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Management (MGT)
Chris Bovaird

Chapter 5 Managing Marketing Marketing planning and executing the development, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy both buyers and sellers objectives. Marketing Concept The idea that the whole firm is directed toward serving present and potential customers at a profit Value Relative comparison of a products benefits versus its costs = Benefits/Cost Utility Ability of a product to satisfy a human want or need Types of utility Time utility- makes products available when consumers want them Place utility makes products where consumers can conveniently purchase them Ownership utility conveniently transferring ownership from owner to customer Form utility turning raw materials into finished ornaments Consumer goods products purchase by individuals for their personal use Industrial goods products purchased by companies to use directly or indirectly to produce other products Services intangible products, such as time, expertise, or an activity that can be purchased Marketing managers responsible for planning and implementing all the marketing mix activities that result in the transfer of goods or services to consumers Marketing plan a detailed strategy for gearing the marketing mix to meet the consumer needs and wants Product A good, service or idea that satisfies buyers needs and demands Product differentiation the creation of a product or product image that differs enough from existing products to attract customers Price that part of the marketing mix concerned with choosing the appropriate price for a product to meet the firm;s profit objectives and buyers purchasing objectives Distribution that part of the marketing mix concerned with getting products from the producer to the buer, including physical transportation and choice of sales outlets Promotion techniques for communicating information about products Target Market any group of people who have similar wants and needs and may be expected to show interest in the same products Market segmentation dividing a market into categories according to traits customers have in common Identifying Market Segments Geographic variables geographical units that may be considered in a segmentation strategy Demographics variables characteristic of populations that may be considered in developing a segmentation strategy. Includes age, income, gender, ethnicity, martal status, race, religion and social class. Psychographic variables psychological traits that a group has in common, including motives, attitudes, activities, interests and opinions Product-use variables consumer characteristics based on the use of a product, benefits expected from it, reasons for purchasing it and loyalty to it Market research the systematic study of what buyers need and how best to meet those needs The Research Process Study the current situation need and what is being done at this point Select a research method determine the effectiveness and cost of different methods Collect data Analyze the data Prepare a report include summary of the studys methodology and findings. Identify alternative solutions and recommendations Secondary data information already available to market researchers as a result of previous research by the firm or its agents Primary data information developed through new research by the firm or its agents Research Methods Observation market research technique involving viewing or otherwise monitoring consumer buying patterns Survey market research technique based on questioning a representative sample of consumers about purchasing attitudes and practices Focus group market research technique involving a small group of people brought together and allowed to discuss selected issues in depth. Experimentation market research technique in which the reactions of similar people are compared under different circumstances Understanding Consumer Behavior Consumer behavior study of the process by which customers come to purchase and consume a product or service Influences on Consumer Behavior Psychological influences include individuals motivations, perceptions, ability to learn and attitudes Personal influences include lifestyle, personality, economic status, and life-cycle stage Social influences family, friends, co workers professional associates Cultural influences culture, subculture, and social class The Consumer Buying Process Problem/need recognition Information Seeking Evaluation of alternatives Purchase Decisions Rational Motives those reasons for purchasing a product that involve a logical evaluation of product attributes such as cost, quality and usefulness Emotional Motives reasons for purchasing a product that involve non-objective factors Organizational Markets Industrial Market businesses that buy goods to be converted into other products that will be sold to ultimate consumers Reseller market intermediaries like wholesalers and retailers who buy finished products and resell them Institutional market Non-government orgs such as hospitals, churches and schools Chapter 6 Product Features the qualities, both tangible and intangible that a company builds into its products Value package product marketed as a bundle of value-adding attributes, including reasonable cost Classifying Consumer Products Convenience goods/ services - bought and used rapidly and regularly, causing consumers to spend little time looking for them or comparing their prices Shopping goods/ services more expensive and are purchased infrequently, causing consumers to spend some time comparing prices Specialty goods/ services very expensive and are purchased rarely, causing consumers to spend a great deal of time locating the exact item desired Classifying Industrial Products Expense items inexpensive industrial goods that are consumed rapidly and regularly Capital items expensive, long lasting goods that are used in producing other goods or services and have long life. Product Mix group of products a company has available for sale Product line group of similar products intended for a similar group of buyers who will use them in a similar fashion Speed to Market strategy of introducing new products to respond quickly to customer and/or market changes The Seven-Step Development Process Product Ideas product development begins with a search for ideas for new products Screening attempt to eliminate all product ideas that do not mesh with the firm;s abilities, expertise or objectives Concept Testing companies use market research to solicit consumers input Business analysis involves developing an early comparison of costs vs benefits for the proposed product Prototype development ideas begin to take shape Product testing and test marketing limited production of item Commercialization if test marketing is positive, full scale production begins Variations in the Process for Services
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