Marketing 11
Unit 1, Part 1: Introduction
What is Marketing?
 Marketing, more than any other business function, deals with
customers.
 Most simplistic definition: Marketing is managing profitable
customer relationships.
 Two Goals: Attract new customers by promising superior
value & keep and grow current customers by delivering
satisfaction
 Examples: Walmart - “Always low prices. Always” and RitzCarlton “Memorable Experiences”
 Marketing is critical for the success of every organization:
Large/small, for-profit/not-for-profit, dometic, or
international.
 Q1: With a partner, think of three examples of 1. For Profit
and 2. Not-for-Profit organizations.
 Q2: How/why would these groups use marketing?
Marketing Defined
 Many people see marketing as only buying and selling.
 Selling and Advertising are only a part of marketing
 Not ‘telling and selling’ but satisfying customer needs
 A good marketer 1. Understands who its customers are 2.
Develops products that provides superior value 3. Prices,
Distributes, and Promotes them effectively.
 Marketing is a social and managerial process by which
individuals and groups obtain what they need and want
through creating and exchanging value with others
The Marketing Process
Understand the
marketplace and
customer needs
and wants
Design a
customer-driven
marketing
strategy
Construct a
marketing
program the
delivers superior
value
Build profitable
relationships and
create customer
delight
 In exchange for creating value FOR customers and building
customer relationships, the marketer captures value FROM
customers in return
Capture value from customers
to create profits and customer
quality
Wants, Needs, and Demands
 The most basic concept underlying marketing is that of
human needs. Human needs are states of felt deprivation.
They are both Physical, Social, and Individual
 Wants are the form human needs take as they are shaped by
culture and personality. We need food, but we want Pizza.
Wants are shaped by one’s society and are described in terms
of objects that satisfy needs.
 When wants are backed by buying power, they become
demands.
Review Questions
 What are the two goals of marketing?
 List 5 things a good marketer does
 In exchange FOR __________ from customers, the
marketer receives _________________ FROM customers
 How are Wants different from Needs?