Chapter 1 Chapter 2

What is marketing? *Marketing strategy

Activities that seek to accomplish an organizations objective
by anticipating customer or client needs and directing a flow
of need-satisfying goods and services from producer to
customer or client
Universal function of marketing
Buying
Selling
Transporting
Storing
Standardization and grading
Financing
Risk taking
Market info
Bartering became difficult, moved to simple trade era where
families trade or sold their surplus. Moved to production era
during the industrial revolution, company focus on
production of few specific products. During the sales era,
company emphasize selling because of increased
competition. Replaced by department era, all marketing
activities are brought under control of one dept to improve
short run policy planning. During the marketing company
era, marketing people develop long range plan.
Specifies a target market and a related marketing mix
Target market fairly similar group of customers a company
wish to appeal
Marketing mix controllable variables the company puts
together to satisfy the target group, four basic variable
product, place, promotion, price
Target marketing states that marketing mix is tailored to fit
specific target customers.
Marketing plan written statement of a marketing strategy
and the time-related details for carrying out the strategy, it
should include:
What marketing mix will be offered, to whom
What company resources will be needed at what rate
What results are expected
Customer lifetime value total stream of purchases that a
customer could contribute to the company over the length
of the relationship
Customer equity expected earnings stream of a firms
current and prospective customers over some period of time
*Types of opportunities

*Marketing concept Present product New product

Organization aims all of its effort to satisfy customer at a Market Product
profit. Present market
penetration development
Production orientation making products that are easy to Market
New product Diversification
produce and trying to sell them development
Marketing orientation carry out marketing concept, which
is tries to offer customer what they need Market penetration trying to increase sales of a firms
Role present product in its present market, through a more
aggressive marketing mix

Market development trying to increase sales by selling

present product in different market

Product development offering new or improved product in

present market

Diversification moving into totally different line of business

Triple bottom line economic, social, environmental

Customer value difference between the benefits a

customers see from market offering and the cost obtaining
those benefits
Chapter 3
Direct market env customers, company, competitors
External market env political, economic, technological,
social
Company objective (mission statement) and resource
Market situation
Monopoly one firm completely controls a broad product
market
Pure comp, oligopoly - competitors offer very similar
marketing mixes and customers see the alternatives as close
substitute. Oligopoly: few large firms competing. Pure comp:
many large firms
Monopolistic different firm offer marketing mixes that at
least some customers see as different
Competitor analysis organized approach for evaluating the
strength and weakness of current potential competitors,
plot inside competitor matrix
*External env
Economic refers to macro-economic factors such as
economic growth, inflation that affect pattern of consumer
and business spending
Technology application of science to convert an economys
resource to output. Create opportunities for new products
and it drives the development of new processes.
Political nationalism (emphasis on countrys interest
before everything else) Free trade (agreement between two
counties to no restrict import and export)
Social - broad changing attitude, demographic, income
Chapter 4
Generic market broadly similar needs and sellers offering
various ways of satisfying those needs
Product market very similar needs and sellers offering
various close substitute ways of satisfying those needs
*Market segmentation - two-step process of naming broad
product market and segmenting these broad product market
in order to select target markets and develop suitable
marketing mixes
Ways to develop market-oriented strategies
Single target market approach segmenting the market and
picking one of the similar segment as firm target market
Multiple target market approach segmenting the market
and choosing two or more segments, treating each as
separate target market
Combined target market approach combining two or more
submarkets into one larger target market
*Segmenting dimension
Qualifying dimensions those relevant to including a
customer type in a product market
Determining dimensions those that are actually affect the
customers purchase of a specific product or brand in a
product market
Positioning how customers think about proposed or
present brands in a market
Chapter 5
*Factors affecting buying behaviour:
Economic needs includes economy of purchase, efficiency in
operation, dependability in use, improvement of earnings,
convenience
Psychological needs and wants, hierarchy of needs
(physiological>safety>social>personal),perception (Selective
exposure: seek out and notice info that interests us.
Selective perception: we modify ideas that conflict with
previously learned attitudes and belief. Selective retention:
we remember what we want to remember)
Social influences: social class, reference group, opinion
leader
Culture
Purchase situation: purpose, time available, and location
where a purchase is made
*Consumer decision making process
Start with consumer awareness of unmet need, consumer go
through problem solving process to meet that need. The
customer may seek information, alternatives, decided what
criteria are important, and re-evaluate his alternatives. He
will then decide whether he should make a purchase or not.
After the purchase, they will have a second thought and
wonder if they made the right choice.
Chapter 6
Business and organizational customers buyers who buy for
resale or to produce other goods and services
Types:
Producers of goods and services ie manufactures developers
Intermediaries ie wholesaler and retailer
Govt units federal agencies
Nonprofit org national org
*Steps in the business and organizational buying
Define the problem: Recognize the problem so that the
needs can be described in order to specify what type of
product or service should be bought
Decision making process: gather info, ask for a proposal from
suppliers and finally choose a supplier.
Managing buyer-seller relationship: buyer and seller should
work together to figure out the best way to structure the
relationship for future transaction
Chapter 7 Consumer product classes
Convenience product need but isnt willing to spend
Marketing Information System organized way of much time or effort for shopping
continually gathering, accessing, and analysing info that Staples Bought often, routinely, without much
marketing managers need to make ongoing decision. though
Impulse Bought quickly as unplanned purchase
Elements info resource, q&a, decision maker, results because of a strongly felt need
Emergency Purchased immediately when the need is
Steps in marketing research great

