1-1 Chapter 1. 1-2 The Nature of Marketing Key Terms & Definitions A definition of marketing: The process of planning and executing the conception, pricing,

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Chapter 1

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The Nature of Marketing

Key Terms & Definitions

A definition of marketing:

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives

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The Marketing Concept

Key Terms & Definitions

The marketing concept is composed of three tenets which are interrelated:

A. Consumer orientation

B. Goal orientation

C. Systems orientation

Consumer orientation: identification of the target market for good or service

Goal orientation: focus on how target market helps meet corporate goals

Systems orientation: developing the tools to monitor the target market and their market opportunities

The Marketing Concept

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Marketing Research Defined

Marketing research is the function that links the consumer, customer, and public to the marketer through information that is used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collectinginformation, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications.

Key Terms & Definitions

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Descriptive:The gathering and presenting of statements of fact

Diagnostic:The explanation of data or actions

Predictive:The specification of how to use descriptive and diagnostic research to predict the results of a planned marketing decision

The Three Critical Roles of Marketing Research

Key Terms & Definitions

Cited as Favorite Percent

Cover Girl 14

Clinique 10

Maybelline and

Mary Kay 81-7

Opportunistic Nature

Age Range Product Usage

Tweens (8-12) Increased

Teens (13-17) Decreased

Young women (18-24) Decreased1-8

Usage Among Young Women

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The quality being delivered is at a level desired by the target market.

The quality level must have a positive impact on profitability.

Research Value Return on Quality

Key Terms & Definitions

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A plan to guide the long-term use of a firm’s resources based on its existing and projected internal capabilities and on projected changes in the external environment

The development of the means by which the firm will position itself in the eyes of the consumer while determining the best course of action to meet the firm’s objectives

Marketing StrategyFor Customer Retention

Key Terms & Definitions

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Marketing research for British Airways discovered that first-class passengers really wanted to sleep over most amenities. So they:

• Offered premium flyers a meal on the ground before takeoff• Pajamas when they board, real pillows and blankets• An interruption free flight• At their destination, first-class passengers can shower and

dress in fresh pressed clothing as well as have breakfast

Marketing StrategyFor Customer Retention

Key Terms & Definitions

• More people participating in social media• User-generated content is unsolicited,

candid, and passionate many times• Millions of comments a day about

products/brands• Fifty-six percent of social media users

check Facebook once a day

Social Media and UGC

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• 56% of social media users check Facebook once a day

• 12% check Facebook every two hours• 48% check Facebook or Twitter before

bed, during the night and when they wake up

• People under 25 were more likely to check social media during the night

Social Media and UGC

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Research aimed at solving a specific, pragmatic problem

Research aimed at expanding the frontiers of knowledge rather than solving a specific, pragmatic problem

Applied Basic

Types of Research Studies

Key Terms & Definitions

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Programmatic

Selective

Evaluative

Research conducted to develop marketing options through market segmentation, market opportunity analyses, or consumer attitude and product usage studies.

Research used to test decision alternatives.

Research done to assess program performance.

Applied Research Types

Key Terms & Definitions

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ProgrammaticResearch conducted to develop marketing options through market segmentation, market opportunity analyses, or consumer attitude and product usage studies.

Applied Research Types

Key Terms & Definitions

• Has the target market changed? How?• Does the market exhibit any new segmentation

opportunities?• Do some segments appear to be more likely candidates

than others for the firm’s marketing efforts?• What new product or service opportunities lie in the various

segments?

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Selective Research used to test decision alternatives.

Applied Research Types

Key Terms & Definitions

When multiple opportunities exist, selective research can help managers make the best decision.

In 1985, the Coca Cola company reformulated it’s coke product. New Coke was a marketing disaster that could have benefited from selective research.

Learning from that mistake, soda companies introduce new drinks but not in place of consumer favorites.

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Evaluative Research done to assess program performance.

Applied Research Types

Key Terms & Definitions

Apple for example takes a very proactive stance with regard to their technology products. They listen to their consumers and consumer requests, allowing them to measure program and hardware performance. The company continually evaluates performance and success to apply to their next generation of cutting edge products.

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Reconsider conducting marketing research under the following circumstances:

• The resources are lacking to do proper research.

• Managers cannot agree on what they need to know to make a decision.

• The opportunity has passed.

• The resources are lacking to do proper research.

• Managers cannot agree on what they need to know to make a decision.

• The opportunity has passed.

Key Terms & Definitions

Decision to Conduct Marketing Research

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• The decision as already been made, or will not be made.

• The research results might not be useful to management.

• Decision-making information already exists.

• The decision as already been made, or will not be made.

• The research results might not be useful to management.

• Decision-making information already exists.

Key Terms & Definitions

Decision to Conduct Marketing Research

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• The research cost outweighs the benefits of the research.

• You do not have the time to do the research right.

• The research results will likely only be shelved.

• The research cost outweighs the benefits of the research.

• You do not have the time to do the research right.

• The research results will likely only be shelved.

Key Terms & Definitions

Decision to Conduct Marketing Research

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• Get the right goods or services to the right people at the right time at the right price with the right promotion

• Work within an internal environment of an organization and the external environment over which he or she has little control.

• Focus on customer satisfaction and retention

• Get the right goods or services to the right people at the right time at the right price with the right promotion

• Work within an internal environment of an organization and the external environment over which he or she has little control.

• Focus on customer satisfaction and retention

Key Terms & Definitions

Marketing Research helps Managers

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Key Terms & Definitions

• Marketing• Marketing Concept• Customer Orientation• Goal Orientation• System Orientation• Marketing Mix• Marketing Research• Descriptive Function• Diagnostic Function

• Predictive Function• Return on Quality• Marketing Strategy• Social Media/UGC• Applied Research•

Basic, or Pure, Research• Programmatic Research• Selective Research• Evaluative Research

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