McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved NickelMcHughMcHughRyan Nickels Cover

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Chapter 1313 Marketing: Building Customer and Stakeholder Relationships 13-2

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Learning Goals 1)Marketing and Marketing Concepts 2) The Marketing Mix 3)Marketing Research 4)The Consumer Market 5)B2B versus Consumer (B2C) Market 6)Latest trends in Marketing

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved )Marketing And the Marketing Concepts Marketing- The process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that satisfy individual and organizational objectives.Marketing- The process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that satisfy individual and organizational objectives.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Evolution of Marketing Production Era - Up to early 1900sProduction Era - Up to early 1900s Selling Era s-1950sSelling Era s-1950s Marketing Era s+Marketing Era s+ –Customer –Service –Profit Customer Relationship eraCustomer Relationship era

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Customer Relationship Management CRM- The process of learning as much as possible about a customer and doing everything you can to satisfy them -or even exceed their expectations-with goods and services over time.CRM- The process of learning as much as possible about a customer and doing everything you can to satisfy them -or even exceed their expectations-with goods and services over time.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved What is Marketing? Target Market Market Needs Satisfy Needs

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Marketing Process Need Research Design Test Name/Package/ Price Distribution Promote Build Relationship

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved ) Elements in the Marketing Mix Product Marketing Program Place Promotion Buy at Computers ‘R Us Price

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Product and Promotion Product -Any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers, such as the brand.Product -Any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers, such as the brand. Promotion -All the techniques sellers use to motivate people to buy their products or servicesPromotion -All the techniques sellers use to motivate people to buy their products or services

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Product Design Concept TestConcept Test PrototypePrototype Test MarketTest Market OutsourceOutsource Package Design/Brand NamePackage Design/Brand Name

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved ) Uses of Market Research  Analyze Customer Needs/Satisfaction  Analyze Markets & Opportunities  Analyze Effectiveness of Strategy/Tactics  Analyze Goal Achievement

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Guidelines for Market Research  Clarify research objectives/stay on target.  Decide whether you will do the research or use a professional researcher.  Make certain questions are directed to objectives.  Ask for relevant information.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Market Research Process 1)Define 2)Collect 3)Analyze 4)Choose

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Sources for Marketing Research Information Secondary Data Company RecordsCompany Records Gov’t AgenciesGov’t Agencies Trade AssociationsTrade Associations Research CompaniesResearch Companies Primary Data Specific to ProjectSpecific to Project -Surveys -Observations

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Secondary Data and Primary Data Secondary Data-Information that has already been compiled by others and published in journals and books or made available onlineSecondary Data-Information that has already been compiled by others and published in journals and books or made available online Primary Data- Data that you gather yourself ( Not from a secondary source such as books or magazines).Primary Data- Data that you gather yourself ( Not from a secondary source such as books or magazines).

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Focus Group Focus Group- A small group of people that meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues.Focus Group- A small group of people that meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved The Marketing Environment Economic Social Technology Global Customer Competitive

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Consumer Market (B2C) and Business to Business (B2B) Market B2C Market - All the individuals or households that want goods and services for personal consumption.B2C Market - All the individuals or households that want goods and services for personal consumption. B2B Market - All the individuals and organizations that want goods and services to use in producing other goods and services to sell, rent or supply good to others.B2B Market - All the individuals and organizations that want goods and services to use in producing other goods and services to sell, rent or supply good to others.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved ) Consumer Market

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Market Segmentation Target MarketingTarget Marketing -Geographic -Demographic -Psychographic -Benefit -Volume

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved U.S. Buying Power* In Million $ *Excludes senior citizens, as not all sources characterize them as a diversity market

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Marketing Definitions Target Marketing- marketing directed towards groups (market segments) an organization decides it can serve profitablyTarget Marketing- marketing directed towards groups (market segments) an organization decides it can serve profitably Niche Marketing- The process of finding small but profitable market segments and designing or finding products for them.Niche Marketing- The process of finding small but profitable market segments and designing or finding products for them.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Marketing Definitions One to One Marketing- Developing a unique mix of goods and services for each individual customer.One to One Marketing- Developing a unique mix of goods and services for each individual customer. Mass Marketing- Developing products and promotions to please large groups of people.Mass Marketing- Developing products and promotions to please large groups of people. Relationship Marketing- Marketing strategy with the goal of keeping individual customers over time by offering products that meets their requirements exactly.Relationship Marketing- Marketing strategy with the goal of keeping individual customers over time by offering products that meets their requirements exactly.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Relationship Marketing Relationship Marketing- Marketing strategy with the goal of keeping individual customers over time by offering products that meets their requirements exactlyRelationship Marketing- Marketing strategy with the goal of keeping individual customers over time by offering products that meets their requirements exactly Cheaper to focus on retaining existing customers, rather than finding new onesCheaper to focus on retaining existing customers, rather than finding new ones Community of BuyersCommunity of Buyers –Harleys –Airstream trailers

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved ) Business-to-Business (B2B) 1.Number 2.Size 3.Geographic Concentration 4.Rational 5.Direct Sales 6.Personal Selling

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved ) Updated Marketing Concept Green Products- A product whose production, use, and disposal don’t damage the environment.Green Products- A product whose production, use, and disposal don’t damage the environment. Establish RelationshipsEstablish Relationships -Customer -Stakeholder

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Stakeholder Marketing ShareholderShareholder Green ProductsGreen Products Customer Relationship ManagementCustomer Relationship Management –80/20 Rule –Software