Lecture M: Marketing (4/e) - Chapter 1: Overview of marketing

chapter

one

overview of marketing

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LEARNING OBJECTIVES

LO 1-1 Define the role of marketing in
organizations.
LO 1-2 Describe how marketers create value
for a product or service.
LO 1-3 Understand why marketing is important,
both within and outside the firm.

1­2


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.

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What is Marketing?

1­4


Marketing is about Satisfying Customer 
Needs and Wants
•

What group is Pepsi targeting with this ad?

•

What other benefits of soft drinks might Pepsi advertise?

•

What groups might these benefits appeal to?

PRNewsFoto/PepsiCo; AP Photo.

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Marketing Entails an Exchange

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Marketing Requires Product, 
Price, Place, and Promotion Decisions
Product

Price

Creating value

Capturing value
©Digital Vision Ltd.

PRNewsFoto/PepsiCo;
AP Photo.

Communication
value

Promotion

©Stockbyte/PunchStock.

Delivering value

Place

©BrandX/JupiterImages/Getty Images.

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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.

Royalty-Free/Corbis

Flying Colours Ltd./Getty Images

Roz Wodward/Getty Images

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Price: Capturing Value

•

•

Price is everything a

buyer gives up (money,
time, energy) in
exchange for the
product.
How much are
customers willing to pay
and can a profit can be
made at that point.

AP Photo/The Canadian Press, Jacques Boissinot.

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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?

Courtesy Horizon Organic Dairy

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Superior Service: AT&T?

Courtesy AT&T; Agency: BBDO/Atlanta; Artist: Guido Daniele; Photographer: Andric

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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

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Marketing Can be Performed 
by Individuals and Organizations

Retailer
(Sells PCs &
monitors)

B2B
Manufacturer
(Makes monitors)

Consumer B

B2C

C2C

Consumer A

ETSY Website
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Marketing Impacts Various 
Stakeholders

Courtesy National Fluid Milk Processor Promotion Board;
Agency: Lowe Worldwide, Inc.

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Marketing Helps Create Value
Production
Sales
1.

2.
3.

Marketing

4.
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

5.

Value based marketing
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Value­Based Marketing

“Pure Dark Chocolate
Light Exquisite Cookie”

Courtesy Pepperidge Farm.

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

check yourself

•
•

•

•
•

What is the definition of marketing?
Marketing is about satisfying _________
and _________ .
What are the four components of the
marketing mix?
Who can perform marketing?
What are the various eras of marketing?

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Value Based Marketing

Photo by Christopher Peterson/BuzzFoto
/FilmMagic /Getty Images

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How Do Firms Become
Value Driven?

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Connecting With Customers 
Using Social & Mobile Marketing
•

•

46 % of Internet
users worldwide
interact with social
media on a daily
basis.
77 % of the world’s
population
subscribes to mobile
services.

Photo by Spencer Platt/Getty Images.

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

check yourself

•

•

•

Does providing a good value mean selling
at a low price?
What are the benefits of long-term
relationships with customers?
How are marketers connecting with
customers using social and mobile media?

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Andrew Ward/Life
File/Getty Images

©Roy McMahon/Corbis

©Edward Rozzo/Corbis

BananaStock/JupiterImages

Jason Reed/Getty
Images

Digital Vision/Getty Images

Why Is Marketing Important?

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

check yourself

•

•

List five functions that illustrate the
importance of marketing.
A firm doing the right thing emphasizes the
importance of marketing to _________.

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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

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Glossary
Goods are items that you can physically touch.

Return
to slide

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