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Marketing is 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 large. What is Marketing? 1-12 Chapter 1, Overview of Marketing

What is Marketing? 1-13

How Do Firms Become Value Driven? Sharing InformationBalancing Benefits with CostsBuilding Relationships with Customers Connecting With Customers Using Social & Mobile Marketing 1-14

Marketing is about Satisfying Customer Needs and Wants ©Procter & Gamble 1-15

Marketing is an Exchange of Value An exchange is the process by which some transfer of value occurs between a buyer and a seller. – At least two people or organizations must be willing to make a trade, and – Each must have something the other values. – Most exchanges occur in the form of a monetary transaction.

Marketing’s Tools: The Marketing Mix Product Creating Value Product Creating Value Price Capturing Value Price Capturing Value Promotion Communicating Value Promotion Communicating Value Tools that Are Used Together to Create a Desired Response Among a Set of Defined Customers Tools that Are Used Together to Create a Desired Response Among a Set of Defined Customers Place Delivering the Value Proposition Place Delivering the Value Proposition

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 Customer Solutions

Price: Capturing Value Price is everything a buyer gives up (money, time, energy) in exchange for the product The key to determining prices is to figure out how much customers are willing to pay and assess whether a profit can be made at that point 1-19 Customer Cost

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? 1-20 Convenience

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 1-21 Communication

Marketing Can be Performed by Individuals and Organizations 1-22

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

Value Based Marketing 1-24