Grewal & Levy, 5th edition

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CHAPTER
OVERVIEW OF
MARKETING
1
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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L 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

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What is Marketing?
Marketing the activity, set of institutions, and
processes for creating, capturing,
communicating, delivering, and exchanging
offerings that have value for customers, clients,
partners, and society at large

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Marketing is about Satisfying Customer
Needs and Wants
 What group is Lexus targeting with this ad?
 What benefits of cars might Lexus advertise?
©Ian Langsdon/EPA/Newscom

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Marketing Entails an Exchange

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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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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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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?
©Matthias Hangst/Getty Images Sport/Getty Images

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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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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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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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Marketing Impacts Various Stakeholders
Society Customers
Employees Supply
Chain
Courtesy National Fluid Milk Processor Promotion Board;
Agency: Lowe Worldwide, Inc.

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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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Value-Based Marketing
“Pure Dark Chocolate
Light Exquisite Cookie”
Courtesy Pepperidge Farm.

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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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How Do Firms
Become Value Driven?
Sharing Information
Balancing Benefits with Costs
Building Relationships with Customers
Connecting with Customers Using
Social and Mobile Media

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Connecting With Customers
Using Social & Mobile Marketing
 93% of marketers use
social media tools for
their businesses.
 4.2 billion people link
to some social media
sites through their
mobile devices.
Photo by Spencer Platt/Getty Images.

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CHECK YOURSELF
1. Does providing a good value mean selling at a
low price?
2. How are marketers connecting with customers
using social and mobile media?

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Why Is Marketing Important?

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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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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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Services are intangible customer benefits that
are produced by people or machines and
cannot be separated from the producer.
Glossary

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Ideas include thoughts, opinions, and
philosophies, and intellectual concepts which
can be marketed.
Glossary

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A supply chain is the group of firms that make
and deliver a given set of goods and services.
Glossary

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Value reflects the relationship of benefits to costs.
Glossary