Step 1: Defining the problem in order to define the Shopping product feel worth the time and effort to
objective of the research compare with competing product
Homogeneous Customers sees basically the same and
Step 2: Analyzing the Situation what info is already want the lowest price
available in the problem area, important If dealing with Heterogeneous Customers sees as different and want
unfamiliar environment or doesnt know much about the to inspect for quality and suitability
management decision that need to be made. Data can be
Specialty product products that customer really wants and
obtained from primary data and secondary data
makes a special effort to find
Step 3: Getting problem specific data by conducting
Unsought product potential customers dont want yet
qualitative research, group interview, quantitative research,
or know they can buy
and survey
New unsought Product offering really new ideas
that potential customers dont
Step 4: Interpreting the data the data collected should be know about ye
analysed using statistical package in order to obtain info Regularly unsought Products that stay unsought but
about the population and confidence intervals. Also to verify not unbought forever
validity.
Business product classes
Step 5: Solving the problems the research results were
then used to make a marketing decision Installations Such as buildings and land rights
Accessories Short lived capital items such as
Chapter 8 copy machine
Product need satisfying offering of a firm Raw materials Unprocessed expense items,
divided into farm products and
Branding the use of a name, term, symbol, or design to natural products
identify a product Components Processed expense items that
become part of a finished
Brand familiarity product
Brand rejection Potential customer wont Supplies Expense items that do not
buy said brand unless its become part of a finished item,
image is change, or unless divided into maintenance, repair
have no other choice and operating supplies
Brand nonrecognition Final customer dont Professional services Specialized service that support
recognize brand at all firms operation
Brand recognition Customers remember the
brand
Brand preference Target customer usually
chose the brand over other
brand
Brand insistence Customers insist on a firms
branded product and are
willing to search for it

Packaging involves promoting, protecting, and enhancing

the product
Chapter 9
Product life cycle the stages a really new product idea goes
through. Which are market intro, market growth, market
maturity, sales decline.
New product dev process
Step 1: Idea generation company obtain ideas to develop
new products from customer or by doing marketing research
Step 2: Screening evaluating the new idea with the type of
SWOT analysis
Step 3: Idea is evaluated a lot more carefully, getting reaction
from customers through method called concept testing
Step 4: Development Product ideas that survived get
further investment of time and money. Leads to creation of
prototype and were then put through market testing
Step 5: Commercialization The only product idea that
survive can finally be placed on the market
Chapter 10
Place making goods and services available in the right
quantities and locations, when customers want them.
Vertical marketing system channel systems in which the
whole channel focuses on the same target at the end of the
channel. 3 types of channels which are corporate channel
systems, administrated channel systems, contractual
channel systems.
Intensive distribution selling a product through all
responsible and suitable wholesaler and retailer
Selective distribution selling through only those
intermediaries who will give product special attention
Exclusive distribution selling through only one
intermediary in a particular geographic area
Chapter 11
Physical distribution is another name for logistics, which is
the transporting, storing and handling of goods.
Trade off among physical distribution
As service level increase, transportation cist initially fall as
firm makes larger shipment and then rise a bit as shipments
become more frequent.
Inventory cost rise as the retailer carries more goods to meet
any level of demand
Cost of lost sales initially falls because customers wont buy
other product when the model they want is in stock.
However, as customer service climbs the seller must raise
price to cover the higher service levels. This lead customers
to go for alternatives, causing the rise of cost of lost sales
When all the cost are added together, the total costs fall as
the service level increases but the rise. The optimum level of
customer service occurs where the total cost are minimized
Transportation model(factors are costs, delivery speed,
coverage, ability to handle variety of goods, frequency of
scheduled shipment) truck, rail, water, air pipeline
Storing private warehouse and public warehouse
Chapter 12
Retailing the activities involved in the sale of products to
final consumers
Types of retailers
General store Carried anything they could sell in
reasonable volume
Limited-line Specialize in certain lines of related
store products rather than a wide assortment
Speciality Conventional limited line store
shop
Department Larger store that are organized into
store many separate dept, offer many
product line
Supermarket Large stores specializing in groceries
with self service and wide assortment
Discount Offered hard goods at substantial price
house to customer who would take care of the
repair problem themselves
Mass- Large self service stores with many dept
merchandiser that emphasize soft goods and staples
Hypermarkets Very large stores that try to carry all
goods and services
Convenience
store
Auto vending
D2d selling
Internet
Wholesaler activities if those persons or estb that sell to
retailers and other merchants but do not sell to final
customers

Type of wholesalers