MARKETING CONCEPTS

In the old days marketing concepts was based on making production more efficient.
Production era:
Production Orientation: In management philosophy that emphasizes the most efficient
ways to produce and distribute the products
Ex: works better when demand is higher than supply so it became faster
Sales era:
When product availability exceeds demand in a buyers market business may engage in
the hard sell
Selling orientation: Managerial view of marketing as a sales function are a way to move
products out of ware houses to reduce inventory so it gained popularity after a world war
II
The hard sell gave marketing a bad image. Selling orientation tend to more successful at
making 1 time sales rather than at making repeat business.
Unsought goods =cemetery plots
Relationship Era:
Customer orientation that satisfies the customers needs and wants.
It is a business approach that prioritizes the satisfaction of customers needs and wants.
Marketers did research to understand different customers, various groups and better
designing marketing messages.
Firms started to do better than competition and to do it repeatedly by increasing the cost
of product and started doing total quality management (TQM)
TQM: A management philosophy that focuses on satisfying customers through
empowering employers to be an active part of continuous quality improvement.
Ex: Even small firms started manufacturing on demand. Japanese used this idea with
their just in time model.
Instapreneur: A business person who only produces a product when it is ordered
The triple bottom line orientation: A business orientation that looks at financial profits
the community in which the organization operates and creating sustainable business
practices.
Customer relationship management (CRM)
A systematic tracking of consumers preferences and behaviors over time in order to
tailor the value proposition as closely as possible to each individuals unique wants and
needs. CRM allows firms to talk to individual customers and to adjust elements of their
marketing programs in light of how each customer reacts.

Attention economy
A companys success is measured by its share of mind rather than share of market, where
companies make money when they attract eyeballs rather than just dollars.
Social marketing concept
A management philosophy that marketers must satisfy customers needs in ways that also
benefit society and also deliver profit to the firm.
Sustainability
A product design focus that seeks to create products that meet present consumer needs
without compromising the ability of future generations to meet their needs.
Green marketing
A marketing strategy that supports environmental stewardship, thus creating a differential
benefit in the minds of consumers.
Return on investment (ROI)
The direct financial impact of a firms expenditure of a resource such as time or money.
Popular culture
The music, movies, sports, books, celebrities, and other forms of entertainment consumed
by the mass market.
Myths:
Stories containing symbolic elements that express the shared emotions and ideals of a
culture.
Consumer goods:
The goods individual consumers purchase for personal or family use.
Services:
Intangible products that are exchanged directly between the producer and the customer.
Business-to-business marketing:
The marketing of goods and services from one organization to another.

Value of Marketing and Customers

Value proposition
A marketplace offering that fairly and accurately sums up the value that will be realized if
the good or service is purchased.
Brand fests
Events companies host to thank customers for their loyalty.

Lifetime value of a customer

The potential profit a single customers purchase of a firms products generates over the
customers lifetime.
Distinctive competency
A superior capability of a firm in comparison to its direct competitors.
Differential benefit
Properties of products that set them apart from competitors products by providing unique
customer benefits.
Value chain
A series of activities involved in designing, producing, marketing, delivering, and
supporting any product. Each link in the chain has the potential to either add or remove
value from the product the customer eventually buys.
Marketing scorecards
Feedback vehicles that report (often in quantified terms) how the company or brand is
actually doing in achieving various goals.
Metrics
Measurements or scorecards marketers use to identify the effectiveness of different
strategies or tactics.

Business Planning
Business planning
An ongoing process of making decisions that guides the firm both in the short term and
for the long term.
Business plan
A plan that includes the decisions that guide the entire organization.
Marketing plan
A document that describes the marketing environment, outlines the marketing objectives
and strategy, and identifies who will be responsible for carrying out each part of the
marketing strategy.

The Three Levels of Business Planning

Strategic planning is the managerial decision process that matches the firms resources
(such as its financial assets and workforce) and capabilities (the things it is able to do
well because of its expertise and experience) to its market opportunities for long-term
growth and survival.
Functional planning
A decision process that concentrates on developing detailed plans for strategies and
tactics for the short term, supporting an organizations long-term strategic plan.
Operational planning
A decision process that focuses on developing detailed plans for day-to-day activities that
carries out an organizations functional plans.
48- internal environment, external environment.
49- swot analysis.
50-bcg matrix.
52- product-market growth matrix.
69-world trade
72-WTO, protectionism.
74-GDP, GNP
75- level of economic development.
78- discretionary income, brand competition
85- ethnocentrism.
89-strategic alliance, joint venture.
130-consumer behavior.
133-problem recognition.
134-information search
137-brand loyalty
139- subliminal advertising.
140-motivation
141-beahvior learning theories, classical conditioning, operant conditioning, cognitive
learning theory, observational learning.
142-attitudes
143-personlaity
149-gender roles.
158-b2b markets and organization markets
159-multiple buyers.
160-differences in business vs cosumner markets
161-size of purchases, b2b demand, derived demand.
162-inelastic demand, joint demand
163-producers, resellers,
165-extranets
168-straight rebuy.

171-initiated gate keeper.

174-single socurcing.
175-outsourcing, crowd sourcing.
185-segmentation
186-segment by demographics age
189- segment by demographics gender.
193-geodemographic geocoding
198-targeting
201-positioning.
204-CRM
207-lifetime value of the customer.
208- customer equity.
220-core product.
221-durable and non durable groups.
223-shopping products.
224-rawmaterials and processed materials.
225-new and improved the process of innovation.
227-discontinous innovations.
228-new product development.
233-adoption and diffusion of new products.
234-awarness interest
235 evaluation and trail.
236-adoption
237- early adopters, early majorities, late majorities.