Chapter 1
Marketing – the process of creating distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment.

 The essence of marketing is to develop satisfying exchange relationships from which both customers and marketers benefit.

CUSTOMERS & TARGET MARKET
• Customers ‐ the purchasers of organizations’ products; the focal point of all marketing elements Target Market ‐ the group of customers on which marketing efforts are focused
 This TD Ameritrade ad targets Generation X. It makes the customer think about their retirement in terms of their currently small children. Right now Generation X is between age 30 and 45 and likely to have children who are close in age to the girl in the ad.

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Marketing Concept vs. Selling Concept
Marketing Concept –
A philosophy that at organization should try to provide products that satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals

Selling Concept –
Focuses on organization’s existing products and aims to sell what they make rather than making what the customer wants

This ad is an example of the marketing concept. It focuses on satisfying the need of customers who tend to sweat more than the average person.

The following SuitMart commercial is an example of the selling concept. It focuses on the selling and advertising of their apparel by emphasizing their low unbeatable prices.
Suit Mart Commercial

Chapter 1
Marketing Mix is the combination of the elements of marketing and what roles each element plays in promoting your products and services and delivering those products and services to your customers. Product – The products or services offered to your customer: Their physical attributes what they do, how they differ from your competitors and what benefits they provide. Price – How you price your product or service so that your price remains competitive but allows you to make a good profit. Place (Also referred to as Distribution) – Where your business sells its products or services and how it gets those products or services to your customers. Promotion – The methods used to communicate the features and benefits of your products or services to your target customers.

Chapter 2
• Core Competencies – Things a company does extremely well, which sometimes give it an advantage over its competition. • Market Opportunity – A combination of circumstances and timing that permits an organization to take action to reach particular target market. • Competitive Advantage – The result of a company matching a core competency to opportunities it has discovered in the marketplace.

Chapter 2
Strengths • • • These are internal attributes helpful to achieve the objectives Make an organization more competitive against the rival Weakness • These are also Internal attributes which hinders to achieve the objectives Provides an insight of the organizations weak aspects and hence harmful (such as limited resources). These are external factors that are harmful to the organization

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Opportunities • • • External measures Helpful to reach the goal Enhance to gain advantage with the application of the strengths

Threats •

Chapter 3: External Environmental Forces
• Competitive‐ Your competitor’s • Economic‐ Buying power , Disposable Income, Income, Consumers willingness to spend • Political‐ Any law passed for or against your product • Legal & Regulatory‐ Complying with rules having updated regulations (FTC) • Technological‐ Technology is the application of knowledge and tools to solve problems and perform tasks more efficiently

• Social Culture‐ influences in a society and its • culture that bring about changes in people’s attitudes, beliefs, norms, customs, and lifestyles. • Baby Boomers‐41‐59 about 28.2% of the market • Gen X‐29‐40 about 16.4 % of the market • Gen Y‐11‐28 about 25.8% of the market

Chapter 4: Social Responsibility
• Organization’s obligation to maximize its positive impact and minimize its negative impact on society.

Consumerism
• Consumerism – An organized movement of independent individuals, groups, and organizations to protect the rights of consumers.

Community Relations
• Community relations are your interactions with the community in which your organization operates. Community relations emphasize fostering trust through interactions. • Marketing and Community Relations are the processes that an organization uses to connect with its various constituents such as clients, volunteers, donors, community partners, and peers.

Green Marketing a strategic process involving stakeholder assessment to create meaningful long‐ term relationships with customers while maintaining, supporting, and enhancing the natural environment

Chapter 5
• Primary data‐ data observed and recorded or collected from respondents. This data must be gathered by observing phenomena or surveying people of interest.
– Advantages: Get exactly what you want – Disadvantages: Lengthier, More Expensive, More complex – Methods of Collecting: Sampling‐ Selecting representative units from a total population – Surveying‐ Mail, telephone, online, personal interview, Focus group, observation.

• Secondary data‐ data compiled both inside and outside the organization for some purpose other than the current investigation.
– Secondary data include general reports supplied to an enterprise by various data services and internal and online databases. – Sources ‐ internal sources, government publications, trade associations, periodicals, and online databases (examples listed in Table 5.3) – Advantages: Obtained quickly, less expensive than primary data – Disadvantages: –Information may not exist or may not be usable

Chapter 6: Undifferentiated
• Definition: single marketing mix directed at the entire market for a particular product. • Example: Large proportion of customers have similar needs for toilet paper

Differentiated
• Definition: Two or more segments by creating a marketing mix for each segment • Example: Dove was known for just women but now it is also aiming for men

Concentrated
• Segmentation that targets a single market using one marketing mix • Example: Rolls Royce is a car that costs nearly half a million dollars so aimed specifically to the rich

Micromarketing
• Definition: Targeting narrowly on a very small specific market • Example: your local Vietnamese restaurant will most likely be limited to the neighborhood it is in

Chapter 6: Consumer Segmentation Variables – Geographic, Demographic, Psychographic and Behavioristic.

