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Chapter 13 - Marketing: Helping Buyers Buy
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lecture link 13-9
RELATIONSHIP MARKETING: GOING BEYOND THE EXPECTED
If you pay any attention at all to what marketers do, it becomes clear rather quickly that most
marketers are more concerned with getting new customers than keeping and nurturing old customers.
Most ads on TV are trying to get new people to try new things, like a new kind of soda (pop) or new de-
Electronic databases make it much easier to do relationship marketing. Supermarkets, for exam-
ple, give out identification pieces that you can use to get discounts. Once you have shopped at a super-
market for a while, it knows what you buy and how often. It knows if you have a dog and what you eat
during the holidays. Using that information, it can send you promotional pieces offering you specials on
the things that you want and need: dog food, holiday food, and so on. It might even sponsor a party where
everyone with similar tastes might get together. It could hold cooking classes, wine tasting classes, or
gourmet dinners where it teaches people clever ways of cooking their foods.
The whole idea of relationship marketing is to exceed customer expectations. When they come in
for a checkup for the car, wash it for them free. Offer them special deals on oil changes and engine tune-
Chapter 13 - Marketing: Helping Buyers Buy
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lecture link 13-10
FAMILY LIFE CYCLE THEORY UPDATED
Age, population patterns, income, and regional differences are all market characteristics that af-
fect the marketing of goods and services. But some marketing experts feel that life cycle characteristics
EARLY FAMILY LIFE CYCLE THEORY
The first versions of life cycle theory identified five stages of life:
• Young, single, just starting out
UPDATED LIFE CYCLE THEORY
Purchasing habits fluctuate over time with every generation. Because of increased access to new
technology and uncertainty due to world events, the consumer trends of generations have changed. The
current version of family life cycle theory uses the following categories.
BIRTH TO 12 YEARS OLD
It is no longer just colorful toys that attract this consumer segment, and it is no longer
possible to lump “subteens” together under the same marketing roof. Because of the changing
Chapter 13 - Marketing: Helping Buyers Buy
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13 TO 17 YEARS OLD
The image of the typical teenager has changed from that of a lazy underachiever to an op-
timistic, ambitious, self-assured person with a more confident and positive outlook on life. This
18 TO 34 YEARS OLD
This market segment, also referred to as the “bling generation,” includes those who were
raised on TV images of the Vietnam War on one end and those who grew up watching MTV on
35 TO 54 YEARS OLD
This generation, called the “trailing boomers,” is characterized by spending a lot but
spending carefully. This segment has three primary characteristics:(1) They are quite sophisticat-
ed in the use of technology to get information;(2) they have the money to buy things, and they are
55+ YEARS OLD
Chapter 13 - Marketing: Helping Buyers Buy
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critical
thinking exercises
Name: ___________________________
Date: ___________________________
critical thinking exercise 13-1
FIND A NEED AND FILL IT
The text emphasizes that marketing is not a matter of taking a product and selling it, but of find-
STEPS IN THE MARKETING PROCESS
1. Find a need:
2. Design a product or service:
3. Test your concept:
4. Make up a prototype and test market your product or service:
5. Design packaging, think of a name, and set a price:
6. Decide how to distribute the product to consumers:
7. Develop a promotional strategy:
Chapter 13 - Marketing: Helping Buyers Buy
notes on critical thinking exercise 13-1
This is an excellent exercise for getting students to begin looking for market opportunities and
hearing other students do the same. If more than one student sees the same opportunity, that may be a
good business to pursue. Just thinking their way through the marketing process is a great way to remem-
ber the concepts later.
Name: ___________________________
Date: ___________________________
critical thinking exercise 13-2
GOOD TO THE LAST DROP
“Good to the last drop” was Coca-Cola’s slogan long before it was used in Maxwell House Cof-
fee ads. Coke used it way back in 1900. Other Coke slogans included “Thirst knows no season” (1922);
“It had to be good to get where it is” (1925); “Around the corner from everywhere” (1927); “Coke Is It,”
When you have finished gathering your data using the following method instructions and record-
ing sheets, answer these questions:
1. How many of your tasters could identify their favorite cola?
2. How many correctly identified the other colas?
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3. How did the responses given when the brands were unknown compare with the responses given
when the brands were known?
