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1. Let’s first review the evolution of earlier marketing ideas.
1- The Production Concept
The production concept holds that consumers will favor products that are available and highly affordable.
Therefore, management should focus on improving production and distribution efficiency.. This orientation
makes sense in developing countries such as China, where labor is very inexpensive. Marketers also use the
production concept when they want to expand the market.
2- The Product Concept
The product concept holds that consumers will favor products that offer the most in quality, performance, and
innovative features. Under this concept, marketing strategy focuses on making continuous product
improvements. Product quality and improvement are important parts of most marketing strategies. However,
focusing only on the company’s products can also lead to marketing myopia.
3- The Selling Concept
Many companies follow the selling concept, which holds that consumers will not buy enough of the firm’s
products unless it undertakes a large-scale selling and promotion effort. The concept is typically practiced with
unsought goods, such as insurance or blood donations etc. The aim often is to sell what the company makes
rather than making what the market wants. Marketing based on hard selling is risky.
4- The Marketing Concept
The marketing concept holds that achieving organizational goals depends on knowing the needs and wants of
target markets. The marketing concept is a customer-centered philosophy. The job is not to find the right
customers for your product, but to find the right products for your customers.
Example: Dell doesn’t prepare a perfect computer for its target market. Rather, it provides product platforms
on which each person customizes the features he or she want in there computer.
5- The Holistic Marketing Concept:
The holistic marketing concept is based on the development, design, and implementation of marketing
programs, processes, and activities that recognize their breadth and interdependencies. Holistic marketing
acknowledges that everything matters in marketing.
Four broad components of holistic marketing are: relationship marketing, integrated marketing, internal
marketing, and performance marketing.
Topic#1: Company Orientation Toward the Marketplace

2. 6- Relationship Marketing
Increasingly, a key goal of marketing is to develop deep, enduring relationships with people and organizations
that directly or indirectly affect the success of the firm’s marketing activities. Relationship marketing aims to
build mutually satisfying long-term relationships with key constituents in order to earn and retain their
business. Four key constituents for relationship marketing are customers, employees, marketing partners
(channels, suppliers, distributors, dealers, agencies), and members of the financial community (shareholders,
investors, analysts).
7- Integrated Marketing
Integrated marketing occurs when the marketer devises marketing activities and assembles marketing
programs to create, communicate, and deliver value for consumers. Two key themes are that
(1) Many different marketing activities can create, communicate, and deliver value and
(2) Marketers should design and implement any one marketing activity with all other activities in mind.
When a hospital buys an MRI from General Electric’s Medical Systems division, for instance, it expects good
installation, maintenance, and training services to go with the purchase.
8- Internal Marketing
Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers
well. It ensures that everyone in the organization embraces appropriate marketing principles, especially senior
management. Smart marketers recognize that marketing activities within the company can be more important
than those directed outside the company.
9- Performance Marketing
Performance marketing requires understanding the financial and nonfinancial returns to business and society
from marketing activities and programs. Top marketers are increasingly going beyond sales revenue to
examine the marketing scorecard and interpret what is happening to market share, customer loss rate,

3. customer satisfaction, product quality, and other measures. They are also considering the legal, ethical, social,
and environmental effects of marketing activities and programs.
 Updated four Ps:
I. People:
People reflects, internal marketing and the fact that employees are critical to marketing success. It also
reflects the fact that marketers must view consumers as people to understand their lives more broadly.
II. Processes:
Processes reflects all the creativity, discipline, and structure brought to marketing management. Marketers
must ensure that state-of-the-art marketing ideas and concepts play an appropriate role in all they do. Only by
instituting the right set of processes a firm can engage in mutually beneficial long-term relationships.
III. Programs:
Programs reflects all the firm’s consumer-directed activities. It encompasses the old four Ps as well as a range
of other marketing activities. These activities must be integrated such that their whole is greater than the sum
of their parts and they accomplish multiple objectives for the firm.
IV. Performance:
We define performance as in holistic marketing, to capture the range of possible outcome measures that have
financial and nonfinancial implications (profitability as well as brand and customer equity), and implications
beyond the company itself (social responsibility, legal, ethical, and community related).
 The marketing mix
The marketing mix is the set of controllable marketing tools that the firm blends to produce the response it
wants in the target market. It is also known as the “four Ps.
I. Product: means the goods-and-services combination the company offers to the target market.
II. Price: is the amount of money customers have to 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.
Topic#2: Updating The Four Ps

