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Text 1: WHAT DO MARKETERS DO? The problem was getting goods from the producer to consumer. The most basic need was for food, so marketers concentrated on the transportation and storage of food products. Manufacturers needed raw materials to produce various products, so the distribution of industrial goods (coal steel, wood) was also important. By the 1920 marketers were described as performing eight] basic functions (See Figure 1-2): • Buying • Selling • Transporting • Storing • Financing • Standardizing • Risk taking • Research By the new consumer demands had changed whs marketers had to do. Rather than focus on functions such as distribution and storage, marketers shifted their attention to morej careful listening to consumers (communication), and more attention was given to identifying specific markets (segmentation). Now more attention is being placed on two others: marketing communication market segmentation. Figure 1-2. Eight basic marketing functions by category. Buying and selling (trading) are the heart of the marketing. But buying and selling do not take place unless goods are transported to where they are wanted and stored there until buyers are ready to buy (distribution). Who can afford to buy a house or car without financing. Because credit was so critical to selling, it was a major marketing function at first. Now it is more a finance function. Storing goods meant taking a risk of theft, damage or obsolescence. Thus marketers assumed the function of taking those risks (and buying insurance). Marketing of farm products and commodities (for example, steel) demanded standardization and grading of goods. Finally, the whole process begins and ends with researching the market to find wants and needs and then testing to see if needs are being satisfied. Text 2: THE MARKETING COMMUNICATION FUNCTION Marketing communication involves talking with consumers to be sure the product, price and all other aspects of the trade relationship are what is wanted. It is an ongoing process. A classic explanation of the process was given by John Marder of Grey Advertising. This is what he said: In the beginning there is a seller and there is a buyer. And if they are to interact they must communicate with one another. And in fact they do... in a variety of ways. Typically, the buyer communicates with the seller through the answers he gives to the seller's market research. And the seller, in turn, communicates with the buyer through his advertising. In greater detail... their communications go like this: • The buyer express his wants and needs, his desires and satisfactions. • The seller, sensing the opportunity for profit makes the product or service that is called for. • Then, through his advertising the seller tells the buyer that he has just he thing the buyer was asking f6r. • And if the seller has correctly understood what the buyer was saying. and if he has actually made what was asked of him... the buyer will probably buy. Buying and selling (trading) are the heart of the marketing. But buying and selling don't take place unless goods are transported to where they are wanted and stored there until buyers are ready to but (distribution). Who can afford to buy a house or a car without financing? Because credit was so critical to selling, it was a major marketing function at first. Now it is more a finance function. Storing goods meant taking the risk of theft, damage or obsolescence. Thus marketers assumed the function of taking those risks (and buying insurance). Marketing of farm products and commodities (for example, steel) demanded standardization and grading of goods. Finally, the whole process begins and ends with researching the market to find wants and needs and then testing to see if needs are being satisfied. Text3: THE MARKET SEGMENTATION FUNCTION Because no one seller can satisfy all buyers, and no one buyer jean satisfy all sellers, a marketing activity is needed to narrow the [market. As a consumer, you select a few stores here you shop and
choose a few doctors and other service organizations and people to [meet your needs. The seller goes through a similar process. For the seller, market segmentation helps target marketing I efforts toward those people. Who are the right place at the right time [and who most want the product in question. In a market, the seller has three targeting options: (1) Introduce only one product, hoping to [get as many people to buy as possible. This is called undifferentiated marketing. (2) Go after one particular group and develop the ideal product for them. This is called concentrated marketing. (3) Introduce several product versions, each appealing to a different group. This is called differentiated marketing. Note that the determination of market segments and the selection of market targets are separate problems. Market segmentation is the process of dividing the total market into several sub-markets (segments) that have similar characteristics. Market targeting is the process by which an organization decides which market segments to serve.
Text 4: SEGMENTATION VARIABLES There are several ways in which a firm can divide a market for marketing purposes. Remember, the idea is to break the market do., into smaller groups (segments) with similar characteristics (for example, all men, teenagers), and then aim the product at one or more of these groups. Let's say, for example, we were trying to sell a new, high-fibre, nutritious, low-sugar cereal. We could begin out marketing campaign by focusing on a certain region, such as R West where fitness is a major issue. Dividing the market by geographical area is called geographical segmentation (See Figure 1-3).
Segmentation by age, income and occupation is part of demographic segmentation (See Figure 1-4)
We may want our ads to portray the life-style of this group. To do that we could study the group's values, attitudes, and interests. This segmentation strategy is called psychographic segmentation (See Figure 1-5) What benefits should we talk about? Should we emphasize high fibre, tow sugar, price, health in general, or what? Determining which benefits are preferred is called benefit segmentation (See Figure 1-6) Do we want people to eat the cereal for breakfast, for snacks or at bedtime? Getting people to think of different times and places to use a productis called situation segmentation. Remember the orange juice ads that said, "Orange juice; it's not just for breakfast anymore? They were trying to broaden the situation in which people drink orange juice. Who are the big eaters of cereal? Children eat cereal, but so do adults. Separating the markets by usage (volume of use) is called volume segmentation. Most of the cereal companies seem to aim at children. Why not go for adults, a less competitive market? (see Figure 1-7). The best strategy is to use all the variables to come up with a consumer profile (a target market) that is clear, reachable, and sizeable. A target market, therefore, is a group or groups of consumers that are selected for special marketing attention.
Text 5: CONSUMER BEHAVIOR In the late marketing scholars took a more active interest in learning how consumers think and act. That led them to the literature of psychology, sociology, anthropology, and social psychology. Eventually they developed textbooks in the area and consumer behavior has become one of the major courses in marketing. Marketing researchers investigate consumer thought processes and behavior at each stage to determine the best way to facilitate marketing exchanges. Consumer behaviour researchers also study the various influences on consumer behaviour. Figure 1-8 shows that such 'Influences include the marketing mix variables, psychological influences such as perception and attitudes, sociocultural influence such as reference group and culture, and situation influences such as type of purchase and physical surroundings. Some terms that may be unfamiliar to you include CULTURE is the set of values, attitudes and ways of doing things that are transmitted from one generation to another in a given society. LEARNING involves changes in an individual's behaviour resulting from previous experiences and information. REFERENCE GROUP is the group that an individual uses as a reference point in the formation of his or her beliefs, attitudes, values, or behaviour. SUBCULTURE is the set of values, and ways, attitudes of doing things that result from belonging to a certain nationality group, religious group, racial group, or other group with which one closely identifies, for example, teenagers.
Text 6: MARKETING RESEARCH If the goal of marketing is to "Find a need and fill it", then a major function must be to do research to find needs and to determine the most effective and efficient ways to satisfy those needs. Marketing research performs those tasks. Although marketing research can take many forms, it is helpful to review certain steps when conducting such studies. The steps are: • Study the present situation. How does the public perceive the company and its products? What products are profitable? These are the kinds of questions that determine the present situation. • Define the strengths and weaknesses of present programs. It is important to know what an organization does well as what it does not do well, and marketing research should report both sides. • Define the problem(s) to be solved. Marketing researchers should be given freedom to help discover what the problems are, what the alternatives are, what information is needed, and how to go about gathering and analyzing it. • State research objectives in writing. • Determine the scope and estimated costs. Research can get quite expensive, so some trade-off must be made between information needs and cost. • Exhaust secondary data. Secondary data means already published research results from journals, trade associations, the government, information services, libraries, and other sources. 2. Gather primary data. Primary data refers to results from doing your own research. Many good books are available on research techniques. Interviews and questionnaires are two other ways to gather primary data. 3. Analyze and process the data. Prepare a report.
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