Consumer Segmentation Variables are characteristics of individuals, groups or organizations used to divide a market into segments.

Demographic Variables
• The study of aggregate population characteristics such as distribution of age, gender, fertility rates, migration patterns and mortality rates. For example, This ad from “MASECA” appeals to the ethnic segment by its use of language and appealing to a sense of ethnic tradition.

Geographic Variables
• These refer to the climate, terrain, city size, population density and urban and rural areas. It also influences consumer needs. For example, this ad demonstrates this point because it is specific to the tourist location, Estes Park, Colorado.

Psychographic Variables
• Marketers sometimes use psychographic variables such as personality characteristics, motives, lifestyles to segment markets. This, left, is an example of a “Lifestyle” in that it illustrates a young man, a student , using his electronic device, the item actually for sale, to complete his work.

Behavioraristic Variables
• The market is divided according to some features of consumer behavior toward a product. This ad demonstrates an example of brand loyalty and benefits as it clearly demonstrates a line of products from the same brand name that is both old and well known.

Chapter 6
Product Positioning is the decisions and activities intended to

create and maintain a certain concept of the firms product (relative to competitive brands) in the customers mind. Ex: Crest is positioned as a fluoride toothpaste that fights cavities.

Repositioning is changing the product by changing the price, image through promotion, the packaging or the benefits. Ex: changing the look of coke a cola when it is Christmas season

Chapter 7 Consumer Buying Decision Process
• Situational Influences‐ Result from circumstances, time and location. Can influence the buyer during any stage of the consumer buying decision process and may cause the individual to shorten, lengthen, or terminate the process. They can be classified into 5 categories
– – – – – Physical surroundings Social Surroundings Time Perspective Reason for Purchase Buyer’s momentary mood and condition

Ex: After going to the dentist and having one of your yearly checkups, you decide to go buy whitening strips for your teeth.

Psychological Influences
They are influenced by perception, motives, learning, attitudes, personality and self‐ concept, and lifestyles.
This is an example of a lifestyle. Mini‐Coopers are not designed for everyone, but for those who want a “not‐so‐ normal” vehicle.

Social Influences
• Grouped into 5 major areas
• Roles • Family • Reference Groups and opinion leaders • Social Classes • Culture and subcultures
Family influence: Vacations, such as a family trip to Disneyland, are influenced by parents’ desires to make their children happy, as well as the child’s desire to create a magical experience.

Chapter 11: What is a Product
• • • • Product is a good, service or an idea received in an exchange. Good is a tangible physical entity Service is an intangible result of the application of human and mechanical efforts to people or objects. Idea is a concept, philosophy, image or issue.

What is Product Line
• Product line is a group of closely related products items view as a unit because of marketing, technical or end‐use considerations Below Ad is an example of product line.

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Product Life‐Cycle
• • Product life cycle is the progression of a product through four stages; introduction, growth, maturity and decline. Every product has a limited product life cycle describes the profit and sales earned by a product over its whole life

Introduction Stage
• • First appearance, very new on the market, sales are low, negative profits. Most new products fail. Below is an Ad of a OLED TV on its introduction stage.

Growth Stage
• Rapidly rising sales • Profits reach a peak • Growing competition Example the below iPhone 5

Maturity Stage
• The stage in the product life cycle where sales growth peaks, then slows as the product reaches widespread acceptance, and competition is intensive; e.g. iPod shown below

Decline Stage
• Is a Product Life Cycle stage whereas sales growth becomes negative, profits decline, competition remains high, and the product ultimately reaches its 'death‘ ; e.g. the Desktop Computer

Chapter 12
• Product modification means changing one or more characteristics of a product. A product modification differs from a line extension in that the original product does not remain in the line. For example, U.S. automakers use product modifications annually when they create new models of the same brand. Once the new models are introduced, the manufacturers stop producing last year’s model. Like line extensions, product modifications entail less risk than developing new products. • Quality modifications are changes relating to a product’s dependability and durability. The changes usually are executed by altering the materials or the production process. For instance, for a service, such as a sporting event or air travel, quality modifications may involve enhancing the emotional experience that makes the consumer passionate and loyal to the brand.