5. Developing Marketing Strategies and Plans

6. The task of any business is to deliver customer value at a profit.
1- The Value Delivery Process
The traditional view of marketing is that the firm makes something and then sells it. It is good for the economy
where consumer do not think about quality and feature. This traditional view will not work,
Three steps of value delivery process.
The first is to choosing the value. It represents the “homework. Marketers must segment the market, select
the appropriate target, and develop the offering’s value positioning. The formula “segmentation, targeting,
positioning (STP)” is the essence of strategic marketing.
The second is providing the value. Marketing must determine specific product features, prices, and
distribution.
The third is to communicating the value by utilizing the sales force, Internet, advertising, and any other
communication tools to announce and promote the product. The value delivery process begins before there is
a product and continues through development and after launch. Each phase has cost implications.
2- The Value Chain
The value chain as a tool for identifying ways to create more customer value. There are nine activities that
create value for customers.
a) The primary activities are
 Inbound logistics, or bringing materials into the business.
 Operations, or converting materials into final products.
 Outbound logistics, or shipping out final products.
 Marketing, which includes sales.
 Service.
b) The support activities
 Procurement, (Office equipment, stationary, laptop, notepad etc.
 Technology development,
 Human resource management
 Firm infrastructure
The firm’s success depends not only on how well each department performs its work, but also on how well
the company coordinates departmental activities to conduct core business processes.
 Core business processes.
o The market-sensing process. All the activities in gathering information about the market.
o The new-offering realization process. All the activities in researching, developing, and
launching new high-quality offerings quickly and within budget.
Topic#1: Marketing and Customer Value

7. o The customer acquisition process. All the activities in defining target markets and prospecting
for new customers.
o The customer relationship management process. All the activities in building deeper
understanding, relationships, and offerings to individual customers.
o The fulfillment management process. All the activities in receiving and approving orders,
shipping the goods on time, and collecting payment.
3- Core Competencies
When you have technological or other process advantage then your competitor then it is called core
competencies. It means you have some extra then your competitor. For example “Apple have the ios this is his
core competencies.
A core competency has three characteristics:
i. It is a source of competitive advantage.
ii. It has applications in a wide variety of markets.
iii. It is difficult for competitors to imitate. (Copy).
4- The Central Role of Strategic Planning
Successful marketing requires capabilities such as understanding, creating, delivering, capturing, and
sustaining customer value. Companies focus on the customer and are organized to respond effectively to
changing customer needs.
Most large companies consist of four organizational levels:
o Corporate : Samsang
o Division: Smart phones, electronics
o Business unit: galaxy seres, M seres In electronics owon, washing machines etc.
o Product: Galaxy s21,s31
i. Corporate headquarters is responsible for designing a corporate strategic plan to guide the whole
enterprise; it makes decisions on the amount of resources to allocate to each division, as well as on
which businesses to start or eliminate.

8. ii. Each division establishes a plan covering the allocation of funds to each business unit within the
division.
iii. Each business unit develops a strategic plan to carry that business unit into a profitable future.
iv. Each product level (product line, brand) develops a marketing plan for achieving its objectives.
The marketing plan operates at two levels: strategic and tactical.
 The strategic marketing plan lays out the target markets and the firm’s value proposition, based on an
analysis of the best market opportunities.
 The tactical marketing plan specifies the marketing tactics, including product features, promotion,
merchandising, pricing, sales channels, and service.
All corporate headquarters undertake four planning activities:
1- Defining the corporate mission
Organizations develop mission statements to share with managers, employees, and (in many cases)
customers. A clear, thoughtful mission statement provides a shared sense of purpose, direction, and
opportunity.
Google Mission “To organize the world’s information and make it universally accessible and useful.”
Good mission statements have five major characteristics.
i. They focus on a limited number of goals.
ii. They stress the company’s major policies and values.
iii. They define the major competitive spheres within which the company will operate.
iv. They take a long-term view. Management should change the mission only when it ceases to be
relevant.
v. They are as short, memorable, and meaningful as possible.
2- Establishing strategic business units:
Large companies normally manage quite different businesses, each requiring its own strategy. At one time,
Samsung classified its businesses into different strategic business units (SBUs). An SBU has three
characteristics:
I. It is a single business, or a collection of related businesses, that can be planned separately from the rest of
the company.
II. It has its own set of competitors.
Topic#2: Corporate and Division Strategic Planning

