1. MUSOLINO 13- 1 1-1 13 CHAPTER Marketing: Building Customer Relationships

2. Evolution of Marketing  Production Era - Up to early 1900s  Selling Era - 1920s-1950s  Marketing Concept Era - 1950s - 1980s  Customer  Service  Profit  Customer Relationship Era - 1990s+ 13- 2

3. 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

4. Elements in the Marketing Mix 13- 4 Product Marketing Program Place Promotion Buy at Computers ‘R Us Price

5. 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

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

7. 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)

8. Pricing Strategies  Cost-Plus  Value-Based  Competitive  Going-Rate  Skimming  Discount  Loss-Leader  Psychological 13- 8 Source: Perdue University, May 2005

9. 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 13- 9 Source: Perdue University, May 2005

10. Place Decisions  Direct Sales  Reseller Sales  Market Coverage  Intensive  Selective  Exclusive  Inventory Size  Logistics 13-10 Source: Perdue University, May 2005

11. 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 13- 11 Source: World Feature Syndicate

12. Market Research Process  Define the Question  Collect Data  Analyze the data  Choose the best solution and implement 13- 12

13. 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. 13- 13 Source: cmomagazine.com, September 2004

14. 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 13- 14

15. The Marketing Environment 13- 15 Economic Social Technology Global Customer Competitive

16. 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. 13-16 Source: St. Louis Small Business Monthly, May 2004

17. Different Markets  Consumer  Niche  One-to-One  Business-to-Business (B2B) 13- 17

18. Market Segmentation  Target Marketing  Geographic  Demographic  Psychographic  Benefit  Volume 13- 18

19. Influences on Consumer Behavior 13- 19 Culture Subculture ReferenceGroup CognitiveDissonance Customer Learning

20. 13- 20 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)

21. 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? 13-21 Source: Investor’s Business Daily, February 9, 2004

22. Business-to-Consumer E-Commerce as % of Sales 13-22 Source: U.S. Census, May 18, 2006; http://home.earthlink.net/~lindberg_b/GECGrwth.htm, accessed August 5, 2006

23. Business-to-Business (B2B) 1. Number 2. Size 3. Geographic Concentration 4. Rational 5. Direct Sales 6. Personal Selling 13- 23

24. Top Marketing Tactics of Small Businesses 13- 24 Source: Investor’s Business Daily, June 1, 2004