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Chapter 1
Overview of Marketing
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Learning Objectives
1. Define the role of marketing.
2. Describe the evolution of marketing over time.
3. Describe how marketers create value for a
product or service.
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What Is Marketing?
Marketing is the activity, set of
institutions, and processes for
creating, capturing,
communicating, delivering, and
exchanging offerings that have
value for customers, clients,
partners, and society at large.
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Alejandro Rivera/Getty Images
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Marketing Is about Satisfying Customer
Needs and Wants
• Dove Men+Care line
• Dove also
recognizes men’s
caregiving roles
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Source: Unilever
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Marketing is about an Exchange or
Seller-Buyer Relationships
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Marketing Creates Value through Product,
Price, Place, and Promotion Decisions
The Marketing Mix:
Interrelated decisions
(activities) that the firm
uses to respond to the
wants of its target
markets.
• Product
• Price
• Promotion
• Place
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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.
• Goods
• Services
• Ideas
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Source: Street Smart, a public safety campaign of Metro, the District of Columbia, Maryland, and Virginia.
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Price: Capturing Value
Price is everything
a buyer gives up
(money, time,
energy) in
exchange for the
product or service.
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Steve Debenport/Getty Images
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Place: Delivering the Value Proposition
Place represents the
processes necessary to get
the product to the customer
when that customer wants it.
Starbucks store location:
https://www.youtube.com/wat
ch?v=-0tAVjHpQN0
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© Lars A. Niki
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The Marketing Mix Elements are Interrelated
Q: Drawing on this video, speculate on how
Starbucks’ place-related decisions might be
related to its products’ pricing
Video, the supply chain: Supply Chain Crisis
Explained Through The Journey Of A Single
Sweater
https://www.youtube.com/watch?v=TRGHI6eP4HU
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Promotion: Communicating the Value
Proposition
Promotion informs, persuades,
and reminds potential buyers
Q: What is your favorite brand?
Do you like the way they
promote themselves? Could
they do something better?
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BananaStock/Alamy Images
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Marketing Creates Value through Product,
Price, Place, and Promotion Decisions
Discuss:
The 4 P’s:
Identify the 4 P’s
of ONE product
or service (such
as iPhone 6)
•
Product
•
Price
•
Promotion
•
Place
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Debrief: Marketing Creates Value through
Product, Price, Place, and Promotion Decisions
Debrief:
A marketing plan
might also include
a schedule for
when the brand
would STOP
selling the
product
What actions are
associated with
sunsetting (stop
selling) a product?
1.
2.
3.
4.
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Revisit Definition of Marketing
Marketing is the activity, set of
institutions, and processes for
creating, capturing,
communicating, delivering, and
exchanging offerings that have
value for customers, clients,
partners, and society at large.
© McGraw-Hill
Alejandro Rivera/Getty Images
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The word for marketing in different languages
The etymology (origin) of the word
Video: “marketing” in English:
https://www.etymonline.com/word/market#etymonline_v_437
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Arabic: ‫ تسويق‬taswiq
Hindi: विपणन vipanana
Yoruba (for market): Oja
https://www.wisdomlib.org/definition/vipanana
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Market and marketing in different languages
Serbo-Croatian: тржиште tržište
https://etymologeek.com/search/all/tr%C5%BE
Hebrew (for marketing): ‫שיווק‬
Mandarin: 营销 Yíngxiāo
(market, marketing)
行销 xíngxiāo (market, marketing)
Nahuatl (for market): Tianquiztli
Video: “Tianguis prehispánico”
https://www.youtube.com/watch?v=2C_Qm3mBa-8
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Marketing Can Be Performed by Individuals
and by Organizations
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Marketing Impacts a Number of Stakeholders
Besides Customers
Q: How does your favorite
brand impact
• Supply Chain Partners?
• Employees?
• Industry?
• Society?
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Source: Lowell Campbell Ewald and MilkPEP
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Learning Objectives
1. Define the role of marketing.
2. Describe the evolution of marketing over time.
3. Describe how marketers create value for a
product or service.
© McGraw-Hill
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Marketing Evolution:
Production, Sales, Marketing and Value
Focus on
Distribution
Focus on what
Customers want
Value = benefits / costs
Access the text alternative for slide images.
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Left to right: Ryan McVay/Getty Images, © CMCD/Getty Images, Getty Images/iStockphoto
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Learning Objectives
1. Define the role of marketing.
2. Describe the evolution of marketing over time.
3. Describe how marketers create value for a
product or service.
© McGraw-Hill
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How Does Marketing Create Value and
How Do Firms Become More Value Driven?
Build relationships with customers:
• Gather and analyze information
• Balance benefits and costs (marketing mix)
• Connect with customers using social and
mobile media
Access the text alternative for slide images.
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Marketing Analytics
Companies collect massive amounts of data about
how, when, why, where, and what people buy.
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© Daniel Acker/Bloomberg/Getty Images
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Balance Benefits and Costs per Target
Q: Describe ONE
target market for an
old iPhone (e.g.
iPhone 6)
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© Daniel Acker/Bloomberg/Getty Images
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Connecting With Customers Using Social
and Mobile Marketing
97% of marketers use
social media tools for
their businesses.
4.2 billion people link
to some social media
sites through their
mobile devices.
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© Tanya Constantine/Getty Images RF
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Resolving Ethical and Societal Dilemmas
Socially Responsible Firms
Making socially responsible
activities an integral
component of corporate
strategies.
Video: Why 99% of ocean plastic
pollution is "missing”?
https://www.youtube.com/watch?v=f
sjvwQclGLo
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©Hero Images Inc./Alamy Stock Photo
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Learning Objectives
1. Define the role of marketing.
2. Describe the evolution of marketing over time.
3. Describe how marketers create value for a
product or service.
© McGraw-Hill
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