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Chapter 13 - Marketing: Helping Buyers Buy
13-16
TEXT FIGURE 13.3
The Marketing Process with
the Four Ps
This text figure shows the process that leads to the devel-
opment and sale of a product.
PPT 13-19
Developing a Product
• Product -- A good, service, or idea that satisfies a
consumer
’
s want or need.
DEVELOPING a PRODUCT
13-19
LO 13-2
• 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.
lecture enhancer 13-4
FAST FOOD’S SECRET MENU
PROBLEM
“Secret Menu” items at many fast food chains often find
themselves to be very popular with the market. Unfortunately
with that popularity comes problems. (See the complete lec-
ture enhancer on page 13.59 of this manual.)
Chapter 13 - Marketing: Helping Buyers Buy
13-17
5. Next, decide which brand names should be of-
fered to attract customers.
6. 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.
7. These steps create THE FIRST “P”—
PRODUCT.
D. SETTING AN APPROPRIATE PRICE (the second
“P”)
1. The price depends on a number of factors, such
as the price of competing restaurants.
2. You also have to consider the costs of produc-
ing, distributing, and promoting the product.
E. GETTING THE PRODUCT TO THE RIGHT PLACE
(the third “P”)
1. Once the product is manufactured, you have to
decide how to get it to the consumer.
2. You may want to sell your product through IN-
TERMEDIARIES (MARKETING MIDDLEMEN),
organizations that specialize in distributing
goods from producer to customer.
F. DEVELOPING AN EFFECTIVE PROMOTIONAL
STRATEGY (the fourth “P”)
1. PROMOTION includes all the techniques sellers
use to inform people and motivate them to buy
products or services.
2. RELATIONSHIP BUILDING WITH CUSTO-
MERS includes responding to any suggestions
they may make to improve the product or the
Chapter 13 - Marketing: Helping Buyers Buy
13-18
critical thinking
exercise 13-1
FIND A NEED AND FILL IT
This exercise asks the student to look around himself or her-
self to identify a need that is unfilled. (See the complete exer-
cise on page 13.64 of this manual.)
lecture enhancer 13-5
BLACK FRIDAY SALES FALL
Is Black Friday waning in popularity or are people no longer
seeking deep discounts with the price of monstrous lines? (See
the complete lecture enhancer on page 13.59 of this manual.)
PPT 13-20
Pricing and Placing a Product
PRICING and
PLACING a PRODUCT
13-20
LO 13-2
• 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.
PPT 13-21
Promoting the Product
PROMOTING the PRODUCT
13-21
PhotoCourtesyof:UriBaruchin
LO 13-2
• 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
- Word of mouth
- Sales promotions
PPT 13-22
Perfect Promotion
• Get customers emotional about your product:
- Make your product “built to love.”
- Use emotion-laden advertising.
PERFECT PROMOTION
How to Get Customers to Need Your Product
13-22
Sources: Entrepreneur, www.entrepreneur.com, accessed November 2014.
LO 13-2
• Be a likeable salesperson:
- Have confidence.
- Be intriguing.
- Show interest in others.
- Be enthusiastic and
respectful.
Chapter 13 - Marketing: Helping Buyers Buy
13-19
marketing of the product.
3. Listening to customers is the key to marketing.
learning objective 3
Summarize the marketing research process.
III. PROVIDING MARKETERS WITH INFOR-
MATION
A. MARKETING RESEARCH is the analysis of mar-
kets to determine opportunities and challenges, and
to find the information needed to make good deci-
sions.
1. One goal is to determine exactly what consum-
ers want and need, now and in the future.
2. Businesses need information to compete effec-
tively, and MARKETING RESEARCH is the ac-
tivity that gathers that information.
3. In addition to customers, marketers should pay
attention to the views of employees, sharehold-
ers, consumer advocates, and other stakehold-
ers.
B. THE MARKETING RESEARCH PROCESS
1. STEP 1. Defining the problem and determining
the present situation
2. STEP 2. Collecting data
a. Research can be quite expensive, so SOME
TRADE-OFF must be made between infor-
mation needed and the cost.
b. SECONDARY DATA is information that has
already been compiled by others and pub-
Chapter 13 - Marketing: Helping Buyers Buy
13-20
PPT 13-23
Tangled Web of Promotion
TANGLED WEB of PROMOTION
Seven Sins of Web Design
13-23
Source: Entrepreneur, www.entrepreneur.com, accessed November 2014.
