competitive Factors
E. Economic Factors
V. TWO DIFFERENT MARKETS: CONSUMER AND BUSINESS–TO–
BUSINESS (B2B)
learning objective 5
Explain how marketers apply the tools of market segmentation, rela-
tionship marketing, and the study of consumer behavior.
VI. THE CONSUMER MARKET
A. Segmenting the Consumer Market
B. Reaching Smaller Market Segments
C. Building Marketing Relationships
D. The Consumer Decision-Making Process
learning objective 6
Compare the business–to–business market and the consumer market.
VII. THE BUSINESS-TO-BUSINESS MARKET
VIII. YOUR PROSPECTS IN MARKETING
IX. SUMMARY
Chapter 13 – Marketing: Helping Buyers Buy
13-7
Getting to Know DAYMOND JOHN of FUBU
Daymond John used his savvy marketing skills and celebrity connections to turn
FUBU into a multi–million dollar lifestyle brand.
learning objective 1
Define marketing, and apply the marketing concept to both for–profit and nonprofit
organizations.
I. WHAT IS MARKETING?
A. MARKETING is the activity, set of institutions, and
processes for creating, communicating, delivering,
and exchanging offerings that have value for custom-
ers, clients, partners, and society at large.
1. Selling and advertising are only part of marketing.
2. Marketing includes the activities buyers and
sellers perform to facilitate mutually satisfying ex-
changes.
3. In the past, marketing focused on helping the
seller sell.
a. Some people still think of marketing as mostly
selling, advertising, and distribution from the
seller to the buyer.
b. Today marketing is more about helping the
buyer buy.
c. The text uses the example of buying a new or
This company studies population growth and regional trends as it expands its product line for
specific regions of the country. Its research led to the creation of Creole flavors targeted pri-
marily to the South and spicy nacho cheese flavors made especially for Texas and California.
Name that company.
(Students should read the chapter before guessing the company’s name: Campbell
Soup.)
Chapter 13 – Marketing: Helping Buyers Buy
13-8
PPT 13-1
Chapter Title
Copyright © 2015 by the McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Marketing:
Helping
Buyers Buy
CHAPTER 13
PPT 13-2
Learning Objectives
LEARNING OBJECTIVES
13-2
1. Define marketing, and apply the marketing concept
to both for-profit and nonprofit organizations.
2. Describe the four P’s of marketing.
3. Summarize the marketing research process.
PPT 13-3
Learning Objectives
LEARNING OBJECTIVES
13-3
4. Show how marketers use environmental scanning to
learn about the changing marketing environment.
5. Explain how marketers apply the tools of market
segmentation, relationship marketing and the study
of consumer behavior.
6. Compare the business-to-business market and the
consumer market.
PPT 13-4
Daymond John
DAYMOND JOHN
FUBU
13-4
• Started sewing wool hats in his
apartment in 1989 and sold
them on the street.
• He started designing other
products and created the brand
FUBU.
• After many rocky years, John
has earned millions and advises
others on Shark Tank.
PPT 13-5
Name That Company
NAME that COMPANY
13-5
This company studies population growth and
regional trends as it expands its product line for
specific regions of the country. Its research led to
the creation of Creole flavors targeted primarily
in the South and spicy nacho chees flavors mad
especially for Texas and California.
Name that company!
(See complete PowerPoint slide notes on page 13.37.)
PPT 13-6
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.
WHAT’S MARKETING?
13-6
LO 13-1
bonus case 13-1
CUSTOMER-ORIENTED MARKET-
ING CONCEPTS AT THERMOS
To become a world-class competitor, Thermos completely rein-
vented the way it conducted its marketing operations. (See the
complete case, discussion questions, and suggested answers be-
ginning on page 13.78 of this manual.)
Chapter 13 – Marketing: Helping Buyers Buy
13-9
used car, using websites to research before
buying.
