Marketing the activity, set of institutions, and processes for creating, capturing,

communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large
Marketing is important because it enriches society, can be entrepreneurial, expands
global presence, and is pervasive across channel members

Marketing mix (Four Ps)- Product, Price, Place, Promotion

Create value by developing a variety of offerings, including goods, services, and
ideas, to satisfy customer needs
Price, therefore, is everything the buyer gives upmoney, time, and/or energyin
exchange for the product

Core aspects of marketing:

Production-Oriented: most firms were production oriented and believed that a good
product would sell itself.
Sales Oriented: conditioned customers to consume less or manufacture items
themselves, so they planted victory gardens instead of buying produce. Firms found
an answer to their overproduction in becoming sales oriented: they depended on
heavy doses of personal selling and advertising.
Market Oriented: Manufacturers and retailers thus began to focus on what
consumers wanted and needed before they designed, made, or attempted to sell
their products and services
Value Oriented: They want products or services that meet their specific needs or
wants and that are offered at a price that they believe is a good value.

*Most successful firms are market oriented

Ch 2
A sustainable competitive advantage is an advantage over the competition that
is not easily copied and can be maintained over a long period of time

There are four macro, or overarching, strategies that focus on aspects of the marketing mix to
create and deliver value and to develop sustainable competitive advantages, as we depict in
Exhibit 2.1:11

Customer excellence: Focuses on retaining loyal customers and excellent customer

service.

Operational excellence: Achieved through efficient operations and excellent supply

chain and human resource management.

Product excellence: Having products with high perceived value and effective branding
and positioning.

Locational excellence: Having a good physical location and Internet presence

A firm would perform a situation analysis using a SWOT analysis that assesses
both the internal environment with regard to its Strengths and Weaknesses and the
external environment in terms of its Opportunities and Threats

A market penetration strategy employs the existing marketing mix and focuses
the firm's efforts on existing customers
A market development strategy employs the existing marketing offering to
reach new market segments, whether domestic or international.
The third growth strategy option, a product development strategy, offers a new
product or service to a firm's current target market
A diversification strategy, the last of the growth strategies from Exhibit 2.7,
introduces a new product or service to a market segment that currently is not
served
The process of dividing the market into groups of customers with different needs,
wants, or characteristicswho therefore might appreciate products or services
geared especially for themis called market segmentation
After a firm has identified the various market segments it might pursue, it evaluates
each segment's attractiveness and decides which to pursue using a process known
as target marketing or targeting
Market positioning involves the process of defining the marketing mix variables
so that target customers have a clear, distinctive, desirable understanding of what
the product does or represents in comparison with competing products
Relative Market share: X Axis

Market Growth Rate: Y Axis for BCG Matrix

Members of Generation Z (Gen Z) are also known as Digital Natives

Members of Generation Y (Gen Y), also called Millennials
A firm's immediate environment is comprised of its own capabilities, competitors,
and corporate partners.
Macroenvironmental factors that operate in the external environment, namely, the
culture, demographics, social trends, technological advances, economic situation,
and political/regulatory environment, or CDSTEP