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Nickels
Nickels
Cover
McHugh
McHugh
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Chapter
Marketing:
Building
Customer and
Stakeholder
Relationships
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Evolution of Marketing
• Production Era - Up to early
1900s
• Selling Era - 1920s-1950s
• Marketing Era - 1950s+
– Customer
– Service
– Profit
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Industries Providing
Best Service
Insurance Cos.
Fast-Food Rest.
Airlines
Banks
Hotels
0%
5%
10%
15%
20%
25%
30%
Source: USA Today, “Snapshots”
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Understanding
Business,
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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
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Practice strategic
planning
Carefully segment
target market
Train & develop
volunteers for
long-term
Be frugal- know
how to manage
finances
13-5
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Elements in the
Marketing Mix
Place
Product
Marketing
Program
Buy at
Computers
‘R Us
Price
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Promotion
13-6
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Product Design
•
•
•
•
•
Concept Test
Prototype
Test Market
Outsource
Package Design/Brand Name
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Where They Got Their Names
Founder(s)
•
•
•
•
•
Taco Bell
Days Inn
Bose Corp
Ty Inc.
Bristol-Myers
Glen Bell
Cecil Day
Amar Bose
Ty Warner
William Bristol
& John Myers
Source: World Features Syndicate
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Growing
E-Commerce Categories
Sports & Fitness
Toys
Home & Garden
Furn. & Appliances
Jewelry & Watches
62%
64%
66%
68%
70%
72%
74%
Source: USA Today, “Snapshots”
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Business,
Understanding
Business,
7/e 7/e
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Uses of
Market Research
Analyze Customer
Needs/Satisfaction
Analyze Markets &
Opportunities
Analyze
Effectiveness of
Strategy/Tactics
Analyze Goal
Achievement
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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.
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Market Research Process
1) Define
2) Collect
3) Analyze
4) Choose
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Sources for Marketing
Research Information
•
•
•
•
Secondary Data
Company Records
Gov’t Agencies
Trade Associations
Research Companies
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Primary Data
• Specific to Project
- Surveys
- Observations
13-13
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The Marketing Environment
Competitive
Economic
Technology
Customer
Social
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Global
13-14
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Different Markets
• Consumer
- Niche
- One-to-One
• Business-toBusiness (B2B)
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What is Marketing?
Target Market
Market Needs
Satisfy Needs
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Market Segmentation
• Target Marketing
-
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Geographic
Demographic
Psychographic
Benefit
Volume
13-17
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U.S. Buying Power*
Native Americans
Asian Americans
In Million $
Gay Men/Lesbians
African Americans
Hispanics
Disabled
Women
$0
$500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000
*Excludes senior citizens, as not all sources characterize them as a diversity market
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Urban Adult
Spending Habits
$75 on Shoes Last Year
Watch Pay-per-view
All Adults
Keep Up With Latest
Fashion
Urban Adults
Enjoy Clothes Shopping
Prefer Designer Jeans
0%
20%
40%
60%
80%
Source: Simmons Market Research
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Consumer Decision Making
Sociocultural
Marketing mix
•Reference groups
•Product
•Family
•Price
•Social class
•Place
•Culture
•Promotion
Decision-Making Process
Psychological
•Perception
•Attitudes
•Learning
•Motivation
Problem Recognition
•Subculture
Situational
Information Search
•Type of Purchase
Alternative evaluation
•Social surroundings
Purchase decision
•Physical surroundings
Postpurchase evaluation
•Previous experience
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(cognitive dissonance)
13-20
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Influences on
Consumer Behavior
Learning
Culture
Reference
Group
Customer
Subculture
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Cognitive
Dissonance
13-21
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Buying Process
Step 1: Recognize Problem
Step 2: Information Search
Step 3: Evaluate
Alternatives
Step 4: Make Purchase
Decision
Step 5: Postpurchase
Evaluation
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Business-to-Business (B2B)
1. Number
2. Size
3. Geographic
Concentration
4. Rational
5. Direct Sales
6. Personal Selling
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Marketing Process
Need
Research
Test
Distribution
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Design
Name/Package/
Price
Promote
Build
Relationship
13-24
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Updated Marketing Concept
• Customer > Delight Stakeholders
• Organizational Service > Uniting
Organizations
• Maintain Profit Orientation
• Establish Relationships
- Customer
- Stakeholder
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Successful Marketing
in Small Organizations
Identify your best
customers.
Build lasting
relationships.
Share your
customers with
other businesses
by developing
strategic
alliances.
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Practice
integrated
marketing.
Know what makes
your customers
happy.
Personally thank
your customers
for support.
Stand out above
the competition.
13-26
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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
McGraw-Hill/Irwin
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Business,
Understanding
Business,
7/e 7/e
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Stakeholder Marketing
• Shareholder
• Green Products
• Customer Relationship
Management
–80/20 Rule
–Software
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Understanding
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