PhotoCredi :CortesdeCima
LO 13-2
• Too much clutter
• Too difficult to navigate
• Stale information
• Copycatting
• Ignoring the needs of your
customer base
• Not analyzing data
• Refusing to get outside help
test
prep
PPT 13-24
Test Prep
TEST PREP
13-24
• What does it mean to “help the buyer buy?”
• What are the three parts of the marketing
concept?
• What are the Four P’s of the Marketing Mix?
PPT 13-25
Searching for Information
SEARCHING for INFORMATION
13-25
LO 13-3
• 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.
PPT 13-26
Four Steps in the Marketing
Research Process
FOUR STEPS in the MARKETING
RESEARCH PROCESS
13-26
LO 13-3
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.
PPT 13-27
Defining the Problem or
Opportunity
DEFINING the PROBLEM or
OPPORTUNITY
13-27
LO 13-3
• What’s the present situation?
• What are the alternatives?
• What information is needed?
• How should the information be
gathered?
Chapter 13 - Marketing: Helping Buyers Buy
13-21
lished in journals and books or made availa-
ble online.
c. Despite its name, secondary data should be
gathered first as it is the least expensive.
d. When secondary data don’t provide all the
necessary information, marketers must do
their own research.
e. The result of new studies is PRIMARY DA-
TA, data that you gather yourself (not from
secondary sources such as books and mag-
azines).
f. Telephone surveys, online surveys, mail
surveys, and personal interviews are the
most common methods of gathering survey
information.
g. A FOCUS GROUP is a small group of peo-
ple who meet under the direction of a dis-
cussion leader to communicate their opin-
ions about an organization, its product, or
other given issues.
h. Marketers can now gather both secondary
and primary data online.
3. STEP 3. Analyzing the research data
a. The data collected must be turned into use-
ful information.
b. Careful, honest interpretation of the data can
reveal specific marketing challenges.
4. STEP 4. Choosing the best solution and imple-
menting it
Chapter 13 - Marketing: Helping Buyers Buy
13-22
PPT 13-28
Collecting Secondary Research
Data
• Secondary Data -- Existing data that has
previously been collected by sources like the
government.
COLLECTING SECONDARY
RESEARCH DATA
13-28
LO 13-3
• Secondary data incurs no
expense and is usually
easily accessible.
• Secondary data doesn’t
always provide all the
needed information for
marketers.
TEXT FIGURE 13.4
Selected Sources of Primary and
Secondary Information
This text figure lists the principal sources of secondary mar-
keting research information.
critical thinking
exercise 13-2
GOOD TO THE LAST DROP
This exercise involves an in-class product comparison. Can
students identify the taste of their favorite cola in a blind taste
test? (See the complete exercise on page 13.66 of this manu-
al.)
PPT 13-29
Collecting Primary Research Data
COLLECTING PRIMARY
RESEARCH DATA
13-29
LO 13-3
• 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.
PPT 13-30
Focus Groups
• Focus Group -- A group of people who meet under
the direction of a discussion leader to communicate
opinions.
FOCUS GROUPS
13-30
LO 13-3
PPT 13-31
Analyzing the Data and
Implementing the Decision
Chapter 13 - Marketing: Helping Buyers Buy
13-23
a. Researchers determine ALTERNATIVE
STRATEGIES and make recommendations
as to which strategy may be best.
b. The actions taken should be FOLLOWED
UP to see if results were as expected.
5. Marketing is an ONGOING PROCESS; compa-
nies must continually adapt to changes in the
market.
learning objective 4
Show how marketers use environmental scanning to learn about the changing
marketing environment.
IV. THE MARKETING ENVIRONMENT
A. ENVIRONMENTAL SCANNING is the process of
identifying the factors that can affect marketing suc-
cess.
B. GLOBAL FACTORS
1. The most important global change today is the
growth of the Internet.
2. Globalization has also put pressure on compa-
nies that deliver products.
C. TECHNOLOGICAL FACTORS include the Internet,
the growth of consumer databases, flexible manu-
facturing, and mass customization.
D. SOCIOCULTURAL FACTORS include population
growth and changing demographics, such as the ag-
ing population and the preferences of various ethnic
groups.
