Summarize these three chapters

Summarize the chapters 11,12, and 13. I provided the textbook summaries for each chapter. Please separate each chapter and just summarize the information I provided!

Chapter 11: Building customer relations through effective marketing

11-1 Understand the meaning of marketing and the importance of managing customer relationships.
Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to cus- tomers and for managing customer relationships in ways that benefit the organization and its stakeholders. Value is a customer’s estimation of the worth of a product based on a comparison of its costs and benefits, including quality, relative to other products. Maintaining positive relationships with cus- tomers is crucial. Relationship marketing is establishing long- term, mutually satisfying buyer–seller relationships. Customer relationship management uses information about customers to create marketing strategies that develop and sustain desir- able customer relationships. Managing customer relationships requires identifying patterns of buying behavior and focusing on the most profitable customers. Customer lifetime value (CLV) is a combination of purchase frequency, average value of purchases, and brand-switching patterns over the entire span of a customer’s relationship with the company.
11-2 Explain how marketing adds value by creating several forms of utility.
Marketing adds value in the form of utility, or the power of a prod- uct or service to satisfy a need. It creates place utility by making products available where customers want them, time utility by making products available when customers want them, and pos- session utility by transferring the ownership of products to buyers.
11-3 Trace the development of the marketing concept and understand how it is implemented.
From the Industrial Revolution until the early 20th century, businesspeople focused on the production of goods. From the 1920s to the 1950s, the emphasis moved to the selling of goods. During the 1950s, businesspeople recognized that their enterprises involved not only producing and selling products, but also satisfying customers’ needs. They began to implement the marketing concept, a business philosophy that involves the entire organization in the dual processes of meeting the cus- tomers’ needs and achieving the organization’s goals.Implementation of the marketing concept begins and ends with customers—first to determine what customers’ needs are and then to evaluate how well the firm is meeting these needs.
11-4 Understand what markets are and how they are classified.
A market consists of people with a need, the ability to buy, and the desire and authority to purchase. Markets are clas- sified as consumer and business-to-business or industrial, which includes producer, reseller, governmental, and institu- tional markets.
11-5 Understand the two major components of a marketing strategy— target market and marketing mix.
A marketing strategy is a plan for the best use of an orga- nization’s resources to meet its objectives. Developing a marketing strategy involves selecting and analyzing a target market and creating and maintaining a marketing mix that will satisfy the target market. A target market is chosen through the undifferentiated or market segmentation approach. A market segment is a group of individuals or organizations within a market that have similar characteristics and needs. Businesses that use an undifferentiated approach design
a single marketing mix and direct it at the entire market for a particular product. The market segmentation approach directs a marketing mix at a segment of a market.
The four elements of a firm’s marketing mix are product, price, distribution, and promotion. The product ingredi- ent includes decisions about the product’s design, brand name, packaging, and warranties. The pricing ingredient is concerned with base prices and various types of discounts. Distribution involves not only transportation and storage but also the selection of intermediaries. Promotion focuses on providing information to target markets. The elements of the marketing mix can be varied to suit broad organizational goals, marketing objectives, and target markets.
11-6 Explain how the marketing environment affects strategic market planning.
To achieve a firm’s marketing objectives, marketing-mix strategies must begin with an assessment of the marketing environment, which, in turn, influences decisions about marketing-mix ingre- dients. Marketing activities are affected by the external forces that make up the marketing environment. These forces include economic, sociocultural, political, competitive, legal and regula- tory, and technological forces. Economic forces affect custom- ers’ ability and willingness to buy. Sociocultural forces are social and cultural factors, such as attitudes, beliefs, and lifestyles, that affect customers’ buying choices. Political forces and legal and regulatory forces influence marketing planning through laws that protect consumers and regulate competition. Competitive forces involve the actions of competitors. Technological forces can cre- ate new marketing opportunities or cause a product to become obsolete.
11-7 Understand the major components of a marketing plan.
A marketing plan is a written document that specifies an organization’s resources, objectives, strategy, and implemen- tation and control efforts to be used in marketing a specific product or product group. The marketing plan describes a firm’s current position, establishes marketing objectives, and specifies the methods the organization will use to achieve these objectives. Marketing plans can be short-range for one year or less, medium-range for two to five years, or long- range for periods of more than five years.
11-8 Describe how market measurement and sales forecasting are used.
Market measurement and sales forecasting are used to esti- mate sales potential and predict product sales in specific market segments.
11-9 Distinguish between a marketing information system and marketing research.
Strategies are monitored and evaluated through marketing research and marketing information systems, which store and process internal and external data and produce reports in a form that aids marketing decision making. A market- ing information system manages marketing information that is gathered continually from internal and external sources. Marketing research is the process of systematically gathering, recording, and analyzing data concerning a particular market- ing problem. Technology is making information for marketing decisions more accessible. Electronic communication tools can be very useful for accumulating accurate and affordable information. Information technologies that are changing the way marketers obtain and use information are databases, online information services, and the Internet. Many compa- nies are using social media to obtain research data and feed- back from customers.
11-10 Identify the major steps in the consumer buying decision process and the sets of factors that may influence this process.
Buying behavior consists of the decisions and actions of people involved in buying and using products. Consumer buying behavior refers to the purchase of products for personal or household use. Business buying behavior is the purchase of products by producers, resellers, govern- ments, and institutions. Understanding buying behavior helps marketers predict how buyers will respond to mar- keting strategies. The consumer buying decision process consists of five steps: recognizing the problem, searching for information, evaluating alternatives, purchasing, and post-purchase evaluation. Factors affecting the consumer buying decision process fall into three categories: situ- ational influences, psychological influences, and social influences.

