CHAPTER 1 OVERVIEW OF MARKETING 1 1 Overview

CHAPTER 1 OVERVIEW OF MARKETING 1 -1

Overview of Marketing LEARNING OBJECTIVES LO 1 LO 2 LO 3 Define the role of marketing in organizations. Describe how marketers create value for a product or service. Understand why marketing is important both within and outside the firm. 1 -2

What is Marketing? Marketing the activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large 1 -3

Marketing is about Satisfying Customer Needs and Wants § What group is Lexus targeting with this ad? § What benefits of cars might Lexus advertise? ©Ian Langsdon/EPA/Newscom 1 -4

Marketing Entails an Exchange 1 -5

Marketing Requires Product, Price, Place, and Promotion Decisions Product Price Creating value Capturing value ©Digital Vision Ltd. PRNews. Foto/Pepsi. Co; AP Photo. Communication value Promotion ©Stockbyte/Punch. Stock. Delivering value Place ©Brand. X/Jupiter. Images/Getty Images. 1 -6

Product: Creating Value § The fundamental purpose of Marketing is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs. Goods Royalty-Free/Corbis Services Flying Colours Ltd. /Getty Images Ideas Roz Wodward/Getty Images 1 -7

Price: Capturing Value § Price is everything a buyer gives up (money, time, energy) in exchange for the product. § How much are customers willing to pay and can a profit can be made at that point? ©Matthias Hangst/Getty Images Sport/Getty Images 1 -8

Place: Delivering the Value Proposition § Place, or supply chain management, describes all activities necessary to get the product to the right customer when the customer wants it. § Where would you find this product in the store? Courtesy Horizon Organic Dairy 1 -9

Promotion: Communicating Value § Promotion is communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their opinions or elicit a response. Photo by Paul Hawthorne/Getty Images 1 -10

Marketing Can be Performed by Individuals and Organizations Retailer (Sells PCs & monitors) B 2 B Manufacturer (Makes monitors) Consumer B B 2 C Consumer A ETSY Website 1 -11

Marketing Impacts Various Stakeholders Society Customers Employees Supply Chain Courtesy National Fluid Milk Processor Promotion Board; Agency: Lowe Worldwide, Inc. 1 -12

Marketing Helps Create Value Production 1. Sales 2. 3. Marketing 4. 1. H. Armstrong Roberts/Retrofile/Getty Images 2. Jamie Grill/Iconica/Getty Images 3. ©Ted Dayton Photography/Beateworks/Corbis 4. Ciaran Griffin/Stockbyte/Getty Images 5. ©Colin Anderson/Blend Images/Corbis 5. Value based marketing 1 -13

Value-Based Marketing “Pure Dark Chocolate Light Exquisite Cookie” Courtesy Pepperidge Farm. 1 -14

CHECK YOURSELF 1. What is the definition of marketing? 2. Marketing is about satisfying ______ and ______. 3. What are the four components of the marketing mix? 4. Who can perform marketing? 5. What are the various eras of marketing? 1 -15

How Do Firms Become Value Driven? Sharing Information Balancing Benefits with Costs Building Relationships with Customers Connecting with Customers Using Social and Mobile Media 1 -16

Connecting With Customers Using Social & Mobile Marketing § 93% of marketers use social media tools for their businesses. § 4. 2 billion people link to some social media sites through their mobile devices. Photo by Spencer Platt/Getty Images. 1 -17

CHECK YOURSELF 1. Does providing a good value mean selling at a low price? 2. How are marketers connecting with customers using social and mobile media? 1 -18

Why Is Marketing Important? 1 -19

CHECK YOURSELF 1. List five factors that emphasize the importance of marketing. 2. A firm doing the right thing emphasizes the importance of marketing to _____. 1 -20