1. A BRIEF HISTORY OF MARKETING.
   1. THE MARKETING CONCEPT.
      1. In the 1930s and 1940s, emphasis in marketing was on selling and advertising.
      2. The baby boom after WWII created a tremendous market.
         1. Businesses scrambled to capture their share.
         2. Businesses knew they needed to respond to consumers need.
      3. The MARKETING CONCEPT emphasizes
         1. A CONSUMER ORIENTATION.
         2. A SERVICE ORIENTATION—the training of employees from all departments in customer satisfaction.  
         3. A PROFIT ORIENTATION.
      4. During the 1980s businesses began to more aggressively to apply the marketing concept.
      5. CUSTOMER RELATIONSHIP MANAGEMENT (CRM) is learning as much as possible about customers and doing everything you can to satisfy them or even delight them with goods and services over time.
   2. DEFINING MARKETING AS MEETING CUSTOMER NEEDS
      1. MARKETING  is the process of determining customer wants and needs and then providing customers with goods and services that meet or exceed their expectations.
      2. FIND A NEED AND FILL IT—A more simple description of the marketing process.
         1. Knowing what customers need and want is much easier today because purchases can be recorded in a database.
         2. Retailers can build a close relationship with its customers and provide them goods and services made specifically for their needs
   3. NONPROFIT ORGANIZATIONS USE MARKETING ALSO.
      1. Marketing is a crucial part of almost all organizations, profit and nonprofit.
      2. Charities, churches, politicians, states, and many other organizations all use marketing.
2. MARKETING MANAGEMENT AND THE MARKETING MIX.
   1. MARKETING MANAGEMENT is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create mutually beneficial exchanges.
      1. The idea is to please customers AND make a profit.
      2. Managing the marketing process involves FOUR FACTORS:
         1. Designing a want-satisfying PRODUCT.
         2. Setting a PRICE for the product.
         3. Distributing the product to a PLACE where people will buy it.
         4. PROMOTING the product.
      3. These four factors have become known as the FOUR Ps OF MARKETING or the MARKETING MIX.
      4. The MARKETING MIX is the ingredients that go into a marketing program: product, price, place, and promotion.
   2. To present an overview of the marketing process, the text takes a hypothetical product (a cereal called FIBERRIFIC) through THE MARKETING PROCESS.
      1. The next step is to develop a product to fill that need.
      2. A PRODUCT is any physical good, service, or idea that satisfies a want or need.
      3. CONCEPT TESTING involves developing an accurate description of your product and asking people whether or not the concept (the idea of the cereal) appeals to them.
      4. PROTOTYPES are samples of the product that you take to consumer to test their reactions.
      5. TEST MARKETING is the process of testing products among potential users.
      6. OUTSOURCING is the allocation of production and other functions to outside firms.
      7. Once the product is made, you have to DESIGN A PACKAGE, think up a BRAND NAME for the product, and set a PRICE.
      8. A BRAND NAME is a word, letter, or group of words or letters that differentiates one seller’s goods and services from those of competitors.
   3. SETTING AN APPROPRIATE PRICE.
      1. The price depends on a number of factors.
      2. You also have to consider the costs of producing, distributing, and promoting the product.
   4. GETTING THE PRODUCT TO CUSTOMERS.
      1. Once the product is manufactured, you have to choose how to get it to the consumer.
      2. You may want to sell your product through INTERMEDIARIES, organizations that specialize in distributing food products, or MARKETING MIDDLEMEN.
   5. DEVELOPING AN EFFECTIVE PROMOTIONAL STRATEGY.
      1. PROMOTION  consists of all the techniques sellers use to motivate people to buy products or services.
      2. RELATIONSHIP BUILDING WITH CUSTOMERS includes responding to any suggestions they may make to improve the product or the marketing of the product.
      3. Marketing is an ONGOING PROCESS.
3. PROVIDING MARKETERS WITH INFORMATION.
   1. MARKETING RESEARCH is the analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions.
      1. One goal is to determine exactly what consumers want and need, now and in the future.
      2. Because consumer wants and needs are constantly changing, marketing must maintain close relationships with customers.
      3. Businesses need information to compete effectively, and marketing research is the activity that gathers that information.
   2. THE MARKETING RESEARCH PROCESS.
      1. STEP 1. DEFINING THE PROBLEM AND DETERMINE THE PRESENT SITUATION.
      2. STEP 2: COLLECTING DATA .
         1. Research can be quite expensive, so SOME TRADE-OFF must be made between information needs and the cost.
         2. SECONDARY DATA, sources of information that have been published previously (journals, trade associations, etc.), are less expensive.
         3. Usually secondary research doesn’t provide all the necessary information, so marketers must do their own studies.
         4. PRIMARY DATA are facts and figures not previously published that you gather for a specific purpose.
            1. Telephone surveys, mail surveys, and personal interviews are the most common methods of gathering survey information.
            2. A FOCUS GROUP consists of a small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization or its product.
         5. Marketers can now gather both secondary and primary data online.
      3. STEP 3: ANALYZING THE RESEARCH DATA—The data collected must be turned into useful information.
      4. STEP 4: CHOOSING THE BEST SOLUTIONS.
         1. Researchers present alternative strategies and make recommendations as to which strategy may be best.
         2. Company websites have vastly improved the marketing research process.
         3. Consumers are becoming more demanding for ethical behavior from companies.
      5. The last steps in a research effort involve FOLLOWING UP on the actions taken to see if the results were as expected.
   3. THE MARKETING ENVIRONMENT
      1. ENVIRONMENTAL SCANNING  is the process of identifying the factors that can affect marketing success.
      2. GLOBAL FACTORS include the growth of the Internet and the globalization of marketing.
      3. TECHNOLOGICAL FACTORS include the Internet, the growth of consumer databases, flexible manufacturing, and mass customization.
      4. SOCIAL FACTORS include population growth and changing demographics.
      5. COMPETITIVE FACTORS.
         1. Brick-and-mortar companies must adjust to new competition from the Internet.
         2. Competitors can now delivery products quickly.
      6. ECONOMIC FACTORS. Marketers must pay close attention to the economic environment in the U.S. and globally.
   4. RECOGNIZING DIFFERENT MARKETS: CONSUMER AND BUSINESS-TO-BUSINESS.
      1. Marketers must know as much as possible about the market they wish to serve.
      2. THERE ARE TWO MAJOR MARKETS:
         1. The CONSUMER MARKET consists of all the individuals who want goods and services for personal consumption or use.
         2. The BUSINESS-TO-BUSINESS (B2B) MARKET consists of all the individuals and organizations that want goods and services to produce other goods and services, also known as INDUSTRIAL GOODS AND SERVICES.
      3. The buyer’s reason for buying and the end use of the product determine whether it is considered a consumer product or an industrial product.
4. THE CONSUMER MARKET
   1. Consumer groups differ greatly in age, education level, income, and taste.
      1. Marketers must learn to select different consumer groups to develop products and services specially tailored to their needs.
      2. The process of dividing the total market into several groups (segments) that have similar characteristics is called MARKET SEGMENTATION.
      3. TARGET MARKETING is marketing directly toward those groups (market segments) an organization decides it can serve profitably.
   2. SEGMENTING THE CONSUMER MARKET.
      1. GEOGRAPHIC SEGMENTATION is dividing the market by geographic area.
      2. Segmentation by age, income, and education level are ways of DEMOGRAPHIC SEGMENTATION.
      3. Segmentation based on the group’s values, attitudes, and interests is PSYCHOGRAPHIC SEGMENTATION.
      4. Determining which benefits are preferred and using those benefits to promote a product is called BENEFIT SEGMENTATION.
      5. Separating the market by usage is called VOLUME SEGMENTATION.
      6. The best segmentation strategy is to use all the variables to come up with a consumer profile that’s sizable, reachable, and profitable.
   3. REACHING SMALLER MARKET  SEGMENTS.
      1. NICHE MARKETING is the process of finding small, but profitable market segments and designing custom-made products for those groups.
          
