1. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-1 Chapter 1313 Marketing: Building Customer and Stakeholder Relationships 13-1

2. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-2 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

3. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-3 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

4. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-4 Elements in the Marketing Mix Product Marketing Program Place Promotion Buy at Computers ‘R Us Price

5. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-5 Product Design Concept TestConcept Test PrototypePrototype Test MarketTest Market OutsourceOutsource Package Design/Brand NamePackage Design/Brand Name

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 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.

8. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-8 Market Research Process 1)Define 2)Collect 3)Analyze 4)Choose

9. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-9 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

10. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-10 The Marketing Environment Economic Social Technology Global Customer Competitive

11. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-11 Different Markets ConsumerConsumer -Niche -One-to-One Business-to- Business (B2B)Business-to- Business (B2B)

12. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-12 What is Marketing? Target Market Market Needs Satisfy Needs

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

14. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-14 U.S. Buying Power* In Million $ *Excludes senior citizens, as not all sources characterize them as a diversity market

15. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-15 Urban Adult Spending Habits Source: Simmons Market Research

16. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-16 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)

17. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-17 Influences on Consumer Behavior Learning Subculture Reference Group Cognitive Dissonance Customer Culture

18. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-18 Buying Process Step 1: Recognize Problem Step 2: Information Search Step 3: Evaluate Alternatives Step 4: Make Purchase Decision Step 5: Postpurchase Evaluation

19. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-19 Business-to-Business (B2B) 1.Number 2.Size 3.Geographic Concentration 4.Rational 5.Direct Sales 6.Personal Selling

20. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-20 Marketing Process Need Research Design Test Name/Package/ Price Distribution Promote Build Relationship

21. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-21 Updated Marketing Concept Customer > Delight StakeholdersCustomer > Delight Stakeholders Organizational Service > Uniting OrganizationsOrganizational Service > Uniting Organizations Maintain Profit OrientationMaintain Profit Orientation Establish RelationshipsEstablish Relationships -Customer -Stakeholder

22. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-22 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.

23. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-23 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

24. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-24 Stakeholder Marketing ShareholderShareholder Green ProductsGreen Products Customer Relationship ManagementCustomer Relationship Management –80/20 Rule –Software