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Marketing Management E-Book. 1. PowerPoint by Milton M. Pressley Creative Assistance by D. Carter and S. Koger As of today we have 78,, eBooks for you to download for free. No annoying ads, no Management Marketing Management Philosophies Editorial Reviews. About the Author. Philip Kotler is one of the world's leading authorities on Marketing Management 15th Edition, Kindle Edition. by Philip T.

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Marketing. Management. PHILIP KOTLER. Northwestern University. KEVIN LANE KELLER. Dartmouth College. Prentice Hall. Boston Columbus Indianapolis. Change is occurring at an accelerating rate; today is not like yesterday, and tomor- row will be different from today. Continuing today's strategy is risky; so is. Get this from a library! Marketing management. [Philip Kotler; Kevin Lane Keller].

Once you have successfully made your request, you will receive a confirmation email explaining that your request is awaiting approval. On approval, you will either be sent the print copy of the book, or you will receive a further email containing the link to allow you to download your eBook. Please note that print inspection copies are only available in UK and Republic of Ireland. For more information, visit our inspection copies page. We currently support the following browsers: Internet Explorer 9, 10 and 11; Chrome latest version, as it auto updates ; Firefox latest version, as it auto updates ; and Safari latest version, as it auto updates. Tell others about this book Lorem About Basics Marketing Marketing Management Understanding how to create marketing programmes is one thing.

Curl up by the fire with an actionable marketing ebook. Image via kaboompics. So sit back, pour yourself some eggnog, release your not-so-inner-nerd — and prepare to rock your marketing in the new year. The Buffer team has compiled a list of social media strategies you can implement today to tackle social platforms like Pinterest, Twitter and Facebook.

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What to expect: Tactics for keeping your evergreen content alive on social platforms Tips for catering your messaging to each unique social media platform Testing ideas for the placement of social share buttons on your website Social media marketers know the importance of collecting data, but knowing where to start can be tricky. What to expect: Tips on how to make the most of the social media data that you already have Step-by-step instructions for determining the ROI of your social media campaigns A whole lot of additional resources and videos for social media marketers who like to go deep 3.

This ebook by Uberflip , the content management tool, teaches how to craft an effective content strategy that uses data as its backbone. Accordingly, different customer segments tend to be served by different competitors, require a different set of collaborators different suppliers and distribution channels , are managed by different business units of the company, and operate in a different context. The fundamental role of target customers in defining the market is reflected in its central position in Figure 1.

Identifying the Market: The 5-C Framework The central role of target customers further implies that a change in target customers is likely to lead to a change in all aspects of the relevant market.

The Value Proposition The value proposition defines the value that an offering aims to create for the relevant participants in the market. The key to designing a meaningful value proposition is to understand the value exchange defining the relationships among the different market entities.

Defining the Value Exchange: The 6-V Framework The term value exchange refers to the value-based relationships among the different entities in a given market. Specifically, the target market is defined by four key entities—customers, the company, its collaborators, and its competitors—that operate in a given economic, business, technological, sociocultural, regulatory, and physical context. The interactions among these four entities define the six value relationships defining the 6-V framework illustrated in Figure 2.

Figure 2: The 6-V Framework Each of the relationships shown in Figure 2 can be viewed as a process of giving creating and receiving capturing value.

Thus, the relationship between the company and its customers is defined by the value the company creates for these customers as well as by the value created by these customers that is captured by the company.

In the same vein, the relationship between the company and its collaborators is defined by the value the company creates for these collaborators as well as by the value generated by these collaborators that is captured by the company. To illustrate, consider the relationship between a manufacturer, a retailer, and their customers.

The manufacturer the company partners with a retailer the collaborator to deliver products value to target customers. Customers receive value from the products created by the manufacturer they download as well as from the service delivered by the retailer involved in the downloading process, for which they offer monetary compensation that is shared by both the manufacturer and the retailer. The retailer receives value from the customers in the form of margins the differential between the downloading and selling price as well as value from the manufacturer in the form of various trade promotions.

The three value relationships between the company, its customers, and its collaborators, however, reflect only the company side of the value exchange. No market exists without competitors that aim to create value for the same target customers, often working with the same collaborators as the company.

