Chapter 1 Marketing o A philosophy an attitude a perspective or a management orientation that stresses customer satisfaction o Organization function and a set of processes used to implement this philosophy o The activity set of institutions and processes for creating communicating delivering and exchanging offerings that have value for customers clients partners and society at large Exchange people giving up something to receive something they would rather have 5 conditions o 1 There must be at least 2 parties o 2 Each part has something that might be of value to the other party o 3 Each party is capable of communication and delivery o 4 Each party is free to accept or reject the exchange offer o 5 Each party believes it is appropriate or desirable to deal with the other party Marketing Management Philosophies o Production Orientation focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace falls short because it does not consider whether the goods and services that the firm produces most efficiently also meet the needs of the marketplace o Sales Orientation idea that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits o Market Orientation assumes that a sale does not depend on an aggressive sales force but rather on a customer s decision to purchase product involves obtaining information about customers competitors and markets examining the information from a total business perspective determining how to deliver superior customer value and implementing actions to provide value to customers o Societal Marketing Orientation the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals and society s long term best interests o compared by the organization s focus the firm s business those to whom the product is directed the firm s primary goal and the tools used to achieve those goals o Sales inward looking o Market external o Customer Value customers value goods services that are of the quality they expect and that are sold at prices they are willing to pay Marketers interested in customer value offer products that perform earn trust avoid unrealistic pricing give the buyer facts offer organization wide commitment in service and after sales support co create o Customer satisfaction customer s evaluation of a good or service in terms of whether that good or service has met their needs and expectations Sales vs Market Orientation o Building relationships attracting new customers increasing business with existing customers and retaining current customers Customer oriented training empowerment and teamwork Why study marketing o Marketing is required for all the transactions that occur everyday o Marketing contributes to survival profits and growth asseses the wants and satisfactions of present and potential customers designing and managing product offerings determining prices and pricing policies developing distribution strategies and communicating with present and potential customers o Careers professional selling marketing research advertising retail buying distribution management product management product development and wholesaling Chapter 2 Strategic Planning for Competitive Advantage Strategic planning the managerial process of creating and maintaining a fit between the organizations objectives and resources and evolving market opportunities Marketing plan involves designing activities relating to marketing objectives and the changing marketing environment Issues such as product lines distribution channels marketing communications and pricing are all delineated in the marketing plan o Defining the Business Mission The foundation of any marketing plan is the firms mission statement which answers the question what business are we in Focuses on the market rather than the good or service Marketing myopia defining a business in terms of goods and services rather than in terms of the benefits customers seek mission is stated too narrowly Strategic Business Units SBUs are subgroups of a simple business or collection of related businesses within the larger organization may also have mission statement Strengths things the company does well Weaknesses things the company does not do well and can Opportunities conditions in the external environment that o SWOT Analysis Internal improve on External favor strengths Threats o Defining objectives o Market strategy Criteria for good objectives Realistic Measurable Time specific Target market 4 P s o Implementation o Evaluation o Control All employees on the same page Some action to fix any problems Chapter 3 Ethics or a group Morals o The moral principles or values that generally govern the conduct of an individual o The rules people develop as a result of cultural values and norms o Considered a foundation for ethical behavior o Preconventional conventional postconventional morality Ethical Guidelines make better decisions o Code of ethics a guideline to help marketing managers and other employees o Defines acceptable business practices effective internal control on behavior helps employees avoid confusion when determining whether their decisions are ethical leads to better decisions Corporate Social Responsibility o Business s concern for society s welfare o Long range best interests of the company and the company s relationship to the society within which it operates o Sustainability the idea that socially responsible companies will outperform their peers by focusing on the world s social problems viewing them as opportunities to build profits and help the world at the same time o Pyramid of CSR pursues profits ECONOMIC expected to obey the law LEGAL do what is right just and fair ETHICAL and be a good corporate citizen PHILANTHROPIC Green Marketing development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment Chapter 4 Marketing Mix o Product Price Place Promotion o Target Market a defined group most likely to buy a firm s product Changes in the environment over time may change a target market s purchasing decisions so managers must alter their marketing mix Factors that influence marketing managers in the external environment social cultural demographic economic technological political legal competitive Social Factors o Influence the products people
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