1. Unit 1, Part 1: Introduction Marketing 11

2. What is Marketing? Marketing, more than any other business function, deals with customers. Most simplistic definition: Marketing is managing profitable customer relationships. Two Goals: Attract new customers by promising superior value & keep and grow current customers by delivering satisfaction Examples: Walmart - “Always low prices. Always” and Ritz- Carlton “Memorable Experiences”

3. Marketing is critical for the success of every organization: Large/small, for-profit/not-for-profit, dometic, or international. Q1: With a partner, think of three examples of 1. For Profit and 2. Not-for-Profit organizations. Q2: How/why would these groups use marketing?

4. Marketing Defined Many people see marketing as only buying and selling. Selling and Advertising are only a part of marketing Not ‘telling and selling’ but satisfying customer needs A good marketer 1. Understands who its customers are 2. Develops products that provides superior value 3. Prices, Distributes, and Promotes them effectively. Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others

5. The Marketing Process Understand the marketplace and customer needs and wants Design a customer-driven marketing strategy Construct a marketing program the delivers superior value Build profitable relationships and create customer delight

6. In exchange for creating value FOR customers and building customer relationships, the marketer captures value FROM customers in return Capture value from customers to create profits and customer quality

7. Wants, Needs, and Demands The most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation. They are both Physical, Social, and Individual Wants are the form human needs take as they are shaped by culture and personality. We need food, but we want Pizza. Wants are shaped by one’s society and are described in terms of objects that satisfy needs. When wants are backed by buying power, they become demands.

8. Review Questions What are the two goals of marketing? List 5 things a good marketer does In exchange FOR __________ from customers, the marketer receives _________________ FROM customers How are Wants different from Needs?