A social & managerial process by which individuals and groups obtain what they need and want through creating and excahnging products and value with others

The blending of science & art to create, build and sustain good relationships with customers, suppliers, and distributors

States of felt deprivation

Ex: "I'm thirsty..."

The form taken by human needs as they are shaped by culture and individual personality.

Ex: "I'm thirsty... for Diet Coke"

Human wants backed up by buying power.

Ex: "I have enough cash to pay for Diet Coke"

Finding and increasing demand, also changing or reducing demand, such as demarketing

Ex: high requirements to get in at Augie to keep number of students down

The set of benefits or values a company promises to deliver to consumers to satisfy their needs.

Ex: Augie proposition- good education, graduate on time, dorm life

Consumers favor products that are available and high affordable and that management should therefore focus on improving produciton and distribution efficiency.

Ex: Fuggs, Walmart, Dell

Consumers will favor products that offer the most quality, performance, and freatures and the organization should therefore devote its energy to making continuous product improvements.

Ex: Uggs, Apple, Mercedes Benz, Rolex

Consumers will not buy enough of the organization's product unless the organization undertakes a large-scale selling and promotion effort

Ex: Insurance, pencils, milk

Achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do. Customer driven companies.

Ex: Dell & McDonalds

Organization should determine the needs, wants and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer's and society's well-being.

Ex: Johnson & Johnson

Stream of purchases each customer makes over a lifetime of patronage

Ex: Nike --> provide what I need at a reasonable price

The portion of a customer's purchasing that a company gets in its product categories

Ex: Hyvee--> provide goods & services you need so you stay there vs. Walmart or Target

Partners inside the firm: employees are customer focused, team coordinates efforts toward customers.

Partners outside the firm: supply chain management, strategic alliances (Augie w/ Sanford) 

1. Define the "Company Mission"

2. Setting company objectives

3. Designing the Business Portfolio

States the company's puprose and should focus on the market, rather than the product

Should be realistic, specific, and motivating.  Build on vision of the founder or CEO

• High growth & share
• Profit potential
• May need heavy investment to grow

• Low growth, high share
• Established, successful SBU's
• Produce cash

• High growth, low share
• Build into Starts/phase out
• Require cash to hold market share

• Low growth & low share
• Low profit potential

• Existing products & market
• Least risky

• Existing product
• New Market

• New products
• Existing Markets

• New products
• New Markets

Developed the SBU's

aka the Stars, Cash Cows, Question Marks, Dogs

The Company

(Microenvironment)

Marketers must work in harmony w/ other company departments to create customer value and relationships

Ex: Walmart's markerters can't promise low prices unless its operations department can deliver low costs

Suppliers 

(Micro)

Marketers must involve suppliers in creating and delivering customer value.

Supplier problems can seriously affect marketing

Firms that help the company to promote, sell, and distribute its goods to final buyers

Ex: Lexus can't create a high-quality experience unless its suppliers provide quality parts and its dealers provide high sales and service quality.

Competitors

(Micro)

Publics

(Micro)

Customers

(Micro)

*Most important factor in a company's microenvironment*

Group that influences the company's ability to obtain funds.

Ex: Banks, investment houses, and stockholders

Carries news, features, and editorial opinion.

Ex: newspaper, magazines, radio, television

Gov't Publics

Demographics

(Macro)

Born between 1946-1964

78 Million

Wealthiest generation

Hold 3/4 of nation's financial assets

Born between 1965-1976

49 million

Best educated generation

Increased parental divorce rates

First latchkey kids

Born between 1977-2000

83 million

$733 billion in purchasing power

Economic

(Macro)

Natural

(Macro)

Technological

(Macro)

Political 

(Macro)

Cultural

(Macro)

Values and subculture memberships that affect decisions.

Marketers are interested in how people's values affect their views of nature, universe, organizations, others and themselves

Subcultures

(Macro)

Consist of homogenous ethnic or lifestyle groups within the larger culture

Ex: drink choices

Responding to the Market Environment

(Macro)

Take an aggressive action to influence publics and forces to the extent possible

Marketing Information System

(MIS)

The most widely used method for primary data collection

Approach best suited for gathering descriptive information