9. III. It has a manager responsible for strategic planning and profit performance, who controls most of the
factors affecting profit.
3- Assigning resources to each strategic business unit:
Once it has defined SBUs, management must decide how to allocate corporate resources to each. Several
portfolio-planning models provide ways to make investment decisions. The GE Matrix classifies each SBU by
the extent of its competitive advantage. Another model, BCG’s Growth-Share Matrix, classifying SBUs as dogs,
cash cows, question marks, and stars.
4- Assessing growth opportunities:
Assessing growth opportunities includes planning new businesses, downsizing, and terminating older
businesses. If there is a gap between future desired sales and projected sales, corporate management will
need to develop or acquire new businesses to fill it.
i. Intensive opportunities: The first option is to identify opportunities for growth within current
businesses. One useful framework for detecting new intensive growth opportunities is a “product-
market expansion grid.”
ii. Integrative opportunities: The second is to identify opportunities to build or acquire businesses
related to current businesses.
iii. Diversification opportunities: The third is to identify opportunities to add attractive unrelated
businesses.
iv. DOWNSIZING AND DIVESTING OLDER BUSINESSES:

10. 1. The Business Mission:
Each business unit needs to define its specific mission within the broader company mission. There mission
should under the boundaries of the corporate mission.
2. SWOT Analysis
The overall evaluation of a company’s
strengths, weaknesses, opportunities,
and threats is called SWOT analysis. It’s a
way of monitoring the external and
internal marketing environment.
a) EXTERNAL ENVIRONMENT (OPPORTUNITY AND THREAT) ANALYSIS:
Strengths include internal capabilities, resources, and positive situational factors that may help the company
to serve its customers and achieve its objectives. Weaknesses include internal limitations and negative
situational factors that may interfere with the company’s performance.
Good opportunities for the marketers are as follows
o A company may benefit from converging industry trends and introduce hybrid products or services
that are new to the market.
o A company may make a buying process more convenient or efficient.
o A company can meet the need for more information and advice.
Topic#3: Business Unit Strategic Planning

11. o A company can customize a product or service.
o A company can introduce a new capability.
o A company may be able to deliver a product or service faster.
o A company may be able to offer a product at a much lower price.
b) INTERNAL ENVIRONMENT (STRENGTHS AND WEAKNESSES) ANALYSIS:
It’s one thing to find attractive opportunities, and another to be able to take advantage of them. Each business
needs to evaluate its internal strengths and weaknesses. Opportunities are favorable factors or trends in the
external environment that the company may be able to exploit to its advantage. Moreover, threats are
unfavorable external factors or trends that may present challenges to performance.
3. Goal Formulation
Once the company has performed a SWOT analysis, it can proceed to goal formulation, it means developing
specific goals for the planning period. Most business units pursue a mix of objectives, including profitability,
sales growth, market share improvement, and innovation, etc.
A goal should have the following characteristics:
i. Goals should be realistic.
ii. Objectives must be consistent.
iii. They must be arranged hierarchically.
iv. Objectives should be quantitative whenever possible.
4. Strategic Formulation:
Strategy is a game plan for getting or achieving its goals. Every business must design a strategy for achieving its
goals. Different strategies are as follows:
i. PORTER’S GENERIC STRATEGIES;
Michael Porter has proposed three generic strategies that provide a good starting point for strategic thinking:
overall cost leadership, differentiation, and focus.
 Overall cost leadership: Firms work to achieve the lowest production and distribution costs so they
can underprice competitors and win market share.
 Differentiation: The business concentrates on achieving superior performance, so the customer only
buy your product. You give the extra unique features to your customer, in this way you compete with
your competitors.
 Focus: The business focuses on one or more narrow market segments and build the person-to-person
relationships with customers, and designed the product according their requirement.
According to Michael Porter Strategic group are the Competing firms directing same strategy to the same
target market. For example in Pakistan mobile market consist of Samsung, apple, Infinix , oppo and vivo etc. if
they follow the same strategy so they know as strategic group.