The competitive aspect of the value exchange is symmetric to the company value exchange, and consists of three types of relationships: Furthermore, as with the company value exchange, each of the competitive relationships is defined by the processes of creating and capturing value among market participants. Developing the Optimal Value Proposition: The 3-V Principle To succeed, an offering must create value for all entities involved in the market exchange—target customers, the company, and its collaborators.

Accordingly, when developing market offerings, a company needs to consider three value propositions: The need for different value propositions raises the question of whose value to prioritize. Surprisingly, many companies find it difficult to reach a consensus. Marketing departments are typically focused on creating customer value; finance departments and senior management are focused on creating company shareholder value; and the sales force is focused on creating value for collaborators, such as dealers, wholesalers, and retailers.

Here, the term optimal value means that the value is balanced across the three entities, whereby an offering creates value for its target customers and collaborators in a way that enables the company to achieve its strategic goals. Optimizing these three types of value—company, customer, and collaborator—is the key principle that drives market success Figure 3.

Figure 3: The Optimal Value Proposition OVP The 3-V optimal value principle implies that to evaluate the market potential of an offering a manager needs to answer three key questions: Does the offering create superior value for target customers relative to the competitive offerings? Does the offering create superior value for the company relative to the other options the company must forgo in order to pursue this offering? The ability to create superior value for customers, collaborators, and the company is the ultimate criterion for achieving market success.

Failure to create superior value for any one of the relevant market participants inevitably leads to an inefficient marketing exchange and market failure. The value proposition is an ideal representation of the benefits that target customers will receive from the offering; the value proposition does not physically exist in the market. The value proposition is actualized through the specific offering s the company designs, communicates, and delivers to its target customers. The key aspects of developing an offering are discussed in the following section.

Marketing Tactics: In marketing, tactics refer to a set of specific activities, commonly referred to as the marketing mix, employed to execute a given strategy. The strategy is an abstract depiction of the way in which an offering aims to create superior value for the relevant market entities. The company designs an offering that aims to fulfill customer needs, thereby creating value for these customers, the company, and its collaborators. Whereas the strategy defines the value exchange and the optimal value proposition, the tactics define the attributes of the actual offering that creates market value.

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The Seven Tactics Defining the Marketing Mix Tactics are defined by seven key elements, often referred to as the marketing mix: The seven marketing mix factors can be summarized as follows: The product aspect of the offering reflects its key functional characteristics.

Products typically change ownership during download; once created, they can be physically separated from the manufacturer and distributed to downloaders via multiple channels. The service aspect of the offering also reflects its functional characteristics but, unlike products, services typically do not imply a change in ownership; instead, customers obtain the right to use the service for a period of time.

Because they are simultaneously created and consumed, services are inseparable from the service provider and cannot be inventoried. The brand involves a set of unique marks and associations that identify the offering and create value beyond the product and service aspects of the offering. The price refers to the amount of money the company charges its customers and collaborators for the benefits provided by the offering.

Incentives may be monetary— such as volume discounts, price reductions, coupons, and rebates—and nonmonetary, such as premiums, contests, and rewards. Communication refers to the process of informing current and potential downloaders about the specifics of the offering.

Distribution defines the channel s through which the offering is delivered to customers. Figure 4: It had to decide on the product assortment it would carry and the specific attributes of each product e. The service involves addressing customer inquiries and concerns and providing customers with an environment in which to consume the downloadd foods and beverages.

The price is the monetary amount that Starbucks charges customers for the offering. Tactics as a Process of Designing, Communicating, and Delivering Value The seven marketing tactics—product, service, brand, price, incentives, communication, and distribution—are not a list of unrelated activities managers use to create value. On the contrary, the marketing tactics are interrelated because they represent different aspects of the same value-creation process. In this context, the relationships among the individual marketing tactics can be represented as a process of designing, communicating, and delivering value.

Here, product, service, brand, price, and incentives compose the value-design aspect of the offering; communication captures the value-communication aspect; and distribution reflects the value-delivery aspect of the offering.

The last two aspects of the value-creation process—communication and distribution—are conceptually different from the first five aspects in that they serve as channels for the other marketing mix variables.

Thus, communication can inform customers of the functionality of a product or service, share the meaning of its brand, publicize its price, apprise downloaders about current incentives, and advise them about the availability of the offering.

