CHAPTER 1: DEFINING MARKETING FOR NEW REALITIES.
The scope of marketing: What marketing is, how it works, who does it, and what is marketed.
Marketing: Meeting needs, profitably.
What is marketed: Goods, services, events, experiences, persons, places, properties, organizations,
information, and ideas.
A marketer is someone who seeks a response—attention, a purchase, a vote, a donation—from
another party, called the prospect.
CORE MARKETING CONCEPTS:
1. Needs, Wants and Demands:
a) Needs-Basic human requirements such as air, food, water, clothing and shelter.
b) Wants-Needs become wants when directed to specific objects that might satisfy the need.
c) Demands-Wants for specific products backed by an ability to pay.
2. STP- Segmentation, targeting, positioning
3. Offerings and brands: Companies address customer needs by putting forth a value proposition, a set
of benefits that satisfy those needs. A brand is an offering from a known source. A brand name
identifies the source and carries many associations in people’s minds that make up its image.
4. Marketing Channels: Communication channel, Distribution Channel and Service Channel.
5. Value and Satisfaction: Value is primarily a combination of product quality (specification and
actual product), service, and price (QSP) and it is called the Customer Value Triad.
6. Supply chain
7. Competition
Marketing environment-It consists of the task environment and the broad environment.
a. Task environment-It includes the actors engaged in producing, distributing and promoting the
offer.
b. Broad environment-It consists of six components: demographic environment, economic environment,
social-cultural environment, natural environment, technological environment and political-legal
environment.
4 A’s of Marketing:
1. Acceptability-It is the extent to which a firm’s total product offering exceeds customer expectations.
2. Affordability-It is the extent to which customers in the
target market are able and willing to pay the product’s price.
3. Accessibility-It is the extent to which customers are able
to readily acquire the product.
4. Awareness-It is the extent to which customers are
informed regarding the product’s characteristics, persuaded
to try it, and reminded to purchase.
Holistic Marketing concept: it is based on the
development, design, and implementation of marketing
programs, processes and activities that recognize their
breadth and interdependencies.
Relationship Marketing-A key goal of marketing is to
develop deep, enduring relationships
, with people and organizations that directly or indirectly affect the success of the firm’s marketing
activities. Relationship marketing aims to build mutually satisfying long term relationships with key
constituents in order to earn and retain their business.
Integrated Marketing-It occurs when the marketer devises marketing activities and assembles marketing
programs to create, communicate and deliver value for the consumers.
Internal Marketing-It is the task of hiring, training and motivating able employees who want to
serve customers well.
Performance marketing is optimizing financial and nonfinancial returns to business and society
from marketing activities and programs.
Chapter 2: Developing Marketing Strategies and Plans
1) STP -: Segmentation (Segment the market), targeting (select the appropriate target), positioning
(develop the offering's value positioning)
2) THE VALUE CHAIN -: Michael Porter has proposed the value chain as a tool for identifying ways
to create more customer value. It consists of 9 strategic relevant activities - 5 primary and 4 support
activity.
Primary are a) Inbound logistics, b) Operations, c) Outbound logistics, d) marketing, e) service , while
secondary are 1) Procurement, 2) Tech development, 3) HR management, 4) Firm infra.
3) Most large companies consist of 4 organizational levels a) Corporate b) Division c) Business d) Product
,4) All corporate headquarters take 4 planning activities, namely
a) Defining the corporate mission
b) Establishing strategic business units
c) Assigning resources to each strategic business unit
d) Assessing growth opportunity.
5) Strategic planning must be prioritized under 3 key areas
a) Managing the business as an investment portfolio
b) Assessing the markets growth rate
c) Establishing a strategy.
6) Assessing growth opportunities -: Assessing growth opportunities includes planning new businesses,
downsizing, and terminating older businesses. If there is a gap between future desired sales and projected sales,
corporate management will need to develop or acquire new businesses to fill it. Eventually every company
wants growth and in order to do this the first option is to identify opportunity for growth within current
businesses (intensive opportunities). The second is to identify opportunities to build or acquire businesses
related to current business (integrative opportunity) and the third is to identify opportunity to add attractive
unrelated business (diversification opportunities) .
