marketing and consumer behavior © 2012 pearson education, inc. publishing as prentice hall 12-1...
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Marketing and Consumer Behavior
© 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-1
chapter12
Better Business2nd Edition
Solomon (Contributing Editor) · Poatsy · Martin
Learning Objectives1. 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?
© 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-2
Marketing Fundamentals
• Marketingo An organizational functiono 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
• Producto Any tangible good, service, or idea available
for purchase in a market o Plus any intangible benefits derived from its
consumption© 2012 Pearson Education, Inc.
Publishing as Prentice Hall 12-3
Production Era & Sales Concept Era
Production EraProduction Era
• Industrial Revolution until 1920s
• Limited supplies and strong demand
• A good-quality product sold itself
• Industrial Revolution until 1920s
• Limited supplies and strong demand
• A good-quality product sold itself
Sales Concept EraSales Concept Era
• Mid 1920s to early 1950s
• Production greater than demand
• Greater competition for customers
• Heavy public advertising
• Mid 1920s to early 1950s
• Production greater than demand
• Greater competition for customers
• Heavy public advertising
© 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-5
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
© 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-6
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
© 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-7
Nontraditional Marketing
• Not-for-profit organizations must market their events, causes, locations, or individualso Charitable organizationso Countries, states, and citieso Churcheso Museums o People
© 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-8
Benefits of Marketing
• CustomersoUtility• Form• Ownership• Time• Place
oValue = benefits/costs
• Investors• Employees• Society• Sellers
© 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-9
Criticisms of Marketing
• Misuse of personal information
• Hidden Fees • Consequences of
purchase
© 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-10
Primary and Secondary Sources of Data
Primary Sources of DataPrimary Sources of Data
• Observation• Questionnaires• Surveys • Focus groups• Interviews• Customer feedback• Sampling• Controlled
experiments
• Observation• Questionnaires• Surveys • Focus groups• Interviews• Customer feedback• Sampling• Controlled
experiments
Secondary Sources of DataSecondary Sources of Data
• Government publications
• Commercial publications
• Organizational publications
• Magazines• Newspapers• Internal sources
• Government publications
• Commercial publications
• Organizational publications
• Magazines• Newspapers• Internal sources
© 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-16
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)
© 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-17
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)
© 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-20
Consumer Markets
1. Need recognition2. Information
search 3. Evaluation of
alternatives 4. Purchase or no
purchase decision 5. Post-purchase
evaluation
© 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-21
What Influences Consumer Decision Making?
© 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-22
Differences Between B2B and Consumer Markets
© 2012 Pearson Education, Inc. Publishing as Prentice Hall 12-23
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 economyo Technological factorso The degree of competition facing the companyo Political and regulatory concernso Organizational objectives, policies, and
procedures© 2012 Pearson Education, Inc.
Publishing as Prentice Hall 12-24
Chapter Summary1. 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 12-25