The view of the seven marketing tactics as a process of designing, communicating, and delivering value is illustrated in Figure 5.

Figure 5: Thus, for each of the five factors—product, service, brand, price, and incentives—managers have to make three separate decisions concerning the design, communication, and delivery of the offering.

In the same vein, brand management calls for identifying the key brand identity elements and associations and deciding how they will be communicated and delivered to target customers.

Likewise, managing price involves not only deciding on the price level but also on how price will be communicated and money will be collected from customers and then delivered to the company. Finally, managing incentives involves defining the specific incentives, such as price discounts, coupons, and loyalty programs, as well as ways to communicate these incentives and deliver them to target customers.

Business Model Dynamics The discussion so far has focused on the structure of a business model, its key components, and the relationships among them. An important question that has not been addressed concerns the dynamics of a business model—specifically, how a business model is created and when a business model is no longer viable and should be modified.

These two issues—business model generation and business model reinvention—are discussed in more detail below. Generating a Business Model The development of a business model can follow different paths.

In contrast, the second approach—commonly referred to as bottom-up analysis—starts with designing the specific aspects of the offering e. These two basic approaches to business model generation are illustrated in Figure 6 and discussed in more detail below.

Figure 6: Strategies for Generating a Business Model Top-Down Business Model Generation The top-down approach typically stems from a strategic analysis aimed at identifying the target market and creating an optimal value proposition for the key players in that market. In this context, the top-down approach commonly follows one of two alternative paths: Thus, in the former case, a manager can start by asking, What are the key problems customers are facing?

In contrast, in the latter case, a manager can start by asking, What are our unique resources—strategic assets and core competencies—that we can deploy to create market value? Note that regardless of which question comes first, both questions—customer needs and company resources—need to be addressed in order for the company to develop a sustainable business model.

The availability of unique resources without an unmet customer need or the existence of an unmet customer need that the company has no resources to fulfill is insufficient to create a viable business model.

Thus, the development of the iPod aimed to address the need for a user-friendly device that enables people to carry their favorite music with them. The development of the iPhone aimed to address the need for a user-friendly device that combines the functionality of several individual devices, such as a mobile phone, personal digital assistant, and a camera.

Note that when developing offerings to address customer needs, Apple built on its existing strategic assets while at the same time developing new ones. Thus, Swiffer was designed to address the need for a cleaning tool that is more efficient than a mop, with less time spent cleaning. The Aeron chair was designed to address the need for an office chair that is both comfortable and stylish.

The Dyson vacuum was designed to address the need for a vacuum that does not lose suction with usage. Tesla was designed to address the need for an environmentally friendly, high-end car that is fast, spacious, and stylish. Bottom-Up Business Model Generation The bottom-up approach starts with the design of a particular aspect of the offering and is followed by the identification of target customers whose unmet needs can be fulfilled by the offering.

In this case, a manager can start by asking the question, How can the current offering be improved? The bottom-up business model can also stem from advancements in technology that are not company-specific and are available to all companies.

In such cases, business model development begins with product development rather than with the desire to solve a particular customer need. To illustrate, Groupon—the multibillion dollar deal-of-the-day company— started with an existing technological platform, a social media website designed to get groups of people together to solve problems.

The real customer problem it ended up solving—finding deals—came later in when in the midst of the economic crisis many consumers were financially strained. Note that in both cases, even though the products stemmed from a technological platform, their ultimate success was the result of bridging the technological solution with a relevant customer need.

In addition to being a result of a deliberate innovation process, new offerings can be the result of an accidental discovery. Likewise, Viagra—the multibillion dollar erectile dysfunction drug—was originally designed to treat high blood pressure and certain heart conditions. In the same vein, Rogaine minoxidil —the popular over-the- counter drug for treating hair loss—was originally used to treat high blood pressure. Note that, as with the offerings that are a result of a focused research-and-development process, the market success of offerings resulting from accidental discoveries is determined by their ability to create an optimal value proposition for target customers, the company, and its collaborators.

Updating the Business Model Business models are not static; once developed they change throughout time. The most common factor necessitating business model change is that its value proposition for the relevant entities—the company, its customers and its collaborators—is no longer optimal.

