This document provides an overview of key concepts from a marketing principles course. It defines marketing and discusses the four Ps of marketing (product, price, place, promotion). It explains that marketing creates value for customers by satisfying needs and wants through an exchange process. The role of marketing has evolved from a production focus to a customer focus on delivering value. Marketing impacts various stakeholders and is important for both organizations and society.

1. Principles of Marketing
MKT3010
Chapter 1
Overview of Marketing
Patricia Knowles, Ph.D.
Associate Professor
Clemson University
1

2. 2
Principles of Marketing
MKT3010
2
Overview of Marketing
These are the learning objectives guiding the chapter and will be explored in more detail in the
following slides.
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.
LO1
LO2
LO3

3. 33
What is Marketing?
This new definition is somewhat controversial, because many feel it includes everything within
marketing.
Principles of Marketing
MKT3010
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.

4. 44
Marketing is About Satisfying Customer
Needs and Wants
The ad is targeted to those who find taste to be an important element. Other benefits might
include calorie-conscious or carbonated beverages.
Principles of Marketing
MKT3010
• 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. 55
Marketing Entails an Exchange
Each party to the exchange gives up something of value: The customer usually gives up money,
however, sometimes they also give up time and information. The firm gives up the good or
service. The exchange in the end is mutually beneficial.
Principles of Marketing
MKT3010

6. 66
Marketing Requires Product, Price, Place, and
Promotion Decisions
This is an overview of the 4P’s which will be discussed in greater depth.
Principles of Marketing
MKT3010
Product
Creating
value
PRNewsFoto/PepsiCo;
AP Photo.
Price
Capturing
value
©Digital Vision Ltd.
Place
Delivering
value
©BrandX/JupiterImages/Getty Images.
Promotion
Communicati
on value
©Stockbyte/PunchStock.

7. 77
Product: Creating Value
Students often can relate to goods and services, but the marketing of ideas is a new concept to
them.
Principles of Marketing
MKT3010
• 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
Roz Wodward/Getty Images

8. 88
Price: Capturing Value
A good example of how price expresses value is the variations in price associated with air travel.
The prices can vary based on demand. Market pricing versus cost pricing.
Principles of Marketing
MKT3010
• 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.

9. 99
Place: Delivering the Value Proposition
Place delivers the product to the customers. Students may overlook the importance of this
component of the marketing mix because it is not as readily visible from the consumer
perspective.
Principles of Marketing
MKT3010
• 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

10. 1010
Promotion: Communicating Value
Calvin Klein’s provocative advertising has helped create an image that is filled with youth, style,
and sex appeal.
Principles of Marketing
MKT3010
Photo by Paul Hawthorne/Getty Images
• 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.

11. 1111
Marketing can be Performed by Individuals
and Organizations
This exhibit illustrates how the same product, a desktop computer, can be sold from firm to firm,
from firm to consumer, and then be used consumer to consumer to sell C2C.
Principles of Marketing
MKT3010
C2C
Consumer B
B2C
Consumer A
B2B
Retailer
(Sells PCs & monitors)
Manufacturer (Makes
monitors)

12. 1212
Marketing Impacts Various Stakeholders
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.
Principles of Marketing
MKT3010
Courtesy National Fluid Milk Processor Promotion Board;
Agency: Lowe Worldwide, Inc.
Society Customers
Employees Supply
Chain

13. 1313
Marketing Helps Create Value
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.
Principles of Marketing
MKT3010
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.
Production
Sales
2.
Marketing
3.
Value based marketing
4.
5.
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.

14. 1414
Value-Based Marketing
This is an examples of a value-based marketing ad.
Principles of Marketing
MKT3010
“Pure Dark Chocolate
Light Exquisite Cookie”
Courtesy Pepperidge Farm.

15. 1515
Check Yourself
Principles of Marketing
MKT3010
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?

16. 1616
How Do Firms Become Value Driven?
Firms become value driven by focusing on four activities.
Principles of Marketing
MKT3010
Sharing Information
Balancing Benefits with Costs
Building Relationships with Customers

17. 1717
Check Yourself
Principles of Marketing
MKT3010
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?

18. 1818
Why is Marketing Important?
Principles of Marketing
MKT3010

19. 1919
Check Yourself
Principles of Marketing
MKT3010
1. List five factors that emphasize the
importance of marketing.
2. A firm doing the right thing emphasizes the
importance of marketing to _________.

20. 2020
Glossary
Exchange is the trade of things of value between the buyer and the seller so that each is better
off as a result.
Goods are items that you can physically touch.
Services are intangible customer benefits that are produced by people or machines and cannot
be separated from the producer.
Ideas include thoughts, opinions, and philosophies, and intellectual concepts which can be
marketed.
Supply chain is the group of firms that make and deliver a given set of goods and services.
Value reflects the relationship of benefits to costs.
Principles of Marketing
MKT3010