Download 1. What is MKT?

chapter
one
overview of
marketing
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
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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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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What is Marketing?
1-4
Marketing Entails an Exchange
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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 Various
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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2
3
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
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Value Driven Companies
• Share information
across their
organization
• Balance customer’s
benefits and costs
• Build relationships
with customers
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How Do Firms Become
Value Driven?
Sharing Information
Balancing Benefits with Costs
Building Relationships with Customers
Connecting With Customers
Using Social & Mobile Marketing
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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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Glossary
Exchange is the trade of things of value between
the buyer and the seller so that each is better off
as a result.
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Glossary
Goods are items that you can physically touch.
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Glossary
Ideas include thoughts, opinions, and philosophies,
and intellectual concepts which can be marketed.
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Glossary
A supply chain is the group of firms that make and
deliver a given set of goods and services.
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Glossary
Value reflects the relationship of benefits to costs.
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