The suboptimal value proposition is often caused by changes in the underlying market. Specifically, the suboptimal value proposition can be traced to two types of factors: Suboptimal business model design. One of the key factors necessitating an update of the business model is the presence of flaws and inefficiencies in its design. In this case, a manager can start by asking the question, How can the current business model be improved to maximize its market value?

For example, while seeking ways to make cars more affordable, Henry Ford perfected the concept of the conveyor-belt-driven assembly line that could produce a Model T in fewer than two hours, and at a price that made the car accessible for the average American.

Changes in the target market. Another factor that calls for updating the business model involves changes in one or more of the five key market factors the Five Cs: The development or acquisition of company assets, such as patents and proprietary technologies, can call for redefining the underlying business models in many industries, such as pharmaceuticals, telecommunications, and aerospace. Finally, changes in context, such as the automobile, air travel, and the Internet, have disrupted the extant value-creation processes, forcing companies to redefine their business models.

To succeed, business models must evolve with the changes in the market in which they operate. A number of formerly successful business models have been made obsolete by the changing environment. Companies that fail to adapt their business models to reflect the new market reality tend to fade away, their businesses engulfed by companies with superior business models better equipped to create market value.

According to Charles Darwin, It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change. The key to market success is not only generating a viable business model but also the ability to adapt this model to changes in the marketplace.

Optimizing these three types of value—referred to as the 3-V principle—is the foundation for all marketing activities. Strategy identifies the market in which the company operates, defines the value exchanges between the key market entities, and outlines the ways in which an offering will create value for the relevant participants in the market exchange.

The target market is defined by five factors captured by the 5-C framework: The value exchange is defined by the value relationships captured by the 6-V framework among the customers, collaborators, company, and competitors. Tactics describe a set of activities—commonly referred to as the marketing mix— employed to execute a given strategy by designing, communicating, and delivering specific market offerings.

Unlike the strategy, which focuses on defining the value exchange among the relevant market entities, tactics define the key aspects of the particular offering that will create market value. Tactics are defined by seven key components captured by the 7-T framework: Tactics can also be represented as a process of designing, communicating, and delivering value, where product, service, brand, price, and incentives compose the value-design aspect of the offering; communication captures the value-communication aspect; and distribution reflects the value-delivery aspect of the offering.

The development of a business model typically follows one of two paths. The first approach—commonly referred to as top-down analysis—starts with a broader consideration of the target market and the relevant value exchange, which is then followed by designing a specific offering.

In contrast, the second approach— commonly referred to as bottom-up analysis—starts with designing the specific aspects of the offering e. The myopic product focus blinds companies to the threat of cross-category competitors that can fulfill the same customer need. A classic example of marketing myopia is railroad companies whose decline was in part due to the fact that they considered themselves in the railroad business rather than transportation and consequently let other competitors—cars, buses, and airplanes—steal their customers.

Strategic Business Unit: An operating company unit with a discrete set of offerings sold to an identifiable group of customers, in competition with a well-defined set of competitors. Products that fulfill a particular customer need traditionally addressed by products in a different category.

For example, Gatorade can be viewed as a substitute for Coke. Traditional marketing analysis defines competitors based on their ability to fulfill a particular customer need, rather than based on their belonging to the same industry and, accordingly, does not differentiate among cross-category competitors substitutes and within-category competitors.

The 3-C framework suggests that managers need to evaluate the environment in which they operate: The 3-C framework is simple, intuitive, and easy to understand and use—factors that have contributed to its popularity. Despite its popularity, the 3-C framework has important limitations that hinder its applicability to marketing analysis. A key limitation of the 3-C framework is that it overlooks two important factors: Another important limitation of the 3-C framework is that it does not account for the interdependencies among its individual components, and specifically, the central role of customers in defining the other Cs.

The 4-P framework is intuitive and easy to remember—factors that have contributed to its popularity. Despite its popularity, the 4-P framework has a number of important limitations. One significant limitation is the lack of separate service and brand components. Another limitation of the 4-P framework concerns the term promotion. Promotion is a broad concept that includes two distinct types of activities: While considering these two activities jointly is common accounting practice, each has a distinct role in the value-creation process.

