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After reading this chapter, you should be able to: Define the role of marketing in organizations; describe how marketers create value for a product or service; understand why marketing is important, both within and outside the firm.
chapter one overview of marketing Copyright © 2015 McGrawHill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGrawHill Education 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 13 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 15 Marketing Entails an Exchange 16 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 17 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 18 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 19 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 110 Marketing Helps Create Value Production Sales Marketing H.Armstrong Roberts/Retrofile/Getty Images Jamie Grill/Iconica/Getty Images ©Ted Dayton Photography/Beateworks/Corbis Ciaran Griffin/Stockbyte/Getty Images ©Colin Anderson/Blend Images/Corbis Value based marketing 115 ValueBased Marketing “Pure Dark Chocolate Light Exquisite Cookie” Courtesy Pepperidge Farm 116 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? 117 Value Based Marketing Photo by Christopher Peterson/BuzzFoto /FilmMagic /Getty Images 118 How Do Firms Become Value Driven? 119 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 120 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? 121 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? 122 check yourself • • List five functions that illustrate the importance of marketing A firm doing the right thing emphasizes the importance of marketing to _ 123 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 124 Glossary Goods are items that you can physically touch Return to slide 125 Glossary Services are intangible customer benefits that are produced by people or machines and cannot be separated from the producer Return to slide 126 Glossary Ideas include thoughts, opinions, and philosophies, and intellectual concepts which can be marketed Return to slide 127 Glossary A supply chain is the group of firms that make and deliver a given set of goods and services Return to slide 128 Glossary Value reflects the relationship of benefits to costs Return to slide 129 ...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... _ and _ What are the four components of the marketing mix? Who can perform marketing? What are the various eras of marketing? 117 Value Based Marketing Photo by Christopher Peterson/BuzzFoto... Value based marketing 115 ValueBased Marketing “Pure Dark Chocolate Light Exquisite Cookie” Courtesy Pepperidge Farm 116 check yourself • • • • • What is the definition of marketing? Marketing