The document provides an overview and introduction to marketing. It defines marketing and describes the key concepts of creating value for customers through the marketing mix of product, price, place, and promotion. Marketing aims to satisfy customer needs and wants through an exchange process. It can be performed by individuals, organizations, and across different types of business relationships. The importance of marketing is also discussed.

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© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CHAPTER
Overview of
Marketing
1
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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L E A R N I N G O B J E C T I V E SL E A R N I N G O B J E C T I V E S
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Define the role of marketing in
organizations.
Describe how marketers create value for
a product or service.
Understand why marketing is important
both within and outside the firm.
Overview of Marketing
LO1
LO2
LO3

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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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.

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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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.

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Marketing Entails an Exchange

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Marketing Requires Product,
Price, Place, and Promotion Decisions
Product
Creating value
PRNewsFoto/PepsiCo;
AP Photo.
Price
Capturing value
©Digital Vision Ltd.
Place
Delivering value
©BrandX/JupiterImages/Getty Images.
Promotion
Communication
value
©Stockbyte/PunchStock.

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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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

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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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.

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Marketing Can be Performed
by Individuals and Organizations
ETSY Website
C2C
Consumer B
B2C
Consumer A
B2B
Retailer
(Sells PCs &
monitors)
Manufacturer
(Makes monitors)

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Marketing Impacts Various Stakeholders
Society Customers
Employees Supply
Chain
Courtesy National Fluid Milk Processor Promotion Board;
Agency: Lowe Worldwide, Inc.

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Marketing Helps Create Value
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
Production
1.
Sales
2.
Marketing
3.
Value based marketing
4.
5.

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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Value-Based Marketing
“Pure Dark Chocolate
Light Exquisite Cookie”
Courtesy Pepperidge Farm.

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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CHECK YOURSELF
1. What is the definition of marketing?
2. Marketing is about satisfying ______ and
______.
3. What are the four components of the
marketing mix?
4. Who can perform marketing?
5. What are the various eras of marketing?

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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
How Do Firms Become
Value Driven?
Sharing Information
Balancing Benefits with Costs
Building Relationships with Customers

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
CHECK YOURSELF
1. Does providing a good value mean selling at
a low price?
2. What are the benefits of long-term
relationships with customers?
3. How are marketers connecting with
customers using social and mobile media?

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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Why Is Marketing Important?
DigitalVision/GettyImages
JasonReed/GettyImages
©EdwardRozzo/Corbis
AndrewWard/LifeFile/Getty
Images
©RoyMcMahon/Corbis
BananaStock/JupiterImages

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Check Yourself
1. List five factors that emphasize the
importance of marketing.
2. A firm doing the right thing emphasizes the
importance of marketing to _________.

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Exchange is the trade of things of value between
the buyer and the seller so that each is better off
as a result.
Glossary

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Goods are items that you can physically touch.
Glossary

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Services are intangible customer benefits that
are produced by people or machines and
cannot be separated from the producer.
Glossary

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Ideas include thoughts, opinions, and
philosophies, and intellectual concepts which
can be marketed.
Glossary

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
A supply chain is the group of firms that make
and deliver a given set of goods and services.
Glossary

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Value reflects the relationship of benefits to costs.
Glossary