Using a single term to refer to these distinct activities muddles the logic of the marketing analysis. An additional shortcoming of the 4-P framework involves the term place. Some of the limitations of the 4-P framework can be overcome by describing the marketing mix in terms of seven, rather than four, factors—product, service, brand, price, incentives, communication, and distribution—as implied by the 7-T framework discussed earlier in this chapter. Thus, the 7-T framework can be viewed as a more refined version of the 4-P framework that offers a more accurate and actionable view of the key marketing mix variables.

Figure 7. It is often used for strategic industry- level decisions, such as evaluating the viability of entering or exiting a particular industry. According to this framework, competitiveness within an industry is determined by evaluating the following five factors: In general, the greater the bargaining power of suppliers and downloaders, the threat of new market entrants and substitute products, and the rivalry among existing competitors, the greater the overall industry competitiveness.

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Figure 8. The Five Forces of Competition2 The Five Forces framework reflects an industry perspective whereby competitors are defined based on the industry in which they operate. According to this view, cross-industry competition occurs through substitute products that can fulfill the same customer need as the products of within-industry companies. Furthermore, as suggested by its name, the focus of the Five Forces framework is on the competition; the process of creating customer value is captured rather indirectly.

The customer-centric focus of value analysis discussed in this chapter is not industry-specific and does not depend on whether the company and its competitors operate within the bounds of the same industry. Because competitors are defined based on their ability to fulfill customer needs rather than on their industry affiliation, the concept of substitutes is not particularly meaningful here and is captured by the broader concept of competitive offerings. Johnson, Mark W.

Upper Saddle River, NJ: Prentice Hall. Ohmae, Kenichi , The Mind of the Strategist: The Art of Japanese Business. McGraw- Hill. Action without vision is a nightmare.

Such a systematic approach, which is outlined in this chapter, delineates the logic of strategic analysis and planning by advancing a comprehensive yet streamlined framework for developing actionable marketing plans. The goal identifies the ultimate criterion for success that guides all company marketing activities. Setting a goal involves two decisions: Defining the strategy involves two decisions: Identifying the target market involves identifying five key factors the Five Cs: The value proposition, on the other hand, defines the value that an offering aims to create for the relevant participants in the market— target customers, the company, and its collaborators.

The tactics outline a set of specific activities employed to execute a given strategy. Defining the implementation involves three key components: Control involves two key processes: The key components of the marketing plan and the main decisions underlying each individual component are summarized in Figure 2 and discussed in more detail in the following sections.

Figure 2. The key aspects of the action plan are discussed in more detail in the following sections. Setting a Goal The action plan is formulated to achieve a particular goal; it starts with defining a goal and outlines a course of action that will enable the company to achieve this goal.

Based on their focus, two types of goals can be distinguished: Monetary goals involve monetary outcomes and typically focus on maximizing net income, earnings per share, and return on investment. Monetary goals are common for offerings managed by for-profit companies.

Strategic goals involve nonmonetary outcomes that are of strategic importance to the company. Nonmonetary goals are common for nonprofit organizations, which aim to achieve nonmonetary outcomes, such as promoting social welfare. Nonmonetary goals are also common in for-profit organizations by facilitating the achievement of other profit-related goals.

Thus, an offering that is not profitable by itself might benefit the company by facilitating the sales of other, profit-generating offerings. Note that monetary goals and strategic goals are not mutually exclusive: One could argue that long-term financial planning must always include a strategic component in addition to setting monetary goals, and long-term strategic planning must always include a financial component that articulates how achieving a particular strategic goal will translate into a financial outcome.

Performance Benchmarks Performance benchmarks define the ultimate criteria for success. The two types of performance benchmarks—quantitative and temporal—are discussed in more detail below. Quantitative benchmarks define the specific milestones to be achieved by the company with respect to its focal goal. Temporal benchmarks identify the time frame for achieving a particular milestone. Setting a timeline for achieving a goal is a key strategic decision, because the strategy adopted to implement these goals is often contingent on the time horizon.

The goal of maximizing next-quarter profitability will likely require a different strategy and tactics than the goal of maximizing long-term profitability. Market Objectives Based on their focus, goals vary in their level of generality.

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Some goals reflect outcomes that are more fundamental than others. Unlike the ultimate goal, which is typically defined in terms of a company- focused outcome, market objectives delineate specific changes in the behavior of the relevant market factors—customers, the company, collaborators, competitors, and context—that will enable the company to achieve its ultimate goal.

