Marketing NotesChapter 1 - Marketing In a Changing WorldWhat is marketing?- Creating customer value and stratification are at the very heart of modernmarketing thinking and practice.Market Defined- Markets always focus at satisfying customers needs- Marketing: A social and managerial process by which individuals and groupsobtain what they need and want through creating exchanging products and valuewith others.- Needs: States of felt deprivation- Wants: Are the form taken by human needs as they are shaped by culture andindividual personality. Wants are described in terms of objects that willsatisfy needs.- Demands: Human wants that are backed by buying power- Products: Anything that can be offered to a market for attention,acquisition, use, or consumption that might satisfy a want or need it. Itincludes physical objects, services, persons, places, organizations, and ideas.- “Marketing myopia” Sellers may suffer from “Marketing myopia” theyare so taken with their products that they focus only on existing wants and losesight f underlying customer needs. They forget that a physical product is only atool to solve a consumer problem.Value, Satisfaction, and quantity- Customer Value: The difference between the values the customer gains fromowning and using a product and the cost of obtaing the product.- Customer Satisfaction: The extent to which a product’s perceivedperformance matches a buyer’s expectations.- If the product’s performance falls short of the customer’sexpectations, the buyer is dissatisfied. If the performance matches expectation,the buyer is satisfied. If performance excesses expeditions, the buyer isdelighted. Outstanding marketing companies go out of their way to keep theircustomers satisfied.- Total quantity management (TQM): Programs designed to constantly improvethe quantity of products, services and marketing processes.Exchange, Transactions, and Relationship- Exchange: The act of obtaining a desired object from someone by offeringsomething in return.- Transaction: A trade between two parties that involves at least two thingsof value, agreed-upon conditions, a time of agreement, and a place of agreement.- Relationship Marketing: The process by creating, maintaining, and enhancingstrong, value, -laden relationships with customers and other stakeholders.- A market network consists of the company and all of its surroundingstakeholder: customers, employees, suppliers, distributions, retailers,advertising, agencies, and others with whom it has built mutually profitablebusiness relationships.Market- Market: The set of all actual and potential buyers of a product or service.- Figure 1-2 (13)Marketing- Marketing means managing markets to bring about exchanges for the purposeof satisfying human needs and wants.Marketing Management- Marketing Management: The analysis, planning, implementation, and controlof programs designed to create, build, and maintain beneficial exchanges withtarget buyers for the purpose of achieving organizational objectives.- De-marketing: Marketing to reduce demand temporarily or permantely-the aimis not to destroy demand, but only to reduce or shift it.Building profitable customer relationship- A company demand comes from two groups: 1. New customers and 2. Repeatcustomers.- It costs five times as much to attract new customers as it does to keep anexisting customers satisfied.Marketing Management Philosophies- There are five alternatives concepts under which organizations conducttheir marketing activities: the product, selling, marketing, and societalmarketing concept.- Production Concept: The philosophy that consumers will favour products thatare available and highly affordable and that management should therefore focuson improving production and distribution efficiency.- Product Concept: The philosophy that consumers will favour producers thatoffer the most quality, performance, and innovative features.- Selling Concepts: The idea that consumers will not buy enough of theorganization’s products unless the organization undertakes a large-scaleselling and promotion effort.- Marketing Concept: The marketing management philosophy that holds theachieving organizational goals depends on determining the needs and wants oftarget markets and delivering the desired satisfactions more effectively andefficiently than competitors do.The Internet- Internet: A vast and burgeoning global web of computer networks with nocentral management or ownership.Chapter 2- Strategic Planning the Marketing ProcessStrategic Planning- The annual plan is a short-run marketing plan that describes the currentmarketing situation, the company objectives, and the marketing strategy for theyear, the action program, budgets, and controls.- The long-run plan describes the major factors and forces affecting theorganization during the next several years, it includes the long-termobjectives, the major marketing strategies that will be used to attain them, andthe resources required.- Strategic Planning: The process of developing and maintaining a strategicfit between the organization’s goals and capabilities and its changingmarketing opportunities.- At the corporate level, the company first defines its overall purpose andmission. This mission then is turned into