Summary Marketing chapter sumary

Marketing
CH1

- Identifying and meeting human and social needs (profitably)
 Goods, services, events, experiences, persons, places, properties, organizations,
information, and ideas
 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 management  the art and science of choosing target markets and getting,
keeping, and growing customers through creating, delivering, and communicating superior
customer value
 Marketer VS prospect  market = customer groups

- Needs VS wants VS demand

 Stated needs
 Real needs
 Unstated needs
 Delight needs
 Secret needs




- Target markets  market offering to position in customers mind

- Value proposition  benefits that satisfy needs
- Marketing channels

 Communication channels
 Distribution channels  physical product display
 Service channels
- Communication options
 Paid media
 Owned media
 Earned media
- Impression VS engagement
- Value tried  quality + service + price
- Marketing environment
 Task environment  actors engaged in producing, distributing and promoting
 Broad environment  demographic, economic, social-cultural, natural, technological
and political-legal environments
- Company orientation toward the marketplace
 Production concept  consumers prefer products that are widely available and
inexpensive
 The product concept  consumers favor products offering the most quality,
performance and innovation
 Selling concept  consumers won’t buy enough product if not influenced to
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,  Marketing concept  not right customer for product but right product for customer

- Holistic marketing concept 
everything matters  needs broad,
integrated perspective
 Relationship marketing 
marketing network
 Integrated marketing  every
aspect of the product included
 Internal marketing  towards
employees
 Performance marketing  financial
and nonfinancial returns from
marketing

- Four Ps
 Old  Product – place – promotion- price
 Now  people – processes – programs – performance
- Marketing management tasks
 Developing and implementing marketing strategies and plans
 Capturing market insights
 Connecting with customers
 Building strong brands
 Creating value
 Delivering value
 Communicating value
 Managing market organization for long term success


CH2
 Customer value
- Value delivery process  marketing at the beginning of planning and not during the
selling process
 Choosing the value  segmentation, targeting, positioning (STP)
 Providing value  identifying specific product features
 Communicating the value  announce and promote product
- Value chain  activities that create value
 Primary activities  inbound logistics, operations, outbound logistics, marketing,
service
 Support activities  procurement, technology development, HR managements, firm
infrastructure
 Activities must be coordinate to conduct core business processes
 Market-sensing process  gathering info and acting on the market
 New-offering realization process  research, development, launching with
speed and within budget
 Customer acquisition process  define target market
 Customer relationship management process  relationships with individual
customers
 Fulfillment management process  receiving and approving orders


2

,  Value delivery network (supply chain)  partnering with outside suppliers and
distributors
- Core competencies  distinctive capabilities
 Source of competitive advantage and contribution to perceived customer benefits
 Applied to a variety of markets
 Difficult to imitate by competitors
- Central role of strategic planning
 Managing business as an investment portfolio
 Assessing market growth rate and position within market
 Establishing strategy
 Marketing plan
 Strategic marketing plan  target markets and firm’s value proposition
 Tactical marketing plan  specific marketing tactics




 Corporate and division strategic planning
- Defining corporate mission  mission statement
- Establishing strategic business units (SBU)  companies manage different businesses
 Single business or collection of related businesses
 Own set of competitors
 Manager responsible for strategic planning and profit performance
- Assigning resources to each SBU  portfolio planning based on shareholder value analysis
- Assessing growth opportunities
 Intensive growth  product-market expansion grid
 Market-penetration grid for current products in current market
 Market-development strategy for new market search
 Product-development strategy for new products in current market
 Diversification strategy for new product in new markets
 Integrative growth  increasing profits
 Backward integration  acquire supplier
 Forward integration  acquiring distributor
 Horizontal integration  acquiring competitor
 Diversification growth
- Organization and organizational culture
 Corporate culture  shared experiences, stories, beliefs, and norms that characterize
an organization
 Scenario analysis  plausible representation of possible future
 BSU strategic planning
- Business mission  specific mission
- SWOT analysis  company’s strength, weakness, opportunity, threats
 External environment analysis  monitoring macroenvironment forces and
microenvironment factors that affect ability to earn profit

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