The different types of market objectives are outlined below. Customer objectives aim to elicit changes in the behavior of target customers e. To illustrate, the company goal of increasing net revenues can be associated with the more specific objective of increasing the frequency with which its customers redownload the offering.

Such actions might involve creating barriers to entry, securing proprietary access to scarce resources, and circumventing a price war. Indeed, if there is no change in any of the five market factors the Five Cs , the company is unlikely to make progress toward its goals.

In this context, market objectives help the company articulate the course of action aimed at achieving its ultimate goal.

Implementation involves three key components: For example, a company can form the business unit managing the offering by organizing employees based on their function e. Alternatively, a company might organize employees based on the type of product or market involved, such that each division is responsible for a certain product or market and is represented by different functions.

These processes involve managing the flow of information, goods, services, and money. In this context, there are three common types of implementation processes: Market planning includes activities involved in the development of the marketing plan. Resource management involves activities focused on acquiring and managing human resources e.

Marketing mix management involves activities focused on managing the marketing tactics. This includes designing e. Implementation Schedule The process of setting an implementation schedule involves deciding on the timing and the optimal sequence in which individual tasks should be performed to ensure effective and cost-efficient completion of the project. The implementation schedule can also identify the key personnel involved in managing individual tasks and delineate the time frame for beginning and completing these tasks.

Identifying Controls The uncertainty and dynamics associated with most business markets necessitate that companies continuously evaluate their performance and monitor changes in the environment. Accordingly, marketing controls serve two key functions: Performance can be evaluated on a variety of metrics, such as net income, market share, and unit sales.

Performance evaluation can lead to one of two outcomes: In cases when performance evaluation reveals a gap, the existing action plan needs to be modified to put the company back on track toward achieving its goal. The basic principle in modifying the action plan is that the changes should directly address the identified opportunities and threats. Writing a Marketing Plan The marketing plan can be formalized as a written document that effectively communicates the proposed course of action to relevant stakeholders: Writing a marketing plan is different from market planning.

Market planning is the process of identifying a goal and developing a course of action to achieve this goal. Most marketing plans follow a similar structure: The key components of the marketing plan are illustrated in Figure 3 and summarized below.

Figure 3. The typical executive summary is one or two pages long, outlining the key problem faced by the company e. The situation analysis section of the marketing plan aims to provide an overall evaluation of the company and the environment in which it operates, as well as identify the markets in which it will compete.

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Accordingly, the situation analysis involves two sections: The other elements of the marketing plan—the executive summary, situation analysis, and exhibits—aim to facilitate an understanding of the logic underlying the plan and provide specifics for the proposed course of action. In addition to developing an overall marketing plan, companies often develop more specialized plans. Such plans include a product development plan, service management plan, brand management plan, sales plan, promotions plan, and communication plan.

Some of these plans can, in turn, encompass even more specific plans. The ultimate success of each of these individual plans depends on the degree to which they are aligned with the overall marketing plan. Updating the Marketing Plan Once developed, marketing plans need updating in order to remain relevant. There are two common reasons to consider updating the marketing plan: Performance gaps typically stem from three main sources: When developing the marketing plan, managers rarely have all the necessary information at their fingertips.

It is often the case that, despite the voluminous amount of available information, certain strategically important pieces of information are not readily available e. As a result, managers must fill in the information gaps by making certain assumptions.

Because assumptions reflect uncertainty, updating the plan to reduce the uncertainty can increase its effectiveness. Logic flaws. Another common source of performance gaps is the presence of logic flaws in the design of the marketing plan. For example, the proposed strategy might be inconsistent with the set goal, whereby an otherwise viable strategy might not produce desired results.

Implementation errors. Performance gaps can also stem from implementation errors, which involve poor execution of an otherwise viable marketing plan.

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Collecting Information and Forecasting Demand 4. Conducting Marketing ResearchPart 3. Connecting with Customers5.

Creating Long-term Loyalty Relationships 6. Analyzing Consumer Markets 7. Analyzing Business Markets 8. Tapping into Global MarketsPart 4. Building Strong Brands9.

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Identifying Market Segments and Targets Crafting the Brand Positioning