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marketingGREWAL /LEVYM 1

OVERVIEW OFMARKETING

Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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L 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 inorganizations?

How do marketers create value for a productor 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 deliveringvaluetocustomers and for managing customerrelationships in ways that benefit the

organization and its stakeholders.

WHAT IS MARKETING?

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WHAT IS MARKETING?

5

Stresses Customer Satisfaction

A Philosophy

An Attitude

A Perspective

A Management

Orientation

A Set of Activities

Products

Distribution

Promotion

Pricing

LOI

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WHAT IS MARKETING?

Marketing is the activity, set of institutions,

and processes for creating,communicating, delivering, and

exchanging offerings that have value for

customers, clients, partners, and society

at large.

6

LOI

American Marketing Association Definition

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WHAT IS MARKETING?

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LOI

Employeesatisfaction

Greatereffort

Higherquality

Repeatbusiness

Growth andprofits

Stockholder

satisfaction

Moreinvestment

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EXCHANGE

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Exchange

ChapterPHOTO

Here

People giving up something to

receive something they would

rather have.

LOI

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EXCHANGE

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LOI

At Least Two Parties

Something of Value

Communication and Delivery

Freedom to Accept or Reject

Desire to Deal with Other Party

Conditions forExchange

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EXCHANGE

Exchange may not take place evenif conditions are met

An agreement must be reached

Marketing occurs even if exchange does not take place

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LOI

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REVIEW LEARNING OUTCOME

11

LOI

ExchangeA B

DeliveringValue

CommunicatingValue

CreatingValue

Customer valueand beneficialrelationships

What Is Marketing?

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MARKETING MANAGEMENT

PHILOSOPHIES

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Describe four marketingmanagement philosophies

LO2

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MARKETING MANAGEMENT

PHILOSOPHIES

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LO2

Sales

Market

Societal

Production internal capabilities of the firm

satisfying customer needs and wants while

meeting objectives

satisfying customer needs andwants while enhancing individual andsocietal well-being

aggressive sales techniques and beliefthat high sales result in high profits

Orientation Focus is on

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MARKET ORIENTATION

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LO2

MarketingConcept

The idea that the social and

economic justification for an

organizations existence is thesatisfaction of customer wants

and needs while meeting

organizational objectives.

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THE MARKETING CONCEPT

Focusing on customer wants andneeds to distinguish products fromcompetitors offerings

Integrating all the organizationsactivities to satisfy these wants

Achieving the organizations long-termgoals by satisfying customer wantsand needs legally and responsibly

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LO2

ACHIEVING A MARKETING

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ACHIEVING A MARKETINGORIENTATION

Obtain information about customers, competitors,and markets

Examine the information from a total business

perspective

Determine how to deliver superiorcustomer value

Implement actions to provide valueto customers

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LO2

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WHAT IS MARKETING?

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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 fundamentalpurpose of Marketingis to create value by

developing a variety ofofferings, includinggoods, services, andideas, 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 outhow much customers are willing to pay andassess whether a profit can be made at that

point

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PLACE: DELIVERING THE VALUE PROPOSITION

Place, or supply chainmanagement, describesall activities necessary

to get the product to theright customer when thecustomer wants it

Where would you findthis product in the store?

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PROMOTION: COMMUNICATING VALUE

Promotion iscommunication by amarketer that informs,

persuades, andreminds potentialbuyers about a productor service to influence

their opinions or elicit aresponse

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MARKETING CAN BE PERFORMED BY

INDIVIDUALS AND ORGANIZATIONS

ETSY Website

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http://www.etsy.com/http://www.etsy.com/http://www.etsy.com/

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MARKETING IMPACTS STAKEHOLDERS

SocietyCustomer

s

Employee

s

Supply

Chain

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MARKETING HELPS CREATE VALUE

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VALUE DRIVEN COMPANIES

Share informationacross theirorganization

Balance customersbenefits and costs

Build relationships withcustomers

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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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WHY IS MARKETING IS IMPORTANT?

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MARKETING AND SOCIETY

FOCUSING ON MANY FACTORS

Product

Marketing

practices

Communitie

s Environment

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MARKETING ENRICHES SOCIETY

Oprah's Angel Network

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http://www.oprah.com/entity/angelnetworkhttp://www.oprah.com/entity/angelnetworkhttp://www.oprah.com/entity/angelnetwork

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CHECK YOURSELF

1. List five factors that emphasize the

importance of marketing.

2. A firm doing the right thing emphasizesthe importance of marketing to society

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