7) Corporate Culture -: “The shared experiences, stories, beliefs, and norms that characterize an organization
is known as corporate culture”. Walk into any org. and the first thing you see is the corporate culture – the way
people dress, talk to one another, and greet customers.
8) SWOT Analysis -: The overall evaluation of a company’s strengths, weaknesses, opportunities, and threats
is known as SWOT analysis. It’s a way of monitoring external and internal marketing environment.
9) There are three ways to tapping market opportunities,
a) The first is to offer something that is in short supply (Ex. Electric cars),
b) The second is to supply an existing product or service in a new and superior way,
c) The third can often lead to a totally new product or service.
10) Environment threat -: An environment threat is a challenge posed by an unfavorable trend or development
that, in the absence of defensive marketing action, would lead to lower sales or profit.
11) The business unit sets objectives and then manages by objectives (MBO). Now, for an MBO system to
work, the unit’s objectives must meet four criteria’s:
a) They must be arranged hierarchically, from the most to least important.
b) Objectives should be quantitative whenever possible.
c) Goals should be realistic.
, d) Objectives must be consistent.
12) PORTER’S GENERIC STRATEGY -: Michael Porter has proposed 3 generic strategies that provides a
good starting point for strategic thinking
a) Overall cost leadership – lowest production and distribution costs.
b) Differentiation – business concentrates on achieving superior performance.
c) Focus – The businesses focus on 1 or more narrow market segments.
13) A marketing plan usually contains the following sections:
a) Situation analysis
b) Marketing strategy
c) Marketing tactics
d) Financial projections
e) Risk evaluation.
Chapter 3 CREATING LONG-TERM LOYALTY RELATIONSHIPS
“Successful marketers are those who carefully cultivate customer satisfaction and loyalty.”
Traditional Organization Chart- A pyramid with the president at the top, management in the middle, and
frontline people and customers at the bottom.
Managers who believe the customer is the company’s only true “profit center” follows Figure 3.1(a).
Successful marketing companies invert the chart to look like Figure 3.1(b).
The scope of marketing: What marketing is, how it works, who does it, and what is marketed.
Marketing: Meeting needs, profitably.
What is marketed: Goods, services, events, experiences, persons, places, properties, organizations,
information, and ideas.
A marketer is someone who seeks a response—attention, a purchase, a vote, a donation—from
another party, called the prospect.
CORE MARKETING CONCEPTS:
1. Needs, Wants and Demands:
a) Needs-Basic human requirements such as air, food, water, clothing and shelter.
b) Wants-Needs become wants when directed to specific objects that might satisfy the need.
c) Demands-Wants for specific products backed by an ability to pay.
2. STP- Segmentation, targeting, positioning
3. Offerings and brands: Companies address customer needs by putting forth a value proposition, a set
of benefits that satisfy those needs. A brand is an offering from a known source. A brand name
identifies the source and carries many associations in people’s minds that make up its image.
4. Marketing Channels: Communication channel, Distribution Channel and Service Channel.
5. Value and Satisfaction: Value is primarily a combination of product quality (specification and
actual product), service, and price (QSP) and it is called the Customer Value Triad.
6. Supply chain
7. Competition
Marketing environment-It consists of the task environment and the broad environment.
a. Task environment-It includes the actors engaged in producing, distributing and promoting the
offer.
b. Broad environment-It consists of six components: demographic environment, economic environment,
social-cultural environment, natural environment, technological environment and political-legal
environment.
4 A’s of Marketing:
1. Acceptability-It is the extent to which a firm’s total product offering exceeds customer expectations.
2. Affordability-It is the extent to which customers in the
target market are able and willing to pay the product’s price.
3. Accessibility-It is the extent to which customers are able
to readily acquire the product.
4. Awareness-It is the extent to which customers are
informed regarding the product’s characteristics, persuaded
to try it, and reminded to purchase.
Holistic Marketing concept: it is based on the
development, design, and implementation of marketing
programs, processes and activities that recognize their
breadth and interdependencies.