Chapter 12: Creating and pricing product that satisfy customers

12-1 Explain what a product is and how products are classified.
A product is everything one receives in an exchange, includ- ing all attributes and expected benefits. The product may be a manufactured item, a service, an idea, or a combination.
Products are classified according to their ultimate use. Classification affects a product’s distribution, promotion, and pricing. Consumer goods, which include convenience, shop- ping, and specialty products, are purchased to satisfy per- sonal and family needs. Business products are purchased for resale, in making other products, or for use in a firm’s opera- tions. Business products can be classified as raw materials, major equipment, accessory equipment, component parts, process materials, supplies, and services.
12-2 Discuss the product life-cycle and how it leads to new-product development.
Every product moves through a series of four stages— intro- duction, growth, maturity, and decline—which together form the product life-cycle. As the product progresses through these stages, its sales and profitability increase, peak, and decline. Marketers keep track of the life-cycle stage of
products in order to estimate when a new product should be introduced to replace a declining one.
12-3 Define product line and product mix and distinguish between the two.
A product line is a group of similar products marketed by a firm. They are related to each other in the way they are produced, marketed, and consumed. The firm’s product mix includes all the products it offers for sale. The width of a mix is the number of product lines it contains. The depth of the mix is the average number of individual products within each line.
12-4 Identify the methods available for changing a product mix.
Customer satisfaction and organizational objectives require marketers to develop, adjust, and maintain an effective prod- uct mix. Marketers may improve a product mix by changing existing products, deleting products, and developing new products.
New products are developed through a series of seven steps. The first step, idea generation, involves developing apool of product ideas. Screening, the second step, removes from consideration those product ideas that do not match organizational goals or resources. Concept testing, the third step, is a phase in which a sample of potential buyers is exposed to a proposed product through a written or oral description in order to determine their initial reactions and buying intentions. The fourth step, business analysis, gener- ates information about potential sales, costs, and profits. During the development step, the product idea is trans- formed into mock-ups and prototypes to determine if product production is technically feasible and can be produced at reasonable costs. Test marketing is an actual launch of the product in selected cities chosen for their representativeness of target markets. Finally, during commercialization, plans for full-scale production and marketing are refined and imple- mented. Most product failures result from inadequate product planning and development.
12-5 Explain the uses and importance of branding, packaging, and labeling.
A brand is a name, term, symbol, design, or any combina- tion of these that identifies a seller’s products as distinct from those of other sellers. Brands can be classified as manufacturer brands, store brands, or generic brands. A firm can choose between two branding strategies—individual or family branding—which are used to associate (or not associ- ate) particular products with existing products, producers,
or intermediaries. Packaging protects goods, increases consumer convenience, and enhances marketing efforts by communicating product features, uses, benefits, and image. Labeling provides customers with product information, some of which is required by law.
12-6 Describe the economic basis of pricing and the means by which sellers can control prices and buyers’ perceptions of prices.
