Chapter 1 Handout

MKTG1 - Mendoza 2ndSem14-15

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marketingM

OVERVIEW OF MARKETING

L E A R N I N G O B J E C T I V E SL E A R N I N G O B J E C T I V E S

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?

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Building Value Online

How do these companies provide value?

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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.

What is Marketing?

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What is Marketing?

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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

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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?

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Marketing Entails an Exchange

Goods/Services Producers (Sellers)

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Marketing Requires Product,

Price, Place and Promotion Decisions

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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.

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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

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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?

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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

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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

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Marketing Can be Performed by

Individuals and Organizations

ETSY Website

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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?

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Marketing Impacts Stakeholders

Society Customers

EmployeesSupply

Chain

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Marketing Helps Create Value

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4

Value-Based Marketing

“Pure Dark ChocolateLight Exquisite Cookie”

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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?

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Value Driven Companies

� Share information across their

organization

� Balance customer’s

benefits and costs

� Build relationships with

customers

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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

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Value Based Marketing

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Target is Value Driven

Target Commercial

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Check Yourself

1. What are the two methods for increasing value?

2. How can a firm become value driven?

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Why is Marketing is Important?

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Marketing and Society

Focusing on many factors

ProductMarketing practices

Communities Environment

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Marketing Enriches Society

Oprah's Angel Network

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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

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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.

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Glossary

Goods are items that you can physically touch.

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Glossary

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

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Glossary

A supply chain is the group of firms that make and deliver a given set of goods and services.

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Glossary

Value reflects the relationship of benefits to costs.

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Chapter 1 Handout

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Transcript of Chapter 1 Handout