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CHAPTER ONE
Marketing’s Value to
Consumers, Firms, and
Society
For use only with
Perreault/Cannon/McCarthy
or Perreault/McCarthy texts.
© 2008 McGraw-Hill
Companies, Inc.
McGraw-Hill/Irwin
www.mhhe.com/fourps
Things a Firm Should Do in Producing a Bike
Analyze Needs
Predict Wants
Estimate Demand
Predict When
Determine Where
Estimate Price
Decide Promotion
Estimate Competition
Provide Service
Marketing Is Important to You!
Important to every consumer!
Important to your job!
Affects innovation and
standard of living!
What Is Marketing?
Micro View
Macro View
• Set of activities
• Social process
• Performed by
individual
organizations
and
• Matches supply
with demand
Managerial (Micro) Marketing
Profit and
Nonprofit
Focus of
Your Text
Builds
Relationships
More than
Persuasion
Key
Characteristics
Involves
Exchanges
Begins with
Needs
Doesn’t Go
It Alone
Macro-Marketing
Emphasis on
Whole System
Every Economy
Needs It
Key
Characteristics
Matches
Producers and
Consumers
Universal Functions of Marketing
Buying
Market
Information
Selling
Transporting
Marketing
Functions
Risk Taking
Financing
Storing
Standardization
& Grading
Who Performs Marketing Functions?
Producers
Wholesalers
Transport
Firms
Retailers
Ad Agencies
ISP's
Product
Testing
Firms
Other
Specialists
Research
Firms
Consumers
How Decisions are Made in an Economic System
Command
Economy
• Government
officials decide
• May work well if:
• Simple
economy
• Little Variety
• Adverse
Conditions
Market-Directed
Economy
• Adjusts itself
OR
• Price is value
measure
• Freedom of
choice
• Government’s
role limited
Marketing’s Role Has Changed Over Time
Simple Trade Era
Focus:
Sell Surplus
Production Era
Focus:
Increase Supply
Sales Era
Focus:
Beat Competition
Marketing Department
Era
Focus:
Coordinate and Control
Marketing Company Era
Focus: Long-Run
Customer Satisfaction
The Marketing Concept and Customer Value
Take Customer’s
Point of View
Customer May
Not Dwell On
Value
Costs
Benefits
Where Does
Competition Fit?
Customer Value
Builds
Relationships
Putting It All Together (Exhibit 1-6)
Offer Superior
Customer Value
Total Company
Effort to Satisfy
Customers
Attract New
Customers
Build Profitable
Customer
Relationships
Satisfy
Customers
Retain
Customers
The Marketing Concept Applies in Nonprofit
Organizations
Support and
“Satisfied
Customers”
Newcomers to
Marketing
Marketing
Concept
Provides Focus
Characteristics
of Nonprofit
Organizations
May Not Be
Organized for
Marketing
The Bottom
Line?