A product is a set of attributes and benefits that has been designed to satisfy its market while earning a profit for its seller. Each product has a price at which it balances consumers’ desires and expectations with a firm’s need to make a profit. The price of a product is the amount of money a seller is willing to accept in exchange for the prod- uct at a given time and under given circumstances. Price thus serves the function of allocator. It allocates goods and services among those who are willing and able to buy them. It allocates financial resources among producers according to how well they satisfy customers’ needs. Price also helps customers to allocate their own financial resources among products.
Price competition occurs when a seller emphasizes a product’s low price and sets a price that equals or beats competitors’ prices. To use this approach most effectively, a seller must have the flexibility to change prices often. Price competition allows a marketer to set prices based on demand. The Internet has made it more difficult than ever
for sellers to compete on price. Non-price competition is based on factors other than price. It is used most effec- tively when a seller can make its product stand out from the competition by differentiating product quality, customer service, promotion, packaging, or other features. Buyers must be able to perceive these distinguishing character- istics and consider them desirable. Buyers’ perceptions
of prices are affected by the importance of the product to them, the range of prices they consider acceptable, their perceptions of competing products, and their association of quality with price.
12-7 Identify the major pricing objectives used by businesses.
Objectives of pricing include survival, profit maximization, target return on investment, achieving market goals, and maintaining the status quo. Firms sometimes have to price products to survive, which usually requires cutting prices to attract customers. The return on investment (ROI) is the amount earned as a result of the investment in developing and marketing the product. Some firms set an annual per- centage ROI as the pricing goal. Other firms use pricing to maintain or increase their market share. In industries in which price stability is important, firms often price their products by charging about the same as competitors.
12-8 Examine the three major pricing methods that firms employ.
The three major pricing methods are cost-based pricing, demand-based pricing, and competition-based pricing. When cost-based pricing is employed, a proportion of the cost is added to the total cost to determine the selling price. When demand-based pricing is used, the price will be higher when demand is higher, and the price will be lower when demand is lower. A firm that uses competition-based pricing may choose to price below competitors’ prices,
at the same level as competitors’ prices, or slightly above competitors’ prices.
12-9 Explain the different strategies available to companies for setting prices.
Pricing strategies fall into five categories: new-product pricing, differential pricing, psychological pricing, product- line pricing, and promotional pricing. Price skimming and penetration pricing are two strategies used for pricing new products. Differential pricing can be accomplished through negotiated pricing, secondary-market pricing, periodic dis- counting, and random discounting. Types of psychological pricing strategies are odd-number pricing, multiple-unit pricing, reference pricing, bundle pricing, everyday low prices, and customary pricing. Product-line pricing can be achieved through captive pricing, premium pricing, and price lining. The major types of promotional pricing are price-leader pricing, special-event pricing, and comparison discounting.
12-10 Describe three major types of pricing associated with business products.
Setting prices for business products is different from setting prices for consumer products because of several factors,
including the size of purchases, transportation consider- ations, and geographic issues. The three types of pricing associated with business products are geographic pricing, transfer pricing, and discounting.

