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© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin LEARNING OBJECTIVES 1-2 OVERVIEW OF MARKETING What is the role of marketing in organizations? How do marketers create value for a product or service? Why is marketing important both within and outside the firm?

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-3 Building Value Online How do these companies provide value? How do these companies provide value?

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-4 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 What is Marketing?

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-5 What is Marketing?

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-6 Marketing involves all of the following EXCEPT: A. Evolutionary Production B. Satisfying Customer Needs and Wants C. Creating Value D. Efforts by Individuals and Organizations E. Exchange

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-7 Marketing is about Satisfying Customer Needs and Wants What group is Crest targeting with this ad? What other benefits of toothpaste might Crest advertise? What groups might these benefits appeal to?

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-8 Marketing Entails an ExchangeExchange Goods/Services Producers (Sellers)

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-9 Marketing Requires Product, Price, Place and Promotion Decisions

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-10 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 ideas

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-11 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

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-12 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 itsupply chain management Where would you find this product in the store?

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-13 Superior Service Ritz-Carlton

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-14 Luxury Hotels

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-15 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

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-16 The goal of promotion is to _______________ potential buyers about a product or service. A. manipulate B. coach and cultivate C. inform, persuade, or remind D. ignore, manipulate, and intimidate E. none of the above

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-17 Marketing Can be Performed by Individuals and Organizations ETSY Website

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-18 Which of the following is NOT one of questions that must be addressed when making marketing decisions? A. Where the product should be promoted? B. How much the product should cost? C. How the product is to be designed? D. How will the product be delivered to the customer? E. Who should receive the money to purchase the product?

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-19 Marketing Impacts Stakeholders SocietyCustomers Employees Supply Chain

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-20 Marketing Helps Create Value

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-21 Value-Based Marketing “Pure Dark Chocolate Light Exquisite Cookie” “Pure Dark Chocolate Light Exquisite Cookie”

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-22 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?

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-23 Value Driven Companies Share information across their organization Balance customer’s benefits and costs Build relationships with customers

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-24 Companies that Put the Customer First

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-25 What you get for what you give is called: A. The lowest cost option B. Brand name surplus C. Lowballing D. Everyday low prices E. Value

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-26 Value Based Marketing

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-27 Target is Value Driven Target Commercial

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-28 Check Yourself 1. What are the two methods for increasing value? 2. How can a firm become value driven?

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-29 Marketing and Society Focusing on many factors Product Marketing practices CommunitiesEnvironment

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-30 Marketing Enriches Society Oprah's Angel Network

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-31 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 society

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-32 Ben & Jerry’s Product Mission Ben & Jerry’s WebsiteBen & Jerry’s Commercial To make, distribute, and sell the finest quality all natural ice cream and euphoric concoctions with a continued commitment to incorporating wholesome natural ingredients and promoting business practices that respect the Earth and the Environment

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-33 Glossary Exchange is the trade of things of value between the buyer and the seller so that each is better off as a result. Return to slide

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-34 Glossary Goods are items that you can physically touch. Return to slide

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-35 Glossary Ideas include thoughts, opinions, and philosophies, and intellectual concepts which can be marketed. Return to slide

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-36 Glossary A supply chain is the group of firms that make and deliver a given set of goods and services. Return to slide

© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 1-37 Glossary Value reflects the relationship of benefits to costs. Return to slide