*

*
*
**
Marketing: *

CHAPTER
Building
Customer
Relationships
13
Nickels
* McHugh
* McHugh

1-1
McGraw-Hill/Irwin
Understanding Business, 8e 13-1
2008 The McGraw-Hill Companies, Inc., All Rights
*
* 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
*
* Marketing Strategies in
* Non-Profit Organizations

Find a productive Practice strategic

board of trustees planning
(Directors) Carefully segment
Make marketing the target market
focus; not short- Train & develop
term sales volunteers for long-
term
Know your mission
and review mission Be frugal- know how
strategy regularly to manage finances

13-3
*
* Elements in the Marketing
* Mix
Product Plac
e

Marketin
g
Program Buy at
Computers
R Us

Pric Promotio
n 13-4
*
* Marketing Process
*
1. Find Opportunity 6. Brand Name, Design
2. Conduct Research & Price
3. Identify Target 7. Develop Distribution
Market System
4. Design Product 8. Design Promotional
Program
5. Product Testing
9. Build Relationship
With Customer

13-5
*
* Product Design
*

Concept Test
Test Market
Package Design/Brand Name

13-6
*
* Where They Got
* Their Names
Founder(s)
Taco Bell Glen Bell
Days Inn Cecil Day
Bose Corp Amar Bose
Ty Inc. Ty Warner
Bristol-Myers William Bristol
& John Myers
Source: World Features Syndicate

13-7
*
* Pricing Strategies
*
Cost-Plus Skimming
Value-Based Discount
Competitive Loss-Leader
Going-Rate Psychological

Source: Perdue University, May 2005

13-8
*
* Other Things To Keep
* In Mind With Price
Payment Period Price Differences
Allowances Target Customers
Regular Geographic Areas
Seasonal Volume Discounts
Bundling and Wholesale
Pricing
Trade Discounts
Price Flexibility Cash and Early Pmt
Discount
Credit Terms

Source: Perdue University, May 2005

13-9
*
* Place Decisions
*
Direct Sales
Reseller Sales
Market Coverage
Intensive
Selective
Exclusive
Inventory Size
Logistics
Source: Perdue University, May 2005

13-10
*
* 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

13-11
*
* Market Research
* Process
Define the Question
Collect Data
Analyze the data
Choose the best solution and
implement

13-12
*
* 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

13-13
*
* Sources for Marketing
* Research Information
Secondary Data Primary Data
Government Surveys
Publications Focus groups
Commercial Interviews
Publications Observation
Magazines Online surveys
Newspapers Questionnaires
Internal/General Customer comments
Sources

13-14
*
* The Marketing Environment
*

Economic

Competitiv Technolog
e y
Custome
r

Social Global

13-15
*
* 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

13-16
*
* Different Markets
*
Consumer
Niche
One-to-One

Business-to-
Business (B2B)

13-17
*
* Market Segmentation
*
Target Marketing
Geographic
Demographic
Psychographic
Benefit
Volume

13-18
*
* Influences on
* Consumer Behavior

Culture

Reference
Learning
Group
Custome
r
Cognitive
Subcultur
Dissonance
e

13-19
*
* Consumer Decision Making
* Marketing Sociocultural
Marketing mix
mix Sociocultural
Product
Product Reference
Reference
groups
groups
Price
Price
Place Family
Family
Place
Promotion Social
Socialclass
class
Promotion
Culture
Culture

Decision-Making Subculture
Subculture
Psychological Process
Psychological Situational
Situational
Perception
Perception Problem Recognition Type
Typeof
ofPurchase
Purchase
Attitudes
Attitudes Information Search Social
Socialsurroundings
surroundings
Learning
Learning Alternative evaluation Physical
Physical
surroundings
surroundings
Motivation
Motivation Purchase decision
Previous
Previous
Postpurchase evaluation experience
experience
13-20
*
* 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: Investors Business Daily, February 9, 2004

13-21
*
* Business-to-Consumer
* E-Commerce as % of Sales

Source: U.S. Census, May 18, 2006; http://home.earthlink.net/~lindberg_b/GECGrwth.htm, accessed August 5, 2006

13-22
*
* Business-to-Business (B2B)
*
1.Number
2.Size
3.Geographic
Concentration
4.Rational
5.Direct Sales
6.Personal Selling
13-23
*
* Top Marketing Tactics of
* Small Businesses

Source: Investors Business Daily, June 1, 2004

13-24