1. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-1 NickelsMcHughMcHugh Nickels Cover

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

3. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-3 What is Marketing? Target Market Market Needs Satisfy Needs

4. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-4 Evolution of Marketing Production Era - Up to early 1900sProduction Era - Up to early 1900s Selling Era - 1920s-1950sSelling Era - 1920s-1950s Marketing Era - 1950s+Marketing Era - 1950s+ –Customer –Service –Profit

5. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-5 Elements in the Marketing Mix Product Marketing Program Place Promotion Buy at Computers ‘R Us Price

6. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-6 Uses of Market Research  Analyze Customer Needs/Satisfaction  Analyze Markets & Opportunities  Analyze Effectiveness of Strategy/Tactics  Analyze Goal Achievement

7. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-7 Market Research Process 1)Define 2)Collect 3)Analyze 4)Choose

8. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-8 The Marketing Environment Economic Social Technology Global Customer Competitive

9. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-9 Different Markets Consumer (B2C)Consumer (B2C) -Niche -One-to-One Business-to- Business (B2B)Business-to- Business (B2B)

10. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-10 Market Segmentation Target MarketingTarget Marketing -Geographic -Demographic -Psychographic -Benefit -Volume

11. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-11 U.S. Buying Power* In Million $ *Excludes senior citizens, as not all sources characterize them as a diversity market

12. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-12 Urban Adult Spending Habits Source: Simmons Market Research

13. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-13 Consumer Decision Making 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)

14. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-14 Business-to-Business (B2B) 1.Number 2.Size 3.Geographic Concentration 4.Rational 5.Direct Sales 6.Personal Selling