McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved ChapterThirteen Marketing: Customer and Stakeholder Relationship Management

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved The Marketing Concept Customer Orientation Customer Orientation Service Orientation Service Orientation Profit Orientation Profit Orientation Update of Concept Update of Concept

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved What is Marketing? Target Market Market Needs Satisfy Needs

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved Marketing Strategies in Non-Profit Organizations  Find a productive board of trustees (Directors)  Make marketing the focus; not short-term sales  Know your mission and review mission strategy regularly  Practice strategic planning  Carefully segment target market  Train & develop volunteers for long- term  Be frugal- know how to manage finances

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved Elements in the Marketing Mix Product Marketing Program Place Promotion Buy at Computers ‘R Us Price

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved Marketing Process Marketing Process Need Research Design Test Name/Package/ Price Distribution? PromoteBuild

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved Market Research Process 1) Define 2) Collect 3) Analyze 4) Choose

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 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© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved Sources for Marketing Research Information Secondary Data Secondary Data - Company Records - Gov’t Agencies - Trade Associations - Research Companies Primary Data- Specific to Project - Surveys - Observations

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 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© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved The Marketing Environment Economic Social Technology Global Customer Competitive

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved Figure 13.5 Marketing Environment

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved Different Markets Consumer Consumer - Niche - One-to-One Business-to- Business (B2B) Business-to- Business (B2B)

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved Market Segmentation Mass Marketing Mass Marketing Relationship Marketing Relationship Marketing Target Marketing - Geographic - Demographic - Psychographic - Benefit - Volume

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved Buying Process Step 1: Recognize Problem Step 1: Recognize Problem Step 2: Information Search Step 2: Information Search Step 3: Evaluate Alternatives Step 3: Evaluate Alternatives Step 4: Make Purchase Decision Step 4: Make Purchase Decision Step 5: Postpurchase Evaluation Step 5: Postpurchase Evaluation

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved Consumer Decision Making (Figure 13.7) Marketing mix ProductProduct PricePrice PlacePlace PromotionPromotion Marketing mix ProductProduct PricePrice PlacePlace PromotionPromotion Psychological PerceptionPerception AttitudesAttitudes LearningLearning MotivationMotivationPsychological PerceptionPerception AttitudesAttitudes LearningLearning MotivationMotivation Situational Type of PurchaseType of Purchase Social surroundingsSocial surroundings Physical surroundingsPhysical surroundings Previous experiencePrevious experienceSituational Type of PurchaseType of Purchase Social surroundingsSocial surroundings Physical surroundingsPhysical surroundings Previous experiencePrevious experience Sociocultural Reference groupsReference groups FamilyFamily Social classSocial class CultureCulture SubcultureSubcultureSociocultural Reference groupsReference groups FamilyFamily Social classSocial class CultureCulture SubcultureSubculture Decision-Making Process  Problem Recognition  Information Search  Alternative evaluation  Purchase decision  Postpurchase evaluation (cognitive dissonance) (cognitive dissonance)

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved Influences on Consumer Behavior Learning Subculture Reference Group Cognitive Dissonance Customer Culture

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 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© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved Updated Marketing Concept Customer > Delight Stakeholders Customer > Delight Stakeholders Organizational Service > Uniting Organizations Organizational Service > Uniting Organizations Maintain Profit Orientation Maintain Profit Orientation Establish Relationships Establish Relationships - Customer - Stakeholder

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved Urban Adult Spending Habits Source: Simmons Market Research

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved Successful Marketing in Small Organizations  Identify your best customers.  Build lasting relationships.  Share your customers with other businesses by developing strategic alliances.  Practice integrated marketing.  Know what makes your customers happy.  Personally thank your customers for support.  Stand out above the competition.

McGraw-Hill/ Irwin© The McGraw-Hill Companies, Inc., 2002 All Rights Reserved ABCs of Marketing Always be customer-driven. Benchmark against the best in the world. Continuously improve product/performance. Develop the best value package. Empower your employees. Focus on relationships. Generate profit/meet other org. objectives. Source: Nickels & Wood, Marketing, Worth Publishing, 1997