Chapter 1

1. Defining marketing, the marketing process

a. Marketing is the process by which companies create value for customers and build strong
customer relationships in order to capture value from customers in return.
b. The marketing process involves five steps. The first four steps create value for customers. First,
marketers need to understand the marketplace and customer needs and wants. Next marketers
design a customer-driven marketing strategy with the goal of getting, keeping, and growing
target customers. In the third step, marketers construct a marketing program that actually
delivers superior value. All of these steps from the basis for the fourth step, building profitable
customer relationships and creating customer delight. In the final step, the company reaps the
rewards of strong customer relationships by capturing value from customers.
2. Differences in needs, wants, and demands
a. Wants are the form taken by human needs when shaped by culture and individual personality.
When backed by buying power, wants become demands. Companies address needs by putting
forth a value proposition, a set of benefits that they promise to consumers to satisfy their
needs.
i. Needs: state of felt deprivation
these needs are not created by the marketer basic part of
the human make up
ii. Wants: form human needs take as they are shaped by culture and individual personality
1. You feel hungry, you need food but you want ...

iii. Demands: wants backed up by buying power
3. Customer value and satisfaction and its relationship with expectations
a. The value proposition is fulfilled through a market offering, which delivers customer value
and satisfaction, resulting in long-term exchange relationships with customers.
4. Differences in marketing orientations
a. Production concept: Management’s task is to improve production efficiency and bring down
prices.
b. Product concept: Holds that consumers favor products that offer the most in quality,
performance, and innovative features; thus little promotional effort is required.
c. Selling concept: Holds that consumers will not buy enough of an organization’s products unless
it undertakes a large-scale selling and promotion effort.
d. Marketing concept: Holds that 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.
e. Societal marketing concept: Holds that generating customer satisfaction and long-run societal
well-being through sustainable marketing strategies keyed to both achieving the company’s
goals and fulfilling its responsibilities.
5. What is customer lifetime value? Why is it important?
a. The value of the entire stream of purchases that the customer would make over a lifetime of
patronage.
i. Losing a customer means losing more than a single sale. It means losing the entire stream
of purchases that the customer would make over a lifetime of patronage.
6. The marketing process and the 4 Ps.
a. The first four steps of the marketing process focus on creating value for customers.
i. Understand the marketplace and customer needs and wants
1. Research customer and the marketplace
2. Manage marketing information and customer data
ii. Design a customer-driven marketing strategy
1. Select customers to serve: market segmentation and targeting
2. Decide on a value proposition: differentiation and positioning
iii. Construct and integrated marketing program that delivers superior value
 1. Product and service design: build strong brands
2. Pricing: create real value
3. Distribution: manage demand and supply chains
4. Promotion: communicate the value proposition
iv. Build profitable relationships and create customer delight
1. Customer relationship management: build strong relationships with chosen
customers.
2. Partner relationship management: build strong relationships with marketing
partners.
Chapter 2
1. Steps in the marketing planning process.
a. Consists of four steps:
i. Defining the company’s mission
ii. Setting objectives and goals
iii. Designing a business portfolio
iv. Developing functional plans.
2. What is a mission statement, what characteristics does it have?
a. A statement of the organization’s purpose – what it wants to accomplish in the larger
environment.
b. The company’s mission should be market oriented, realistic, specific, motivating, and consistent
with the market environment.
c. The mission is then transformed into detailed supporting goals and objectives, which in turn
guide decisions about the business portfolio.
3. What tools aid us in designing our business portfolio? Explain the BCG Matrix, and Product/Market
Expansion Grid, and the specific strategies that can be used with them.
a. Guided by the company’s mission statement and objectives, management now must plan its
business portfolio.
b. The Boston Consulting Group Approach. Using the now-classic Boston Consulting Group
(BCG) approach, a company classifies all its SBUs according to the growth-share matrix

i.
 c. Product/Market Expansion Grid
i. A portfolio-planning tool for identifying company growth opportunities through market
penetration, market development, product development, or diversification.

