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Services are intangible customer benefits that are produced by people or machines and cannot be separated from the producer.GlossaryReturn to slide1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Goods are items that you can physically touch.

A supply chain is the group of firms that make and deliver a given set of goods and services.GlossaryReturn to slide1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.A supply chain is the group of firms that make and deliver a given set of goods and services.

Red MangoHow does this company provide value?

RED MANGO name, design and related marks are trademarks of Red Mango, Inc. 2012 Red Mango, Inc. All rights reserved.1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.3Ask students: How many of you have had Ben & Jerrys or Red Mango frozen yogurt? What do you find most valuable about these product? Answers will include: It taste great, they are many crazy flavors, the company supports green initiatives. As the text indicates, there are many ways Ben & Jerrys or Red Mango distinguishes itself from similar companies.How is Red Mango Communicating Value?

RED MANGO name, design and related marks are trademarks of Red Mango, Inc. 2012 Red Mango, Inc. All rights reserved.1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Ask students to point the different ways that Red Mango is communication value? Ask students if these benefits would convince them to purchase the product?4What is Marketing?Marketing is an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.5Point out that this new definition is somewhat controversial, because many feel it includes everything within marketing. Ask students: Do you agree? Answers might include uncertainly in the definition of value. Now market delivering valueWhat is Marketing?1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.6Ask students about problems they have for which there are no products to meet their needs. They might think about products that they could use for their homes, their computers, organizing their work, their cars. This is how marketers generate ideas for new products by uncovering consumer needs. Marketing is about Satisfying Customer Needs and WantsWhat 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-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Students might mention groups based on age or gender, but the ad is targeted to those who find taste to be an important element. Other benefits might include calorie-conscious or carbonated beverages. Wants is internment like you go for praam 7Marketing Entails an Exchange

1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.8Each party to the exchange gives up something of value: The customer usually gives up money, however, sometimes they also give up time and information. The firm gives up the good or service. The exchange in the end is mutually beneficial. Marketing Requires Product, Price, Place, and Promotion DecisionsProductCreating value

PRNewsFoto/PepsiCo;AP Photo.PriceCapturing value

Digital Vision Ltd.PlaceDelivering value

BrandX/JupiterImages/Getty Images.PromotionCommunication value

Stockbyte/PunchStock.1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Basic theory of market. This is an overview of the 4Ps which will be discussed in greater depth. Ask students to choose a product they see in the classroom (i.e., VitaminWater, Coke, Aquafina) and ask them to describe the 4Ps for this product. Few things you buy on higher price9Product: Creating ValueThe 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/CorbisRoz Wodward/Getty ImagesFlying Colours Ltd./Getty Images1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.10Students often can relate to goods and services, but the marketing of ideas is a new concept to them. Use the example of drunk driving prevention; Ask Students: How is that idea marketed?Answer: Organizations such as Mothers Against Drunk Driving or Students Against Drunk Driving often receive support from brewers and distillers in promoting responsible drinking and safe driving. Ask students: What is the exchange these groups are asking consumers to enter? Answer: They want you to consume alcohol in a manner that is consistent with safety, which means sacrificing some consumption. Goods we can touch but services not, services is important in united state. Ideas, green invirment depends do we pay for ideas, it depends Price: Capturing ValuePrice is everything a buyer gives up (money, time, energy) in exchange for the product. Price is more complicated.

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-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.A good example of how price expresses value is the variations in price associated with air travel. The prices can vary based on demand for the flight, timing, and destinations. Pricing strategies will be discussed in later chapters, but you may also wish at this point to introduce the notion of market pricing versus cost pricing.11Place: Delivering the Value PropositionPlace, 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 Dairy1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Where you buy it from. Place delivers the product to the customers. Students may overlook the importance of this component of the marketing mix because it is not as readily visible from the consumer perspective. To get this point across, suggest a few products and then trace the path those products likely take from manufacturer to retailer to consumer. Water was on wrong place. They should make sure where should be.12Superior Service: AT&T?

Courtesy AT&T; Agency: BBDO/Atlanta; Artist: Guido Daniele; Photographer: Andric1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.The many wireless service companies have different reputations for service. Ask students to share examples of great service and poor service and how that affected their perceptions of value. No doubt they will have many examples. Probe to find out if there are certain qualities of the good service and bad service providers and make a list on the board.13Luxury Hotels

1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Note: Please make sure that the video file is located in the same folder as the PowerPoint slides.14Promotion: Communicating ValuePromotion 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 Images1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Calvie n Kleins provocative advertising has helped create an image that is filled with youth, style, and sex appeal. Reminder is good to do so for company.15What Element of Marketing is This?

1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Ask students what element of marketing is represented in this picture? Students should recognize that this represents Place: Delivering the Value Proposition. This ad focuses on a type of distribution outlet: self-serve frozen-yogurt. 16Marketing Can be Performed by Individuals and Organizations

ETSY WebsiteC2CConsumer B

B2CConsumer A

B2BRetailer (Sells PCs & monitors)

Manufacturer (Makes monitors)

1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.This exhibit illustrates how the same product, a desktop computer, can be sold from firm to firm, from firm to consumer, and then be used consumer to consumer to sell C2C. Ask students whether theyve bought from other consumers online. Many options are available to buy C2C online, especially with the development of online cooperatives like esty.com. Follow the web link to visit this site.

