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

MUSOLINO

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1-1

13

CHAPTERMarketing: Marketing:

Building Customer Building Customer RelationshipsRelationships

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+

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Marketing Strategies inNon-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

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Elements in the Marketing Mix

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ProductProduct

MarketinMarketing g

ProgramProgram

PlacPlacee

PromotioPromotionn

Buy at Buy at Computers Computers

‘R Us‘R Us

PricPricee

Marketing Process

1. Find Opportunity2. Conduct Research3. Identify Target

Market4. Design Product5. Product Testing

6. Brand Name, Design & Price

7. Develop Distribution System

8. Design Promotional Program

9. Build Relationship With Customer

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Product Design

Concept Test

Test Market

Package Design/Brand Name

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Where They Got Their Names

Taco Bell Glen Bell Days Inn Cecil Day Bose Corp Amar Bose Ty Inc. Ty Warner Bristol-Myers William Bristol

& John Myers

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Source: World Features SyndicateSource: World Features Syndicate

Founder(s)Founder(s)

Pricing Strategies

Cost-Plus

Value-Based

Competitive

Going-Rate

Skimming

Discount

Loss-Leader

Psychological

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Source: Perdue University, May 2005

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

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Source: Perdue University, May 2005

Place Decisions

Direct Sales Reseller Sales Market Coverage

Intensive Selective Exclusive

Inventory Size Logistics

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Source: Perdue University, May 2005

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

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Source: World Feature Syndicate

Market Research Process

Define the Question

Collect Data

Analyze the data

Choose the best solution and implement

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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.

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Source: cmomagazine.com, September 2004

Sources for Marketing Research InformationSecondary Data

Government Publications

Commercial Publications

Magazines Newspapers Internal/General

Sources

Primary Data Surveys Focus groups Interviews Observation Online surveys Questionnaires Customer

comments

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The Marketing Environment

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EconomicEconomic

SocialSocial

TechnologTechnologyy

GlobalGlobal

CustomeCustomerr

CompetitivCompetitivee

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.

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Source: St. Louis Small Business Monthly, May 2004

Different Markets

Consumer Niche One-to-One

Business-to-Business (B2B)

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Market Segmentation

Target Marketing

Geographic Demographic Psychographic Benefit Volume

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Influences onConsumer Behavior

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CultureCulture

SubculturSubculturee

Reference Reference

GroupGroup

Cognitive Cognitive

DissonanceDissonance

CustomeCustomerr

LearningLearning

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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

•SubcultureDecision-Making Decision-Making ProcessProcess

•Problem RecognitionProblem Recognition

•Information SearchInformation Search

•Alternative evaluationAlternative evaluation

•Purchase decisionPurchase decision

•Postpurchase evaluationPostpurchase evaluation • (cognitive dissonance)(cognitive dissonance)

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?

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Source: Investor’s Business Daily, February 9, 2004

Business-to-ConsumerE-Commerce as % of Sales

0.00% 0.50% 1.00% 1.50% 2.00% 2.50%

2005

2004

2003

2002

2001

2000

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

Business-to-Business (B2B)

1. Number

2. Size

3. Geographic Concentration

4. Rational

5. Direct Sales

6. Personal Selling13-23

Top Marketing Tactics of Small Businesses

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Web Sites Search EngineKeywords

CommunityRelations

PublicRelations/Media

Coverage

E-mail Marketing Direct Marketing

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Source: Investor’s Business Daily, June 1, 2004