1.
a. Market penetration: Company growth by increasing sales of current
products to current market segments without changing the product.
b. Market development: Company growth by identifying and developing
new market segments for current company products
c. Product development: Company growth by offering modified or new
products to current market segments.
d. Diversification: Company growth through starting up or acquiring
businesses outside the company’s current products and markets.
4. Marketing Strategy and it’s elements: Segmentation, Targeting, Positioning, Product, Price, Place,
Promotion
a. Marketing strategy: The marketing logic by which the company hopes to create customer value
and achieve profitable customer relationships.
i. 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.
ii. Targeting: The process of evaluating each market segment’s attractiveness and selecting
one or more segments to enter.
iii. Positioning: Arranging for a product to occupy a clear, distinctive, desirable place
relative to competing products in the minds of target consumers.
b. 4P’s : Product, Price, Place, Promotion
i. Product: Means the goods-and-services combination the company offers to the target
market.
ii. Price: Price is the amount of money customers must pay to obtain the product
iii. Place: Includes company activities that make the product available to target consumers.
iv. Promotion: Means activities that communicate the merits of the product and persuade
target customers to buy it.
5. What is SWOT Analysis, why is it conducted?
a. An overall evaluation of the company’s strengths (S), weaknesses (W), opportunities (O), and
threats (T)
 i.

Key concepts:
Marketing mix: The set of tactical marketing tools – product, price, place, and promotion – that the firm blends
to produce the response it wants in the target market.

Chapter 4
1. What are the steps in the marketing research process?

a.
i. First step in the marketing research process involves defining the problem and setting the
research objectives, which may be exploratory, descriptive, or casual research.
ii. The second step consists of developing a research plan for collecting data from primary
and secondary sources.
iii. The third step calls for implementing the marketing research plan by gathering,
processing, and analyzing the information.
iv. The fourth step consists of interpreting and reporting the findings.
2. Explain
a. Primary data vs. secondary data (adv./disadvantages)
i. Primary data: information collected for the specific purpose at hand.
ii. Secondary data: information that already exists somewhere, having been collected for
another purpose
 1. Both internal and external secondary data sources often provide information more
quickly and at a lower cost than primary data sources, and they can sometimes
yield information that company cannot collect by itself. However, needed
information might not exist in secondary sources. Researchers must also evaluate
secondary information to ensure that it is relevant, accurate, current, and impartial
2. Primary research must also be evaluated for these features. Each primary data
collection method – observational, survey, and experimental – has its own
advantages and disadvantages. Similarly, each of the various research contact
methods – mail, telephone, personal interview, and online – also has its own
advantages and drawbacks.
b. What are the research approaches for gathering primary data? When is each appropriate?
i. Observational research: Gathering primary data by observing relevant people, actions,
and situations.
ii. Survey research: Gathering primary data by asking people questions about their
knowledge, attitudes, preferences, and buying behavior.
iii. Experimental research: Gathering primary data by selecting matched groups of subjects,
giving them different treatments, controlling related factor, and checking for differences
in group responses.
c. What are the advantages and disadvantages of various contact methods in primary data
collection?

i.
d. What is a sampling plan? What are the differences in probability samples and non-probability
samples?
i. Sample: A segment of the population selected for marketing research to represent the
population as a whole.