E. COMPETITIVE FACTORS
1. Brick-and-mortar companies must adjust to new
Chapter 13 - Marketing: Helping Buyers Buy
13-24
PPT 13-32
Key Benefits of Marketing
Research
KEY BENEFITS of MARKETING
RESEARCH
13-32
LO 13-3
• Analyze customer needs and satisfaction.
• Analyze current markets and opportunities.
• Analyze the effectiveness of marketing strategies.
• Analyze marketing process and tactics currently
used.
• Analyze the reasons for goal achievement or
failure.
PPT 13-33
Ways to Find Out What Consumers
Think
• Conduct informal consumer surveys
WAYS to FIND OUT WHAT
CONSUMERS THINK
13-33
LO 13-3
• Host a customer focus
group
• Listen to competitor’s
customers
• Survey your sales force
• Become a “phantom”
customer
PPT 13-34
Scanning the Marketing
Environment
• Environmental Scanning -- The process of
identifying factors that affect marketing success.
SCANNING the MARKETING
ENVIRONMENT
13-34
LO 13-4
• Factors involved in the
environmental scan include:
- Global factors
- Technological factors
- Sociocultural factors
- Competitive factors
- Economic factors
REACHING
BEYOND
our
borders
PPT 13-35
Two is Better
Than One
TWO is BETTER THAN ONE
13-35
• China is setting aside its strict one-
child policy and allowing two
children if one of the spouses is an
only child.
• Legos are far more expensive in
China and part of that is due to
distribution costs.
• By building a factory near Shanghai,
Lego hopes to take advantage of
the potential market growth and
lessen the price for families.
PPT 13-36
The Marketing Environment
TEXT FIGURE 13.5
The Marketing Environment
The MARKETING ENVIRONMENT
13-36
LO 13-4
Chapter 13 - Marketing: Helping Buyers Buy
13-25
competition from the Internet.
2. They have to adapt to competitors, who can de-
liver products quickly or provide excellent ser-
vice.
F. ECONOMIC FACTORS
1. Marketers must pay close attention to the eco-
nomic environment in the U.S. and globally.
2. The economic collapse starting in 2008 slowed
sales, and became global in scope.
V. TWO DIFFERENT MARKETS: CONSUMER
AND BUSINESS-TO-BUSINESS (B2B)
A. THERE ARE TWO MAJOR MARKETS:
1. The CONSUMER MARKET is made up of all
the individuals or households that want goods
and services for personal consumption or use.
2. The BUSINESS-TO-BUSINESS (B2B) MAR-
KET consists of all the individuals and organiza-
tions that want goods and services to use in
producing other goods and services or to sell,
rent, or supply goods to others (traditionally
called INDUSTRIAL GOODS and SERVICES).
B. The buyer’s REASON FOR BUYING and the END
USE of the product determine whether it is consid-
ered a consumer product or a B2B product.
Chapter 13 - Marketing: Helping Buyers Buy
13-26
lecture enhancer 13-6
THE COLA WARS IN INDIA
Coke dominates Pepsi, but not in India. Coke is now ramping
up its promotion in India to try and oust its main competitor.
(See the complete lecture enhancer on page 13.60 of this man-
ual.)
bonus case 13-4
MARKETING TO THE BABY BOOM
GENERATION
The baby boomer generation, the largest population group, is a
profitable market for targeted products and services. (See the
complete case, discussion questions, and suggested answers
beginning on page 13.82 of this manual.)
PPT 13-37
The ABCs of Marketing
The ABC’s of MARKETING
13-37
LO 13-4
• Always be customer-focused.
• Benchmark against the best firms.
• Continuously improve performance.
• Develop the best value package.
• Empower your employees.
• Focus on relationship building.
• Goal achievement is the reward.
PPT 13-38
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.
The CONSUMER and
B2B MARKET
13-38
LO 13-4
• Business-to-Business
(B2B) -- Individuals and
organizations that buy goods
and services to use in
production or to sell, rent, or
supply to others.
test
prep
PPT 13-39
Test Prep
TEST PREP
13-39
• What are the four steps in the marketing research
process?
• What’s environmental scanning?
• What factors are included in environmental
scanning?
Chapter 13 - Marketing: Helping Buyers Buy
13-27
learning objective 5
Explain how marketers apply the tools of market segmentation, relationship
marketing, and the study of consumer behavior.
VI. THE CONSUMER MARKET
A. Consumer groups differ greatly in age, education
level, income, and taste.
