chapter overview of marketing one Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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

1-3 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.value 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.value

1-4 What is Marketing? Marketing Marketing helps create value. Marketing is about satisfying customer needs and wants. Marketing entails an exchange. Marketing requires product, price, place, and promotion decisions. Marketing can be performed by both individuals and organizations. Marketing occurs in many settings.

1-5 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.

1-6 Marketing Entails an ExchangeExchange

1-7 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.

1-8 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 Services Ideas Royalty-Free/Corbis Roz Wodward/Getty Images Flying Colours Ltd./Getty Images

1-9 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.

1-10 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.supply chain management Where would you find this product in the store? Courtesy Horizon Organic Dairy

1-11 Superior Service: AT&T? Courtesy AT&T; Agency: BBDO/Atlanta; Artist: Guido Daniele; Photographer: Andric

1-12 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

1-13 Marketing Can be Performed by Individuals and Organizations ETSY Website C2C Consumer B B2C Consumer A B2B Retailer (Sells PCs & monitors) Manufacturer (Makes monitors)

1-14 Marketing Impacts Various Stakeholders SocietyCustomers Employees Supply Chain Courtesy National Fluid Milk Processor Promotion Board; Agency: Lowe Worldwide, Inc.

1-15 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. Marketing 3. Value based marketing 4. 5.

1-16 Value-Based Marketing “Pure Dark Chocolate Light Exquisite Cookie” “Pure Dark Chocolate Light Exquisite Cookie” Courtesy Pepperidge Farm.

check yourself 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?

1-18 Value Based Marketing Photo by Christopher Peterson/BuzzFoto /FilmMagic /Getty Images

1-19 How Do Firms Become Value Driven? Sharing InformationBalancing Benefits with CostsBuilding Relationships with Customers

1-20 Connecting With Customers Using Social & Mobile Marketing 46 % of Internet users worldwide interact with social media on a daily basis. 77 % of the world’s population subscribes to mobile services. Photo by Spencer Platt/Getty Images.

check yourself 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?

1-22 Why Is Marketing Important? Digital Vision/Getty Images Jason Reed/Getty Images ©Edward Rozzo/Corbis Andrew Ward/Life File/Getty Images ©Roy McMahon/Corbis BananaStock/JupiterImages

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

Return to slide 1-24 Exchange is the trade of things of value between the buyer and the seller so that each is better off as a result. Glossary

Return to slide 1-25 Goods are items that you can physically touch. Glossary

Return to slide 1-26 Services are intangible customer benefits that are produced by people or machines and cannot be separated from the producer. Glossary

Return to slide 1-27 Ideas include thoughts, opinions, and philosophies, and intellectual concepts which can be marketed. Glossary

Return to slide 1-28 A supply chain is the group of firms that make and deliver a given set of goods and services. Glossary

Return to slide 1-29 Value reflects the relationship of benefits to costs. Glossary