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MARKETING
Real People, Real Choices
CHAPTER 1
World of Marketing:
Creating and Delivering Value
Chapter Objectives_1
• Know who marketers are, where they
work, and understand marketing’s role
in the firm
• Define what marketing is and how it
provides value to everyone involved in
the marketing process
• Discuss the range of services and
goods that are marketed
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Chapter Objectives_1
• Understand value from the perspectives
of the customers, producers, and
society
• Understand the basics of marketing
planning and the marketing mix tools
used in the marketing process
• Describe the evolution of the marketing
concept
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The Value of Marketing
Marketing is the adaptive process, in
society and organizations, of
collaborating to communicate, create,
provide, and sustain value for customers
through exchange relationships while
meeting the needs of diverse
stakeholders.
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Marketers do it to satisfy needs…
• Most successful firms practice the
marketing concept
– identify consumer needs; provide
products that satisfy those needs
• Need: difference between a consumer’s
actual state and some ideal or desired
state
– physical or psychological
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Needs versus Wants
• A need is the difference between the
actual and ideal states of being!
• A want is a desire for a particular
product used to satisfy that need
– wants are culturally & socially
influenced
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Benefits, Demand, and Markets
• A product delivers a benefit when it
satisfies a need or want
• Desire coupled with the resources to
satisfy a want results in demand
• A market consists of all the consumers
with that need and the resources to
make the exchange
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Exchange Relationships
• Exchange - the heart of every marketing
act
• An exchange occurs when something is
obtained for something else in return
• Value is in the eye of the beholder
• Marketers must create an attractive
value proposition
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What Can Be Marketed?
• Consumer Goods and Services
• Business-to-Business Goods and
Services
• Not-for-Profit Marketing
• Idea, Place, and People Marketing
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Marketing as a Process
• Marketing planning
–Analyzing the environment
• What product benefits will our customers be
looking for in 5 years?
• What capabilities does our firm have that set it
apart from the competition?
• What additional customer groups might provide
important segments in the future?
• What legal issues may affect our business?
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Target Markets
• Mass Market - all possible customers
regardless of differences in their specific
needs and wants
– developing a basic product & a single
strategy for everyone
• Market segments - distinct groups of
customers within a larger market
• A target market - an organization’s
chosen segment
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Two Different Target Markets?
Positioning the Product
• Plan how the target market should
perceive the product in comparison to
competitors’ brands - the market
position
• What is the market position of Ford?
BMW?
– Perceptual maps
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The Marketing Mix (4Ps)
• Product
• Place
• Price
• Promotion
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The Evolution of Marketing
•
•
•
•
Production Era
Selling Era
Consumer Orientation
New Era Orientation
– Customer relationships
– Social benefits
– Marketing metrics
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