The document discusses key concepts in marketing including customer satisfaction, brand loyalty, marketing, innovation, and economic systems. It defines marketing as activities that seek to accomplish organizational objectives by anticipating customer needs and directing a flow of goods and services from producer to customer. Marketing has three main purposes - to build awareness, adoption, and loyalty. Customer satisfaction is defined as the extent to which a firm fulfills a customer's needs, desires, and expectations.

1. CHAPTER 1 DISCUSSION QUESTIONS
1) Define "customer satisfaction."
2) In advanced economies, marketing costs how much of every consumer dollar?
3) Define "innovation."
4) Define "marketing."
5) What should marketing begin with?
6) Marketing doesn't occur unless 2 or more parties are willing to do what?
7) Define "macro-marketing."
8) Explain how "economies of scale" works?
9) What are the universal functions of marketing?
10) In what type of economy does government officials decide what & how much is to be produced
& distributed by whom, when, to whom, &why?
11) In what type of economy do the individual decisions of the many producers & consumers make
the macro-level decisions for the whole economy?
12) In what type of economy do consumer enjoy great freedom of choice?
13) What are the 5 stages in marketing evolution?
14) What is the "marketing concept?"
15) What are the 3 basic ideas of the marketing concept?
16) Define "customer value."
17) Why are low price & high customer value not always the same thing?
18) Should all consumer needs be satisfied? Explain.

2. AS A CURRENT, OR POTENTIAL CONSUMER OF
THE FOLLOWING COMPANIES, WHAT COMES TO
MIND ABOUT EACH OF THEM?
1) FACEBOOK & SAMUEL ADAMS
2) APPLE & REEBOK
3) NIKE & PATAGONIA
4) NORTH FACE & DELL
5) ANHEUSER BUSCH & TWITTER

8. WHAT IS MARKETING?

9. MARKETING
“THE PERFORMANCE OF ACTIVITIES THAT SEEK TO ACCOMPLISH AN
ORGANIZATION’S OBJECTIVES BY ANTICIPATING CUSTOMER/CLIENT
NEEDS & DIRECTING A FLOW OF NEED SATISFYING GOODS &
SERVICES FROM PRODUCER TO CUSTOMER/CLIENT.”
-IT IS ABOUT FIGURING OUT WAYS TO DRUM UP SALES*.
*$, DONATIONS, MEMBERSHIPS, ETC.
3 MAIN PURPOSES
1) BUILD AWARENESS.
2) BUILD ADOPTION.
3) BUILD LOYALTY.

10. CUSTOMER SATISFACTION
“THE EXTENT TO WHICH A FIRM FULFILLS A CUSTOMER’S
NEEDS, DESIRES, & EXPECTATIONS.”

11. BRAND LOYALTY
-A CUSTOMER’S COMMITMENT TO REPURCHASE A
COMPANY’S PRODUCT/SERVICE.
-ACQUIRING A NEW CUSTOMER COSTS 5X MORE THAN
KEEPING AN EXISTING CUSTOMER.
FACTORS INFLUENCING BRAND LOYALTY
1) PERCEIVED VALUE
2) BRAND TRUST
3) SATISFACTION

12. MACROMARKETING
“A SOCIAL PROCESS THAT DIRECTS AN ECONOMY’S FLOW OF GOODS & SERVICES
FROM PRODUCTS TO CONSUMERS IN A WAY THAT EFFECTIVELY MATCHES SUPPLY &
DEMAND AND ACCOMPLISHES THE OBJECTIVES OF SOCIETY.”
-EMPHASIS IS ON HOW THE WHOLE MARKETING SYSTEM WORKS.
-LOOKS AT HOW MARKETING AFFECTS SOCIETY & VICE VERSA.

13. ECONOMIES OF SCALE
“AS A COMPANY PRODUCES LARGER NUMBERS OF A PARTICULAR
PRODUCT, THE COST OF EACH UNIT OF THE PRODUCT GOES DOWN.”
2.5 MILLION BARRELS/YEAR 100 MILLION BARRELS/YEAR

14. ECONOMIC SYSTEM
“THE WAY AN ECONOMY ORGANIZES TO USE SCARCE RESOURCES TO
PRODUCE GOODS & SERVICES AND DISTRIBUTE THEM FOR
CONSUMPTION BY VARIOUS PEOPLE & GROUPS IN THE SOCIETY.”
COMMAND ECONOMY
-GOVERNMENT OFFICIALS DECIDE WHAT & HOW MUCH IS TO BE
PRODUCED & DISTRIBUTED BY WHOM, WHEN, TO WHOM, & WHY.
-THE ASSORTMENT OF GOODS & SERVICES ARE USUALLY LIMITED.
MARKET-DIRECTED ECONOMY
-THE INDIVIDUAL DECISIONS OF THE MANY PRODUCERS &
CONSUMERS MAKE THE MACRO-LEVEL DECISIONS FOR THE WHOLE
ECONOMY.
-CONSUMERS ENJOY GREAT FREEDOM OF CHOICE.

