MUSOLINO CHAPTER Marketing: Building Customer Relationships

Evolution of Marketing  Production Era - Up to early 1900s  Selling Era s-1950s  Marketing Concept Era s s  Customer  Service  Profit  Customer Relationship Era s

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 13- 3

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

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- 5

Product Design  Concept Test  Test Market  Package Design/Brand Name 13- 6

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

Pricing Strategies  Cost-Plus  Value-Based  Competitive  Going-Rate  Skimming  Discount  Loss-Leader  Psychological Source: Perdue University, May 2005

Other Things To Keep In Mind With Price  Payment Period  Allowances  Regular  Seasonal  Bundling  Trade Discounts  Price Flexibility  Credit Terms  Price Differences  Target Customers  Geographic Areas  Volume Discounts and Wholesale Pricing  Cash and Early Pmt Discount Source: Perdue University, May 2005

Place Decisions  Direct Sales  Reseller Sales  Market Coverage  Intensive  Selective  Exclusive  Inventory Size  Logistics Source: Perdue University, May 2005

Advertising Mascots  Meow Mix Cat – 35 years  Tony the Tiger – 54 years  Toucan Sam – 45 years  Geoffrey the Giraffe – 35 years  Coca-Cola Polar Bears – 13 years  MGM Lion – 78 years Source: World Feature Syndicate

Market Research Process  Define the Question  Collect Data  Analyze the data  Choose the best solution and implement

Marketing Data: Least Error Method 1. Put someone in charge. 2. Give everyone a method of collecting data. 3. Identify the right data. 4. Centralize the data. 5. Use the Data Source: cmomagazine.com, September 2004

Sources for Marketing Research Information Secondary Data  Government Publications  Commercial Publications  Magazines  Newspapers  Internal/General Sources Primary Data  Surveys  Focus groups  Interviews  Observation  Online surveys  Questionnaires  Customer comments

The Marketing Environment Economic Social Technology Global Customer Competitive

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

Different Markets  Consumer  Niche  One-to-One  Business-to-Business (B2B)

Market Segmentation  Target Marketing  Geographic  Demographic  Psychographic  Benefit  Volume

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 are we really selling?  To whom do we sell?  How do we reach our target group?  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

Top Marketing Tactics of Small Businesses Source: Investor’s Business Daily, June 1, 2004