1. Key Term Outline 1–11–1 Pride/Ferrell Foundations of Marketing Third Edition Chapter 1: Customer-Driven Strategic Marketing

2. Key Term Outline 1–21–2 Copyright © Houghton Mifflin Company. All rights reserved. Part 1 Strategic Marketing and Its Environment Chapter 1 Customer-Driven Strategic Marketing

3. Key Term Outline 1–31–3 Copyright © Houghton Mifflin Company. All rights reserved. Objectives 1.Define marketing. 2.Understand several important marketing terms, including target market, marketing mix, marketing exchanges, and marketing environment. 3.Be aware of the marketing concept and marketing orientation. 4.Understand the importance of building customer relationships. 5.Explain the major marketing functions that are part of the marketing management process. 6.Understand the role of marketing in our society.

4. Key Term Outline 1–41–4 Copyright © Houghton Mifflin Company. All rights reserved. Outline 1.Marketing DefinedMarketing Defined 2.Understanding the Marketing ConceptUnderstanding the Marketing Concept 3.Managing Customer RelationshipsManaging Customer Relationships 4.Value-Driven MarketingValue-Driven Marketing 5.Marketing ManagementMarketing Management 6.The Importance of Marketing in Our Global EconomyThe Importance of Marketing in Our Global Economy

5. Key Term Outline 1–51–5 Copyright © Houghton Mifflin Company. All rights reserved. customer relationship management (CRM) marketing environment relationship marketing customers marketing management stakeholders exchangesmarketing mixtarget market marketing orientation value marketing concept product Key Terms

6. Key Term Outline 1–61–6 Copyright © Houghton Mifflin Company. All rights reserved. 1. WHAT IS MARKETING? The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchanges with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment. © Used By Permission.

7. Key Term Outline 1–71–7 Copyright © Houghton Mifflin Company. All rights reserved. Who is the Focus? Customers The purchasers of organizations’ products; the focal point of all marketing activities. The Target Market  Hard Rock focuses on its target market to meet their needs © Used By Permission.

8. Key Term Outline 1–81–8 Copyright © Houghton Mifflin Company. All rights reserved. Marketing Mix Figure 1.1

9. Key Term Outline 1–91–9 Copyright © Houghton Mifflin Company. All rights reserved. Product Variable A good, a service, or an idea.

10. Key Term Outline 1–10 Copyright © Houghton Mifflin Company. All rights reserved. © Used By Permission. Product Example Is this advertisement for a good, service, or idea?

11. Key Term Outline 1–11 Copyright © Houghton Mifflin Company. All rights reserved. Price Variable Decisions and actions associated with establishing pricing objectives and policies and determining product prices

12. Key Term Outline 1–12 Copyright © Houghton Mifflin Company. All rights reserved. Distribution Variable Make products available in quantities desired Minimize costs: Inventory Transportation Storage Select/Motivate intermediaries Establish/Maintain inventory control Develop/Manage transportation & storage systems

13. Key Term Outline 1–13 Copyright © Houghton Mifflin Company. All rights reserved. Promotion Variable Activities to inform individuals or groups about the organization and its products Increase awareness of the organization and new or existing products. © Used By Permission. Page 4

14. Key Term Outline 1–14 Copyright © Houghton Mifflin Company. All rights reserved. Creating Awareness

15. Key Term Outline 1–15 Copyright © Houghton Mifflin Company. All rights reserved. Relationships with Customers Exchange: The provision or transfer of goods, services, or ideas in return for something of value Figure 1.2

16. Key Term Outline 1–16 Copyright © Houghton Mifflin Company. All rights reserved. Customer as the Stakeholder © Used By Permission.

17. Key Term Outline 1–17 Copyright © Houghton Mifflin Company. All rights reserved. Relationships with other Stakeholders Constituents who have a stake or claim in some aspect of a company’s products, operations, markets, industry, and outcomes.

18. Key Term Outline 1–18 Copyright © Houghton Mifflin Company. All rights reserved. Forces of the Marketing EnvironmentCompetitive Sociocultural Technological Economic Political Legal Regulatory

19. Key Term Outline 1–19 Copyright © Houghton Mifflin Company. All rights reserved. 2. THE MARKETING CONCEPT A managerial philosophy that an organization should try to satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals. © Used By Permission.

20. Key Term Outline 1–20 Copyright © Houghton Mifflin Company. All rights reserved. Core Competency as Marketing Concept

21. Key Term Outline 1–21 Copyright © Houghton Mifflin Company. All rights reserved. Evolution of the Marketing Concept © Used By Permission. Figure 1.3

22. Key Term Outline 1–22 Copyright © Houghton Mifflin Company. All rights reserved. Marketing Orientation An organization-wide commitment to researching and responding to customer needs. © Used By Permission.

23. Key Term Outline 1–23 Copyright © Houghton Mifflin Company. All rights reserved. 3. MANAGING CUSTOMER RELATIONSHIPS Establishing long-term, mutually satisfying buyer-seller relationships. Customer Relationship Management (CRM)

24. Key Term Outline 1–24 Copyright © Houghton Mifflin Company. All rights reserved. © Used By Permission. Customer Relationships Relationship marketing deepens buyer's trust in the company

25. Key Term Outline 1–25 Copyright © Houghton Mifflin Company. All rights reserved. 4. VALUE-DRIVEN MARKETING Value = Customer Benefits minus Customer Costs Rapala uses value to promote its products to fisherman around the world. © Used By Permission.

26. Key Term Outline 1–26 Copyright © Houghton Mifflin Company. All rights reserved. 5. MARKETING MANAGEMENT The process of planning, organizing, implementing, and controlling marketing activities to facilitate exchanges effectively and efficiently. EffectivenessEfficiency

27. Key Term Outline 1–27 Copyright © Houghton Mifflin Company. All rights reserved. 6. IMPORTANCE OF MARKETING IN OUR GLOBAL ECONOMY Costs consume sizable portion of buyers’ dollars Used in nonprofit organizations Important to business and economy Fuels the global economy Knowledge enhances consumer awareness Connects people through technology Promotes welfare of customers and society Offers many exciting career prospects

28. Key Term Outline 1–28 Copyright © Houghton Mifflin Company. All rights reserved. © Used By Permission. Nonprofit Organizations Marketing Employed by Nonprofit Organizations

29. Key Term Outline 1–29 Copyright © Houghton Mifflin Company. All rights reserved. Why Study Finance, Marketing, HR, & Operations Research

30. Key Term Outline 1–30 Copyright © Houghton Mifflin Company. All rights reserved. After reviewing this chapter you should: Be able to define marketing. Know the meaning of important marketing terms, including target market, marketing mix, marketing exchanges, and marketing environment. Be aware of the marketing concept and marketing orientation. Understand the importance of building customer relationships. Be able to explain the major marketing functions that are part of the marketing management process. Recognize the important role of marketing in our society.