      2. ONE-TO-ONE MARKETING means developing a unique mix of goods and services for each individual customer.
          
      3. This is easier to do in B2B markets, but mass customization is making it possible to do so in consumer markets.
          
   4. THE MOVEMENT AWAY FROM MASS MARKETING TOWARD RELATIONSHIP MARKETING.   
       
      1. MASS MARKETING means developing products and promotions that are designed to please large groups of people.
          
         1. The mass marketer tries to sell products to as many people as possible.
             
         2. That means using mass media, such as TV, radio, and newspapers.
             
      2. RELATIONSHIP Marketing's goal is to keep individual customers over time by offering them products that exactly meet their requirements.
          
         1. Relationship marketing is more concerned with retaining old customers than creating new ones.
             
         2. One-way messages in mass media give way to a personal dialogue among participants.
             
      3. RELATIONSHIP MARKETING moves away from mass production toward CUSTOM-MADE GOODS.
          
      4. The latest in TECHNOLOGY enables sellers to work with buyers to determine their individual wants and needs and to develop goods and services specifically designed for those individuals.
          
   5. FORMING COMMUNITIES OF BUYERS.
       
      1. A database can be established so that every contact with consumers results in more information about them.
          
      2. Over time, the seller knows more and more about consumers and can custom-design products to meet their specific needs.
          