ii.
Chapter 5
1. What are some cultural factors that affect consumer behavior?
a. Culture: The set of basic values, perceptions, wants, and behaviors learned by a member of
society from family and other important institutions.
i. Subculture: a group of people with shared value systems based on common life
experiences and situations. (Hispanic, African American)
ii. Social class: relatively permanent and ordered divisions in a society whose members
share similar values, interest and behaviors. (Lower class, working class…)
2. What are some social factors that affect consumer behavior?
a. A consumer’s behavior also is influenced by social factors, such as the consumer’s small groups,
family, and social roles and status.
i. Small groups
1. Word-of-mouth Influence and Buzz Marketing. (agizdan agiza yayilma)
2. Online Social Networks (Facebook)
ii. Family
1. 65 percent of men grocery shop regularly while women influence 50 percent of all
new technology purchases. Technology companies are redesigning their products
accordingly.
iii. Roles and Status
1. As a brand manager, she will buy the kind of clothing that reflects her role and
status in her company.
3. What are some personal factors affecting consumer behavior?
a. A buyer’s decisions also are influenced by personal characteristics such as the buyer’s age and
life-cycle stage, occupation, economic situation, lifestyle and personality and self-concept.
i. Age and Life-Cycle Stage
ii. Occupation
iii. Economic situation
iv. Lifesytle
1. A person’s pattern of living a expressed in his or her activities, interest, and
opinions.
4. What are some psychological factors affecting consumer behavior?
a. A person’s buying choices are further influenced by four major psychological factors:
motivation, perception, learning and beliefs and attitudes.
i. Motivation
1. Motive: A need that is sufficiently pressing to direct the person to seek
satisfaction to the need.
ii. Perception
1. The process by which people select, organize, and interpret information to form a
meaningful picture of the world.
iii. Learning
1. Changes in an individual’s behavior arising from experience.
iv. Beliefs and attitudes
1. Beliefs
a. A descriptive thought that a person holds about something
2. Attitude
a. A person’s consistently favorable or unfavorable evaluations, feelings and
tendencies toward an object or idea.
5. Explain the different types of buying decision behavior.
a. Complex buying behavior
i. Consumer buying behavior in situations characterized by high consumer involvement in a
purchase and significant perceived differences among brands.
 b. Dissonance-reducing buying behavior
i. Consumer buying behavior in situations characterized by high involvement but few
perceived differences among brands.
c. Habitual buying behavior
i. Consumer buying behavior in situations characterized by low-consumer involvement and
few significantly perceived brand differences.
d. Variety-seeking buying behavior
i. Consumer buying behavior in situations characterized by low consumer involvement but
significant perceived brand differences.
6. Explain steps in the buyer decision process.
a. Need recognition
i. The first stage of the buyer decision process, in which the consumer recognizes a
problem or need.
b. Information search
i. The stage of the buyer decision process in which the consumer is aroused to search for
more information; the consumer may simple have heightened attention or may go into an
active information search.
c. Evaluation of alternatives
i. The stage of the buyer decision process in which the consumer uses information to
evaluate alternative brands in the choice set.
d. Purchase decision
i. The buyer’s decision about which brand purchase
e. Post purchase behavior
i. The stage of the buyer decision process in which consumers take further action after
purchase based on their satisfaction or dissatisfaction with a purchase.
7. What is the buyer decision process for new products?
a. Adoption process
i. The mental process through which an individual passes from first hearing about an
innovation to final adoption
1. To help potential customers get past concerns about the uncertain economy,
Hyundai offered an Assurance Program protecting customers against lost jobs and
incomes.
ii. Awareness: aware of the new product
iii. Interest: consumer seeks information about the new product
iv. Evaluation: considers whether trying the new product makes sense
v. Trial: tries the new product on a small scale to improve his or her estimate of its value.
vi. Adoption: decides to make full and regular use of the new product
8. How do product characteristics influence rate of adoption.
a. Five characteristics are especially important in influencing an innovation’s rate of adoption. For
example, consider the characteristics of HDTV in relation to the adoption.
i. HDTV example: The first HDTVs were introduced in the United States in the 1990s, but
the percentage of U.S households owning a high definition set stood at only 28 percent by
2007 and 62 percent by 2010.
1. Relative advantage: The degree to which the innovation appears superior to
existing products. HDTV offers substantially improved picture quality. This
speeded up its rate of adoption.
2. Compatibility: The degree to which the innovation fits the values and experiences
of potential consumers. HDTV, for example, is highly compatible with the
lifestyles of the TV-watching public.
3. Complexity: The degree to which the innovation is difficult to understand or use.
4. Divisibility: The degree to which the innovation may be tried on a limited basis.
 5. Communicability: The degree to which the results of using the innovation can be
observed or described to others. Because HDTV lends itself to demonstration and
description, it use will spread faster among consumers.
Key Concepts:
Opinion Leader: A person within a reference group who, because of special skills, knowledge, personality, or
other characteristics, exerts social influence on others.

