1-1 CHAPTER OVERVIEW OF MARKETING 01 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

1-2 LEARNING OBJECTIVES Overview of Marketing 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.

1-3 Apple How does this company provide value? How does this company provide value? Ryan Anson/AFP Getty Images

1-4 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

1-5 What is Marketing?

1-6 Marketing Entails an ExchangeExchange

1-7 Marketing Requires Product, Price, Place, and Promotion Decisions

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 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

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

1-11 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

1-12 Marketing Can be Performed by Individuals and Organizations ETSY Website

1-13 Marketing Impacts Stakeholders SocietyCustomers Employees Supply Chain Courtesy National Fluid Milk Processor Promotion Board; Agency: Lowe Worldwide, Inc.

1-14 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 12345

1-15 Value-Based Marketing “Pure Dark Chocolate Light Exquisite Cookie” “Pure Dark Chocolate Light Exquisite Cookie”

1-16 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?

1-17 Check Yourself 1. Does providing a good value mean selling at a low price? 2. What type of relationship is best for providing value to customers?

1-18 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

1-19 Marketing and Society Focusing on many factors Product Marketing practices CommunitiesEnvironment ©M. Hruby

1-20 Marketing Can Be Entrepreneurial Ben & Jerry’s WebsiteBen & Jerry’s Commercial Ben & Jerry’s Product Mission 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 Ben & Jerry’s Product Mission 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

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 Ideas include thoughts, opinions, and philosophies, and intellectual concepts which can be marketed. Glossary

1-24 Return to slide A supply chain is the group of firms that make and deliver a given set of goods and services. Glossary

1-25 Return to slide Value reflects the relationship of benefits to costs. Glossary