4. Helping the buyer buy also helps the seller sell.
5. Traditional retailers who rely solely on traditional
advertising and selling are losing out to new
ways of marketing.
B. THE EVOLUTION OF MARKETING
1. Marketing in the U.S. has passed through four
eras.
2. THE PRODUCTION ERA
a. Until the early 1900s, the general philosophy
was to “produce as much as you can be-
cause there is a limitless market.”
b. The goals of business CENTERED ON
PRODUCTION.
c. The greatest marketing need was for more
production and improved distribution and
storage.
3. THE SELLING ERA
a. By the 1920s, capacity often exceeded mar-
ket needs.
b. The business philosophy turned to an EM-
PHASIS ON SELLING AND ADVERTISING
to sell existing products.
4. THE MARKETING CONCEPT ERA
a. The BABY BOOM after WWII created a
tremendous demand for goods and services.
i. Competition for the consumer’s dollar
Chapter 13 – Marketing: Helping Buyers Buy
13-10
PPT 13-7
Focus of Contemporary Marketing
FOCUS of CONTEMPORARY
MARKETING
13-7
• 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.
LO 13-1
PPT 13-8
Four Eras of U.S. Marketing
FOUR ERAS of U.S. MARKETING
13-8
• Production Era
• Selling Era
• Marketing Concept Era
• Customer Relationship
Era
LO 13-1
TEXT FIGURE 13.1
Marketing Eras
PPT 13-9
The Production and Selling Eras
The PRODUCTION and
SELLING ERAS
13-9
• The general philosophy
was “Produce what you
can because the market
is limitless.”
• After mass production,
the focus turned from
production to persuasion.
LO 13-1
PPT 13-10
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 MARKETING CONCEPT ERA
13-10
LO 13-1
Chapter 13 – Marketing: Helping Buyers Buy
13-11
was fierce.
ii. If they wanted to get their business,
businesses had to be RESPONSIVE TO
CONSUMERS.
b. The MARKETING CONCEPT emerged in
the 1950s.
c. The MARKETING CONCEPT is a three-part
business philosophy:
i. A CUSTOMER ORIENTATION: Find out
what consumers want and provide it.
ii. A SERVICE ORIENTATION: Make sure
everyone in the organization has the
same objective: CUSTOMER SATIS-
FACTION.
iii. A PROFIT ORIENTATION: Focus on
those goods and services that will earn
the most profit.
d. During the 1980s, business began to apply
the marketing concept more aggressively.
5. THE CUSTOMER RELATIONSHIP ERA
a. CUSTOMER RELATIONSHIP MANAGE-
MENT (CRM) is the process of learning as
much as possible about customers and do-
ing everything you can to satisfy them—or
even exceed their expectations—with goods
and services over time.
b. The goal is to enhance customer satisfaction
and stimulate long-term customer loyalty.
c. Customer relationship building now involves
Chapter 13 – Marketing: Helping Buyers Buy
13-12
lecture enhancer 13–1
UPDATING THE MARKETING
CONCEPT
PPT 13-11
Applying the Marketing Concept
APPLYING the
MARKETING CONCEPT
13-11
LO 13-1
• The Marketing Concept includes three parts:
1. Customer Orientation — Finding out what
customers want and then providing it.
2. Service Orientation — Making sure everyone in an
organization is committed to customer
satisfaction.
3. Profit Orientation — Focusing on the goods and
services that will earn the most profit.
lecture enhancer 13–2
PAT CROCE’S TEN
COMMANDMENTS
PPT 13-12
The Customer Relationship Era
The CUSTOMER
RELATIONSHIP ERA
13-12
LO 13-1
• 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.
PPT 13-13
The Emerging Mobile Marketing
Era
The EMERGING
MOBILE MARKETING ERA
13-13
LO 13-1
• As digital technology continues to grow,
consumer demands are expected to rise in:
1. Now: Consumers want to interact anywhere, anytime.
2. Can I?: They want to use information in new ways that
create value for them.
