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Welcome to the World of Marketing:
Create and Deliver Value
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Ch 01
Chapter Objectives
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Understand who marketers are, where they work and
marketing’s role in the firm
Explain what marketing is and how it provides value
to everyone involved in the marketing process
Explain the evolution of the marketing concept
Understand the range of services and goods that
organizations market
Understand value from the perspectives of
customers, producers, and society
Explain the basics of market planning and the
marketing mix tools we use in the marketing process
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What is Marketing?
Marketing is about delivering
value to everyone who is
affected by a transaction
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Definition of Marketing
• Definition of Marketing (AMA, 2007)
• The activity, set of institutions, and
processes for creating, communicating,
delivering and exchanging offerings that
have value for customers, clients, partners,
and society at large.
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Attempts to meet
the needs of…
stakeholders
 Buyers
 Sellers
MARKETING
 Investors
 General Public
Marketing Meets Needs
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Need: difference between an
actual state and an ideal state
Want: desire for a particular
product used to meet a need
Need
Want
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Needs, Wants, and Benefits
• Needs: Can be physical or psychological
• Wants: Desire to satisfy needs in specific ways
• Benefits: Outcome sought by consumer that
satisfies need or want and motivates buying
behavior
• Demand: Customers’ desires for products
coupled with the resources needed to obtain
them
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Need
Want
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Marketing Concept
Satisfying consumer needs to ensure long-term
profitability. Successful marketers first identify needs
and then provide products to satisfy those needs.
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Marketing Creates: Utility/Benefits
Form
Place
Time
Possession
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Marketing and
Exchange
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Exchange
GOODS
Marketer
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PAYMENT
Customer
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Marketing and Exchange
• An exchange occurs when something is
obtained for something else in return,
like cash for goods or services
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Buyer receives an object, service, or idea
that satisfies a need
Seller receives something of equivalent
value
An “exchange” relationship is at the heart of
every marketing act.
Note: Marketing & Exchange
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Exchange might not take
place EVEN if conditions are met.
An agreement must be reached.
Marketing occurs even if exchange does not
take place.
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Evolution of a Concept
Production
Era
Sales Era
Relationship
Era
Triple Bottom
Line Era
TIMELINE
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Production Era
Suited to a sellers’ market where the buyer has to
take what is available.
“If you build it they will come…”
http://www.youtube.com/watch?v=7SB16il97yw&feature=relmfu
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
14
Sales Era
Hard-sell approach when product
availability exceeds demand
 What the firm makes
 Inward looking
 Disregards market needs/consumer demand
 Despite the quality of sales force, often cannot
convince people to buy what is not wanted/needed
http://www.youtube.com/watch?v=Uundu-aPiBQ
Versus “Relationship or Marketing Focus”
 What the market wants
 Outward looking http://www.youtube.com/watch?v=62kxPyNZF3Q
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Relationship Era
(Market Orientation) Focus on meeting buyers’
needs and wants for the long run
Focusing
on customer wants and
needs to distinguish products from
competitors’ offerings
Integrating
the organization’s
activities to satisfy these wants
Achieving
the organization’s
long-term goals by satisfying
customer wants and needs legally
and responsibly
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Triple Bottom Line Era
(Societal Orientation) An organization exists not
only to satisfy customer wants but also to
preserve or enhance individuals’ and society’s
long-term best interests.
Focus is on maximizing 3 components:
Financial-profit
Social-communities
Environmental-green
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Products: What are they?
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Consumer Goods
Items purchased for
personal or family use-food, beverages, clothing,
lessons, cars, haircuts,
copy services, etc.
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B2B Goods
Industrial goods such as raw
materials or component parts. May
also include finished goods sold for
resale, or goods and supplies used
in operating a business.
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Museums, zoos, religious
organizations, etc.
Not-for-Profit Marketing
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Marketing of Value
To the Consumer
Value- Factors such as quality,
To the Seller price, convenience, service, etc.
Buyers weigh the importance of
each element differently. Marketers
need to understand which factors
are important to their customers so
that they can provide strong value.
.
There is also value to sellers-profit
and satisfaction of outperforming
competitors and doing a job well.
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Competitive Advantage
A firm’s distinct competency.
The ability to provide their
customers with a benefit that
their competitors cannot.
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Netflix developed the
convenient mail/return
approach to DVD distribution
and later online streaming of
movies to effectively
compete with traditional
video rental outlets.
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Value Chain
A series of activities involved in designing,
producing, marketing, delivering, and
supporting any product
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Figure 1.2
Steps in the Value Chain
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Value (supply) Chain
Inbound
Logistics
Bring in raw
materials
Operations
Make final
product
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Outbound
Logistics
Marketing/
Sales
Ship out
final product
Sell the final
product
Service
Provide
needed
customer
support
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Consumer Generated Value
Give input to
product design
Give online
reviews
VALUE
Give online
advice
tutorials
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Discuss product
on social
networking sites
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Society and
Value
Marketing activities
influence the world
Marketing can add or
subtract value from
society. Socially
responsible marketing
is good business in the
long run.
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Dark Side of Marketing
Deceptive advertising
Sweatshops, Shoplifting
Addictive consumption
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Marketing Is a Process
• Marketing planning is a major
portion of the process and involves:
• Analyzing the marketing environment
• Developing a marketing plan
• Deciding on a market segment
• Choosing the marketing mix—product,
price, promotion, and place
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Figure 1.3
The Marketing Mix
•What the firm uses to
create a desired response
among its target market
•Referred to as the 4 Ps
•Each of the 4 Ps is a piece
of the puzzle needed to
successfully market the
product
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Product
A good, service,
idea, place whatever is
offered for sale
in the exchange
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Price
The amount the
consumer must give
to receive the product
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All activities marketers
undertake to inform
consumers about their
products and to encourage
potential customers to buy
these products. Includes
advertising, selling, publicity,
and sales promotion.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
…AND finally, the availability of the product to
the customer at the desired time and location.
Relates to a supply chain- or firms that work to
get products from producers to consumers
Place
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall