The decision-making unit of a buying organization, sometimes called the buying center, is defined as “all those individuals and groups who participate in the purchasing decision-making process, who share common goals and risks arising from the decisions”.

Authorize the proposed action of deciders or buyers

Example: CFO Concerned with cutting costs

use product or service and help define product specifications

Example: Pilot and Flight Attendant with respect to Boeing

Influencers 

A company’s sales manager selects a hotel and negotiates the arrangements.

Select requirements and suppliers

Example:  sales manager, supply Chain, percurement

Gatekeepers have the power to prevent sellers or information from reaching members of the buying center.

Example: administrative assistant 

 is derived demand: it comes ultimately from the demand for consumer goods or services.

A. Market Structure and demand

B. Types of decisions and decision process

1. Enviornmental

2. Orginizational

3. Interpersonal

4.Individual 

Buyers influenced by current and expected economic enviroment

Example: during recession travel budgets are cut

Marjeter must be familar with company

If company is well orginized easier to convince to buy

Targeted companies to be preferred lodging

con: companies are locked in

Pro: large cost savings 

Buyphases:

1. Problem Reconginition

2. GEneral needs description

3. Product specifications 

3. Supplier Search

4. Proposal Solicitation

5. Supplier Selection

6. Order routine specification

7. Performance Review 

"Takes Time"

Buyer now tries to identify the appropriate supplier

Example: the buyer compares hotels via trade directories, a computer search, phoning properties directly, or visiting a site

determines if the product met the buyer’s specifications and if the buyer will purchase from the company again.

Proposed a solution so airlines can do a better job serving clients

Created a solution in consumer space

Each partcipant in the buying process has personal motivations 

Risk- durable vs. consumerable

There are three major steps in target marketing 

1. Segmentation

2. Targeting

3. Positioning

1.  dividing a market into distinct groups who might require separate products and/or marketing mixes

2. Develop profiles for Resulting Segments

3.evaluating each segment’s attractiveness

4. selecting one or more of the market segments    

5. developing competitive positioning for the product

6. Developing an appropriate marketing mix.

Segmentation,

Targeting, Positioning 

1. Geographic

2. Demographic

3. Physcographic

4. Behavioral

1.     dividing the market into different units, such as nations, states, regions, counties, cities, or neighborhoods.

2.   The success of local and regional tourism depends on creative geographic segmentation.

A) NO Market segmentation

B) COmplete Segmentation

C) Market Segment by:

income

Age Classes 

income age-class

1. Measurability

2. Accessibility 

3. Sustanibillity

4. Actionalbility 

   Psychographic segmentation

does not always predict which customers will buy a given product or service.

   the degree to which the segment’s size and purchasing power can be measured.

Accessibility    

the degree to which segments can be assessed and served. 

Substantiality    

The degree to which segments are large or profitable enough to serve as markets.

Demographic Targeting

Targeted the richest in the market, going after the top of the market.

Psychographic ( Life Style Segment) :

Targeted dog lovers who wanted to travel and ebrace animals 

Competetive Target Market: Little Latin Boy used coke to reach Pepsi 

Use competiton to keep a portion of the market

c.     concentrated marketing

1.    a company ignores market segmentation differences and goes after the entire market with one market offer.
It is difficult to develop a a brand that will target large segments

  differentiated marketing

1.     , a company targets several market segments and designs separate offers for each.

1. Identify

2. Select

3. Communicate 

set of possible competitive advantages on which to build a position

select the right competitive advantages    

communicate and deliver the chosen position to a carefully selected target market

Segmentation

Target Marketing 

Strategy -Outside Convo

Positioning- Inisde Convo

even when competing offers look the same, buyers may perceive a difference based on company or brand    

Personnel differentiation 

requires selecting customer-contact people carefully & training them well.

Simple idea that connects you to the customer

*something meaningful that sets you apart from the competition  and provides place for you in the sutimers head

Idea Generation

Idea Meaning

Concept development and testing

Marketing Strategy

Buisiness Analysis

Product Development 

Test Marketing

Commercialization

target market

planned positioning

long run sales 

Product developmnet 

Introduction

Growth maturity

Decline 

company finds a new idea:

     sales are zero and the company’s investment costs add up.