12. ii. STRATEGIC ALLIANCES;
There are four major types of STRATEGIC ALLIANCES:
 Product or service alliances— When a company licenses another to produce its product, or two
companies jointly market their complimentary products. The credit card industry is a combination of
cards jointly marketed by banks such as Bank of America, credit card companies such as Visa, and
other companies such as Alaska Airlines.
 Promotional alliances— One company agrees to carry a promotion for another company’s product or
service. For example when we buy a bottle of Pepsi, we get an extra pack of Lays. This is a form of
promotional alliances.
 Logistics alliances— One company offers logistical services for another company’s product
 Pricing collaborations— One or more companies join in a special pricing collaboration. Hotel and
rental car companies often offer mutual price discounts.
5. Program Formulation and Implementation
Once they have formulated marketing programs, marketers must estimate their costs. Activity-based cost
accounting (ABC) can help determine whether each marketing program is likely to produce sufficient results to
justify its cost.
According to McKinsey & Company, strategy is only one of seven elements in successful business practice. The
first three—strategy, structure, and systems—are considered as the “hardware” of success. The next four—
style, skills, staff, and shared values—are the “software.”
6. Feedback and Control
As it implements its strategy, the firm needs to track the results and monitor new developments especially as
the marketplace changes. Haier is a good example.
A company’s strategic fit with the environment will inevitably erode, because the market environment
changes faster than the company’s seven Ss. Thus, a company might remain efficient yet lose effectiveness.
Peter Drucker pointed out that it is more important to “do the right thing” than “to do things right”. Once an
organization fails to respond to a changed environment, it becomes increasingly hard to recapture its lost
position.

13. Topic#1: Creating Customer Loyalty and Retention
Good customer relationship management creates customer delight. In turn, delighted customers remain loyal
and speak favorably to others about the company and its products. Thus, the aim of customer relationship
management is to create not just customer satisfaction, but customer delight.
Companies are realizing that losing a customer means losing more than a single sale. It means losing
customer lifetime value. The entire stream of purchases that the customer would make over a lifetime of
patronage is known as customer life lime value.
Topic#2: Concept of brand
A brand is a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller
of a product or service. Consumers view a brand as an important part of a product, and branding can add
value to a product. Customers attach meanings to brands and develop brand relationships. Brands have
meaning well beyond a product’s physical attributes. For example, consider Coca-Cola:
Topic#3 Brand Equity:
Brand loyal customer are the brand equity for a company. g. It is a measure of the brand’s ability to capture
consumer preference and loyalty. A brand has positive brand equity when consumers react more favorably to
it than to a generic version of the same product. It has negative brand equity if consumers react less favorably
than to an unbranded version.
Brands vary in their power and value in the marketplace.
Brands vary in their power and value in the marketplace.
High brand equity provides a company with many competitive advantages.
Some important concepts

14. Topic#4 Levels of Products and Services
Product planners need to think about products
and services on three levels (see Figure 8.1).
Each level adds more customer value. The three
levels are:
1- Core customer value.
This is the most basic level. It addresses the
question What is the buyer really buying? When
designing products, marketers must first define
the core, problem-solving benefits or services
that consumers seek. A woman buying lipstick buys more than lip color. Charles Reason of Revlon saw this
early: “In the factory, we make cosmetics; in the store, we sell hope.” And people who buy an iPhone are
buying more than a wireless mobile phone, email and Web-browsing device, or personal organizer. They are
buying freedom and on-the-go connectivity to people and resources.
2- Actual product.
At the second level, product planners develop product and service features, design, a quality level, a brand
name, and packaging. For example, the iPhone is an actual product. Its name, parts, styling, features,
packaging, and other attributes have all been carefully combined to deliver the core benefit of staying
connected.
Augmented product.
Finally, product planners offer additional consumer services and benefits around the core benefit and actual
product. The iPhone offers more than just a communications device. It provides consumers with a complete
solution to mobile connectivity problems. Thus, when consumers buy an iPhone, Apple and its dealers might
also provide buyers with a warranty on parts and workmanship, instructions on how to use the device, quick
repair services when needed, and a toll-free telephone number and Web site to use if they have problems or
questions.

15. Topic#5: The New-Product Development Process
Companies must develop new products, but the odds weigh heavily against success. To create successful new
products, a company must understand its consumers, markets, and competitors and develop products that
deliver superior value to customers. It must carry out strong new-product planning and set up a systematic
new-product development process for finding and growing new products. Figure 9.1 shows the eight major
steps in this process.
1- Idea generation:
New-product development starts with idea generation—the systematic search for new-product ideas. A
company typically has to generate many ideas to find a few good ones. Major sources of new-product ideas
include internal sources and external sources such as customers, competitors, distributors and suppliers, and
others (see Figure 9.2).

