Ch1 defining marketing for new realities:

1) What is marketing?
• Marketing deals with identifying and meeting human and social needs. One of the
shortest definitions of marketing is "meeting needs profitably."

2) Scope of marketing:
• The scope of marketing is determined by the marketing offering of an organization.
Market offering is a combination of goods, services, events, experiences, ideas, persons,
places, properties, information, organizations offered to a market to satisfy specific
needs and wants of people.
1. Exchange: which is the core concept of marketing, is the process of obtaining a desired
product from someone by offering something in return. For exchange potential to exist,
five conditions must be satisfied:
 There are at least two parties.
 Each party has something that might be of value to the other party.
 Each party is capable of communication and delivery.
 Each party is free to accept or reject the exchange offer.
 Each party believes it is appropriate or desirable to deal with the other party.
2. Transactions: Two parties are engaged in exchange if they are negotiating—trying to arrive at
mutually agreeable terms. When an agreement is reached, we say that a transaction takes
place. A transaction is a trade of values between two or more parties.
3. Markets: A Market is the set of all actual and potential buyers of a product or service.
Marketing involves serving a market of final consumers in the face of competitors.
4. Key customer markets: Consider the following key customer markets:
 Consumer, business, global, and nonprofit.

3) Core Marketing Concept:

• Customer needs wants and demands
• Market offerings (products & services)
• Customer value and satisfaction
• Exchanges and relationships
• Markets

 NEEDS, WANTS AND DEMANDS:

Needs: Needs are the state of self-deprivation in an individual. The starting point of marketing
is human needs.
Wants: Wants are a step ahead of needs and are largely dependent on the needs of humans
themselves.
Demands: Demands are requests for specific products that the buyer is willing to and able to
pay for. When an individual wants something which is premium, but he also has the ability to
buy it, then these wants are converted to demands.

SOME DEF:
Target Market: It involves breaking a market into segments and then concentrating your
marketing efforts on one or a few key segments consisting of the customers whose needs and
desires most closely match your product or service offerings. It can be the key to attracting new
business, increasing sales, and making your business a success.
Market segmentation: It is the process of dividing a target market into smaller, more defined
categories. It segments customers and audiences into groups that share similar characteristics
such as demographics, interests, needs, or location.
Market Positioning: It refers to the ability to influence consumer perception regarding a brand
or product relative to competitors. The objective of market positioning is to establish the image
or identity of a brand or product so that consumers perceive it in a certain way.

 Market offerings:
 Market offerings are a combinations of products, services and experiences offered to a
market to satisfy a need or want. These can be physical products, but also services –
activities that are essentially intangible.
The phenomenon of Marketing Myopia is paying more attention to company products, than to
the underlying needs of consumers.

 Customer Value:
Difference between “value gained by owning and using a product” and “cost of obtaining
the product”. Customers act on perceived value [and perceived cost]

 Customer Satisfaction:
Perceived performance relative to expectations.

 EXCHANGES AND RELATIONSHIP:

Exchanges are the acts of obtaining a desired object form someone by offering
something in return. Marketing consists of actions trying to build an exchange
relationship with an audience.
Relationship (Marketing): Going beyond short-term transactions. Long-term
relationships with valued customers, partners, etc.

 Marketplace:
The marketplace is physical, as when you shop in a store. Market space is digital, as
when you shop on the Internet.
 Mohan Sawhney has proposed the concept of a Meta-market to describe a cluster of
complementary products and services that are closely related in the minds of
consumers but are spread across a diverse set of industries.

4) MARKETING ENVIRONMENT:
The marketing environment : Competition represents only one force in the environment in
which the marketer operates. The marketing environment consists of the task environment and
the broad environment.
The task environment includes the immediate actors involved in producing, distributing, and
promoting the offering. The main actors are the company, suppliers, distributors, dealers, the
target customers, who facilitate finding and selling to customers.
The broad environment consists of six components: demographic environment, economic
environment, physical environment, technological environment, political-legal environment,
and social-cultural environment. These environments contain forces that can have a major
impact on the actors in the task environment.

