Chapter One: Marketing: The Art and Science of

Satisfying Customers 02/09/2011

Key Objectives
 Define marketing, explain how it creates utility, and describe its
role in the global marketplace.
o According to AMA…
Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of
ideas, goods, services, organizations, and events to
create and maintain relationship that will satisfy
individual and organizational objectives.
o The NEW AMA definition…
 Marketing is the set of processes that communicate and
deliver value while managing customer relationships to
benefit the organization and stakeholders.
o Utility: The want or desire for a satisfying good or service.
 Form: putting it into the form the customer wants
 Time: providing it when the customer wants it
 Place: providing it where the customer wants it
 Ownership: finding a way to help the customer gain
title/ ownership.
 Contrast marketing activities during the four eras in the history of
marketing.
Era Approx. Time Prevailing
Period Attitude
Production Prior to the 1920s A good product will
sell itself
Sales Prior to the 1950s Creative advertising
and selling strategies will
overcome customer
resistance
Marketing Since 1950s Consumer is king!
Find a need and fill it.
Relationship Began in the 1990s Long-term trust
based relationships will
create success.
  Contrast the marketing concept with the selling concept.
Conce Starti Focu Mean Ends Sour
pt ng Point s s ce
Sales Factor Existi Sellin Profits Intern
y ng Products g and through al
Promotion sales volume

Marke Marke Custo Integr Profits Exter

ting t mer Needs ated though nal
Marketing customer
satisfaction

 Identify the basic elements of marketing strategy.

o Marketing Strategy is composed by the marketing mix.
o It represents major categories of marketing activity
o Explains controllable variables in marketing
o Is also called the “Four P’s”
 Product
 Promotion
 Place
 Price
o A new marketing mix is developed for each target market
 Target markets
 Business or Consumer
Chapter Two: Strategic Planning in Contemporary
Marketing 02/09/2011
Key Objectives
 Distinguish between strategic planning and tactical planning.
o Strategic Planning:
 The process of identifying an organization’s primary
objectives and adopting courses of action toward these
objectives. Strategic planning focuses on the big picture
of which industries are central to a firm’s business.
o Tactical Planning:
 Guides the implementation of the activities specified in
the strategic plan. Once the strategy is set, operational
managers devise methods (tactics) to achieve the larger
goals.
 Explain how marketing plans differ at various levels in an
organization.
o Top management spends more time engaged in strategic
planning than middle- and supervisory- level managers, who
tend to focus on narrower, tactical plans for their units.
Supervisory managers are more likely to develop specific
plans designed to meet the goals assigned to them, for
example, streamlining production processes so that they
operate more efficiently.
Planning Level Management Involved
 Focus on 1st Tier strategic CEO/ Top Managers
issues
Tactical Planning Middle Level Management
Operational Planning Supervisors.