Chapter 12
• Changes that affect a product’s versatility, effectiveness, convenience, or safety are called functional modifications; they usually require redesign of the product. Product categories that have undergone considerable functional modification include office and farm equipment, appliances, cleaning products, and telecommunications services. For example, Sub‐Zero modified its refrigerators with dual compressors. This feature allows for independent climate control of different compartments in the unit. The functional benefit is fresher food. Aesthetic modifications change the sensory appeal of a product by altering its taste, texture, sound, smell, or appearance. A buyer making a purchase decision is swayed by how a product looks, smells, tastes, feels, or sounds. Thus, an aesthetic modification may strongly affect purchases. The fashion industry relies heavily on aesthetic modifications from season to season. For example, Prada clothing, handbags, and perfumes are leaders in the haute couture industry. In order to maintain its reputation for the utmost level of quality and style, the company performs aesthetic modifications on its products regularly. This ensures that Prada maintains its reputation for cutting‐edge design and quality. In addition, aesthetic modifications attempt to minimize the amount of illegal product counterfeiting that occurs through constant change in design and quality.

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Characteristics of Service
Intangibility Intangibility means a service is not physical and therefore cannot be perceived by the senses.  A service cannot be seen, touched, tasted, or smelled.  A service cannot be physically possessed.  There is a continuum of intangibility ranging from pure goods (tangible) to pure services (intangible); knowing where a product lies on this continuum is important in creating marketing strategies for service‐ dominant products.

Inseparability of Production and Consumption Inseparability of production and consumption means the production of a service cannot be separated from its consumption by customers; production and consumption are simultaneous.  Although the manufacturer of a tangible good may never see an actual customer, customers often must be present during the production of a service and cannot take the service home.  Because of inseparability, customers not only want a specific type of service but expect it to be provided in a specific way by a specific individual.

Perishability Perishability means that the unused service capacity from one time period cannot be stored for future use. Service providers and marketers cannot handle supply-demand problems through production scheduling and inventory techniques. Service providers can plan for demand which fluctuates according to day of the week, time of day, or season.

Heterogeneity Heterogeneity means variation in quality.  Quality of manufactured goods is easier to control with standardized procedures and mistakes are easier to correct than in the service industry.  Maintaining a consistent quality of service delivery can be very difficult for service providers. Variations can occur with services provided by different organizations, the same organization, different people, or the same person and are therefore difficult to control.  Heterogeneity usually increases as the degree of laborintensiveness increases. This is because services are peoplebased and susceptible to fluctuations in quality.

Client-Based Relationships Client-based relationships are interactions that result in satisfied customers who use a service repeatedly over time.  Some service providers call their customers “clients” and develop long-term relationships with them.  The success of many services depends on creating and maintaining interactions with customers that result in client-based relationships.  A concentrated effort to provide quality services builds a relationship in which customers become very loyal and are unlikely to switch to a competitor.

Customer Contact Customer contact is the level of interaction between the provider and the customer needed to deliver the service.     Customer contact varies depending on the service. Employees of high-contact service providers are crucial in creating satisfied customers. Satisfied employees lead to satisfied customers. Service organizations must train employees to perform customer-oriented behavior and reward them for success.

Chapter 14
• A brand is any name, symbol or feature that identifies a product and distinguishes that particular product from other products. An example of a brand is Coca‐Cola. • Brand equity is the financial value a particular brand has in the market. It tells how valuable the brand is compared to other brands. Coca‐Cola brand has a $65.3 million. • Brand loyalty is the favorable attitude and opinion that customers have for a particular brand. This is when a customer will by a particular product over another even if it is more expensive

Chapter 14: Three Types of Brands:
• Manufacturer Brand:
A Brand initiated by producers to ensure that producers are identified w/ their products at the point of purchase • Private distributor brand: A brand initiated & owned by a reseller

• Generic Brand:
• A brand indicating only the product category

• Co-Branding? Using two or more brands on one product. • Brand Licensing? An agreement whereby a company permits another organization to use its brand on other products for a licensing fee

Chapter 15
• Chapter 15 Marketing Intermediaries. How they add value. • ‐ Marketing Intermediaries link producers to other intermediaries or to the ultimate users of the product. They operate between the producer and the final buyer. • ‐ Intermediaries add value by solving market separations or gaps, helping to make markets between buyers and sellers.

Chapter 15: Marketing Intermediaries
• There are 6 Activities performed by intermediaries:
– Marketing information or analyzing sales data and other information in databases and information systems. – Marketing management by establishing strategic and tactical plans for developing customer relationships. – Facilitating exchanges by choosing product assortments that match the needs of the customers. – Setting promotional objectives by coordinating advertising, personal selling, sales promotion, publicity and packaging. – Establishing pricing policies and terms of sales. – Physical distribution which is managing transportation and inventory control.

