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Chapter 1 : Create and Deliver Value

Definition of marketing: Marketing is the activity, set of institutions, and processes for creating, communicating,delivering and exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing seeks to deliver value to everyone who is affected by a transaction.

Stakeholders include - Employees, Stockholders, Customers, Community.

Marketing Mix- product, place, price, promotion ( Advertising, Personal Selling, Direct Marketing, SalesPromotion, Public Relations.)

Creating utility : form utility (product), place utility, time utility, possession utility (place)

Goal is to make a lifetime product relationship more than once

Production Era -marketing not important cause supply and demand Sales Era -focus on new customer( after ww2)

Relationship era- Marketing extremely important. Focus on satisfying our customers. TQM focus on continuous

improvement

Triple Bottom line era- building long-term, maximize 3 bottom lines : financial, social, environmental. (CRM, socialmarketing concept, sustainability , accountability )

Any goods, service, or idea can be marketed: Consumer good - McDonalds, Consumer services - Lawn Care,Business-to-business goods - Paper, Business-to-business services - IT, Not-for-profit marketing - Animal rightscommercials, Idea marketing - Go Green, Place marketing -, People marketing - Politics

Marketing Value - Price, Quality, Delivery, Credit, Service. Product value - Fairly and accurately

Value chain - at each step we add more value 1.Value decisions 2.Understand customers 3.Make Value Proposition4.Communicate Value Proposition 5.Deliver Value Proposition

Marketing is criticized - Corrupts, Unnecessary, and Manipulates. Marketing dark side - Bait and switch (companyside). Shoplifting (consumer side).

Market process -Analyzing, developing plan, deciding segment, choosing marketing mix.

Market strategies -market penetration (increase sales to current customer), market development (new customer),product development(new product), diversification (new product, new customers)

Macroenvironment -demographic( ), economic, natural, technological, political , cultural

Microenvironment -company, suppliers, marketing intermediaries, customer, competitors, publics

Chapter 2 : Strategic Market Planning

Business ethics - Basic values that guide a business behavior Code of ethics - written standards of behavior

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Three levels business planning must work together 1.Strategic planning (3~5)- growth and survival 2.Functional planning -specific plan support broad plan support strategic plan 3. Operational planning - Detailedannual , Semiannual , Quarterly

Strategic Planning Step -1. Define the mission 2. Evaluate the internal&external(SWOT) environment 3. Setorganizational or SBUobjectives 4. Establish the business portfolio 5. Develop growth strategies

Market planning step -1. Perform a situation analysis(swot) 2. Set marketing objectives(in line with businessobjectives) 3. Develop marketing strategies to achieve marketing objectives(target market, marketing mix) 4. Implement and Control theMarketing Plan

Chapter 3 : Thrive in the marketing environment

Countertrade- offset, counter purchase, tolling, barter, buyback, switch trading.

Entering Global process- 1. Whether to go global 2. Which market to enter 3. Level of commitment 4. How to adaptmarketing mix strategies(Localiza, standardize)

Making a decision- must think about market conditions and competitive advantage

Protectionism restricts trade ( ) Quotas Embargoes Tariffs

WTO Objective -Smoothly, Freely, Fairly, and Predictably

Gross domestic product ( GDP ): Total dollar value of goods/services a country produces within its borders in a year

Gross national product ( GNP ):Value of all goods and services produced by a countrys citizens or organizationsregardless of boarders.

Economic infrastructure ( ):Quality of countrys distribution , Financial , and Communicationssystems

Economies problems -Prosperity( ) Recession Recovery Depression

Inflation

Competitive intelligence( ) from : Media, Internet, Government

Competition in microenvironment discretionary income, product, brand. In macroenvironment Monopooligopoly, monopolistic, perfect.

Chapter 4: Marketing research, Gather, Analyze, and Use Information

Marketing research provides accurate , up to date , relevant information

Data: internal company data, marketing intelligence , marketing research, acquired databasesComputer hardware and software Information for marketing decisions

Marketing research: Collecting, analyzing, and interpreting data about Customers, Competitors , Overallenvironment to improve marketing effectiveness Syndicated research: Custom research

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Customer Acquisition- gets new customers, Customer Retention and Loyalty-

Customer Abandonment - Market Basket Analysis - Develop special promotions based on pastpurchases.

Marketing research process : 1.define the research problem 2.determine the research design 3.choose the method tocollect primary data ( Primary Research-exploratory research, descriptive research, causal research ) 4. Design the

sample 5. Collect the data 6. Analyze and interpret the data 7. Prepare the research report

Chapter 5: Consumer behavior why buy

Decision-making process - 1. Problem recognition (fnd difference) 2. Information search (need information)3.Evaluation of alternatives 4. Product choice need heuristics 5. Postpurchase evaluation

Satisfaction ) = Expectations + Experience

Factors internal to the consumer, situational influences, and social influences

Chapter 6: Business to business markets (how and why organizations buy)

Three reasons: use in operating the business, include as a part or ingredient, for resale.

B2B demand :derived, inelastic(dont care price, still buy), fluctuating(small change large change), joint

Total business market -producers, resellers, organizations (not for profit)

E-commerce purpose - Facilitates exchanges, Links marketers to value chain members, Web site is criticallyimportant (Intranets , extranets , private exchanges )

Choose supplier: outsourcing, crowdsourcing, reverse marketing

Chapter 7: Sharpen the focus, target market and customer relationship

Target marketing process- 1.segmentation 2. Targeting 3. Position

Segmentation variables ( ) - demographic, psychographic ( ), or behavioral

Demographic- Children(4~12), teens(13~17), tweens(8~14), Generation y(1979~1994), Generation x(1965~1976),baby boomers(1946~1964), older consumers(65+)

Phases of Targeting - evaluate market segments develop segment profiles choose a targeting strategy

Evaluate market segments -

Have members with similar product needs/wants who are different from members of othersegments

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Be measurable in size and purchasing power

Be large enough to be profitable

Be reachable by marketing communications

Have needs the marketer can adequately serve

Developing Segment Profiles -demographics, location, lifestyle, and product-usage characteristics

Choosing a Targeting Strategy- 1. Undifferentiated targeting strategy (people have similar needs) 2. Differentiatedtarget strategy (more product for several customer groups) 3. Concentrated targeting strategy (more productspromoted to a single segment.)

Customized marketing strategy -

Positioning decision stages- 1. Analyze competitors positions 2. Offer a good or service with a competitiveadvantage 3. Finalize the marketing mix 4. Evaluate responses and modify as needed

Targeting and Positioning Strategies Must Complement Each Other Brand Personality dimensions - Sincerity ( ex: ), Excitement ex:apple ,

Competence ( ex: ), Sophistication ex: , Ruggedness ex:

Customer relationship management : consumers preferences and behavior - each individuals unique wants andneeds

CRM facilitates one-to-one marketing: Step 1 : Identify customers and get to know them in as much detail aspossible.

Step 2: Differentiate customers by their needs and value to the company.

Step 3: Interact with customers; find ways to improve cost efficiency and the effectiveness of the interaction.

Step 4 : Customize some aspect of the products you offer each customer.

CRM systems include : Order and delivery tracking websites, Call centers, Automatic reminder systems, Salescontact management software