Relationship Marketing-A key goal of marketing is to
develop deep, enduring relationships
, with people and organizations that directly or indirectly affect the success of the firm’s marketing
activities. Relationship marketing aims to build mutually satisfying long term relationships with key
constituents in order to earn and retain their business.
Integrated Marketing-It occurs when the marketer devises marketing activities and assembles marketing
programs to create, communicate and deliver value for the consumers.
Internal Marketing-It is the task of hiring, training and motivating able employees who want to
serve customers well.
Performance marketing is optimizing financial and nonfinancial returns to business and society
from marketing activities and programs.
Chapter 2: Developing Marketing Strategies and Plans
1) STP -: Segmentation (Segment the market), targeting (select the appropriate target), positioning
(develop the offering's value positioning)
2) THE VALUE CHAIN -: Michael Porter has proposed the value chain as a tool for identifying ways
to create more customer value. It consists of 9 strategic relevant activities - 5 primary and 4 support
activity.
Primary are a) Inbound logistics, b) Operations, c) Outbound logistics, d) marketing, e) service , while
secondary are 1) Procurement, 2) Tech development, 3) HR management, 4) Firm infra.
3) Most large companies consist of 4 organizational levels a) Corporate b) Division c) Business d) Product
,4) All corporate headquarters take 4 planning activities, namely
a) Defining the corporate mission
b) Establishing strategic business units
c) Assigning resources to each strategic business unit
d) Assessing growth opportunity.
5) Strategic planning must be prioritized under 3 key areas
a) Managing the business as an investment portfolio
b) Assessing the markets growth rate
c) Establishing a strategy.
6) Assessing growth opportunities -: Assessing growth opportunities includes planning new businesses,
downsizing, and terminating older businesses. If there is a gap between future desired sales and projected sales,
corporate management will need to develop or acquire new businesses to fill it. Eventually every company
wants growth and in order to do this the first option is to identify opportunity for growth within current
businesses (intensive opportunities). The second is to identify opportunities to build or acquire businesses
related to current business (integrative opportunity) and the third is to identify opportunity to add attractive
unrelated business (diversification opportunities) .
7) Corporate Culture -: “The shared experiences, stories, beliefs, and norms that characterize an organization
is known as corporate culture”. Walk into any org. and the first thing you see is the corporate culture – the way
people dress, talk to one another, and greet customers.
8) SWOT Analysis -: The overall evaluation of a company’s strengths, weaknesses, opportunities, and threats
is known as SWOT analysis. It’s a way of monitoring external and internal marketing environment.
9) There are three ways to tapping market opportunities,
a) The first is to offer something that is in short supply (Ex. Electric cars),
b) The second is to supply an existing product or service in a new and superior way,
c) The third can often lead to a totally new product or service.
10) Environment threat -: An environment threat is a challenge posed by an unfavorable trend or development
that, in the absence of defensive marketing action, would lead to lower sales or profit.
11) The business unit sets objectives and then manages by objectives (MBO). Now, for an MBO system to
work, the unit’s objectives must meet four criteria’s:
a) They must be arranged hierarchically, from the most to least important.
b) Objectives should be quantitative whenever possible.
c) Goals should be realistic.
, d) Objectives must be consistent.
12) PORTER’S GENERIC STRATEGY -: Michael Porter has proposed 3 generic strategies that provides a
good starting point for strategic thinking
a) Overall cost leadership – lowest production and distribution costs.
b) Differentiation – business concentrates on achieving superior performance.
c) Focus – The businesses focus on 1 or more narrow market segments.
13) A marketing plan usually contains the following sections:
a) Situation analysis
b) Marketing strategy
c) Marketing tactics
d) Financial projections
e) Risk evaluation.
Chapter 3 CREATING LONG-TERM LOYALTY RELATIONSHIPS
“Successful marketers are those who carefully cultivate customer satisfaction and loyalty.”
Traditional Organization Chart- A pyramid with the president at the top, management in the middle, and
frontline people and customers at the bottom.
Managers who believe the customer is the company’s only true “profit center” follows Figure 3.1(a).
Successful marketing companies invert the chart to look like Figure 3.1(b).