17Marketing Impacts Various Stakeholders

Courtesy National Fluid Milk Processor Promotion Board; Agency: Lowe Worldwide, Inc.1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Marketers affect many stakeholders. Customers represent one stakeholder group but others include all those in the supply chain, employees, and society at large. Supply chain partners include manufacturers, agents, wholesalers, retailers, and so on. Companies market to employees with employment marketing, also known as internal marketing, to recruit and retain the best employees. Change for the society. Like shamo they are changing shamo area in big area.

18Marketing Helps Create Value1. 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/CorbisProduction

1.Sales

2.Marketing

3.

Value based marketing

4.5.1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Marketing has been through several eras. This exhibit graphically represents the changes over time from an emphasis on production to one based on value-based marketing. The production-oriented era took place around the turn of the 20th century, when most firms believed a good product would sell itself. In the sales-oriented era, production and distribution techniques improved and supply outpaced demand. Firms found an answer to overproduction by focusing on sales. In the market-oriented era, the focus was on what customers wanted. Now, we are in the value-based era, which maintains the market orientation but also includes a focus on giving greater value than the competition. Value reflects the relationship of benefits to costs. Value-based marketing means implementing a marketing strategy according to what customers value. 19Value-Based Marketing

Pure Dark ChocolateLight Exquisite CookieCourtesy Pepperidge Farm.1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Ask students how this campaign for Pepperidge Farm Cookies is about value. It does this by describing their ingredients in very luxurious terms very impressive for a supermarket cookie that is not highly priced.20CHECK YOURSELFWhat is the definition of marketing?Marketing is about satisfying ______ and ______. What are the four components of the marketing mix?Who can perform marketing?What are the various eras of marketing?

1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.Needs and wantsProduct, price, place, and promotionIndividuals and organizationsProduction, sales, market, and value-based

21Value Based Marketing

Photo by Christopher Peterson/BuzzFoto /FilmMagic /Getty Images1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.The Adding Value box emphasizes how value depends upon whats important to customers. Levi Strauss offer jeans that are affordable and stylish.

22Companies that Put the Customer First

1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Note: Please make sure that the video file is located in the same folder as the PowerPoint slides.23How Do Firms BecomeValue Driven?1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Firms become value driven by focusing on four activities. Ask students why it is important to share information? This brings up the point that many good marketing companies have cross functional teams. The finance, IS and operations departments work together to bring value to the end consumer.Balancing benefits with cost, if you rent a room you what have good one.

24Connecting With Customers Using Social & Mobile Marketing46 % 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-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Target is Value Driven

Lars A. Niki1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Target is a retailer which promotes value. This web link is for a YouTube video (always check before class - these urls can change). This is one of Targets Good Buy advertisement It is interesting to ask students why this is a good advertisement. Answer: It has a strong use of music, color and movement.26CHECK YOURSELFDoes providing a good value mean selling at a low price?What are the benefits of long-term relationships with customers?How are marketers connecting with customers using social and mobile media?

1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Value-based marketing isnt just about low price, it is also about creating strong products and services. A relational orientation is based on the philosophy that buyers and sellers should develop a long-term relationship for the benefit of both parties.Marketers are steadily embracing new technologies, such as social and mobile media, to allow them to connect better with their customers and thereby serve their needs more effectively.

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Why Is Marketing Important?Digital Vision/Getty ImagesJason Reed/Getty ImagesEdward Rozzo/CorbisAndrew Ward/Life File/Getty ImagesRoy McMahon/CorbisBananaStock/JupiterImages1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Ask students why it is marketing so important? Marketing has shifted its focus dramatically, it also has evolved into a major business function that crosses all areas of a firm or organization. 28Marketing Is Pervasive across Marketing Channel Members

1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Effectively managing supply chain relationships often has a marked impact on a firms ability to satisfy the consumer, which results in increased profitability for all parties.29Marketing Enriches Society

M. Hruby1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Kelloggs asserts: Our values: we act with integrity and show respectOur foods: we produce a range of foods to meet your tastes and health needsOur marketing practices: long-standing commitment to responsible marketingIn our communities: great things can happen when a company is an active corporate citizenOur environment: were helping to preserve and protect our natural resources 30Marketing Can Be Entrepreneurial

Oprah's Angel Network Photo by Thomas Cooper/Getty Images1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Oprah is very entrepreneurial and an excellent marketer. Her organizations also benefit society under the umbrella of the Oprah Winfrey Foundation. This web link brings you to her webpage for Oprahs Angel Network. 31Check YourselfList five factors that emphasize the importance of marketing.A firm doing the right thing emphasizes the importance of marketing to _________.

1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Expands global presence, pervasive across organization, pervasive across supply chain, makes life easier, enriches society, can be entrepreneurial. To do the right thing, the firm will emphasize society. This is a good time to introduce the debate of whether it is best to do right by society or right by stakeholders.32Exchange is the trade of things of value between the buyer and the seller so that each is better off as a result.GlossaryReturn to slide1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Exchange is the trade of things of value between the buyer and the seller so that each is better off as a result.

Value reflects the relationship of benefits to costs.GlossaryReturn to slide1-# 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Value reflects the relationship of benefits to costs.