1 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-1 The Meaning of Marketing

1 Sample Final Project Printing Calculator Sports Shorts Personal Train Ear

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-3 C HAPTER O BJECTIVES 1.What is marketing? 2.What is the marketing concept? How has marketing changed? 3.What are marketing functions? Who performs them?

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-4 O BJECTIVE 1 What is marketing?

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-5 Marketing is an organizational function and a collection of processes designed to plan for, create, communicate, and deliver value to customers. Marketing also builds effective customer relationships in ways that benefit the organization and its stakeholders.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-6 Marketing Organizational Function Collection of Processes

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-7 O RGANIZATIONAL F UNCTION CEO FinanceMarketing Human Resources Production

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-8 C OLLECTION OF P ROCESSES AssemblePricePromote

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-9 C REATING V ALUE FOR C USTOMERS Value $

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-10 U NDERSTANDING THE M ARKET Need Want

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-11 M ORE THAN JUST PRODUCTS Marketing EventsProductsServicesPeoplePlaces Causes / Ideas

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-12 O BJECTIVE 2 What is the marketing concept? How has marketing changed?

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-13 The Marketing Concept is an organizational philosophy dedicated to understanding and fulfilling consumer needs through the creation of value.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-14 T HE M ARKETING C ONCEPT Value Customer Relationships Customer Loyalty

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-15 T HE M ARKETING C ONCEPT Commitment to delivering superior customer satisfaction.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-16 E VOLUTION OF M ARKETING Production Orientation Sales Orientation Consumer Orientation Relationship Orientation Today 1908 Model T 1 st Sold 1929 Great Depression 1945 World War II Ends Seller’s MarketBuyer’s Market 1980’s Global Competition How has marketing changed?

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-17 O BJECTIVE 3 What are marketing functions? Who performs them?

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-18 Marketing Functions are activities performed within organizations that create value for specific products or services.

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-19 T HE I MPORTANCE OF M ARKETING “…the business enterprise has two – and only these two – basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs.” - Peter Drucker

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-20 M ARKETING F UNCTIONS Marketing ExchangePhysicalFacilitating

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-21 M ARKETING F UNCTIONS CEO FinanceMarketing Human Resources Production The Organization Customers

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-22 I NTERNAL M ARKETING P ARTICIPANTS Marketing Stakeholders Board of Directors Top Management Other Business Departments Marketing Department

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-23 THE 4 P’S OF MARKETING ProductPrice PlacePromotion Customer

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-24 V ISUAL S UMMARY

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-25 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.