I. Chapter 1: Marketing: Creating/Capturing Customer ValueII. Customer Value Presentation (CV)III. Chapter 2: Company - Marketing StrategyIV. Chapter 3: Marketing EnvironmentV. Chapter 4: Managing Marking Info to Gain Consumer InsightVI. Chapter 5: Understanding Consumer Buying BehaviorExam 1 Studyguide Chapters 1-5 & Customer Value I. CHAPTER 1: MARKETING: CREATING/CAPTURING CUSTOMER VALUE  MARKETING - DEF: social/managerial process by which companies create value for customers and build relationships to capture value from customers - GOALS OF MARKETING ACTIVITY: a. Attract new customers → superior valueb. Keep/grow current customers → customer satisfactionB) MARKETING PROCESS 1) Understand marketplace, Customer needs/wants 2) Design customer driven market strategy 3) Construct integrated marketing program → Provide superior value 4) Build Profitable Relationship → create customer delight 5) Capture Value from customers → create profits & customer equity  CONSUMER NEEDS, WANTS, DEMANDS A) Need : States of felt deprivation→ physical, social, individual B) Want : Human needs shaped by → culture, individual personality, marketing activity C) Real Demand: Human wants backed by buying power a. RD = WANTS + BUYING POWER  MARKETS & MARKET OFFERINGS/CONSUMER DRIVEN MARKET STRATEGY →A) Market Offerings: Products, services, information, experiences offered to a market to satisfy market needs/wants B) Market Myopia: marketing mistake→ too much attention to product, not enough attention to products experience C) Market : set of actual or potential buyers of a product or service D) MARKETING MANAGERS TASKS 1) What customers will we serve (WHO IS OUR TARGET MARKET)?(A) Market segmentation → dividing large market into homogenous groups/segments of customers (B) Targeting → selecting specific segment of target market to cultivate 2) How can we best serve these customers?(A) Value Proposition → benefits/value a company promises to deliver to consumers to satisfy need( class ex. BMW) II. CUSTOMER VALUE PRESENTATION (CV)  WHAT IS CUSTOMER VALUE (CUSTOMER PERSPECTIVE) - CV DEF: customers perception of outcome in a specific use situation, with help of product/service, to accomplish desired purpose/goal A. CV = IMPORTANCE A) Customer Satisfaction - CS DEF: falling short or exceeding expectations a. CS = performance  ASPECTS OF CUSTOMER VALUE- Tradeof → benefits and sacrifices - Interaction → customer & product N Customer Value Interactivea. Buyer values/goals b. Use situations & occasion c. Product and Service - Relative → to competitors, individuals, situations - Goal-Driven → c’s desired attributes, outcomes, goals N CUSTOMER VALUE HIERARCHY a. Customer Goals & Purpose b. Customer Desired Consequences c. Product Attributes - Dynamic →changes over time N Dynamic Nature of Customer Value (effects on customers perception of value) a. The environment (economy trends) b. Consumer life changes → effects on consumer c. Changes from other companies → effects on consumer d. Internal company changes → anything the firm controls  CUSTOMER VALUE ORIENTED FIRM A) Customer value culture B) Commitment to innovation C) Main goal → delivering customer value D) Continuous learning about the customer III. CHAPTER 2: COMPANY - MARKETING STRATEGY  STRATEGIC PLANNING - Process of maintaining/developing strategic fit between companies goals, capabilities, and its changing market opportunitiesA) STRATEGIC PLANNING STEPS 1) Define company mission → mission statement 2) Setting company objectives and goals→ create objectives for each level of management 3) Designing business portfolio →analyze SBU’s 4) Planning marketing/functional strategies  PORTFOLIO ANALYSIS A) BCG GROWTH SHARE MATRIX - Stars →high: growth rate & market share (Heavy investment) - Cash Cows → Low GR/High MS (Produce cash for c, established & successful SBU’s)- Question Marks → Low MS/High GR (requires a lot of $ to keep MS) - Dogs → Low MS & GR (generate enough $ maintain self, not large source of $) (a) BCG approach can be difficult and time, time consuming, costly B) Product market Expansion - Market Penetration→ existing product/market (more sales to current customers) - Market Development→ New M/Existing P - Product Development→ New P/ Existing M- Diversification→ New P/ New M (startup new business outside current market) (RISKY)  MARKETING’S ROLE IN CORPORATE STRATEGY - Provide guiding philosophy - Provide inputs to strategies planners →estimate market size, customer trendsA) The Marketing Mix 1) Product 2) Price 3) Place 4) Promotion IV. CHAPTER 3: MARKETING ENVIRONMENT  MICROENVIRONMENT A)Actors close to company that affect its ability to serve customers1) The company 2) Suppliers 3) Marketing Intermediaries → resellers, physical distribution, marketing services, financial intermediaries 4) Competitors 5) Publics→ Financial, Media, Government, Citizen-action, Local, General, Internal 6) Customers  MACRO-ENVIRONMENT A) Large societal forces that affect the microenvironment (companies can’t do anything about these forces) 1) Demographic Forces 2) Economic Forces 3) Natural Forces 4) Technological Forces 5) Political Forces 6) Cultural Forces V. CHAPTER 4: MANAGING MARKING INFO TO GAIN CONSUMER INSIGHT  MARKETING INFORMATION SYSTEMS A) Helps managers to:1) Assess information needs 2) Develop needed information 3) Distribute Information B) Info comes from:1) Internal Databases 2) Marketing Intelligence→ analysis/collection of public info about comp and developments in marketing environment 3) Marketing Research→ design, collection, analysis, reporting of data relevant to specific marketing situation  MARKETING RESEARCH PROCESS1) Define Problem – Research Objectives 2) Developing research plan for collecting Information 3) Implement research plan – collect/analyze data 4) Interpreting – Reporting findings  TYPES OF RESEARCH A) Exploratory Research →preliminary information → define problem and suggest hypotheses B) Descriptive Research → describes: market, potential for product , demographics C) Casual Research → tests hypotheses about cause and effect relationships TYPES OF DATA A) Secondary Data- Information already exists - must be: relevant, accurate, current, impartial- available quickly & lower cost than primary data B) Primary Data - Info collected for specific purpose at