McGraw-Hill/Irwin Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

OVERVIEW OF MARKETING

LEARNING OBJECTIVES

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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 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?

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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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 Superior Service Ritz-Carlton

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 Luxury Hotels

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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

Supply
Employees
Chain

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 Marketing Helps Create Value

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 Value-Based Marketing

Pure Dark Chocolate

Light 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 customers
benefits and costs
Build relationships with
customers

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 Companies that Put the
Customer First

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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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 Marketing and Society
Focusing on many factors

Marketing
Product
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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 Ben & Jerrys 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 & Jerrys Website Ben & Jerrys Commercial

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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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