BMATWT 353 - Business of Building

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Lecture Outline - Ch. 10 - Principles of Marketing

I. Definition of marketing

Marketing (Defn'.) - 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 goals.

Transactions must provide Value and Customer Satisfaction

Value = Benefits / Costs

Utility of the product is it's ability to satisfy a human need or want.

A. Goods, services and ideas

Consumer Goods - End user

Industrial Goods - resold

Services - Design

Relationship Marketing - Emphasizes long-term relationships with customers.

B. The marketing environment

i. Political and legal environment
ii. Social and cultural environment
iii. Technological environment
iv. Economic environment
v. Competitive environment

C. The marketing mix

i. Product - A good, service or idea designed to meet a particular customer need or want.

Product differentiation - What is better about your product?

ii. Pricing - Can be low, medium, or high price strategy.
iii. Place - Distribution - Who are your partners linking point of manufacture with point of end consumption.

iv. Promotion

• Advertising
• Personal Selling - Most important in Building industry
• Sales Promotions - Trade Shows, Incentives
• Public Relations - "Free Advertising"

II. Target marketing and market segmentation

Target market - A Group of people that have similar wants and needs and that can be expected to show interest in similar products.

Market segmentation - Process of dividing a market into categories of customer types.

A. Identifying market segments

i. Geographic variables
ii. Demographic variables - Age, income
iii. Psychographic variables - Lifestyles, opinions, interests and attitudes.

III. Understanding consumer behavior

A. Influences on consumer behavior

• Psychological
• Personal - Lifestyle, economic status
• Social - Family, friends, co-workers
• Cultural - ethnicity, social class

B. The consumer buying process

• Need recognition
• Information Seeking
• Evaluation of Alternatives
• Purchase decision
• Post-purchase evaluation

IV. Organizational marketing and buying behavior

A. Organizational markets

• Industrial markets - convert materials to other products
• Reseller markets - Wholesale Distributors
• Government and Institutional markets

B. Organizational buying behavior

• Professional buyers
• Longer term buyer-seller relationship

V. Products

A. Features and the Value Package

Features - tangible qualities of the product

Value package - value-adding attributes including reasonable cost.

B. Classifying consumer goods

i. Convenience goods
ii. Shopping goods
iii. Specialty goods

C. Classifying industrial products

i. Expense items
ii. Capital items

D. The product mix

VI. Developing new products

A. The new product development process
B. Product mortality rates - 50 new product ideas provide 1 that actually makes it to market
C. Speed to market - How important is time.

D. Product life cycle

• Introduction
• Growth
• Maturity
• Decline

VII. Identifying products

A. Branding products
B. Packaging products

Produced and maintained by David T. Damery
Building Materials and Wood Technology
Department of Natural Resources Conservation
College of Natural Resources and the Environment
University of Massachusetts, Amherst.