5) New marketing realities:

“The marketplace isn't what it used to be.”
1. Technology
2. Globalization
3. Social Responsibility
6) Company Orientations Toward the Marketplace:
The production concept: the idea that consumers will favor products that are available and
highly affordable, and that the organization should therefore focus on improving production
and distribution efficiency.
The product concept: the idea that consumers will favor products that offer the most quality,
performance, and features and that the organization should therefore devote its energy to
making continuous product improvements.
The selling concept: the idea that consumers will not buy enough of the firm’s product, unless
it undertakes a large-scale selling and promotion effort.
The marketing concept: the idea that achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the desired satisfactions better than
competitors do. It can be regarded as an “outside-in view”.
The societal marketing concept is the idea that a company’s marketing decisions should
consider consumer wants, the company’s requirements, consumers’ long-term interests and
society’s long-term interests. Companies should deliver value in a way that maintains
consumers and society’s well-being.
7) Marketing Concepts:

1. reactive market orientation: understanding and meeting customers' expressed needs.

 2. proactive marketing orientation: high-level innovation is possible if the focus is on
customers’ latent needs.
8) The Holistic Marketing Concept:
The holistic marketing concept is based on the development, design, and implementation of
marketing programs, processes, and activities that recognizes their breadth and
interdependencies. Holistic marketing recognizes that "everything matters" with marketing—
and that a broad, integrated perspective is often necessary. Four components of holistic
marketing are:
1. Internal marketing – Marketing between all the departments in an organization.
2. Relationship marketing – Building a better relationship with your customers, internal as
well as end customers is beneficial for holistic marketing.
3. Performance marketing – Driving the sales and revenue growth of an organization
holistically by reducing costs and increasing sales.
4. Integrated marketing – Products, services and marketing should work hand in hand
towards to growth of the organization.

Ch2: developing marketing strategies and plans:

Value Delivery Process
The process consists of three parts:
1. Choosing the value ( Segmentation, targeting, positioning “STP”)
2. Providing the value (Marketing must determine specific product features, prices, and
distribution)
3. Communicating the value ( utilizing the sales force, sales promotion, advertising, and
other communication tools to announce and promote the product).
The value delivery process begins before there is a product and continues while it is being
developed and after it becomes available.
A value chain is used to describe all the business activities it takes to create a product from
start to finish (e.g., design, production, distribution, etc.). And a value chain analysis gives
businesses a visual model of these activities. With this analysis, you can take steps to create a
competitive advantage, improve efficiency, and increase profit margins.
3) The firm's success depends not only on how well each department performs its work, but
also on how well the various departmental activities are coordinated to conduct core business
processes. These core business processes include:
• The market sensing process.
• The new offering realization process.
• The customer acquisition process.
• The customer relationship management process.
 • The fulfillment management process.
A network of delivering products to the customer which is composed of distributors, suppliers,
and manufacturing company is classified as Value delivery network. It is made up of the
company, suppliers, distributors, and ultimately customers who partner with each other to
improve the performance of the entire system.
Core Competencies:
A core competency has three characteristics:
1. It is a source of competitive advantage in that it makes a significant contribution to
perceived customer benefits
2. It has applications in a wide variety of markets, and
3. It is difficult for competitors to imitate.
Nike, for example, does not manufacture its own shoes, because certain Asian manufacturers
are more competent in this task; Nike nurtures its superiority in shoe design and shoe
merchandising, its two core competencies.
Strategic Planning: Strategic planning is an organization's process of defining its strategy, or
direction, and making decisions on allocating its resources to pursue this strategy.
To ensure they execute the right activities, marketers must prioritize strategic planning in three
key areas:
1. Managing the businesses as an investment portfolio
2. Assessing the market’s growth rate and the company’s position in that market
3. Establishing a strategy
What is Marketing Plan?
A marketing plan is the central instrument for directing and coordinating the marketing effort.
It operates at a strategic and tactical level
Levels of a Marketing Plan:
Strategic: Target marketing decisions, Value proposition, Analysis of marketing opportunities.
Tactical: Product features Promotion Merchandising Pricing Sales channels Service
Corporate and Division Strategic Planning
All corporate headquarters undertake four planning activities/Organizational activities:
1. Defining the corporate mission
2. Establishing strategic business units
3. Assigning resources to each SBU
4. Assessing growth opportunities
ORGANIZATIONAL MISSION is the purpose for which the Organization exists. The firms
organizational mission reflects such information as what types of products or services it
produces, who its customers tend to be, and what important values it holds.
Tesla’s mission statement was “to accelerate the world’s transition to sustainable transport.”
However, in mid-2016, under Elon Musk’s leadership, the company changed the corporate
mission to “to accelerate the world’s transition to sustainable energy.”
Good Mission Statements:
• Focus on a limited number of goals
• Stress major policies and values
• Define major competitive spheres
• Take a long-term view
• Short, memorable, meaningful
What is Corporate Culture?
“The shared experiences, stories, beliefs, and norms that characterize an organization."
Yet, walk into any company and the first thing that strikes you is the corporate culture—the
way people are dressed, how they talk to one another, the way they greet customers.
One example of how the Nokia creates its culture can be seen in the company cafeteria where
employees view a slide show as they eat. It's not just any slide show, but one of pictures taken
with camera phones by some of Nokia's 1,500 employees—part of an internal corporate
competition that rewards staff creativity.
Nokia even has a watchword for its culture of continuous innovation: "renewal
Corporate and Division Strategic Planning
SBU ( Strategic Business Unit):
Management’s first step is to identify the key businesses that makeup the company, called
Strategic Business Units (SBUs).
When a firm has multiple strategic business units, it must decide what the objectives and
strategies for each business are and how to allocate resources among them. A group of
businesses can be considered a portfolio.
For example, PepsiCo
Characteristics of SBUs
1. It is a single business or collection of related businesses
2. It has its own set of competitors
3. It has a leader responsible for strategic planning and profitability
Assigning Resources to each SBU:
Once it has defined SBUs, management must decide how to allocate corporate resources to
each.
• GE/McKinsey Matrix
• BCG’s growth-share Matrix
• Ansoff’s Product-Market Expansion Grid
Assessing growth opportunities: It involves planning new businesses, downsizing, or
terminating older businesses. The company's plans for existing businesses allow it to project
total sales and profits. If there is a gap between future desired sales and projected sales,
corporate management will have to develop or acquire new businesses to fill it.
• INTENSIVE GROWTH
• INTEGRATIVE GROWTH
• DIVERSIFICATION GROWTH
• DOWNSIZING AND DIVESTING OLDER BUSINESSES
Corporate and Division Strategic Planning
• Market Penetration: Company growth by increasing sales of current products to current
market segments without changing the product.
• Market Development: Company growth by identifying and developing
• New market segments for current company products.
• Product Development: Company growth by offering modified or new products to
current market segments.
• Diversification: Company growth through starting up or acquiring businesses outside
the company’s current products and markets.\
SWOT ANYALSIS:

