1-1© 2013 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.

CHAPTER

Overview of Marketing

1

Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

1-2

LEARNING OBJECTIVESLEARNING OBJECTIVES

© 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.

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.

Overview of Marketing

LO1

LO2

LO3

1-3© 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.

What 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.

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.

1-4© 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 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© 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 Entails an Exchange

1-6© 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 Requires Product, Price, Place, and Promotion Decisions

Product

Creating value

PRNewsFoto/PepsiCo;AP Photo.

Price

Capturing value

©Digital Vision Ltd.

Place

Delivering value

©BrandX/JupiterImages/Getty Images.

Promotion

Communication value

©Stockbyte/PunchStock.

1-7© 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.

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

1-8© 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.

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© 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.

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

1-10© 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.

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

1-11© 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 Can be Performed by Individuals and Organizations

ETSY Website

C2C

Consumer B

B2C

Consumer A

B2B

Retailer (Sells PCs &

monitors)

Manufacturer (Makes monitors)

1-12© 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 Impacts Various Stakeholders

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

1-13© 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 Helps Create Value

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

Production

1.

Sales

2.

Marketing3.

Value based marketing

4.

5.

1-14© 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

“Pure Dark ChocolateLight Exquisite Cookie”“Pure Dark Chocolate

Light Exquisite Cookie”

Courtesy Pepperidge Farm.

1-15© 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.

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?

1-16© 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.

How Do Firms BecomeValue Driven?

1-17© 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.

CHECK YOURSELF

1. Does providing a good value mean selling at a low price?

2. What are the benefits of long-term relationships with customers?

3. How are marketers connecting with customers using social and mobile media?

1-18© 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.

Why Is Marketing Important?

Dig

ital V

isio

n/G

etty

Imag

es

Jaso

n R

eed/

Get

ty Im

ages

©E

dwar

d R

ozzo

/Cor

bis

And

rew

War

d/Li

fe F

ile/G

etty

Im

ages

©

Roy

McM

ahon

/Cor

bis

Ban

anaS

tock

/Jup

iterI

mag

es

1-19© 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.

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 _________.