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- 1. 1-1 © 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 McGraw-Hill/Irwin Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.
- 2. 1-2 © 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. 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 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
- 3. 1-3 © 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. Red Mango How does this company provide value? RED MANGO name, design and related marks are trademarks of Red Mango, Inc. ©2012 Red Mango, Inc. All rights reserved.
- 4. 1-4 © 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 is Red Mango Communicating Value? RED MANGO name, design and related marks are trademarks of Red Mango, Inc. ©2012 Red Mango, Inc. All rights reserved.
- 5. 1-5 © 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.
- 6. 1-6 © 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 Marketing helps create value. Marketing is about satisfying customer needs and wants. Marketing entails an exchange. Marketing requires product, price, place, an d promotion decisions. Marketing can be performed by both individuals and organizations. Marketing occurs in many settings.
- 7. 1-7 © 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.
- 8. 1-8 © 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 Entails an Exchange
- 9. 1-9 © 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 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.
- 10. 1-10 © 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
- 11. 1-11 © 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.
- 12. 1-12 © 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. 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. 1-13 © 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. Superior Service: AT&T? Courtesy AT&T; Agency: BBDO/Atlanta; Artist: Guido Daniele; Photographer: Andric
- 14. 1-14 © 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. 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. 1-15 © 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 Element of Marketing is This?
- 16. 1-16 © 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 Impacts Various Stakeholders Society Customers Employees Supply Chain Courtesy National Fluid Milk Processor Promotion Board; Agency: Lowe Worldwide, Inc.
- 17. 1-17 © 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 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.
- 18. 1-18 © 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.
- 19. 1-19 © 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?
- 20. 1-20 © 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
- 21. 1-21 © 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. Target is Value Driven ©Lars A. Niki
- 22. 1-22 © 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
- 23. 1-23 © 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. Does providing a good value mean selling at a low price? 2. What are the benefits of long-term relationships with customers?
- 24. 1-24 © 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 Pervasive across Marketing Channel Members
- 25. 1-25 © 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 Enriches Society Product Marketing practices Communities Environment ©M. Hruby
Editor's Notes
- These questions are the learning objectives guiding the chapter and will be explored in more detail in the following slides.
- What are some different ways that Red Mango is communicating value? Would these benefits would convince you to purchase the product?Complete the Red Mango Case in Connect.
- To what demographic groups is this ad targeted? What benefits does it offer?
- This is an overview of the 4P’s which will be discussed in greater depth. Consider a product in your room; describe the 4P’s for this product.
- A good example of how price expresses value is the variations in price associated with air travel. The prices can vary based on demand for the flight, timing, and destinations. Pricing strategies will be discussed in later chapters, but you may also wish at this point to introduce the notion of market pricing versus cost pricing.
- Place delivers the product to the customers. Some may overlook the importance of this component of the marketing mix because it is not as readily visible from the consumer perspective. Trace the path a product takes from the manufacturer to retailer to consumer.
- The many wireless service companies have different reputations for service. Share examples of great service and poor service and how that affected your perceptions of value.
- Calvin Klein’s provocative advertising has helped create an image that is filled with youth, style, and sex appeal.
- What element of marketing is represented in this picture?
- Marketers affect many stakeholders. Customers represent one stakeholder group but others include all those in the supply chain, employees, and society at large. Supply chain partners include manufacturers, agents, wholesalers, retailers, and so on. Companies market to employees with employment marketing, also known as internal marketing, to recruit and retain the best employees.
- Marketing has been through several eras. This exhibit graphically represents the changes over time from an emphasis on production to one based on value-based marketing. The production-oriented era took place around the turn of the 20th century, when most firms believed a good product would sell itself. In the sales-oriented era, production and distribution techniques improved and supply outpaced demand. Firms found an answer to overproduction by focusing on sales. In the market-oriented era, the focus was on what customers wanted. Now, we are in the value-based era, which maintains the market orientation but also includes a focus on giving greater value than the competition. Value reflects the relationship of benefits to costs. Value-based marketing means implementing a marketing strategy according to what customers value.
- How this campaign for Pepperidge Farm Cookies is about value? It does this by describing their ingredients in very luxurious terms… very impressive for a supermarket cookie that is not highly priced.
- Firms become value driven by focusing on four activities. Why it is important to share information? Many good marketing companies have cross functional teams. The finance, IS and operations departments work together to bring value to the end consumer.
- Target is a retailer which promotes value. This web link is for a YouTube video (always check before class - these urls can change). This is one of Targets “Good Buy” advertisement Why is this is a good advertisement? Answer: It has a strong use of music, color and movement.
- Why it is marketing so important? What value does it add to organizations and society?
- Effectively managing supply chain relationships often has a marked impact on a firm’s ability to satisfy the consumer, which results in increased profitability for all parties.
- Kellogg’s asserts: Our values: we act with integrity and show respectOur foods: we produce a range of foods to meet your tastes and health needsOur marketing practices: long-standing commitment to responsible marketingIn our communities: great things can happen when a company is an active corporate citizenOur environment: we’re helping to preserve and protect our natural resources