chapter

overview of marketing

one

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

LEARNING OBJECTIVES

LO1 Define the role of marketing in organizations.

LO2 List the elements of the marketing mix.

LO3 Describe how marketers create value for a product or service.

LO4 Understand why marketing is important both within and outside the firm.

Overview of Marketing

1-2

What is Marketing?

Marketing is 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

What is Marketing?

1-4

Marketing Entails an Exchange

1-5

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.

Royalty-Free/Corbis

Roz Wodward/Getty Images

Flying Colours Ltd./Getty Images

1-6

Price: Capturing Value

Price is everything a buyer gives up (money, time, energy) in exchange for the product

The key to determining prices is to figure out how much customers are willing to pay and assess whether a profit can be made at that point

1-7

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

1-8

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

1-9

Marketing Can be Performed by Individuals and Organizations

ETSY Website 1-10

Marketing Impacts Various Stakeholders

Courtesy National Fluid Milk Processor Promotion Board; Agency: Lowe Worldwide, Inc. 1-11

Marketing Helps Create Value

1. H.Armstrong Roberts/Retrofile/Getty Images 2. Jamie Grill/Iconica/Getty Images 3. ©Ted Dayton Photography/Beateworks/Corbis4. Ciaran Griffin/Stockbyte/Getty Images 5. ©Colin Anderson/Blend Images/Corbis

1 2 3 4 5

1-12

Value Driven Companies

• Share information across their organization

• Balance customer’s benefits and costs

• Build relationships with customers

1-13

How Do Firms BecomeValue Driven?

1-14

Why Is Marketing Important?

Dig

ital V

isio

n/G

ett

y

Imag

es

Jaso

n R

eed

/Gett

y

Imag

es

©Ed

ward

R

ozz

o/C

orb

is

And

rew

Ward

/Lif

e

File

/Gett

y Im

ag

es

©

Roy M

cMahon/C

orb

is

BananaS

tock

/Ju

pit

erI

mag

es

1-15

Marketing and SocietyFocusing on Many Factors

©M. Hruby1-16

Return to slide

Exchange is the trade of things of value between the buyer and the seller so that each is better off as a result.

Glossary

1-17

Return to slide

Goods are items that you can physically touch.

Glossary

1-18

Return to slide

Glossary

1-19

Ideas include thoughts, opinions, and philosophies, and intellectual concepts which can be marketed.

Return to slide

Glossary

1-20

A supply chain is the group of firms that make and deliver a given set of goods and services.

Return to slide

Glossary

1-21

Value reflects the relationship of benefits to costs.