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, Sales Promotion, Public Relations.) Creating utility: form utility (product), place utility, time utility, possession utility (place) Goal is to make a lifetime product relationshipmore 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, social marketing 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 rights commercials, 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 Proposition 4.Communicate Value Proposition 5.Deliver Value Proposition Marketing is criticized- Corrupts, Unnecessary, and Manipulates. Marketing dark side- Bait and switch (company side). 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

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- Detailed annual , Semiannual , Quarterly Strategic Planning Step-1. Define the mission 2. Evaluate the internal&external(SWOT) environment 3. Set organizational 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 business objectives) 3. Develop marketing strategies to achieve marketing objectives(target market, marketing mix) 4. Implement and Control the Marketing 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 adapt marketing mix strategies(Localiza, standardize) Making a decision-must think about market conditions and competitive advantage Protectionism restricts trade ()QuotasEmbargoesTariffs 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 organizations regardless of boarders. Economic infrastructure ():Quality of countrys distribution , Financial , and Communications systems Economies problems-Prosperity()RecessionRecoveryDepression Inflation Competitive intelligence() from: Media, Internet, Government Competition in microenvironment discretionary income, product, brand. In macroenvironment Monopoly, oligopoly, 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 databases Computer hardware and software Information for marketing decisions Marketing research: Collecting, analyzing, and interpreting data about Customers, Competitors , Overall environment to improve marketing effectiveness Syndicated research: Custom research

Customer Acquisition- gets new customers, Customer Retention and Loyalty- Customer Abandonment- purchases. Market Basket Analysis- Develop special promotions based on past

Marketing research process: 1.define the research problem 2.determine the research design 3.choose the method to collect 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 choiceneed 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 critically important (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 segments Have members with similar product needs/wants who are different from members of other

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. Differentiated target strategy (more product for several customer groups) 3. Concentrated targeting strategy (more products promoted to a single segment.) Customized marketing strategy- Positioning decision stages- 1. Analyze competitors positions 2. Offer a good or service with a competitive advantage 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 and needs CRM facilitates one-to-one marketing: Step 1: Identify customers and get to know them in as much detail as possible. 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, Sales contact management software