Describe successful planning tools and techniques, including SWOT

analysis and the strategic window.
o SWOT Analysis (strengths, weaknesses, opportunities, and
threats)
 Helps planners compare internal organizational
strengths and weaknesses with external opportunities
and threats.
o Strategic Window
  Identifies the limited periods during which the key
requirements of a market and the competencies of a
firm best fit together.
 Describe the methods for marketing planning, including business
portfolio analysis and the BCG matrix.
o The business portfolio analysis evaluates a company’s
products and divisions, including SBUs. The SBU focuses the
attention of company managers so that they can respond
effectively to changing consumer demand within certain
markets.
o The BCG matrix places SBUs in a four quadrant chart that
plots market share against market growth potential.
 The four quadrants are star, cash cow, dog, and
question mark.
Chapter Three: The Marketing Environment, Ethics,
and Social Responsibility 02/09/2011
Key Objectives
 Identify the five components of the marketing environment.
1. Competitive Environment
 The interactive process that occurs in the marketplace
as competing organizations seek to satisfy markets.
2. Political-legal Environment
 The laws and interpretations of laws that require firms
to operate under competitive conditions and to protect
consumer rights.
3. Economic Environment
 Environment factors resulting from business fluctuations
and resulting variations in inflation rates and
employment lever
4. Technological Environment
 Application to marketing of knowledge based on
discoveries in science, inventions, and innovations
5. Social-Cultural Environment
 The component of the marketing environment
consisting of the relationship between the marketer and
society and its culture.
 Explain the types of competition marketers face.
o Direct Competition among marketers of similar products
o Competition among goods or services that an be substituted
for one another
o Competition among all organizations that vie for the
consumer’s purchasing power.
 Identify the four levels of the social responsibility pyramid
1. Economic
 To be profitable, the foundation of the pyramid
2. Legal
 To obey the law, society’s codification of right and
wrong
3. Ethical
 To do what is right, just, and fair and to avoid
wrongdoing
 4. Philanthropic
 To be a good corporate citizen, contributing to the
community and improving quality of life.
 Describe ways of developing a competitive advantage.
o In class we discussed achieving competitive advantage by
using Port’s Three:
1. Marketing Advantage (differentiated)
a. Strong brand name
b. Technological leadership
2. Cost Advantage (undifferented)(not a product
difference)
a. Economies of scale (large manufacturing of a
product in order to distribute contributed costs
over a large number of unspecialized products.)
3. Market Niche (concentration)
a. Focus on a specific need in the market.
Chapter Five: Consumer Behavior 02/09/2011
Key Objectives
 Describe the interpersonal determinants of consumer behavior:
cultural, social, and family influences.
o Cultural influences, such as the general work ethic or the
desire to accumulate wealth, come from society. Core values
may vary from culture to culture. Group or social influences
include social class, opinion leaders, and reference groups
with which consumers ma want to be affiliated. Family
influences may come from spouses, parents, grandparents, or
children.
 Explain each of the personal determinants of consumer behavior:
needs, perceptions, attitude, and self-concept theory.
o Need: an imbalance between a consumer’s actual and desired
states.
o Perception: the meaning that a person attributes to incoming
stimuli gathered through the five senses.
o Attitude: a person’s enduring favorable or unfavorable
evaluations, emotions, or action tendencies toward
something.
o Self-Concept Theory: a person’s view of himself or herself
plays a role in purchasing behavior. In purchasing goods and
services, people will likely choose products that move them
closer to their ideal self-images.
 Real Self = What you really are
 Self- Image = How you see yourself
 Ideal-Self = How you want to see yourself
 Looking-Glass = How others see you
 Differentiate among routinized response behavior limited problem
solving, and extended problem solving by consumers.
o Routinized Response Behavior
 Refers to repeat purchases made o the same brand or
limited group of items.
o Limited Problem Solving
When a consumer previously set criteria for a purchase
but then encounters a new brand or model.
o Extended Problem Solving
 When brands are difficult to categorize or evaluate.
  High-involvement purchase decisions usually
require extended problem solving.
 Describe Maslow’s Hierarchy of Needs
o Maslow introduced the idea that needs to be categorized and
prioritized according to customer norms.
o
Self
-
Act
uali
zati
on
Esteem Needs

Social Needs

Safety Needs

Physiological Neeeds
Chapter Six: Business-to-Business (B2B) Marketing
02/09/2011
Key Objectives
 Explain each of the components of the business-to-business (B2B)
market
o Commercial Market
Consists of individuals and firms that acquire products
to be used, directly or indirectly, to produce other goods
and services
o Trade Industries
Organizations such as retailers and wholesalers that
purchase for resale to others
o Governments
 Federal, state, and local level government purchases
that provide some form of public benefit
o Institutions
 Includes a diverse array of organizations such as
hospitals, schools, museums, and not-for-profit
agencies.
 Identify the major characteristics of the business market and its
demand
o Major Characteristics
 Geographic Concentration
 Size and number of buyers
 Purchase decision procedures
 Buyer-seller relationships
o Categories of Demand
 Derived Demand
 Demand for a business product that results from
demand for a consumer product. (B2C product)
 Volatile Demand
 Shifts in consumer demand for a specific product
or service should result in a similar response from
the businesses offering it.
 Joint Demand
  Demand for a business product that depends on
the demand for another business product. (B2B
products)
 Inelastic Demand
 Demand throughout an industry will not change
significantly due to a price change.
 Inventory Adjustments
 Results in JIT and JIT II inventory policies
 Classify organizational buying situations
o Straight Rebuy
 A recurring purchase decision in which a customer stay
with an item that has performed satisfactorily
o Modified Rebuy
When a purchaser is willing to reevaluate available
options
o New-Task Buy
 First-time or unique purchase situations that require
considerable effort n the part of the decision makers
o Reciprocity
 Buying from suppliers who are also customers
 Explain the buying center concept
o The buying center includes everyone who is involved in some
fashion in an organizational buying action.
o Five buying center roles
 Users
 Gatekeepers
 Influencers
 Deciders
 Buyers