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McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 13-1 Chapter 1 1 3 3 Marketing: Marketing: Building Building Customer and Customer and Stakeholder Stakeholder Relationships Relationships 13-1

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

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13-1

Chapter

13131313 Marketing: Marketing: Building Building

Customer and Customer and Stakeholder Stakeholder

RelationshipsRelationships

13-1

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13-2

Evolution of MarketingEvolution of Marketing• Production Era - Up to early Production Era - Up to early

1900s1900s

• Selling Era - 1920s-1950sSelling Era - 1920s-1950s

• Marketing Era - 1950s+Marketing Era - 1950s+– CustomerCustomer

– ServiceService

– ProfitProfit

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13-3

Marketing Strategies inMarketing Strategies inNon-Profit OrganizationsNon-Profit Organizations

Find a productive Find a productive board of trustees board of trustees (Directors)(Directors)

Make marketing Make marketing the focus; not the focus; not short-term salesshort-term sales

Know your Know your mission and mission and review mission review mission strategy regularlystrategy regularly

Practice strategic Practice strategic planningplanning

Carefully segment Carefully segment target markettarget market

Train & develop Train & develop volunteers for long-volunteers for long-termterm

Be frugal- know Be frugal- know how to manage how to manage financesfinances

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13-4

Elements in theElements in the Marketing MixMarketing Mix

ProductProduct

MarketinMarketing g

ProgramProgram

PlacPlacee

PromotioPromotionn

Buy at Buy at Computers Computers

‘R Us‘R Us

PricPricee

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13-5

Product DesignProduct Design

• Concept TestConcept Test

• PrototypePrototype

• Test MarketTest Market

• OutsourceOutsource

• Package Design/Brand NamePackage Design/Brand Name

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13-6

Uses ofUses of Market ResearchMarket Research

Analyze Customer Analyze Customer Needs/SatisfactionNeeds/Satisfaction

Analyze Markets & Analyze Markets & OpportunitiesOpportunities

Analyze Analyze Effectiveness of Effectiveness of Strategy/TacticsStrategy/Tactics

Analyze Goal Analyze Goal AchievementAchievement

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13-7

Guidelines forGuidelines for Market ResearchMarket Research

Clarify research Clarify research objectives/stay on target.objectives/stay on target.

Decide whether you will do Decide whether you will do the research or use a the research or use a professional researcher.professional researcher.

Make certain questions are Make certain questions are directed to objectives.directed to objectives.

Ask for relevant Ask for relevant information.information.

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13-8

Market Research ProcessMarket Research Process

1)1) DefineDefine

2)2) CollectCollect

3)3) AnalyzeAnalyze

4)4) ChooseChoose

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13-9

Sources for MarketingSources for Marketing Research InformationResearch InformationSecondary DataSecondary Data

• Company RecordsCompany Records• Gov’t AgenciesGov’t Agencies• Trade AssociationsTrade Associations• Research CompaniesResearch Companies

Primary DataPrimary Data• Specific to ProjectSpecific to Project

- SurveysSurveys- ObservationsObservations

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13-10

The Marketing EnvironmentThe Marketing Environment

EconomicEconomic

SocialSocial

TechnologTechnologyy

GlobalGlobal

CustomeCustomerr

CompetitivCompetitivee

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13-11

Different MarketsDifferent Markets

• ConsumerConsumer- NicheNiche- One-to-OneOne-to-One

• Business-to-Business-to-Business (B2B)Business (B2B)

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13-12

What is Marketing?What is Marketing?

Target Target MarketMarket

Market Market NeedsNeeds

Satisfy Satisfy NeedsNeeds

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Market SegmentationMarket Segmentation• Target MarketingTarget Marketing

- GeographicGeographic- DemographicDemographic- PsychographicPsychographic- BenefitBenefit- VolumeVolume

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U.S. Buying Power*U.S. Buying Power*

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000

Women

Disabled

Hispanics

African Americans

Gay Men/Lesbians

Asian Americans

Native Americans

In Million $In Million $

*Excludes senior citizens, as not all sources characterize them as a diversity market*Excludes senior citizens, as not all sources characterize them as a diversity market

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Urban AdultUrban Adult Spending HabitsSpending Habits