Example: STarwood Hotel: Starlab innovation idea generation to induce product development

Going from introduction to growth is a major challange 

Example: Google Glass 

period of rapid market acceptance and increasing profits

Example: Even- a wellness centered hotel, struggling with how to grow an idea to make it proftble by targeting specific people 

    period of slowdown in sales growth because the product has achieved acceptance by most of its potential buyers.

*As categories get more crowded brands are forced to mature 

Example: Royale Careebeian trying to hold on sales marging but choosing worldwide destinations 

period when sales fall off quickly and profits drop.

Exaple RadioShack: Aimed to rejuvinate Brand but faild

Leggo- used technolgy to rejuvinate brand and succeeded 

experiencing brand and branding problems

no clear sense of what it is and what it is not 

1. Percision is Key for powerful story

2. Simple and Sticky points are stronger 

3. Absolute Certainty : Example Fed EX

What/How: easy to tell a customer what you do

Who : harder for you to convince

Why: most difficult to convey 

Prototype to pressure test startegy to determine if it will actually work

1. Plan

2. Inside Out

3. Reinvent the old

4. Ceeate the new 

5. Ulock word of mouth 

Keep it fresh 

Figure out touch points, to win and suprise . Create a blue print for all parts of your service.

Example Hertz: created a customer journey, planned ahead for customer poblems , technology for keys to find rented cars 

Employees are the most important Touch point: Empower people inside your company and the culture should resonate out. 

Example: GE workers able to view their engines being installed

Create new Touch Point:

Example : Lego using technologies to show customers what the have the possibility to build 

Let your customers tell your story , give them something to tsalk about ; Example: Johhny walker house: select view invited in for dinner , makes people excieted to get in. give them a postice experience to talk about 

Employer customer service can override bad service overall. 

Want to make buyers come back for more: 

example: Mark and spencer- swap old clothes for new 

example: coke encourages peruvians to smile for a photo they can use on ideas and get discount on coke and other things 

1. get to the point

2. Prototyple

3. Breakthorught more important than consistentcy 

4. Be agile and act fast 

Marketing must be embraced by all emplyees and all employees must be seen as part of the marketing unit

Added value : if product is deliverd in a meanigful way

Everyon must do their part and become a part of the marketing team

Market Development: COnsumer Goods; traditional marketing

Market Function: Sevices( Marketing through touch points)

example: Starbucks does very little marketing traditionally most of it is done through baristas

Approach different from COmpetitors: 

carefful employee selection

self motivated growth desire

EMployee trainig and retention:

-healthcare

-Stock Share

-employee of the year award

Internal maketing: where OB and marketing collide

**Expand your age of marketing beyond the marketing development

Only Two kinds of emplyees: 1.those that serve the customers and 2. those that serve those that serve the customers

** Most tangible way for a company to measure work of employees is salary 

CEO engages with regular employees, eats lunch etc.

during recission: CEO slashed his own pay , and cut top cooperate benefits

less of a pay gap between to an bottom 

Employee attitude help form first impression of a service

OFten hard to differentiate the tangible product between competeing companies

-differentiation comes from people who deliver the service

IN services most marketing is carried out by employees outside the marketing department

ARSA- Aquistion, retention, satifaction, advocacy

super friendly hotel staff, bday gifts, hugged them, made people feel apart of the family

Tradeoff between give and get

WHen customers ee high price they assume high quality

If something is of higher quality you can charge a higher price

customer

competitor

cost

channel

compliance

What impact does price have on customer

what imterdependency is there on goods

what are the customers prepared to buy 

** Customer insights contribute to customer decisions

Rags to riches story 

opened up a new market with portible cofee

credibility vs. advertising- dont need as much advertising if product is credible 

are you able to shift demand curve in your favor against competitors 

competition is a critical element !

Price point, promotional opportunities, competitosr, customer feed back

* Positioned itself against competition

TAKE AWAY: Smart Companies understand that they should give away product first before giving away price

shifiting supply curve creates new markets being able to proudce same qaunity at a lower price

cost y

Wants buisnesses to understand that there is a cost that is worthwhile. If they use expedia the right way they can get a better return.

in Buisness to buisness marketing price change can be offset by value. 

Break Even Point: firm considers variable costs and fixed costs and tries to determine at what point ir will break even : Target profit pricing 

Decoy Pricing 

BOGOF

Price Endings 

Price Bundling

Price decrimination 

Price Endings

.99 fast food

.95 higher up restauraunts

.00 very expensive restauraunts 

Demand heterogenity - different values demand different proces want to maximizze value either way

Jack and JIll