1. Marketers must first decide which group to serve
and then develop products and services special-
ly tailored to their needs (as Campbell Soup
Company does).
2. MARKET SEGMENTATION is the process of
dividing the total market into groups whose
members have similar characteristics.
3. TARGET MARKETING is marketing directly to-
ward those groups (market segments) an organ-
ization decides it can serve profitably.
B. SEGMENTING THE CONSUMER MARKET
1. GEOGRAPHIC SEGMENTATION is dividing a
market by cities, counties, states, or regions.
2. DEMOGRAPHIC SEGMENTATION is dividing
the market by age, income, and education level.
3. PSYCHOGRAPHIC SEGMENTATION is divid-
ing the market using the group’s values, atti-
tudes, and interests.
4. BENEFIT SEGMENTATION is dividing the mar-
ket by determining which benefits of the product
to talk about.
5. VOLUME, OR USAGE, SEGMENTATION is di-
viding the market by usage (volume of use).
6. The best segmentation strategy is to USE ALL
Chapter 13 - Marketing: Helping Buyers Buy
13-28
PPT 13-40
Marketing to Consumers
MARKETING to CONSUMERS
13-40
LO 13-5
• 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.
critical thinking
exercise 13-3
IDENTIFYING THE TARGET
MARKET
This exercise asks the student to identify the target market for
various products and services. (See the complete exercise on
page 13.70 of this manual.)
lecture enhancer 13-7
DEWALT IDENTIFIES ITS TARGET
MARKET
DeWalt Tools discovered that it was targeting the wrong target
market. (See the complete lecture enhancer on page 13.61 of
this manual.)
PPT 13-41
Segmenting the Consumer Market
SEGMENTING the
CONSUMER MARKET
13-41
LO 13-5
• 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, attitudes, and interests.
PPT 13-42
Segmenting the Consumer Market
SEGMENTING the
CONSUMER MARKET
13-42
LO 13-5
• Benefit Segmentation -- Dividing the market
according to product benefits the customer prefers.
• Volume (Usage) Segmentation -- Dividing the
market by the volume of product use.
PPT 13-43
Segmenting the Consumer Market
TEXT FIGURE 13.6
Market Segmentation
SEGMENTING the
CONSUMER MARKET
13-43
LO 13-5
PPT 13-44
Segmenting the Consumer Market
SEGMENTING the
CONSUMER MARKET
13-44
LO 13-5
Chapter 13 - Marketing: Helping Buyers Buy
13-29
THE VARIABLES to come up with a consumer
profile that’s sizable, reachable, and profitable.
C. REACHING SMALLER MARKET SEGMENTS
1. NICHE MARKETING is the process of finding
small but profitable market segments and de-
signing custom-made products for them.
2. The text uses the example of Fridgedoor.com
selling refrigerator magnets.
3. ONE-TO-ONE MARKETING means developing
a unique mix of goods and services for each in-
dividual customer.
4. It is easier to do one-to-one marketing in B2B
markets, but is becoming possible in consumer
markets as well.
D. BUILDING MARKETING RELATIONSHIPS
1. MASS MARKETING means developing prod-
ucts and promotions to please large groups of
people.
a. The mass marketer tries to sell products to
as many people as possible.
b. That means using mass media, such as TV,
radio, and newspapers.
2. RELATIONSHIP MARKETING is a marketing
strategy with the goal of keeping individual cus-
tomers over time by offering them products that
exactly meet their requirements.
a. RELATIONSHIP MARKETING moves away
from mass production toward CUSTOM-
MADE GOODS.
Chapter 13 - Marketing: Helping Buyers Buy
13-30
PPT 13-45
Marketing to Small Segments
• Niche Marketing -- Identifies small but profitable
market segments and designs or finds products for
them.
MARKETING to
SMALL SEGMENTS
13-45
LO 13-5
• One-to-One
Marketing-- Developing
a unique mix of goods
and services for each
individual consumer.
PPT 13-46
Mass Marketing vs. Relationship
Marketing
MASS MARKETING vs.
RELATIONSHIP MARKETING
13-46
LO 13-5
• 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.
PPT 13-47
Keys to Successful Relationship
Marketing
KEYS to SUCCESSFUL
RELATIONSHIP MARKETING
13-47
LO 13-5
• Effective relationship marketing is built on:
- Open communication
- Consistently reliable service
- Staying in contact with customers
- Trust, honesty, and ethical behavior
- Showing that you truly care
