1-1 CHAPTER OVERVIEW OF MARKETING 1 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

1-2 LEARNING OBJECTIVES 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 What is Marketing? Marketing 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 largevalue Marketing 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 largevalue

1-4 Marketing is about Satisfying Customer Needs and Wants  What group is Lexus targeting with this ad?  What benefits of cars might Lexus advertise? ©Ian Langsdon/EPA/Newscom

1-5 Marketing Entails an ExchangeExchange

1-6 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 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

1-8 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? ©Matthias Hangst/Getty Images Sport/Getty Images

1-9 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

1-10 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 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 Marketing Impacts Various Stakeholders SocietyCustomers Employees Supply Chain Courtesy National Fluid Milk Processor Promotion Board; Agency: Lowe Worldwide, Inc.

1-13 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.

1-14 Value-Based Marketing “Pure Dark Chocolate Light Exquisite Cookie” “Pure Dark Chocolate Light Exquisite Cookie” Courtesy Pepperidge Farm.

1-15 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 How Do Firms Become Value Driven? Sharing InformationBalancing Benefits with CostsBuilding Relationships with Customers Connecting with Customers Using Social and Mobile Media

1-17 Connecting With Customers Using Social & Mobile Marketing  93% of marketers use social media tools for their businesses.  4.2 billion people link to some social media sites through their mobile devices. Photo by Spencer Platt/Getty Images.

1-18 CHECK YOURSELF 1.Does providing a good value mean selling at a low price? 2.How are marketers connecting with customers using social and mobile media?

1-19 Why Is Marketing Important?

1-20 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 _________.

1-21 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

1-22 Return to slide Goods are items that you can physically touch. Glossary

1-23 Return to slide Services are intangible customer benefits that are produced by people or machines and cannot be separated from the producer. Glossary

1-24 Return to slide Ideas include thoughts, opinions, and philosophies, and intellectual concepts which can be marketed. Glossary

1-25 Return to slide A supply chain is the group of firms that make and deliver a given set of goods and services. Glossary

1-26 Return to slide Value reflects the relationship of benefits to costs. Glossary