Summary Marketing 1

2018




Marketing 1
IB YEAR 1 PERIOD 1
MICROSOFT OFFICE USER

,CONTENTS

WHAT IS MARKETING? ................................................................................................................ - 3 -
UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS .............................. - 3 -
CUSTOMER VALUE-DRIVEN MARKETING STRATEGY .................................................... - 4 -
ENGAGING CUSTOMERS AND MANAGING CUSTOMER RELATIONSHIPS.................... 5
CAPTURING VALUE FROM CUSTOMERS .................................................................................. 6
THE CHANGING MARKETING LANDSCAPE ............................................................................. 6
COMPANY-WIDE STRATEGIC PLANNING: DEFINING MARKETING’S ROLE ................ 7
PARTNERING TO BUILD CUSTOMER RELATIONSHIPS ...................................................... 8
MARKETING STRATEGY AND THE MARKETING MIX: ......................................................... 9
MANAGING THE MARKETING EFFORT: .................................................................................... 9
MEASURING AND MANAGING MARKETING RETURN ON INVESTMENT .................... 10
THE MICROENVIRONMENT ........................................................................................................ 11
THE MACROENVIRONMENT ....................................................................................................... 11
MARKET SEGMENTATION ........................................................................................................... 13
MARKET TARGETING .................................................................................................................... 14
DIFFERENTATION AND POSITIONING ................................................................................... 14
WHAT IS A PRODUCT? ................................................................................................................... 16
PRODUCT AND SERVICE DECISIONS ...................................................................................... 17
SERVICES MARKETING ................................................................................................................ 18
BRANDING STRATEGY: BUILDING STRONG BRANDS ....................................................... 18
THE NEW PRODUCT DEVELOPMENT PROCESS .................................................................. 20
PRODUCT LIFE-CYCLE STRATEGIES ...................................................................................... 21
ADDITIONAL PRODUCT AND SERVICE CONSIDERATIONS ............................................. 21
MAJOR PRICING STRATEGIES .................................................................................................. 22
OTHER INTERNAL AND EXTERNAL CONSIDERATIONS AFFECTING PRICE
DECISIONS ........................................................................................................................................ 23
NEW PRODUCT PRICING STRATEGIES................................................................................... 24
PRODUCT MIX PRICING STRATEGIES .................................................................................... 24
PRODUCT ADJUSTMENT STRATEGIES ................................................................................... 24
PRICE CHANGES ............................................................................................................................. 25
PUBLIC POLICY AND PRICING .................................................................................................. 26
SUPPLY CHAINS AND THE VALUE DELIVERY NETWORK ................................................ 27
NATURE AND IMPORTANCE OF MARKETING CHANNELS............................................... 27
CHANNEL BEHAVIOR AND ORGANIZATION ......................................................................... 28
CHANNEL DESIGN DECISIONS .................................................................................................. 29


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,CHANNEL MANAGEMENT DECISIONS .................................................................................... 29
PUBLIC POLICY AND DISTRIBUTION DECISIONS .............................................................. 29
MARKETING LOGISTICS AND SUPPLY CHAIN MANAGEMENT ...................................... 30
THE PROMOTION MIX ................................................................................................................... 32
INTEGRATED MARKETING COMMUNICATIONS .................................................................. 32
ADVERTISING .................................................................................................................................. 34
PUBLIC RELATIONS ...................................................................................................................... 35
DIRECT AND DIGITAL MARKETING ......................................................................................... 37
FORMS OF DIRECT AND DIGITAL MARKETING .................................................................. 37
DIGITAL AND SOCIAL MEDIA MARKETING........................................................................... 38
TRADITIONAL DIRECT MARKETING FORMS ........................................................................ 39
PUBLIC POLICY ISSUES IN DIRECT AND DIGITAL MARKETING .................................. 40
SOCIAL CRITICISMS OF MARKETING ..................................................................................... 41
CONSUMER ACTIONS TO PROMOTE SUSTAINABLE MARKETING................................ 42
BUSINESS ACTIONS TOWARD SUSTAINABLE MARKETING ............................................ 43




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, CHAPTER 1

WHAT IS MARKETING?



- The process by which companies engage customers, build strong customer relationships, and
create customer value in order to capture value from customers in return
- The Marketing Process:
1. Create value for customers and build customer relationships:
a. Understand the marketplace
b. Design customer value-driven marketing strategy
c. Construct an integrated marketing program that delivers superior value
d. Engage customers, build profitable relationships, and create customer delight
2. Capture value from customers to create profits and customer equity




UNDERSTANDING THE MARKETPLACE AND CUSTOMER NEEDS



1. Customer Needs, Wants, and Demands:
- Needs: States of felt deprivation; physical, social, and individual needs
- Wants: form human needs take as they are shaped by culture and individual personality
- Demands: Human wants that are backed by power
2. Market Offerings – Products, Services, and Experiences
- Market offerings: products, services, information, experiences (more broadly also
persons, places, organizations, ideas)
- Marketing myopia: the mistake of paying more attention to the specific products a
company offers than to the benefits and experiences produced by these products (creation
of brand experiences)
3. Customer Value and Satisfaction
- Setting right level of expectations → attracting enough customers and don’t disappoint
customers
4. Exchange and Relationships
- Exchange: act of obtaining a desired object from someone by offering something in
return
- Marketing consists of actions taken to create, maintain and grow desirable exchange
relationships with target audiences involving a product, service, idea, or other object
5. Markets
- Market: set of actual and potential buyers of a product or service
- Buyers share a particular need or want that can be satisfied through exchange
relationships
- Marketing = managing markets to bring about profitable customer relationships
- Creating relationships takes work: search and engage buyers, identify their needs, design
good market offering, set prices, promote them, store them, deliver them
- Core marketing activities: consumer research, product development, communication,
distribution, pricing, service

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