Chapter 16
• • Forms of Direct Marketing Catalog Marketing: A type of marketing in which an organization provides a catalog from which customers make selections and place orders by mail, telephone, or the internet. Direct‐response Marketing: A type of marketing in which a retailer advertises a product and makes it available through mail or telephone orders. Telemarketing: The performance of marketing‐related activities by telephone. Television Home Shopping: A form of selling in which products are presented to television viewers, who can buy them by calling a toll‐fee number and paying a credit card. Online Retailing: Retailing that makes products available to buyers through computer connections.

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Chapter 17
• Integrated Marketing Communication; Coordination of promotion & other marketing efforts for max. informational and persuasive impact. The major goal is to send a consistent message to customers.
– EX. Cable TV, direct mail, internet, special‐interest magazine, DVDs, cell phones, iPods

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Word‐of‐mouth communication; personal, informal exchanges of communication that customers share w/ one another about products, brands & companies. Buzz Marketing; Incite publicity and public excitement surrounding a product through a creative event Buzz marketing works best as a part of an integrated marketing communication program that also use advertising personal selling, sales, promotion, & publicity. Viral Marketing; Strategy to get consumers to share a marketer's message, often through email or online video, in a way that spread dramatically & quickly.

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Chapter 17: Promotion
• (Marketing Mix) – communication to build and maintain relationships by informing and persuading one or more audiences • 5 elements of a promotion mix • Advertising • Personal Selling • Public Relations • Sales Promotion

Objectives of Promotion
• • • • • • • • Create Awareness Stimulate demand Encourage product trial Identify prospects Retain loyal customers Facilitate reseller support Combat competitive promotional efforts Reduce sales fluctuations

Chapter 18
• Advertising ‐Any paid form of nonpersonal communication that is transmitted to a target audience through mass media, such as television, radio, the Internet, newspapers, magazines, direct mail, outdoor displays and signs on mass transit veh. • Competitive advertising – tries to stimulate demand for a specific brand by promoting its features, uses, and • advantages relative to competing brands • Reminder advertising – used to remind consumers about an established brand’s uses, characteristics, and benefits • Reinforcement advertising – assures users they chose the right brand and tells them how to get the most satisfaction from it

Chapter 18
• Public Rela ons → is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. Public relations can be used to promote people, places, ideas, activities, and even countries. It is often used by nonprofit organizations to achieve their goals. Public relations focuses on enhancing the image of the total organization. Public Relations Tools: Publicity → a new story type of communication about an organization and/or its products transmitted through a mass medium at no charge. Publicity can be used to provide information about goods or services; to announce expansions, acquisitions, research, or new‐product launches; or to enhance a company’s image. News Release → the most common publicity‐based public relations tool. A news release is sometimes called a press release, is usually a single page of typewritten copy containing fewer than 300 words and describing a company or even products. A news release gives the firm’s or the agency’s name, address, phone number, and contact person. Feature Ar cle → is a manuscript of up to 3,000 words prepared for a specific publication. Press Conference → is a meeting called to announce major news events. Media personnel are invited to a press conference and are usually supplied with written materials and photographs. • Note: Publicity‐based public relations tools offer several advantages, including credibility, news values, significant word‐of‐mouth communications, and a perception of media endorsement.

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Chapter 19
Consumer Sales Promotions: Sales promotion techniques that encourage consumers to patronize specific stores or try particular products. Coupons: Reduce a products price and aim to prompt customers to try new or established products, increase sales volume quickly, attract repeat purchasers, or introduce new package sizes or features. Cents Off Offers: A promotion that allows buyers to pay less than the regular price to encourage purchase. Commonly used in product introduction. Money Refunds: Sales promotion technique that offers consumers a specified amount of money when they mail in a proof of purchase, usually for multiple product purchases. Rebates: Consumer receives a specified amount of money for making a single product purchase. Frequent User Incentive: Incentive programs that companies offer to reward customers who engage in repeat (frequent) purchases. i.e.‐ Kroger card to acquire points Point of Purchase Materials (POP): Signs, window displays, display racks, and similar devices used to attract customers.

Samples: A sample of a product given out to encourage trial and purchase. Most expensive method because production and distribution entail high costs. Premium: Items offered free or at minimal cost as a bonus for purchasing a product. i.e.‐free shaving cream with purchase of razor Consumer Contests: individuals compete for prizes based on their analytical or creative skills. Consumer Games: Individuals compete for prizes based primarily on chance‐often by collecting game pieces, bottle caps, ect. Consumer Sweepstakes: Entrants submit their names for inclusion in a drawing for prizes.

Chapter 20
• Price competition‐ a marketer emphasizes price as an issue and matches or beats competitors’ prices. • Nonprice competition‐ occurs when a seller decides not to focus on price and instead emphasizes distinctive product features, service, product quality, promotion, packaging, or other factors to distinguish its product from competing brands.