0% 20% 40% 60% 80%

Prefer Designer Jeans

Enjoy Clothes Shopping

Keep Up With LatestFashion

Watch Pay-per-view

$75 on Shoes Last Year

All Adults

Urban Adults

Source: Simmons Market Research

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13-16

Consumer Decision Consumer Decision MakingMakingMarketing mixMarketing mix

•ProductProduct

•PricePrice

•PlacePlace

•PromotionPromotion

Marketing mixMarketing mix

•ProductProduct

•PricePrice

•PlacePlace

•PromotionPromotion

PsychologicalPsychological

•PerceptionPerception

•AttitudesAttitudes

•LearningLearning

•MotivationMotivation

PsychologicalPsychological

•PerceptionPerception

•AttitudesAttitudes

•LearningLearning

•MotivationMotivation

SituationalSituational

•Type of PurchaseType of Purchase

•Social surroundingsSocial surroundings

•Physical Physical surroundingssurroundings

•Previous Previous experienceexperience

SituationalSituational

•Type of PurchaseType of Purchase

•Social surroundingsSocial surroundings

•Physical Physical surroundingssurroundings

•Previous Previous experienceexperience

SocioculturalSociocultural

•Reference Reference groupsgroups

•FamilyFamily

•Social classSocial class

•CultureCulture

•SubcultureSubculture

SocioculturalSociocultural

•Reference Reference groupsgroups

•FamilyFamily

•Social classSocial class

•CultureCulture

•SubcultureSubcultureDecision-Making Decision-Making ProcessProcess

Problem RecognitionProblem Recognition

Information SearchInformation Search

Alternative evaluationAlternative evaluation

Purchase decisionPurchase decision

Postpurchase evaluationPostpurchase evaluation

(cognitive dissonance)(cognitive dissonance)

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13-17

Influences onInfluences onConsumer BehaviorConsumer Behavior

LearningLearning

SubculturSubculturee

ReferencReference Groupe Group

Cognitive Cognitive DissonancDissonanc

ee

CustomeCustomerr

CultureCulture

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13-18

Buying ProcessBuying ProcessStep 1:Step 1: Recognize Problem Recognize Problem

Step 2:Step 2: Information Search Information Search

Step 3:Step 3: Evaluate Evaluate AlternativesAlternatives

Step 4:Step 4: Make Purchase Make Purchase DecisionDecision

Step 5:Step 5: Postpurchase Postpurchase EvaluationEvaluation

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13-19

Business-to-Business (B2B)Business-to-Business (B2B)1.1. NumberNumber

2.2. SizeSize

3.3. Geographic Geographic ConcentrationConcentration

4.4. RationalRational

5.5. Direct SalesDirect Sales

6.6. Personal SellingPersonal Selling

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13-20

Marketing ProcessMarketing Process NeedNeed ResearcResearc

hhDesigDesignn

TestTest Name/Name/Package/ PricePackage/ Price

DistributioDistributionn

PromotePromoteBuild Build RelationshipRelationship

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13-21

Updated Marketing ConceptUpdated Marketing Concept• Customer > Delight StakeholdersCustomer > Delight Stakeholders

• Organizational Service > Uniting Organizational Service > Uniting OrganizationsOrganizations

• Maintain Profit OrientationMaintain Profit Orientation

• Establish RelationshipsEstablish Relationships

- CustomerCustomer

- StakeholderStakeholder

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13-22

Successful MarketingSuccessful Marketing in Small Organizationsin Small Organizations

Identify your best Identify your best customers.customers.

Build lasting Build lasting relationships.relationships.

Share your Share your customers with customers with other businesses other businesses by developing by developing strategic strategic alliancesalliances..

Practice Practice integrated integrated marketing.marketing.

Know what makes Know what makes your customers your customers happy.happy.

Personally thank Personally thank your customers your customers for support.for support.

Stand out above Stand out above the competition.the competition.

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13-23

ABCsABCs of Marketing of MarketingAAlways be customer-driven.lways be customer-driven.

BBenchmark against the best in the world.enchmark against the best in the world.

CContinuously improve product/performance.ontinuously improve product/performance.

DDevelop the best value package.evelop the best value package.

EEmpower your employees.mpower your employees.

FFocus on relationships.ocus on relationships.

GGenerate profit/meet other org. objectives.enerate profit/meet other org. objectives.Source: Nickels & Wood, Marketing, Worth Publishing, 1997

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13-24

Stakeholder MarketingStakeholder Marketing• ShareholderShareholder

• Green ProductsGreen Products

• Customer Relationship Customer Relationship ManagementManagement

–80/20 Rule80/20 Rule

–SoftwareSoftware


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