16. 2- Idea seceening:
The purpose of idea generation is to create a large number of ideas. The purpose of the succeeding stages is to
reduce that number. The first idea-reducing stage is idea screening, which helps spot good ideas and drop
poor ones as soon as possible. Product development costs rise greatly in later stages, so the company wants to
go ahead only with the product ideas that will turn into profitable products.
3- Concept Development and Testing
An attractive idea must be developed into a product concept. It is important to distinguish between a product
idea, a product concept, and a product image. A product idea is an idea for a possible product that the
company can see itself offering to the market. A product concept is a detailed version of the idea stated in
meaningful consumer terms. A product image is the way consumers perceive an actual or potential product.
Concept Testing
Concept testing calls for testing new-product concepts with groups of target consumers. The concepts may be
presented to consumers symbolically or physically.
4- Marketing Strategy Development
The next step is marketing strategy development, designing an initial marketing strategy for introducing this
car to the market. The marketing strategy statement consists of three parts. The first part describes the target
market; the planned product positioning; and the sales, market share, and profit goals for the first few years
The second part of the marketing strategy statement outlines the product’s planned price, distribution, and
marketing budget for the first year:
The third part of the marketing strategy statement describes the planned longrun sales, profit goals, and
marketing mix strategy
5- Business Analysis
Once management has decided on its product concept and marketing strategy, it can evaluate the business
attractiveness of the proposal. Business analysis involves a review of the sales, costs, and profit projections for
a new product to find out whether they satisfy the company’s objectives. If they do, the product can move to
the product development stage.
6- Product Development
For many new products, a product exists only as a word descriptions, drawings, or crude mock-ups. If the
product concept passes the business test, it moves into product development. The physical product is then
created. The product development step, however, calls for a large jump in investment. It will show whether
the product idea can be turned into a workable product.

17. The R&D department will develop and test one or more physical versions of the product concept. R&D hopes
to design a prototype that will satisfy and excite consumers and that can be produced quickly at budgeted
costs.
7- Test Marketing
If the product passes concept and product tests, the next step is test marketing, the stage at which the
product and its proposed marketing program are introduced into more realistic market settings. Test
marketing gives the marketer experience with marketing the product before going to the great expense of full
introduction. It lets the company test the product and its entire marketing program—positioning strategy,
advertising, distribution, pricing, branding and packaging, and budget levels.
8- Commercialization
Test marketing gives management the information needed to make a final decision about whether to launch
the new product. If the company goes ahead with commercialization—introducing the new product into the
market—it will face high costs. The company may have to build or rent a manufacturing facility. And, in the
case of major new consumer packaged goods, it may spend millions of dollars for advertising, sales promotion,
and other marketing efforts in the first year.
Topic#6: Product Life-Cycle Strategies
After launching the new product, management would want the product to enjoy a long and happy life.
Although it does not expect the product to sell forever, the company wants to earn a decent profit to cover all
the effort and risk that went into launching it. Management is aware that each product will have a life cycle,
although its exact shape and length is not known in advance.
Figure 9.3 shows a typical product life cycle (PLC), the course that a product’s sales and profits take over its
lifetime. The product life cycle has five distinct stages
1. Product development begins when the company finds and develops a newproduct idea. During product
development, sales are zero and the company’s investment costs mount.
2. Introduction is a period of slow sales growth as the product is introduced in the market. Profits are non-
existent in this stage because of the heavy expenses of product introduction.
3. Growth is a period of rapid market acceptance and increasing profits.

18. 4. Maturity is a period of slowdown in sales growth because the product has achieved acceptance by most
potential buyers. Profits level off or decline because of increased marketing outlays to defend the product
against competition.
5. Decline is the period when sales fall off and profits drop.
Not all products follow this product life cycle. Some products are introduced and die quickly; others stay in the
mature stage for a long time. Some enter the decline stage and are then cycled back into the growth stage
through strong promotion or repositioning. It seems that a well-managed brand could live forever. Venerable
brands such as Kikkoman, Coca-Cola, and Gillette are still going strong after more than 100 years