1.Main marketing concepts:

-Need satisfaction: is the element that motivates the Exchange process. This Exchange could be physical or not, being developed by relational marketing process. A need is a sensation of “lack of something”, a real state different of desired state for the consumer. When a need is detected, consumer is motivated to satisfy it by acquiring “products”. Needs are inside of human beings, so marketing CAN NOT create new needs, but develop different ways to satisfy them (infinite ways) called wishes.
-“Product”: We can not understand the product concept only as “goods”. A “product” in wider sense is whatever thing (tangible or not) that leads to satisfy needs. Is the vehicle, the way to satisfy consumer needs.
So, the products can be classified as follow: +Tangibility: Goods and services + Hopes and willings: benefits and satisfaction (experiences) + Different kind of products could be: goods, services, experiences, events,

-Demand: Only a wish can not motivate the product purchase. Product offer by the company will be successful if they give VALUE and SATISFACTION to the potential consumer.+Consumer: Get advantages and benefits through the product (satisfaction level, subjective) +Company:Drive the products to the consumer and obtain benefits due to final transaction.

So the demand will happen when the consumer decide to buy a product to satisfy a need and has the capability to acquire it (economic and legal capability).

-Utility: Subjective perception about the advantages provided by a product. The utility is related directly with the price is up to pay by the consumer. This utility has different degrees and based on subjective perceptions. E.g. Montblanc pen: has the simple utility (writing) but is perceived with other symbolic and cultural attributes, so the consumer is up to pay more.

2.Main market drivers:

-Actual competitive situation: Is the center of all market tensions and changes of the micro-environment. It affects directly to business firm’s situation and tactic reactions. As seen is affected by the other four factors or forces.Company must monitor competitor actions in market in order to develop tactic plans with proactive actions just taking advantage of its market position.-New competitors: (see BCG matrix, Question Mark and Star segment). In markets which high growing trend competitors detect a “strategic positive window” and decide to develop business in a different operating market, influencing directly in company’s market share and business. -New substitutive products: (see BCG matrix, Question Mark and Star segment). This substitutive products can be directly proposed, same concept (copying the product and offering in the same way with other price-format conditions) or even indirect substitutive products in other markets that affect directly consumption moments. -Negotiation Power of Distributors: It will reveal the conditions of the company in order to be well distributed in point of sales and its positioning inside of the store (Share Of Shelf, SOS) -Negotiation Power of Suppliers: it can reveal the dependence of the company at the time of getting material used to be transformed and commercialized. When only a few suppliers can guarantee the product in the supply chain, normally the costs of production will increase.

3.Strategic windows and ansoff matrix: There are only limited periods in which the fit between the key requirements of a market and a particular firm’s competencies match and becomes and optimum for investment plans. It depends on the investment (economic and financial) capabilities and flexibility about dealing changes (consider internal and external barriers). These strategic windows arise as a result of market evolution (detected by 5 Porter’s five forces). Markets are not static or unchanging entities so change substantially in nature over time, as follow: a)  The development of new primary demandb)  The emergence of new competitive technologies which cannibalize existing
ones. c)  Market redefinition d)  Channel or Distribution patterns changes e)  Markets “desregulation” f)  Impact of substitutive products

So organizations need to: a)  Identify opportunities and threats posed by the opening and closing strategic windows. b)  Analyze all the relevant internal and external environmental factors acting upon the firm.
c)  Determine the best strategies that are likely to enable the company to take best advantage of the strategic window. d)  Ensure enough resources to implement chosen strategies. e)  Implementation in market and results evaluation (correcting deviations).

4.Ansoff matrix-PenetrationStrategy: Sell more of your product to existing customers of that product. Attract customers from your competitors with new and improved features, a lower price, or increase in service. -Market Development strategy: Introduce your existing product or service to a completely new market or segment. This could include a new region, country, or demographic group -Product Development strategy: Develop a new product for customers already loyal to your brand. This entails additional product development costs, but eliminates the cost of acquiring new customers- Diversification Strategy: Enter a new market with a completely new offering. Doing this entails significant costs and risk, but can be extremely rewarding.

5.Process for formulating a competitive strategy: This process consists on basically, 3 steps just formulating the correct 3 questions:-What is the business doing now?Where we are now?: +Identification: thinking about current strategy (internal analysis)+ Assumptions: Relative about competitive position, strengths and weaknesses, competitors and industry trends to develop viable and long term strategy. -What is happening in the environment?: +Industry analysis: analyze key factors influencing on competitive success, and main Opportunities and Threats. +Competitor analysis: Capabilities, abilities and limitations of existing and potential (future) competitors. +Societal analysis: present Opportunities-Threats about the expectatives based on macro-micro environmental analysis.-What should the business to doing? : +Test of assumptions and strategy: How merge main assumptions todevelop strategic (long term) plan with the results and questionsformulated before. +Strategic alternatives and contingency plans: react and modify previous decisions taken on before when environment changes with control tools.