Chapter 1: Managing Profitable Customer Relationships Marketing concepts Production concept the idea that consumers will favor

or products that are available or highly affordable (therefore continue producing! Product concept the idea that consumers will favor products that offer the most "uality performance and features# $rgani%ation should therefore devote its energy to making continuous product improvements# &elling concept the idea that consumers will not buy enough of the firm's products unless it undertakes a large scale selling and promotion effort Marketing concept the idea that achieving organi%ational goals depends on knowing the needs and wants of the target markets and delivering the desires satisfactions better than competitors do &ocietal marketing concept benefit society consumers companies by thinking about human welfares (ie# (nvironmental friendly products! )eeds * &tates of deprivation Physical+food clothing warmth safety &ocial+belonging and affection ,ndividual+knowledge and self*e-pression .ants * /orm that needs take as they are shaped by culture and individual personality 0emands * .ants backed by buying power Chapter 1: Customer and Marketing &trategy: Partnering to 2uild Customer Relationships &trategic planning is the process of developing and maintaining a strategic fit between organi%ation's goals and capabilities and its changing marketing opportunities 1# 0efine the company mission 1# &et company ob3ectives and goals 4# 0esign the business portfolio 2usiness portfolio &25's 1# ,dentify key businesses (strategic business units or &25s! that make up the company 1# 6ssess the attractiveness of its various &25s 4# 0ecide how much support each &25 deserves 2C7 growth*share matri-

Product8market e-pansion grid

(a! Market penetration a growth strategy increasing sales to current market segments without changing the product ie# &tarbucks bring receipt for discount (b! Market development a growth strategy that identifies and develops new market segments for current products ie# Change logo8 targeting consumers e-pand oversea

(c! Product development a growth strategy that offers new or modified products to e-isting market segments ie# ,nvention of iPad (d! 0iversification a growth strategy through starting up or ac"uiring businesses outside the company's current products and markets (risky! ie# 7oogle enters phone industry (cross industry! Marketing process (9 functions! Product Price Promotion Place &.$: analysis

Chapter 4: :he Marketing (nvironment Microenvironment consists of the actors close to the company that affect its ability to serve its customers the company suppliers marketing intermediaries competitors publics Macroenvironment 1# 0emographic population age gender race 1# (conomic * purchasing power and spending patterns 4# )atural * natural resources 9# :echnological new products ;# &ocial < Political law government =# Cultural * society's basic values perceptions and behaviors ( core < secondary ! Chapter 9: Managing Marketing ,nformation Customer insight (i#e# what can you learn from market research>! 6ssessing the marketing info need * 2alancing what the information users would like to have against what they need and what is feasible to offer 0eveloping the marketing information 1# ,nternal database within company network 1# Marketing intelligence publicly available 4# Marketing research * relevant to a specific marketing situation (ie# &urvey ! :he marketing research process

Primary 0ata consists of information gathered for the special research plan &econdary 0ata consists of information that already e-ists somewhere having been collected for another purpose Means and methods of primary data collection 1# $bservational observe 1# (thnographical interact 4# &urvey 9# (-perimental 1 similar groups with different treatments best for causal Chapter ;: Consumer and 2usiness 2uyer 2ehavior 2uyer decision process :

Cognitive 0issonance: after making a purchase buyers often doubt whether they made the right decision /actors influencing a consumer behavior 1# Culture: &ubculture (race ! < &ocial Class 1# &ocial * groups 4# Personal age occupation economic situation lifestyle personality self*concept 9# Psychological motive driven by needs * Maslow's ?ierarchy of )eeds: (1! Physiological (1! &afety (4! &ocial (9! (steem (;! &elf*actuali%ation * Perception: how people select organi%e interpret information (1! &elective 6ttention: screen out the most needed info (1! &elective 0istortion: tendency to interpret info in the way they already believe (4! &elective Retention: remember the good things * @earning: permanent change in behavior due to e-perience * 2elief: thought that holds for something * 6ttitude: consistent favorable or unfavorable feelings :ypes of reference groups (1! Membership 7roups direct influence (1! 6spirational 7roups wish to belong (4! Reference 7roups comparison $ther social influence factors (1! /amily Role < &tatus (1! .ord*of*mouth influence and bu%% marketing < $pinion leaders (4! $nline &ocial )etworks :ypes of buying behavior

)ew product adoption process (1! 6wareness: Consumer becomes aware of the new product but lacks information about it# (1! ,nterest: Consumer seeks information about new product# (4! (valuation: Consumer considers whether trying the new product makes sense# (9! :rial: Consumer tries new product on a small scale to improve his or her estimate of its value# (;! 6doption: Consumer decides to make full and regular use of the new product# 6dopter categories (characteristics percentages!

(1! (1! (4! (9!

Relative 6dvantage: ,s the innovation superior to e-isting products> Compatibility: 0oes the innovation fit the values and e-perience of the target market> Comple-ity: ,s the innovation difficult to understand or use> 0ivisibility: Can the innovation be used on a limited basis i#e# lease>

(;! Communicability: Can results be easily observed or described to others> Chapter A: &:P B Market &egmentation variables (1! 7eographic location area (1! 0emographic age gender family si%e income occupation race (4! Psychographic * social class lifestyle personality (9! 2ehavioral occasion benefits user status usage rate loyalty status B :arget marketing strategies (1! 5ndifferentiated (mass! marketing * :arget whole market with one offer * ,gnores segmentation opportunities * &uch products rarely succeed for long (1! 0ifferentiated (segmented! marketing * :argets several segments and designs separate offers for each (4! Concentrated ()iche! * :argets one or a couple small segments * )iches have very speciali%ed interests (9! Micromarketing a# @ocal Marketing: :ailoring for local b# ,ndividual Marketing: :ailoring for individual customers /actors to consider: (1! Company resources (1! Product variability (4! Product's life*cycle stage (9! Market variability (;! Competitors' marketing strategies Positioning * defined by consumers on important attributes in consumers' minds relative to competing products Calue Proposition