one

overview of marketing

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

1-2

What is Marketing?

Marketing
Marketingisisan
anorganizational
organizationalfunction
functionand
andaa
set
setof
ofprocesses
processesfor
forcreating,
creating,capturing,
capturing,
communicating,
communicating,and
anddelivering
delivering value
valueto
to
customers
customersand
andfor
formanaging
managingcustomer
customer
relationships
relationshipsin
inways
waysthat
thatbenefit
benefitthe
the
organization
organizationand
andits
itsstakeholders.
stakeholders.

1-3

What is Marketing?
Marketing helps create
value.
Marketing is about
satisfying customer
needs and wants.

Marketing occurs in
many settings.

Marketin
g
Marketing can be
performed by both
individuals and
organizations.

Marketing entails an
exchange.
Marketing requires
product, price, place,
and promotion decisions.

1-4

Marketing is about Satisfying

Customer Needs and Wants
What group is Pepsi targeting with this ad?
What other benefits of soft drinks might Pepsi
advertise?
What groups might these benefits appeal to?

PRNewsFoto/PepsiCo; AP Photo.

1-5

Marketing Entails an
Exchange

1-6

Marketing Requires Product,

Price, Place, and Promotion Decisions
Product

Price

Creating value

Capturing value
Digital Vision Ltd.

PRNewsFoto/PepsiCo;
AP Photo.

Communication
value

Promotion

Stockbyte/PunchStock.

Delivering value

Place

BrandX/JupiterImages/Getty Images.

1-7

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

Servic
es
Flying Colours Ltd./Getty Images

Ideas
Roz Wodward/Getty Images

1-8

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.

AP Photo/The Canadian Press, Jacques Boissinot.

1-9

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

Courtesy Horizon Organic Dairy

1-10

Superior Service: AT&T?

Courtesy AT&T; Agency: BBDO/Atlanta; Artist: Guido Daniele; Photographer: Andric

1-11

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

1-12

Marketing Can be Performed

by Individuals and Organizations

Retailer
(Sells PCs &
monitors)

Consumer B

B2C
B2B
Manufacturer
(Makes monitors)

C2C
Consumer A

ETSY Website
1-13

Marketing Impacts Various

Stakeholders

Society

Customers

Employees

Supply
Chain

Courtesy National Fluid Milk Processor Promotion Board;

Agency: Lowe Worldwide, Inc.

1-14

Marketing Helps Create

Value
Production

1.

Sales
2.
3.

Marketing

4.
5.

Value based marketing

1-15

Value-Based Marketing

Pure Dark Chocolate

Light Exquisite Cookie

Courtesy Pepperidge Farm.

1-16


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?
1-17

Value Based Marketing

Photo by Christopher Peterson/BuzzFoto

/FilmMagic /Getty Images

1-18

How Do Firms Become

Value Driven?
Sharing Information

Balancing Benefits with Costs

Building Relationships with

Customers

1-19

Connecting With Customers

Using Social & Mobile Marketing
46 % of Internet
users worldwide
interact with social
media on a daily
basis.
77 % of the
worlds population
subscribes to
mobile services.

Photo by Spencer Platt/Getty Images.

1-20


1.Does providing a good value
mean selling at a low price?
2.What are the benefits of longterm relationships with
customers?
3.How are marketers connecting
with customers using social and
mobile media?
1-21

Andrew Ward/Life File/Getty

Images

Roy McMahon/Corbis

Edward Rozzo/Corbis

BananaStock/JupiterImages

Jason Reed/Getty Images

Digital Vision/Getty Images

Why Is Marketing
Important?

1-22


1.List five functions that illustrate
the importance of marketing.
2.A firm doing the right thing
emphasizes the importance of
marketing to _________.

1-23