chapter overview of marketing one McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
LEARNING OBJECTIVES LO1Define the role of marketing in organizations. LO2List the elements of the marketing mix. LO3Describe how marketers create value for a product or service. LO4Understand why marketing is important both within and outside the firm. Overview of Marketing 1-2
What is Marketing? 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. value 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. value 1-3
What is Marketing? 1-4
Marketing Entails an ExchangeExchange 1-5
Product: Creating ValueValue 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 1-6
Price: Capturing ValueValue 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 1-7
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? Courtesy Horizon Organic Dairy 1-8
Promotion: Communicating ValueValue 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 1-9
Marketing Can be Performed by Individuals and Organizations ETSY Website 1-10
Marketing Impacts Various Stakeholders SocietyCustomers Employees Supply Chain Courtesy National Fluid Milk Processor Promotion Board; Agency: Lowe Worldwide, Inc. 1-11
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 Driven Companies Share information across their organization Balance customer’s benefits and costs Build relationships with customers 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
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 1-15
Marketing and Society Focusing on Many Factors Product Marketing practices CommunitiesEnvironment ©M. Hruby 1-16
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 1-17
Return to slide Goods are items that you can physically touch. Glossary 1-18
Return to slide Glossary 1-19 Ideas include thoughts, opinions, and philosophies, and intellectual concepts which can be marketed.
Return to slide Glossary 1-20 A supply chain is the group of firms that make and deliver a given set of goods and services.
Return to slide Glossary 1-21 Value reflects the relationship of benefits to costs.