Chapter 10 Understanding Marketing Processes and Consumer Behavior
Chapter 10 Understanding Marketing Processes and Consumer Behavior Power. Point Presentation by Charlie Cook Copyright © 2005 Prentice Hall, Inc. All rights reserved.
Key Topics • Definition of marketing • The external marketing environment • Segmentation and target marketing • The consumer buying process • Organizational markets and buying behavior • Consumer and industrial products • Branding and packaging Copyright © 2005 Prentice Hall, Inc. All rights reserved. 2
What Is Marketing? “Planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives” OR Finding a need and filling it! Copyright © 2005 Prentice Hall, Inc. All rights reserved. 3
The Influence of Marketing Permeates Everyday Life • Goods Ø Consumer Ø Industrial • Services • Ideas Relationship marketing emphasizes lasting relationships with customers and suppliers Copyright © 2005 Prentice Hall, Inc. All rights reserved. 4
The Competitive Environment Drives Marketing Decisions • Substitute product competition • Brand competition • International competition Copyright © 2005 Prentice Hall, Inc. All rights reserved. 5
Marketing Mix: The “Four P’s” roduct ricing lace romotion (Distribution) Copyright © 2005 Prentice Hall, Inc. All rights reserved. 6
The Promotional Mix Advertising Sales Promotions Copyright © 2005 Prentice Hall, Inc. All rights reserved. Personal Selling Public Relations 7
Market Segmentation and Target Marketing • Market Segmentation Ø Dividing a market into customer categories • Target Marketing Ø Selecting a category of customers with similar wants and needs who are likely to respond to the same products Copyright © 2005 Prentice Hall, Inc. All rights reserved. 8
Identifying Market Segments Geographic Demographic Variables Psychographic Variables Copyright © 2005 Prentice Hall, Inc. All rights reserved. 9
Consumer Behavior • Psychological Influences • Personal Influences • Social Influences • Cultural Influences Why do consumers purchase and consume products? Copyright © 2005 Prentice Hall, Inc. All rights reserved. 10
Organizational Markets Industrial Market Reseller Market Government and Institutional Market Copyright © 2005 Prentice Hall, Inc. All rights reserved. 11
Organizational Buying Behavior • Differences in buyers Ø Professionals Ø Specialists Ø Experts • Differences in buyer/seller relationships Copyright © 2005 Prentice Hall, Inc. All rights reserved. 12
Classifying Products • Consumer Ø Convenience Goods Ø Shopping Goods Ø Specialty Goods Copyright © 2005 Prentice Hall, Inc. All rights reserved. • Industrial Ø Expense Items Ø Capital Items 13
Product Offerings • Product Line Ø A group of similar products, intended for similar buyers, who will use them in similar ways. • Product Mix Ø The total group of products that a company offers for sale. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 14
Developing New Products • The New Product Development Process • Product Mortality Rates Strategy of introducing new products to respond quickly to customer or market changes Copyright © 2005 Prentice Hall, Inc. All rights reserved. 15
Creating Product Brands • Branding Ø Using symbols to communicate the qualities of a given product to create loyal consumers • Types of Brands: Ø National Brands Ø Licensed Brands Ø Private Brands Copyright © 2005 Prentice Hall, Inc. All rights reserved. 16
Product Packaging • Attracts consumers • Displays brand name • Protects contents • Supplies information • Communicates features and benefits • Provides features and benefits (e. g. easy pour spout) Copyright © 2005 Prentice Hall, Inc. All rights reserved. 17
The International Marketing Mix PRODUCTS DISTRIBUTION Copyright © 2005 Prentice Hall, Inc. All rights reserved. PRICING PROMOTION 18
Small Business and the Marketing Mix • Products • Pricing • Promotion • Distribution Copyright © 2005 Prentice Hall, Inc. All rights reserved. 19
Chapter Review • Define marketing. • Describe the forces of the external marketing environment. • Explain market segmentation and target marketing. • Describe the consumer buying process. • Discuss the organizational market categories. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 20
Chapter Review (cont’d) • Define product and distinguish between consumer and industrial products. • Explain the importance of branding and packaging. Copyright © 2005 Prentice Hall, Inc. All rights reserved. 21
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