Chapter 6
1. What is the difference between business buying and consumer buying?
a. As compared to consumer markets, business markets usually have fewer but larger buyers.
Business demand derived demand, which tends to be more inelastic and fluctuating than
consumer demand.
2. What are some differences market structure and demand in business markets and consumer markets?
a. Business markets contain fewer but larger buyers.
b. Business buyer demand is derived from final consumer demand.
c. Demand in many business markets is more inelastic – not affected as much in the short run by
price changes.
d. Demand business markets fluctuates more and more quickly.
3. What are some major types of buying situations in business buying?
a. Straight rebuy: a business-buying situation in which the buyer routinely reorders something
without any modifications.
b. Modified rebuy: a business-buying situation in which the buyer wants to modify product
specifications, prices, terms or suppliers.
c. New Task: a business-buying situation in which the buyer purchases a product or service for the
first time.
4. Explain the business buying process.
a. Problem recognition → general need description → product specification → supplier search →
proposal solicitation → supplier selection → order-routine specification →performance review

Chapter 7
1. Explain market segmentation, targeting and positioning.
a. Market segmentation: Dividing a market into smaller segments with distinct needs,
characteristics, or behavior that might require separate marketing strategies or mixes.
b. Market targeting: The process of evaluating each market segment’s attractiveness and selecting
one or more segments to enter.
c. Positioning: arranging for a market offering to occupy a clear, distinctive, and desirable place
relative to competing products in the minds of target consumers.
2. What are the main bases of segmentation (ways to segment)?
a. Geographic segmentation: Dividing a market into different geographical units, such as nations,
states, regions, counties, city’s or even neighborhoods.
b. Demographic segmentation: dividing the market into segments based on variables such as age,
gender, family life-cycle, income, occupation, education, religion, race, generation and
nationality.
c. Age and life cycle segmentation: dividing a market into different age and life-cycle groups.
3. What are the benefits of segmentation?
a. To the firm: → Sustainable profit growth
i. Identification of valuable customers.
ii. More targeted promotions & marketing comms
iii. Higher CLV

b. To the customer: → customer loyalty & retention

 i. Customized products & services
ii. Personalized experience
iii. Increased customer satisfaction

4. What are the two main positioning strategies?

a. Vertical positioning: more/smaller/cheaper/faster
b. Horizontal positioning: different features/lifestyle
5. What are the four main target-marketing strategies?
a. Undifferentiated marketing (or mass marketing): a market-coverage strategy in which a firm
decides to ignore market segment differences and go after the whole market with one offer.
b. Differentiated (segmented) marketing: a market-coverage strategy in which a firm decides to
target several market segments and designs separate offers for each.
c. Concentrated (niche) marketing: a market-coverage marketing in which a firm goes after a
large share of one or a few segments or niches.
d. Micromarketing (local or individual marketing):
i. Micromarketing: tailoring product and marketing programs to the needs and wants of
specific individuals and local customer segments; it includes local marketing and
individual marketing
1. Local marketing: tailoring brands and promotions to the needs and wants of
local customer segments-cities, neighborhoods and even specific stores.
2. Individual marketing: tailoring products and marketing programs to the needs
and preferences of individual customers-also called one-to-one marketing,
customized marketing and markets-of-one marketing.
Key Concepts:
Stp: segmentation, targeting, positioning
perceptual map: slayt ug7 de sayfa 19