Chapter 1

Marketing: the process by which companies engage customers, build strong customer relationships, and
create customer value in order to capture from customers in return.

Needs: states of felt deprivation – ‫حرمان‬

Wants: the form human needs take as they are shaped by culture and individual personality

Demands: human wants that are backed by buying power

Exchange: The act of obtaining a desired object from someone by offering something in return.

Market: The set of all actual and potential buyers of a product or service

Selecting customers to serve

The company must first decide whom it will serve. By dividing the market into segments of customers
it is called market segmentation and select which segments it will go after target market

Customer relationship management: the overall process of building and maintaining profitable
customer relationships by delivering superior customer value and satisfaction – ‫الرضا‬

Customer perceived value: the customer evaluation of the difference between all the benefits and all
the costs of a marketing offer relative to those of competing offers

Customer engagement marketing: making a brand a meaningful part of consumer conversations and
lives by fostering direct and continuous customer involvement in shaping brand conversations,
experiences, and community

Partner relationship management: Working closely with partners in other company departments and
out side the company to jointly bring greater value to customers

Customer lifetime value: the value of the entire stream of purchases a customer makes over a lifetime
of patronage

Customer equity: the total combined customer lifetime values of all the company’s customers

Mobile marketing: perhaps the fastest growing digital marketing platform

Globalization: companies are not just selling more of their locally produced goods in international
markets, they are also souring more supplies and components abroad and developing new product for
specific market around the world.
Chapter 2

Mission statement: a statement of the organization’s purpose – what it wants to accomplish in the
larger environment

Business portfolio: the collection of the business and product that make up the company

Portfolio analysis: the process by which management evaluates the products and business that make up
the company

The boston consulting group approach

1. Stars. Stars are high growth, high shares business or product. They often need heavy
investments. When their growth will slow down they will turn into cash cow.
2. Cash cows. Low growth, high shares business or product. Needs less investments to hold their
market share, produce a lot of cash that company use to pay it bills.
3. Question mark. Low share business units in high-growth market.
4. Dogs. Low growth, low share business and product.

Market penetration: company growth by increasing sales of current products to current market
segment without changing the product.

Market development: company growth by identifying and developing new market segments for current
company product.

Product development: company growth by offering modified or new product to current market
segments

Diversification: company growth through starting up or acquiring business outside the company current
products and market.

Value chain: the series of internal department that carry out value creating activities to design, produce,
market, deliver, and support a firm’s product

Value delivery network: a network composed of the company, suppliers, distributors, and ultimately,
customer who partner with each other to improve the performance of the entire system in delivering
customer value

Market segmentation: diving a market into distinct groups of buyers who have different needs,
characteristics, or behaviors and who might require separate marketing strategies or mixes.

Market segment: a group of consumers who respond in a similar way to a given set of marketing efforts

Market targeting: evaluating each market segment’s attractiveness and selecting one or more segments
to serve

Positioning: Arranging for a product to occupy a clear, distinctive and desirable place relative to
competing products in the minds of target consumers.

Differentiation: Actually differentiating the market offering to create superior customer value

Marketing mix: the set of tactical marketing tools- products, price, place, and promotion. (the four PS)
Chapter 3

Marketing environment: the actors and forces outside marketing that affect marketing management

Natural environment: the physical environment and the natural resources

Environmental sustainability: developing strategies and practices that create a world economy that the
planet can support