3. For me: Consumers expect personalized experiences.
4. Simply: Consumers want all interactions to be easy.
PPT 13-14
Service with a Smile
• The cost of acquiring a new customer is 5x the
cost of retaining one. Here’s how to keep them:
SERVICE with a SMILE
Six Steps for Keeping Your Customers Happy
13-14
Source: Inc. Guidebook, Vol. 2 No. 5.
LO 13-1
1. Build trust
2. Emphasize the long term
3. Listen
4. Treat your customers like stars
5. Show appreciation
6. Remember employees are
customers too!
lecture enhancer 13-3
SMALL BUSINESSES GOING MO-
BILE
Chapter 13 – Marketing: Helping Buyers Buy
13-13
social networks, online communities, and
blogs.
6. THE EMERGING MOBILE/ON-DEMAND
MARKETING ERA – Through social media and
mobile devices, information is shared 24-7.
C. NONPROFIT ORGANIZATIONS AND MARKET-
ING
1. Marketing is a crucial part of almost all organiza-
tions, profit and nonprofit.
2. Charities, churches, politicians, states, and
many other organizations all use marketing.
learning objective 2
Describe the four Ps of marketing.
II. THE MARKETING MIX
A. Pleasing customers has become a priority.
1. The FOUR FACTORS OF MARKETING are:
a. Product
b. Price
c. Place
d. Promotion
2. CONTROLLABLE PARTS of the marketing
process involve:
a. Designing a want-satisfying PRODUCT
b. Setting a PRICE for the product
c. Putting the product in a PLACE where peo-
ple will buy it
d. PROMOTING the product
Chapter 13 – Marketing: Helping Buyers Buy
13-14
bonus case 13-2
FOOD MARKETING IN THE INNER
CITY
SEEKING
sustainability
PPT 13-15
Making Sustainability Just Peachy
MAKING SUSTAINABILITY
JUST PEACHY
13-15
• Campbell Soup is one of the
100 Most Sustainable
Corporations in the World.
• They work with local farmers
in New Jersey to use peaches
unfit for purchase.
• Campbell’s manufactures
peach salsa at no cost and
donates proceeds to the Food
Bank of South Jersey.
PPT 13-16
Nonprofit Marketing
• Nonprofit marketing tactics include:
NONPROFIT MARKETING
13-16
LO 13-1
– Fundraising
– Public Relations
– Special Campaigns
– Ecological practices
– Changing public opinions and
attitudes
– Increasing organizational
membership
PPT 13-17
Marketing Strategies for Nonprofits
MARKETING STRATEGIES for
NONPROFITS
13-17
LO 13-1
• 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
PPT 13-18
The Four Ps
TEXT FIGURE 13.2
Marketing Managers and the
Marketing Mix
The FOUR P’s
13-18
LO 13-2
bonus case 13-3
LINING UP FOR FREE APPS
Chapter 13 – Marketing: Helping Buyers Buy
13-15
3. These factors are known as the MARKETING
MIX, the ingredients that go into a marketing
program: product, price, place, and promotion.
B. APPLYING THE MARKETING PROCESS
1. To present an overview of the marketing pro-
cess, the text takes a hypothetical vegetarian
restaurant, Very Vegetarian, through the market-
ing process.
2. The process involves:
a. Recognizing a need
b. Researching the market
c. Identifying the TARGET MARKET (the peo-
ple you will try to persuade to buy your
product)
C. DESIGNING A PRODUCT TO MEET CONSUMER
NEEDS
1. First, develop a product to fill the identified need
(the text continues the example of the vegetari-
an restaurant).
2. A PRODUCT is any physical good, service, or
idea that satisfies a want or need plus anything
that would enhance the product in the eye of
consumers, such as the brand.
3. The next step is CONCEPT TESTING, develop-
ing an accurate description of your product and
asking people whether or not the concept (the
idea of the restaurant) appeals to them.
4. TEST MARKETING is the process of testing
products among potential users.