CHAPTER
OVERVIEW OF
MARKETING
McGraw-Hill/Irwin
01
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
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Overview of Marketing
LEARNING OBJECTIVES
LO1 Define the role of marketing in
organizations.
LO2 List the elements of the marketing mix.
LO3 Describe how marketers create value for a
product or service.
LO4 Understand why marketing is important
both within and outside the firm.
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Ryan Anson/AFP Getty Images
Apple
How does this company
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 Entails an Exchange
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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.
Goods
Royalty-Free/Corbis
Services
Flying Colours Ltd./Getty Images
Ideas
Roz Wodward/Getty Images
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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?
Courtesy Horizon Organic Dairy
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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
Photo by Paul Hawthorne/Getty Images
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Marketing Can be Performed by
Individuals and Organizations
ETSY Website
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Marketing Impacts Stakeholders
Society
Customers
Employees
Supply
Chain
Courtesy National Fluid Milk Processor Promotion Board;
Agency: Lowe Worldwide, Inc.
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Marketing Helps Create Value
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3
4
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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
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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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Check Yourself
1.
Does providing a good value mean
selling at a low price?
2.
What type of relationship is best for
providing value to customers?
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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?
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Marketing and Society
Focusing on many factors
Product
Marketing
practices
Communities
Environment
©M. Hruby
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Marketing Can Be Entrepreneurial
Ben & Jerry’s 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 & Jerry’s Website
Ben & Jerry’s Commercial
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