15. STAGES IN MARKETING EVOLUTION
1) SIMPLE TRADE ERA
-FAMILIES TRADED OR SOLD THEIR “SURPLUS” OUTPUT TO LOCAL DISTRIBUTORS WHO
RESOLD THE GOODS TO CONSUMERS.
2) PRODUCTION ERA
-COMPANIES FOCUSED ON PRODUCTION OF A FEW SPECIFIC PRODUCTS.
3) SALES ERA
-COMPANIES EMPHASIZED SELLING BECAUSE OF INCREASED COMPETITION.
4) MARKETING DEPARTMENT ERA
-ALL MARKETING ACTIVITIES WERE BROUGHT UNDER THE CONTROL OF ONE DEPARTMENT TO
IMPROVE SHORT-RUN POLICY PLANNING..
5) MARKETING COMPANY ERA
-MARKETING PEOPLE DEVELOP LONG-RANGE PLANS & THE WHOLE COMPANY EFFORT IS
GUIDED BY THE MARKETING CONCEPT.

16. MARKETING CONCEPT
-ACHIEVING ORGANIZATIONAL GOALS DEPENDS ON KNOWING THE NEEDS & WANTS
OF TARGET MARKETS AND DELIVERING THE DESIRED SATISFACTIONS.
-MARKETING SHOULD BEGIN WITH…………
-POTENTIAL CUSTOMER NEEDS.
3 BASIC IDEAS
1) CUSTOMER SATISFACTION
2) TOTAL COMPANY EFFORT
3) PROFIT, NOT JUST SALES, AS AN OBJECTIVE

17. TARGET MARKET
”A GROUP OF CUSTOMERS WITH SIMILAR NEEDS THAT FORMS THE FOCUS OF A
COMPANY’S MARKETING EFFORTS.”
-IF YOU ATTEMPT TO REACH EVERYONE, YOU WILL END UP REACHING NO ONE.
-MARKETING EFFORTS MUST BE PRECISELY FOCUSED ON THE GROUP(S) OF
EXISTING & PROSPECTIVE CUSTOMERS WHO ARE MOST LIKELY TO BUY YOUR
PRODUCTS/SERVICES.

19. DEMOGRAPHICS
-THE STATISTICAL CHARACTERISTICS OF HUMAN POPULATIONS USED
TO IDENTIFY MARKET SEGMENTS.
-AGE -INCOME
-SEX -EDUCATION
-RACE -EMPLOYMENT
PSYCHOGRAPHICS
-VARIABLES CLASSIFYING POPULATION GROUPS ACCORDING TO
PSYCHOLOGICAL VARIABLES.
-INTERESTS
-VALUES
-LIFESTYLE

21. INNOVATION
“THE DEVELOPMENT & SPREAD OF NEW IDEAS, GOODS, &
SERVICES.”

22. AS COMPANIES OFFER NEW & BETTER WAYS OF SATISFYING CONSUMER
NEEDS, CUSTOMERS HAVE MORE CHOICES.
MORE CHOICE = MORE COMPETITION = LOWER PRICES

23. CUSTOMER VALUE
“THE DIFFERENCE BETWEEN THE BENEFITS A CUSTOMER SEES FROM
A MARKET OFFERING & THE COSTS OF OBTAINING THOSE BENEFITS.”
-LOW PRICE DOES NOT ALWAYS LEAD TO HIGH CUSTOMER VALUE.

24. MARKETING IS ALSO ABOUT THE ART OF PERSUASION

25. Yawning is a surprisingly powerful act. Just by reading the two yawns in the previous
two sentences--and the two additional yawns in this sentence--a good number of
you will probably yawn within the next few minutes. Even as I'm writing this I've
yawned twice. If you're reading this in a public place, and you've just yawned,
chances are that a good proportion of everyone who saw you yawn is now yawning
too, and a good proportion of the people watching the people who watched you
yawn are now yawning as well, and on and on, in a ever-widening, yawning circle.
Yawning is incredibly contagious. I made some of you reading this yawn simply by
writing the word "yawn". The people who yawned when they saw you yawn,
meanwhile, were infected by the sight of you yawning--which is a second kind of
contagion. They might even have yawned if they only heard you yawn, because
yawning is also aurally contagious: if you play an audio-tape of a yawn to blind
people, they'll yawn too. And finally, if you yawned as you read this, did the thought
cross your mind--however unconsciously and fleetingly--that you might be tired? I
suspect that for some of you it did, which means that yawns can also be emotionally
contagious. Simply by writing the word, I can plant a feeling in your mind.

26. -THE TRUE ESSENCE OF MARKETING IS PERSUASION.
-THE ABILITY TO PERSUADE THE CUSTOMER INTO:
1) PARTING WITH ONE OF THEIR MOST PRIZED
POSSESSIONS ($)
2) PURCHASING A PRODUCT/SERVICE THAT THEY MAY
NOT KNOW THEY WANT.
-MARKETING = SELLING & IF YOU CAN’T PERSUADE THEN
YOU CAN’T SELL.
2 KEYS TO PERSUASION
1) SHOES: WALK IN YOUR CUSTOMER’S SHOES
2) EYES: SEE THROUGH YOUR CUSTOMER’S EYES.