Chapter 13: Distributing and promoting products

13-1 Identify the various distribution channels and explain the concept of market coverage.
A marketing channel is a sequence of marketing organizations that directs a product from producer to ultimate user. The marketing channel for a particular product is concerned with the transfer of ownership of that product. Merchant middlemen
(merchants) actually take title to products, whereas functional middlemen simply aid in the transfer of title.
The channels used for consumer products include the direct channel from producer to consumer, the channel from producer to retailer to consumer, the channel from producer to wholesaler to retailer to consumer, and the channel fromproducer to agent to wholesaler to retailer to consumer. There are two major channels of industrial products: producer to user and producer to agent middleman to user.
Channels and intermediaries are chosen to implement a given level of market coverage. Intensive distribution is the use of all available outlets for a product, providing the widest market coverage. Selective distribution uses a portion of the available outlets in an area. Exclusive distribution uses only a single retail outlet for a product in a large geographic area.
13-2 Understand how supply-chain management facilitates partnering among channel members.
Supply-chain management is a long-term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies, while creating a competitive advantage and satisfying customers. Cooperation is required among all channel members, including manufacturing, research, sales, advertising, and shipping. When all channel partners work together, delivery, scheduling, packaging, and other customer requirements are better met. Technology makes supply-chain management easier to implement.
13-3 Discuss the need for wholesalers, describe the services they provide, and identify the major types of wholesalers.
Wholesalers are intermediaries that purchase from producers or other intermediaries and sell to industrial users, retailers, or other wholesalers. Wholesalers perform many functions in a distribution channel. If they are eliminated, other channel members—such
as the producer or retailers—must perform these functions. Wholesalers provide retailers with assistance in promoting products, collecting information, and financing. They provide manufacturers with sales assistance, reduce their inventory costs, furnish market information, and extend credit to retailers.
Merchant wholesalers buy and then sell products. Commission merchants and brokers are essentially agents and do not take title to the goods they distribute. Sales branches and offices are owned by the manufacturers and resemble merchant wholesalers and agents, respectively.
13-4 Distinguish among the major types of retailers and shopping centers.
Retailers are intermediaries that buy from producers or wholesalers and sell to consumers. In-store retailers include department stores, discount stores, warehouse showrooms, convenience stores, supermarkets, superstores, warehouse clubs, traditional specialty stores, off-price retailers, and category killers. Nonstore retailers use direct selling, direct marketing, and automatic vending, instead of conventional stores. Types of direct marketing include catalog marketing, direct-response marketing, telemarketing, television home shopping, and online retailing.
There are four major types of shopping centers: lifestyle, neighborhood, community, and regional. Each of these centers
has a varying mix of stores and serves geographic areas of different sizes.
13-5 Explain the five most important physical distribution activities.
Physical distribution consists of activities designed to move products from producers to ultimate users. Its five major functions are inventory management, order processing, warehousing, materials handling, and transportation. These interrelated functions are integrated into marketing efforts.
13-6 Explain how integrated marketing communications works to have the maximum impact on the customer.
Integrated marketing communications is the coordination of promotion efforts to achieve maximum informational and per- suasive impact on customers.
13-7 Understand the basic elements of the promotion mix.
Promotion is communication about an organization and its products that is intended to inform, persuade, or remind target market members. The major ingredients of a promotion mix are advertising, personal selling, sales promotion, and public relations. The role of promotion is to facilitate exchanges directly or indirectly and to help an organization maintain favorable relationship with groups in the marketing environment.
13-8 Explain the three types of advertising and describe the major steps of developing an advertising campaign.
Advertising is a paid nonpersonal message communicated to a specific audience through a mass medium. Primary-demand advertising promotes the products of an entire industry rather than just a single brand. Selective-demand advertising promotes a particular brand of product. Institutional advertising is image- building advertising for a firm.
An advertising campaign is developed in several stages. A firm first identifies and analyzes its advertising target. The goals of the campaign must be clearly defined. Then the firm develops the advertising platform and determines the size of advertising budget. The next steps are to develop a media plan, to create the advertising message, and to execute the campaign. Finally, promotion managers must evaluate the effectiveness of the advertising efforts before, during, and/or after the campaign.
13-9 Recognize the kinds of salespersons, the steps in the personal-selling process, and the major sales management tasks.
Personal selling is personal communication aimed at informing customers and persuading them to buy a firm’s products. It is the most adaptable promotional method because the sales- person can modify the message to fit individual buyers. The major types of salespersons are order getters, order takers, and support personnel. The six steps in the personal-selling
process are prospecting, approaching the prospect, making the presentation, answering objections, closing the sale, and following up. Sales managers are involved directly in setting sales force objectives, recruiting, selecting, and training sales- persons, compensating and motivating sales personnel, creat- ing sales territories, and evaluating sales performance.
13-10 Describe sales promotion objectives and methods.
Sales promotion is the use of activities and materials as direct inducements to customers and salespersons. Sales promotions enhance and supplement other promotional methods. Methods of sales promotion include rebates, coupons, samples, premiums, frequent-user incentives, point-of-purchase displays, trade shows, buying allow- ances, and cooperative advertising.
13-11 Understand the types and uses of public relations.
Public relations is a broad set of communication activities used to create and maintain favorable relationships between an orga- nization and various public groups, both internal and external. Organizations use a variety of public relations tools to convey messages and create images. Brochures, newsletters, company magazines, and annual reports are written public-relations tools. Speeches, event sponsorship, and publicity are other public- relations tools. Publicity is communication in news-story form about an organization, its products, or both. Types of publicity include news releases, feature articles, captioned photographs, and press conferences. Public relations can also be used to promote people, places, activities, and ideas. It can be used
to enhance the reputation of an organization and reduce the unfavorable effects of negative events.