Principles of Marketing Notes (by Michael Lim Co.

) Chapter 1 Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Core Marketing Concepts Needs,wants, and demands. Marketing offers(products, services and experiences)-> Value and satisfaction Exchange, transactions, and relationships Markets Marketing management is the art and science of choosing target markets and building profitable relationships with them. Two key Factors of Marketing management: a) Customer Management b) Demand Management Marketing Orientations a) Production Concept b) Product Concept c) Selling Concept d) Marketing Concept e) Societal marketing Concept Customer relationship management is defined as the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Chapter 2 Strategic planning is defined as the process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities. Steps in the strategic planning process. (Corporate level) 1) Defining the company mission 2) Setting company objectives and goals 3) Designing the business portfolio (Business unit, product, and market level) 4) Planning marketing and other functional strategies Product/Market Expansion Grid Existing products Existing markets Market penetration Market development New markets

New products Product development Diversification

Marketing process is the process of developing marketing strategies by analyzing customers, selecting target markets, developing the marketing mix, and managing marketing efforts. The marketing process Key Elements a) Analyzing customers b) Selecting target markets a. Market Segmentation b. Target marketing c. Market positioning c) Developing the marketing mix a. The Four Ps : Product, price, place, promotion b. The Four Cs : Customer solution, cost, convenience, communication d) Managing the marketing effort a. 4 marketing management functions: i. Marketing analysis ii. Marketing Planning iii. Marketing Implementation iv. Marketing control b. Marketing control (Operating control and Strategic control) The Marketing Environment a) micro-environment elements- competitors, channel members, suppliers, and publics (actors close to the company that affect its ability to serve its customers) b) macro-environment elements- demographic, economic, political, technological, and cultural forces (larger societal forces that affect the microenvironment) Chapter 4 Marketing Environment the actors and forces that affect a firms ability to build and maintain successful relationships with customers. Actors in microenvironment a) The company b) Suppliers c) Marketing intermediaries d) Customers e) Competitors f) Publics (financial, media, government, local, general, internal, citizen action groups) Actors in macroenvironment a) Demographic forces a. The U.S. population consists of seven generational groups (G.I. Generation, Depression, War Babies, Baby boomers, Generation X, Generation Y, and Millennials) i. Baby boomers ( 1946 1964, 28 % of population, 50% of personal income )

b) c)

d) e) f)

ii. Generation X ( 1965 1976, maintain a cautious economic outlook) iii. Generation Y ( 1977 1994, 72 million strong, computer, internet) Economic forces Natural forces a. Important trends ( shortage of raw materials, increased pollution, increased governmental intervention. ) Technological forces Political forces Cultural forces

Two responses to the Marketing Environment a) reactive: passive acceptance and adaptation. b) Proactive: environmental management. Chapter 20 Marketings Impact on Consumers a) High prices b) Deceptive Practices c) High-Pressure Selling d) Unsafe Products e) Planned Obsolescence f) Poor Service to Disadvantaged Consumers Marketings Impact on Society as a Whole a) Too much materialism b) Too few social goods c) Cultural pollution d) Too much political power Marketings Impact on Other Businesses a) Acquisitions of Competitors b) Creating Barriers to Entry c) Unfair marketing practices Consumerism is an organized movement of citizens and government agencies to improve the rights and powers of buyers in relation to sellers. Environmentalism is an organized movement of concerned citizens and government agencies to protect and improve peoples living environment. Four strategies a) pollution prevention b) product stewardship c) new environmental technologies d) sustainability vision Enlightened Marketing

a) the belief that a companys marketing should support the best long-run performance of the marketing system b) five principles a. consumer-oriented marketing b. innovative marketing c. value marketing d. societal marketing e. sense-of-mission marketing Societal Classification of Products Long-run Immediate satisfaction consumer Low High benefit High Salutary Desirable products products Low Deficient Pleasing products products Marketing Ethics a) Guiding Principles in Policy Determination a. Free market and legal system b. Individual companies and managers b) Philosophical Theories of Ethics a. Teleological Ethics i. Utilitarianism ethical behavior is the behavior that produces the greatest good for the greatest number of people b. Deontological Ethics i. Categorical Imperative asks whether the proposed action would be right if everyone did it http://wps.prenhall.com/ca_ph_armstrong_marketing_1/0,7189,561901-,00.html