4. What do your results tell you about the power of advertising?
critical thinking exercise 13-2 (continued)
METHOD
1. Cool bottles or cans of four colas to the same temperature. Don’t use some colas in bottles and
others in cans because the packaging process could affect taste. Be sure to include Coca-Cola to
test those Coke loyalists. It’s also interesting to include a diet cola and an “off” brand.
2. Ask 10 people to sample the colas. Test each person individually. Don’t let the others watch the
test to avoid influencing their own decisions.
3. Each person will be tested in two rounds. In the first round, don’t tell the person what he or she is
tasting. Refer to each cola as A, B, C, or D. Pour a little in each of four cups(be careful not to get
6. Compile your results and answer the questions.
Chapter 13 - Marketing: Helping Buyers Buy
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critical thinking exercise 13-2 (continued)
TASTER NUMBER:______ What’s your favorite cola?________________________
Do you think you could identify the brand in a taste test? YES NO
COLA A:
COLA B:
COLA C:
COLA D:
Chapter 13 - Marketing: Helping Buyers Buy
notes on critical thinking exercise 13-2
Name: ___________________________
Date: ___________________________
critical thinking exercise 13-3
IDENTIFYING THE TARGET MARKET
PRODUCT/SERVICE
TARGET MARKET
1. Lipitor prescription drug
2. Zebco spinning reel(for fish-
ing)
3. Luvs disposable diaper
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4. Avon cosmetics
5. Cesar gourmet canned dog
food
6. First-class airline ticket to
London
7. Set of twin-sized bed linens
8. Sterling silver flatware, one
setting
9. Hummer automobile
10. Romantic novel from Ama-
zon.com
notes on critical thinking exercise 13-3
PRODUCT/SERVICE
TARGET MARKET
1. Lipitor prescription drug
Two separate target markets. One is consumers who are
aware that they have high cholesterol who seek medical
help. However, there is a more important target market: the
physicians who prescribe the drug. This is an example of a
product for which there are separate decision-makers and
buyers.
Chapter 13 - Marketing: Helping Buyers Buy
2. Zebco spinning reel(for fish-
ing)
Broadly, the target market for a fishing reel would be sport
fisherpeople. If you have students who regularly fish, they
may be able to more specifically identify a market. Zebco
reels are entry-level items, bought by first-time fisherpeople
or as gifts for children.
3. Luvs disposable diaper
The temptation is to say “babies,” but this is incorrect. A
baby doesn’t decide which product to buy; his or her parent
(or caregiver) does. Marketing should target parents of chil-
dren less than two years old.
4. Avon cosmetics
First, broadly, the target market is women. However, this
market can be narrowed to women in the appropriate age
range—not toddlers, not nursing home patients. The market
could also be narrowed by income. Very low-income con-
sumers would be more likely to shop for lower-priced cos-
metics at discount stores. Very high-income buyers can af-
ford the pricey cosmetics sold in high-end boutique stores.
5. Cesar gourmet canned dog
food
The target market here is owners of small dogs who have the
financial resources to pamper their pets with gourmet pet
food. Small cans of food would be impractical for large
breeds of dog or working dogs.
6. First-class airline ticket to
London
The target market is what used to be referred to as “jet set-
ters,” well-off individuals who love to travel and value luxu-
ry and comfort. The average tourist could probably not af-
ford the first-class ticket, and only top-level businesspeople
would have the expense account to pay for premium travel.
7. Set of twin-sized bed linens
The target market for twin-sized bed linens is harder to nar-
rowly segment. Parents of young children would be one
market. First-year college students are another. Perhaps
newly single adults who are downsizing are a third market.
Chapter 13 - Marketing: Helping Buyers Buy
Chapter 13 - Marketing: Helping Buyers Buy
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3. What are the target markets for such a product?
4. What type of consumer good is this product?
5. How will you distribute the product?
6. How could the consumer be convinced to purchase the product?
7. What are the other questions that need to be answered before a decision is made?