Business Unit Strategic Planning

Market Opportunity Analysis (MOA)
1. Can the benefits involved in the opportunity be articulated convincingly to a defined
target market?
 2. Can the target market be located and reached with cost-effective media and trade
channels?
3. Does the company possess or have access to the critical capabilities and resources
needed to deliver the customer benefits?
4. Can the company deliver the benefits better than any actual or potential competitors?
5. Will the financial rate of return meet or exceed the company’s required threshold for
investment?
Goal Formulation: Unit’s objectives must be hierarchical Objectives, should be quantitative,
Goals should be realistic, Objectives must be consistent.
Strategic Formulation: Every business must design a strategy for achieving its goals, consisting
of a marketing strategy, and a compatible technology strategy and sourcing strategy.
Porter’s Generic Strategies
1. Overall cost leadership
2. Differentiation
3. Focus
Categories of Marketing Alliances:
1. Product or service alliance
2. Promotional alliance
3. Logistics alliances
4. Pricing collaborations 
Marketing Implementation:
It is the process that turns marketing plans into marketing actions to accomplish company’s
strategic objectives. A process which should ensure the achievement of the strategic objectives
adopted by the company. A special role in this process plays a function of organizing and
directing people. It involves preparing comprehensive list of activities to be performed, people
responsible for this activities and resources needed.
Marketing Control:
The main objective controlling is the current monitoring and evaluation of the marketing
activities of the company, recording and reporting of deviations to management, which takes
decisions based on this information.
Marketing controls involves 4 steps:
• Establishing Performance Standards.
• Measuring the Actual Performance.
• Comparing Actual Performance to the Standards.
• Taking Corrective Action.