****** McGraw-Hill/Irwin Understanding Business, 8e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Nickels McHugh McHugh ** 13 CHAPTER * ** Marketing: Building Customer Relationships

****** Marketing The process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that satisfy individual and organization objective.The process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that satisfy individual and organization objective. 13-2

****** 13-3 Evolution of Marketing- p350 Production Era - Up to early 1900sProduction Era - Up to early 1900s Selling Era s-1950sSelling Era s-1950s Marketing Concept Era s sMarketing Concept Era s s CustomerCustomer ServiceService ProfitProfit Customer Relationship Era s+Customer Relationship Era s+

****** 13-4 Marketing Strategies in Non-Profit Organizations Find a productive board of trustees (Directors)Find a productive board of trustees (Directors) Make marketing the focus; not short-term salesMake marketing the focus; not short-term sales Know your mission and review mission strategy regularlyKnow your mission and review mission strategy regularly Practice strategic planningPractice strategic planning Carefully segment target marketCarefully segment target market Train & develop volunteers for long-termTrain & develop volunteers for long-term Be frugal- know how to manage financesBe frugal- know how to manage finances

****** 13-5 Elements in the Marketing Mix Product Marketing Program Place Promotion Buy at Computers ‘R Us Price

****** 13-6 Marketing Process 1.Find Opportunity 2.Conduct Research 3.Identify Target Market 4.Design Product 5.Product Testing 6.Brand Name, Design & Price 7.Develop Distribution System 8.Design Promotional Program 9.Build Relationship With Customer

****** 13-7 Where They Got Their Names Taco BellGlen BellTaco BellGlen Bell Days InnCecil DayDays InnCecil Day Bose CorpAmar BoseBose CorpAmar Bose Ty Inc.Ty WarnerTy Inc.Ty Warner Bristol-MyersWilliam Bristol & John MyersBristol-MyersWilliam Bristol & John Myers Source: World Features Syndicate Founder(s)

****** 13-8 Some Pricing Strategies Cost-PlusCost-Plus Going-RateGoing-Rate Loss-LeaderLoss-Leader PsychologicalPsychological SkimmingSkimming DiscountDiscount Source: Perdue University, May 2005

****** 13-9 Other Things To Keep In Mind With Price Payment PeriodPayment Period AllowancesAllowances RegularRegular SeasonalSeasonal BundlingBundling Trade DiscountsTrade Discounts Price FlexibilityPrice Flexibility Credit TermsCredit Terms Price DifferencesPrice Differences Target CustomersTarget Customers Geographic AreasGeographic Areas Volume Discounts and Wholesale PricingVolume Discounts and Wholesale Pricing Cash and Early Pmt DiscountCash and Early Pmt Discount Source: Perdue University, May 2005

****** Place Decisions Direct SalesDirect Sales Reseller SalesReseller Sales Market CoverageMarket Coverage IntensiveIntensive SelectiveSelective ExclusiveExclusive Inventory SizeInventory Size LogisticsLogistics Source: Perdue University, May 2005

****** Market Research Process Define the QuestionDefine the Question Collect DataCollect Data Analyze the dataAnalyze the data Choose the best solution and implementChoose the best solution and implement

****** Sources for Marketing Research Information Secondary Data Government PublicationsGovernment Publications Commercial PublicationsCommercial Publications MagazinesMagazines NewspapersNewspapers Internal/General SourcesInternal/General Sources Primary Data SurveysSurveys Focus groupsFocus groups InterviewsInterviews ObservationObservation Online surveysOnline surveys QuestionnairesQuestionnaires Customer commentsCustomer comments

****** The Marketing Environment Economic Social Technology Global Customer Competitive

****** Why Should You Market To Women? Women control 80% of all household spending.Women control 80% of all household spending. Women purchase 81% of all products and services manufactured.Women purchase 81% of all products and services manufactured. 80% of all checks written are signed by women.80% of all checks written are signed by women. 85% of all automobile purchases are influenced by women.85% of all automobile purchases are influenced by women. In 2005, 4.7 Million women were self- employed.In 2005, 4.7 Million women were self- employed. Source: St. Louis Small Business Monthly, May 2004

****** Different Markets ConsumerConsumer NicheNiche One-to-OneOne-to-One Business-to- Business (B2B)Business-to- Business (B2B)

****** Market Segmentation Target MarketingTarget Marketing GeographicGeographic DemographicDemographic PsychographicPsychographic BenefitBenefit VolumeVolume

****** Influences on Consumer Behavior Culture Subculture ReferenceGroup CognitiveDissonance Customer Learning

****** Consumer Decision Making Marketing mix Product Price Place Promotion Marketing mix Product Price Place Promotion Psychological Perception Attitudes Learning Motivation Psychological Perception Attitudes Learning Motivation Situational Type of Purchase Social surroundings Physical surroundings Previous experience Situational Type of Purchase Social surroundings Physical surroundings Previous experience Sociocultural Reference groups Family Social class Culture Subculture Sociocultural Reference groups Family Social class Culture Subculture Decision-Making Process Problem RecognitionProblem Recognition Information SearchInformation Search Alternative evaluationAlternative evaluation Purchase decisionPurchase decision Postpurchase evaluationPostpurchase evaluation (cognitive dissonance) (cognitive dissonance)

****** Planning For More Business What do we do well-and not do well?What do we do well-and not do well? What are we really selling?What are we really selling? To whom do we sell?To whom do we sell? How do we reach our target group?How do we reach our target group? How can we break through the clutter?How can we break through the clutter? Source: Investor’s Business Daily, February 9, 2004

****** Business-to-Consumer E-Commerce as % of Sales Source: U.S. Census, May 18, 2006; accessed August 5, 2006

****** Business-to-Business (B2B) 1.Number 2.Size 3.Geographic Concentration 4.Rational 5.Direct Sales 6.Personal Selling