2. 1-2
What is Marketing?
Marketing is an organizational function and
a set of processes for creating, capturing,
communicating, and delivering value to
customers and for managing customer
relationships in ways that benefit the
organization and its stakeholders.
3. 1-3
What is Marketing?
Marketing
Marketing helps
create value.
Marketing is about
satisfying customer
needs and wants.
Marketing entails an
exchange.
Marketing requires
product, price, place,
and promotion
decisions.
Marketing can be
performed by both
individuals and
organizations.
Marketing occurs in
many settings.
4. 1-4
Marketing is about Satisfying Customer
Needs and Wants
• What group is Pepsi targeting with this ad?
• What other benefits of soft drinks might Pepsi advertise?
• What groups might these benefits appeal to?
PRNewsFoto/PepsiCo; AP Photo.
5. 1-5
Marketing Plan
• A written document composed of an analysis of
the current marketing situation, opportunities
and threats for the firm, marketing objectives and
strategy specified in terms of the four Ps, action
programs, and projected or pro forma income
(and other financial) statements.
6. Return to slide
1-6
Exchange is the trade of things of value between
the buyer and the seller so that each is better off as
a result.
Glossary
9. 1-9
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
Services
Ideas
Royalty-Free/Corbis
Roz Wodward/Getty Images
Flying Colours Ltd./Getty Images
10. Return to slide
1-10
Ideas include thoughts, opinions, and philosophies,
and intellectual concepts which can be marketed.
Glossary
11. 1-11
Price: Capturing Value
• Price is everything a
buyer gives up (money,
time, energy) in
exchange for the
product.
• How much are
customers willing to pay
and can a profit can be
made at that point.
AP Photo/The Canadian Press, Jacques Boissinot.
12. 1-12
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
13. Return to slide
1-13
A supply chain is the group of firms that make and
deliver a given set of goods and services.
Glossary
14. 1-14
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
15. Return to slide
1-15
Value reflects the relationship of benefits to costs.
Value = Benefits - Costs
Glossary
17. Return to slide
1-17
Services are intangible customer benefits that are
produced by people or machines and cannot be
separated from the producer.
Glossary
18. 1-18
Marketing Can be Performed
by Individuals and Organizations
ETSY Website
C2C
Consumer B
B2C
Consumer A
B2B
Retailer
(Sells PCs &
monitors)
Manufacturer
(Makes monitors)
20. 1-20
How Do Firms Become
Value Driven?
Sharing Information
Balancing Benefits with Costs
Building Relationships with Customers
21. 1-21
Connecting With Customers
Using Social & Mobile Marketing
• 46 % of Internet users
worldwide interact
with social media on a
daily basis.
• 77 % of the world’s
population subscribes
to mobile services.
Photo by Spencer Platt/Getty Images.
23. Return to slide
1-23
1-23
Customer Relationship Management (CRM) is a
business philosophy and set of strategies,
programs, and systems that focus on identifying
and building loyalty among the firm’s most valued
customers.
Glossary
