Chapter no 1 1. What is marketing? More than any other business function deals with customers.

. Marketing is managing profitable customer relationship. Twofold goal of marketing is to attract new customers by promising superior value and keep and grow current customers by delivering satisfaction. 2. Market defined No only telling and selling but also satisfy customer needs. Marketing as a process by which companies create value for customers and build strong customers relationship in order to capture from customer. 3. Marketing process Understand the market place and customer needs and wants Design a customer- driven marketing strategy Constructed an integrated marketing program that delivers superior value Build profitable relationship and create customer delight Capture value from customers to create profits and customer equity 4. Understanding the marketplace and customer needs 5 core customers and marketplace concepts. o Customer needs, wants and demand Human needs are status of felt deprivation includes physical needs, social needs and individual needs. Wants are form of human needs take as they are shaped by culture and individual Wants backed by buying power, wants become demands o Market offering- products, services, and experience Customer need and wants fulfilled through market offerings. Market offerings are limited to physical products. Also includes services activates or benefits offered for sale that are essential intangible and do not result in the ownership of everything. Sellers suffer from marketing myopia. The mistake of paying more attention to the specific products a company offers than to the benefits and experience produced by these products. o Customer value and satisfaction Customers from expectation about the value and satisfaction that various market offering will deliver and buy accordingly. Satisfied customers buy again and tell others about their good experience. Marketers must be careful to set the right level of expectation. o Exchanges and relationship

Exchange is the act of obtaining a desired object from someone by offering something in return The marketers try to bring about a response to some market offering. Marketing consists of actions taken to build and maintain desirable exchange relationship with target audiences involving a product, service, idea or other object.

Market The market is the set of actual and potential buyers of a product or service. Marketing means managing market to bring about profitable customer relationships. 5. Designing a customer-driven marketing strategy Marketing management as the art and science of choosing target market and building profitable relationship with them. Selecting customers to serve. The company must decide first whom it will serve. Divide market into segments of customers. (market segmentation) And selecting which segment it will go after.(target segmentation) Marketing managers must decide which customers they want to target and on level, timing and nature of their demand. Simply you put, marketing management is customer management and demand management. Choosing a value proposition How company differentiate and position itself in the market Market management orientation 5 alternative concepts Production concept The idea that consumers will favor products that are available and higjly affordable and that the organization should therefore improving production and distribution Product concept The idea that consumer will favor products that offer the most quality, performance and feature and that the organization should therefore devote its energy to making continuous product improvement Selling concept The idea that consumers will not buy enough of the firms products unless it undertakes a large-scale selling and promotion effort.

Factory-existing products-selling and promoting- profits through sales volume Marketing concept The philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitions do. Market- customer need- integrated marketing- profits through customer satisfaction. The social marketing concepts The idea that a companys marketing decisions should consider consumers wants, the companys requirements, consumers long-run interests and societys long-run interest. Preparing an integrated marketing plan and program The marketing programs build customer relationships by transforming the marketing strategy into actions. Building customers relationships. Customer relationship management. The overall process of building and maintaining profitability customer relationship by delivering superior customer value and satisfaction. Relationship building blocks: customers value and satisfaction. Customers- perceived value The customers evolution of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers. Customer satisfaction The extent to which a products perceived performance matches a buyers expectation. Customer relationship level and tools It depends on the nature of the target market. The changing nature of customer Relating with more carefully selected customers Relating more deeply and interactively Customer- managed relationship: marketing relationship in which customers, empowered by todays new digital technologies, interact with companies and with each other to shape their relationships with brands.

Customer-generated marketing: brand exchange created by consumers themselvesboth invited and uninvited- by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers. Partner relationship management Working closely with partners in other company departments and outside the company to jointly bring greater value to customers. Partners inside the company Marketing partners outside the firm Capturing value from customers

Creating customer loyalty and retention Customer lifetime value : the value of the entire stream of purchases that the customer would make over a lifetime patronage. Growing share of customer The portion of the customers purchasing that the company gets in its products categories. Building customer equity Customer equity : the total combined customer lifetime values of all the companys customers. Building the right relationship with right customer. 6. The changing market landscape. The uncertain economic environment The digital age Rapid globalization Sustainability marketing the call for more social responsibility The growth of not- for- profit marketing 7. So, what is marketing? Putting it all together. Chapter no 2: 1. Company-wide strategic planning, defining marketing role. The process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities. Defining a market-oriented Mission Mission statement of the organizations purpose- what it wants to accomplish in the larger environment. Setting company objectives and goals. Designing the business portfolio The collection of business and products that make up the company. Analyzing the current business portfolio

The process by which management evaluates the products and business that make up the company. The boston consulting group approach. Growth-share matrix: a portfolio- planning method that evaluates a companys SUBs in term of its market growth rate and relative market share. Stars: stars are high-growth, high-share business or product. Cash cows: cash cows are low-growth, high-share business Question marks: question marks are low-share business units in high-growth market. Dogs: dogs are low-growth, low-share market Problems with BCG. Difficult, time consuming, costly to implement. Focus on current business. Strongly emphasize market share-growth or growth via diversification. Developing strategies for growth and downsizing. Product/market expansion grid: a portfolio- planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification. 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 developed new market segments for current company product. Product development: company growth by offering modified or new products to current market segment. Diversification: company growth through starting up or acquiring business outside the companys current products and markets. 2. Planning marketing: partnering to build customer relationship. Partnering with other company department. Value chain: the series if internal departments that carry out value-creating activities to design, produce, market, deliver and support a firms product. Partnering with others in the marketing system

Value delivery network: the network made up of the company, its suppliers, its distributers and ultimately its customers who partner with each other to improve the performance of the entire system. 3. Marketing strategy and marketing mix Market strategy: the marketing logic by which the company hopes to create customer value and achieve profitable customer relationship. Customer driven marketing strategy Market segmentation: dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate products or marketing programs. Market segment: a group of consumers who respond in a similar way to given set of marketing efforts. Market targeting: the process of evaluating each market segments attractiveness and selecting one or more segments to enter. Market differentiation and positioning. Positioning: arranging for product to occupy a clear, distinctive and desirable place relative to competing products in minds of target consumers. Differentiation: actually differentiating the market offering to create superior customer value. Developing an integrated marketing mix Marketing mix: the set of tactical marketing tools- products, price, place and promotion- that firm blends to produce the respond it wants in the target market. 4. Managing the marketing effort Market analysis: swot analysis , an overall evaluation of the companys strength, weakness, opportunites and threats. Market planning Market implementation: turning market strategies and plans into marketing actions to accomplish strategic marketing abjectives. Marketing department organization. Marketing control: measuring and evaluating the result of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved. 5. Measuring and managing return on market investment Return on marketing investment: the net return form a marketing investment divided by costs of the marketing investment.