Chapter 1—Overview of Marketing

Marketing – the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large; not a random activity; requires thoughtful planning

Marketing – helps create value; is about satisfying customer needs and wants; entails an exchange; requires product, price, place, and promotion decisions; can be performed by both individuals and organizations; occurs in many settings

Marketing Mix – product, price, place, and promotion
Product – creating value; variety of offerings including goods, services, and ideas to satisfy customer needs
Price – capturing value; everything the buyer gives up—money, time, energy—in exchange for the product; must be determined carefully—how much customer is willing to pay so they are satisfied and seller receives reasonable profit
Place – delivering value; all the activities necessary to get the product to the right customer when that customer wants it
Promotion – communicating value; communication by a marketer that informs, persuades, and reminds potential buyers about a product to influence their opinions and elicit a response

Marketing Eras – Production; Sales; Marketing; Value-Based Marketing (attempt to discover and deliver customers’ needs and wants)

What type of relationship is best for providing value to customers? Long term relationship: Relational orientation – based on the philosophy that buyers and sellers should develop a long-term relationship

5 functions that illustrate the importance of marketing? Marketing Expands Firms’ Global Presence; is Pervasive Across Supply Chain; Enriches Society; Can be Entrepreneurial

Chapter 2—Developing Marketing Strategies and a Marketing Plan

What are the various components of a marketing strategy? Identifies 1) firm’s target market(s), 2) a related marketing mix-four Ps-and 3) the bases on which the firm plans to build a sustainable competitive advantage

Four macro strategies that can help a firm develop a sustainable competitive advantage?
1) customer excellence – focus on retaining loyal customers and excellent customer service
2) operational excellence – efficient operations and excellent supply chain and human resource management
3) product excellence – having products with high perceived value and effective branding and positioning
4) locational excellence – having a good physical location and Internet presence

What are the five steps in creating a marketing plan? (written plan composed of analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the 4 Ps, action programs, and projected/proforma income statements; three phases—planning, implementation, and control)
1) Define the business mission—broad description of a firm’s objectives and the scope of activities it plans to undertake—two main questions: what type of business is it? What does it need to do to accomplish its goals and objectives
2) Conduct a situation analysis—SWOT and CDSTEP—assess internal environment (S&W) and external environment (O&T); assess opportunities and uncertainties in marketplace with CDSTEP
3) Identifying and evaluating opportunities using STP (segmentation, targeting, and positioning)
4) Implement marketing mix and allocate resources—implementation stage
5) Evaluate performance using marketing metrics

What are the four growth strategies?
1) Market penetration—uses existing marketing mix and focuses firm’s efforts on existing customers→new consumers to current target market or encouraging existing customers to purchase more; usually requires increased advertising and additional sales and promotions/intensified distribution efforts
2) Market development—uses existing marketing offering to reach new market segments whether domestic or international; international expansion riskier