CHAPTER 1
stakeholders assessment to create
TERMINOLOGIES:
 MARKETING
 Process of creating, distributing,
promoting & pricing good, services &
ideas to facilitate satisfying exchange
relationships w/ customers
 CUSTOMERS
 Focal point of all marketing activities
 TARGET MARKET
 Group of customers on w/c marketing
efforts are focused
 MARKETING MIX
 Product, distribution, promotion & pricing
 PRODUCT
 Good, service, idea
 VALUE
 A customer’s assessment of benefits
relative to cost in determining the price
of product
 Value = customers benefit - customers
cost
 STAKEHOLDERS
 Constituents who have stake or claim in
company’s products, operations etc
 MARKETING ENVIRONMENT
 Competitive, economic, political, legal &
regulatory, technological & sociocultural
 MARKET ORIENTATION
 Organization wide commitment to
researching & responding to customer
needs
 RELATIONSHIP MARKETING
 Establish long-term mutually satisfying
buyer-seller relationship
 CUSTOMER - CENTRIC MARKETING
 Use infos about customers to create
marketing strategies
 EXCHANGES
 The provision or transfer of goods,
services or ideas in return for something
of value
 MARKETING MANAGEMENT
 Process of planning, organizing,
implementing, & controlling marketing to
facilitate exchanges
 GREEN MARKETING
 Strategic process that involves
meaningful long-term relationship w/
customers while maintaining, supporting
& enhancing natural environment
 MARKETING CONCEPT
 Philosophy that an org should try to
provide products that satisfy customers
through coordinated set of activities
 CUSTOMER BENEFITS
 A buyer receives in an exchange
 CUSTOMER COST
 A buyer must give up to obtain the
benefits of the product
 NONMONETARY COST
 Time & effort
 CUSTOMER SATISFACTION
 Reason why company comply marketing
 PRODUCT VARIABLE
 Deals w/ researching customer needs &
wants in designing a product
 The actual production of tangible goods
is not a marketing activity
 Involves creating or modifying brand
names & packaging
 Product variable decisions is important
bcos they are directly involved in
creating products that address
customer’s needs & wants
 Marketers must develop new products,
modify existing ones and eliminate the
ones that are not satisfying the
customers
 DISTRIBUTION VARIABLE
 Ready, convenient, timely
 Availability of the products at the right
time
 Keep the total inventory, transportation
& storage cost as low as possible
 Select & motivate intermediaries such as
wholesalers & retailers
 PROMOTION VARIABLE
 Inform individuals or groups about the
org & the product
 Educate the customers about the product
features
  Help sustain interest in established
products that have been available for
decades
 PRICE VARIABLE
 Decisions & actions in establishing
pricing
 Price used as competitive tool & intense
price competition leads to price wars
 Economic conditions, competitive
structure, government relationships
prevent manager from changing the
price from time to time
EVOLUTION OF MARKETING CONCEPT:
 PRODUCT ORIENTATION
 1850- 1900
 SALES ORIENTATION
 1920-1950
 Sale is viewed as major means of
increasing profits
 Most important marketing activities:
 Personal selling
 Advertising
 Distribution
 MARKET ORIENTATION
 1950-2000
 Linked to new-product innovation by
developing strategic focus to explore &
develop new products to serve target
markets
 Important in carrying out MO:
 Top management
 Marketing management
 Non-marketing managers
( production,finance, hr)
 Customers
 Six values required:
 Trust
 Openness
 Honoring promises
 Respect
 Collaboration
 Recognize the market as raison d’
etre
 Involves being responsive to ever-
changing customer needs & wants