o   the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

-       What is an exchange, what is it not?

people giving up something in order to receive something they would rather have

  does not require money

 must be at least 2 parties that can barter

-       Customer Value

o   the relationship between benefits and the sacrifice necessary to obtain those benefits

-       Customer Satisfaction

o   A customer’s evaluation of a good or service in terms of whether it has met their needs and expectations

-       Marketing management philosophies

•    Product Orientation: a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the market place
• Sales Orientation: the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales results in high profits
•   Market Orientation: assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product   
• Societal Marketing Orientation: the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals and societies long term best interests

-       The marketing concept

•  the idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives

-       Relationship Marketing

o   a strategy that focuses on keeping & improving relationships with current customers

-       Empowerment

-       Strategic planning

o   is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities

-       Marketing plan, elements

•   a written document that acts as a guidebook of marketing activities for the marketing manager
• elements:

      -defining the business mission          -------performing a situation analysis

-    defining objectives

-     delineating a target market

-     esta. components of the        marketing mix

-       Mission statements

o   a statement of the firm’s business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions

-       Marketing myopia

o   defining a business in terms of goods & services rather than in terms of the benefits customer’s seek

-       SWOT

•    S): identifying internal strengths
•    (W): identifying internal weaknesses
•   (O): examining external opportunities
•    (T) Examining external threats

-       environmental scanning

o   collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of your organization or the implementation of the marketing plan.

-       Competitive advantage

-a set of unique features of a company and it’s products that are perceived by the target market as significant and superior to those of the competition 

Types:

• cost : being the low-cost competitor in an industry while maintaining satisfactory profit margins
•  product/service differentiation: the provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition
• niche: the advantage achieved when a firm seeks to target and effectively serve a small segment of the market
• sustainable: an advantage that cannot be copied by the competition

-       strategic alternatives

•     Ansoff’s Opportunity Matrix: matches products with markets
• Market Penetration: A marketing strategy that tries to increase market share among existing customers
• Market Development: A marketing strategy that entails attracting new customers to existing products
• Product Development: A marketing strategy that entails the creation of new products for present markets
•   Diversification: A strategy of increasing sales by introducing new products into new market
• 
  

Strategic Alternatives

• Boston Consulting Group Model: balancing the organizations portfolio of SBUs for the best long-term performance
•  portfolio matrix: a tool for allocating resources among products or SBUs on the basis of relative market share and market growth rate

 star: in the portfolio matrix, a SBU that is a fast growing market leader

·      dog: and SBU that has low grown potential and small market share

o   General Electric Model: originally developed by GE, dimensions used are market attractiveness and company strength – are richer and more complex than those in the Boston model

-       Target market strategy:

the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets

-       Evaluation

o   entails aging the extent to which marketing objectives have been achieved during the specified time period

-       Control

o   provides the mechanisms for marketing results in light of the plans objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines

-       Corporate social responsibility:

o   a business’s concern for society’s welfare

-       Sustainability

o   the idea that socially responsible companies will outperform their peers by focusing on the world’s social and environmental problems and viewing them as opportunities to build profits and help the world at the same time

-       Pyramid of social responsibility

a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firm’s economic performance supports the entire structure.

-       ethics, morals

•   the moral principles of values that generally govern the conduct of an individual or a group
•    morals are the rules people develop as a result of cultural values and norms

-       Morality of business ethics, three levels

•    Preconventional morality: most basic level, based on what will be immediately punished/rewarded
•    Conventional morality: move from an egocentric viewpoint toward the expectations of society. Loyalty and obeniance to the organization become paramount; a marketing decision maker would be concerned only with whether the actions pursued are legal
• Postconventional morality: represents the morality of mature adults. People less concerned about how others might see them and more concerned about how them see and judge themselves in the long run. “Even though it is legal, and will increase company profits, is it right in the long run?”

-       Code of ethics

o   a guideline to help marketing managers and other employees make better business decisions

social change is perhaps the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans

•  Self-sufficiency
•  Upward mobility
•   Work ethic
•  Conformity

   Growth of Component Lifestyles

• The practice of choosing goods and services that meet ones diverse needs and interests rather than conforming to a single, traditional lifestyle
•    How Social Media Have changed the way People and Businesses Communicate

-       another uncontrollable variable in the external environment – also extremely important to marketing managers

o   the study of peoples vital statistics, such as age, race and ethnicity, and location

• born between 1979-1994
• also called millennial generation
• High level of purchasing major items such as cars and homes
• Inquisitive, opinionated, diverse, time managers, quick shoppers, multitaskers, env. aware

•    born between 1965-1978
•   Difficult to market to
•   Concerned with sending kids to college, home ownership

•    born between 1946-1964
•   Control about 80% of personal wealth in US
•   Market of services directed at seniors is one of the fastest growing business markets
•  

•    In 2015, it is estimated that Hispanics will wield $1.5 trillion in purchasing power
•   African Americans - $1.2 T
•   Asian Americans - $775 B

o   Three economic areas of greatest concern to most marketers are consumers’ incomes, inflation, and recession

•    The recent economic downturn and slow recovery has had an impact on R&D spending
•   Basic research: pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon
•    Applied research: an attempt to develop new or improved products
•    Stimulating Innovation
•   Build scenarios
•   Enlist the web
•   Talk to early adopters
•  Use marketing research
•   Create an innovative environment
•   Cater to entrepreneurs
• Innovation carries 

• Business needs government regulation to protect innovators of new technology, the interest of society in general, one business from another, and consumers
•   Federal Legislation/State Laws
• Regulatory Agencies
•  Build scenarios
•   Enlist the web
•   Talk to early adopters
•   Use marketing research
•   Create an innovative environment
•   Cater to entrepreneurs

• The competitive environment encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry

o   an intermediary in the global market who assumes all ownership risks and sells globally for its own account

o   private label manufacturing by a foreign company

selling domestically produced products to buyers in other countries

-       Export agent/broker

o   Agent: An intermediary who acts like a manufacturer’s agent for the exporter; the export agent lives in the foreign market

-       Global marketing

• o   marketing that targets markets throughout the world
• o   benefits: expands economic freedom, spurs competition, and raises the productivity and living standards of people in countries that open themselves to the global marketplace
• rewards: Reduces poverty, encourages democratization, and promotes higher labor and environmental standards 

-       Global Market standardization

o   production of uniform products that can be sold the same way all over the world

o   company that is heavily engaged in international trade, beyond exporting and importing

-       Economic/Technological

o   second major factor in the external environment facing the global marketer is the level of economic development in the countries where is operates.

o   EU: European Union – a free trade zone encompassing twenty-seven European countries

• o   3^rd important variable facing global marketers. Government policies run the gamut from no private ownership and minimal individual freedom to little central government and maximum personal freedom. As rights of private property increase, government-owned industries and centralized planning tend to decrease

• o   exporting: selling domestically produced products to buyers in other countries
• o   licensing: the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
• o   contract manufacturing: private label manufacturing by a foreign company

• o   joint venture: when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity
• direct foreign investment: active ownership of a foreign company or of overseas manufacturing or marketing facilities