      3. Many companies have established Web sites where customers can provide their input and talk to other customers.
          
      4. An important next step in relationship marketing is to establish a community of customers.
          
   6. THE CONSUMER DECISION-MAKING PROCESS.
       
      1. Studying consumer behavior centers around studying the CONSUMER PURCHASE DECISION PROCESS:
          
         1. PROBLEM RECOGNITION.
             
         2. INFORMATION SEARCH.
             
         3. EVALUATE ALTERNATIVES.
             
         4. MAKE PURCHASE DECISION.
             
         5. POSTPURCHASE EVALUATION.
             
      2. Consumer behavior researchers also study the various influences that impact consumer behavior.
          
         1. MARKETING MIX VARIABLES (the four Ps).
             
         2. PSYCHOLOGICAL INFLUENCES such as perception and attitudes.
             
         3. SITUATIONAL INFLUENCES such as the type of purchase and physical surroundings.
             
         4. SOCIOCULTURAL INFLUENCES such as reference groups and culture.
             
      3. CONSUMER BEHAVIOR IS ALSO INFLUENCED BY:
          
         1. LEARNING involves changes in an individual's behavior resulting from previous experiences.
             
         2. REFERENCE GROUP is the group that an individual uses as a reference point in forming beliefs, attitudes, or behavior.
             
         3. CULTURE is the set of values, attitudes, and ways of doing things that are transmitted from one generation to another.
             
         4. SUBCULTURE is the set of values, attitudes, and ways of doing things that result from belonging to a certain group with which one identifies.
             
         5. COGNITIVE DISSONANCE means that after the purchase, consumers may have doubts about whether they got the best product at the best price.
             
5. THE BUSINESS-TO-BUSINESS MARKET.
   List several ways in which the business-to-business market differs from the consumer market.
    
   1. Marketers of goods and services to manufacturers, institutions, commercial operations, and the government are called BUSINESS-TO-BUSINESS MARKETERS.
       
   2. Several factors make BUSINESS-TO-BUSINESS MARKETING DIFFERENT.
       
      1. NUMBER: There are relatively FEW INDUSTRIAL CUSTOMERS compared to consumers.
          
      2. SIZE: Though few in number, industrial customers are VERY LARGE.
          
      3. GEOGRAPHICALLY CONCENTRATED: B2B markets tend to be CONCENTRATED in certain areas of the country.
          
      4. RATIONAL: Industrial buyers are generally MORE RATIONAL in their purchase decisions.
          
      5. DIRECT: Industrial sales tend to be DIRECT.
          
      6. PERSONAL SELLING: There is much more emphasis in personal selling than in the consumer market.
          
   3. Relationship marketing has always been important in the business-to-business market.
       
   4. In business-to-business marketing it is more important to establish and maintain friendly and committed relationships than to simply make the sale.
       
6. UPDATING THE MARKETING CONCEPT.
    
   1. In the 21st century marketers have to readjust their strategies to meet the needs of modern consumers.
       
   2. FROM A CUSTOMER ORIENTATION TO DELIGHTING CUSTOMERS AND OTHER STAKEHOLDERS.
       
      1. Marketing's goal in the past was to provide customer satisfaction.
          
      2. Today the goal of total quality firms is to please or DELIGHT CUSTOMERS by providing goods and services that exactly meet their requirements.
          
      3. Most organizations haven't yet reached the goal of delighting customers.
          
      4. Firms must also please and delight their INTERNAL CUSTOMERS-employees.
          
   3. FROM AN ORGANIZING SERVICE ORIENTATION TO UNITING ORGANIZATIONS.
       
      1. Determining whether or not the various organizations are providing world-class service and quality is done through competitive benchmarking.
          
      2. COMPETITIVE BENCHMARKING means that companies compare their processes and procedures against the best companies in the industry.
          
      3. Customer relationship management is becoming an important part of any organization seeking to maximize profits.
          
   4. MAINTAINING A PROFIT ORIENTATION.
       
      1. Marketing must make sure that everyone in the organization understands that the purpose behind delighting customers IS TO ASSURE A PROFIT for the firm.
          
      2. Using that profit, the organization can then satisfy other stakeholders of the firm.
          
7. ESTABLISHING RELATIONSHIPS WITH ALL STAKEHOLDERS.
    
   1. Balancing the wants and needs of all the firm's stakeholders is a huge challenge for marketing.
       
      1. SHAREHOLDER MARKETING is establishing and maintaining mutually beneficial exchange relationships with internal and external customers and all the other stakeholders of the organization.
          
      2. Many companies have responded to the environmental movement by introducing GREEN PRODUCTS,  those whose production, use, and disposal doesn't damage the environment.
          
   2. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
       
      1. The 80/20 rule says that 80% of your business is likely to come from just 20% of your customers.
          
      2. It is far more expensive to get a new customer than to strengthen a relationship with an existing one.
          
      3. That is the heart of customer relationship management (CRM).
          
   3. YOUR PROSPECTS IN MARKETING.
       
      1. Marketing careers include jobs in retailing, wholesaling, marketing research, and product management, selling, advertising, sales promotion.
          
      2. Other areas include public relations, transportation, storage, international distribution, and other areas.