CHAPTER 1
OVERVIEW OF
MARKETING
1-1
Overview of Marketing
LEARNING OBJECTIVES
LO1
LO2
LO3
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.
1-2
What is Marketing?
Marketing 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
1-3
Marketing is about Satisfying Customer
Needs and Wants
 What group is Lexus targeting with this ad?
 What benefits of cars might Lexus advertise?
©Ian Langsdon/EPA/Newscom
1-4
Marketing Entails an Exchange
1-5
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.
1-6
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
Royalty-Free/Corbis
Services
Flying Colours Ltd./Getty Images
Ideas
Roz Wodward/Getty Images
1-7
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?
©Matthias Hangst/Getty Images Sport/Getty Images
1-8
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
1-9
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.
Photo by Paul Hawthorne/Getty Images
1-10
Marketing Can be Performed
by Individuals and Organizations
Retailer
(Sells PCs &
monitors)
Consumer B
B2C
B2B
Manufacturer
(Makes monitors)
C2C
Consumer A
ETSY Website
1-11
Marketing Impacts Various Stakeholders
Society
Customers
Employees
Supply
Chain
Courtesy National Fluid Milk Processor Promotion Board;
Agency: Lowe Worldwide, Inc.
1-12
Marketing Helps Create Value
Production
1.
Sales
2.
3.
Marketing
4.
5.
1. H.Armstrong Roberts/Retrofile/Getty Images
2. Jamie Grill/Iconica/Getty Images
3. ©Ted Dayton Photography/Beateworks/Corbis
4. Ciaran Griffin/Stockbyte/Getty Images
5. ©Colin Anderson/Blend Images/Corbis
Value based marketing
1-13
Value-Based Marketing
“Pure Dark Chocolate
Light Exquisite Cookie”
Courtesy Pepperidge Farm.
1-14
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?
1-15
How Do Firms
Become Value Driven?
Sharing Information
Balancing Benefits with Costs
Building Relationships with Customers
Connecting with Customers Using
Social and Mobile Media
1-16
Connecting With Customers
Using Social & Mobile Marketing
 93% of marketers use
social media tools for
their businesses.
 4.2 billion people link
to some social media
sites through their
mobile devices.
Photo by Spencer Platt/Getty Images.
1-17
CHECK YOURSELF
1. Does providing a good value mean selling at a
low price?
2. How are marketers connecting with customers
using social and mobile media?
1-18
Why Is Marketing Important?
1-19
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 _________.
1-20