Transcript marketing
chapter one overview of marketing McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Overview of Marketing LEARNING OBJECTIVES LO1 Define the role of marketing in organizations. LO2 List the elements of the marketing mix. LO3 Describe how marketers create value for a product or service. LO4 Understand why marketing is important both within and outside the firm. 1-2 Apple Computer How does this company provide value? 1-3 What is Marketing? Marketing is 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. 1-4 What is Marketing? 1-5 Marketing is about Satisfying Customer Needs and Wants • What group is Crest targeting with this ad? • What other benefits of toothpaste might Crest advertise? • What groups might these benefits appeal to? ©Procter & Gamble 1-6 Marketing Entails an Exchange 1-7 Marketing Requires Product, Price, Place, and Promotion Decisions 1-8 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 Royalty-Free/Corbis Services Flying Colours Ltd./Getty Images Ideas Roz Wodward/Getty Images 1-9 Price: Capturing Value Price is everything a buyer gives up (money, time, energy) in exchange for the product The key to determining prices is to figure out how much customers are willing to pay and assess whether a profit can be made at that point 1-10 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 1-11 Superior Service: AT&T? Courtesy AT&T; Agency: BBDO/Atlanta; Artist: Guido Daniele; Photographer: Andric 1-12 Luxury Hotels 1-13 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 1-14 Marketing Can be Performed by Individuals and Organizations ETSY Website 1-15 Marketing Impacts Various Stakeholders Society Customers Employees Supply Chain Courtesy National Fluid Milk Processor Promotion Board; Agency: Lowe Worldwide, Inc. 1-16 Marketing Helps Create Value 1 2 3 4 5 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 1-17 Value-Based Marketing “Pure Dark Chocolate Light Exquisite Cookie” 1-18 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? 1-19 Value Driven Companies • Share information across their organization • Balance customer’s benefits and costs • Build relationships with customers 1-20 Companies that Put the Customer First 1-21 Value-Based Marketing Photo by Christopher Peterson/BuzzFoto/FilmMagic/Getty Images 1-22 How Do Firms Become Value Driven? Sharing Information Balancing Benefits with Costs Building Relationships with Customers Connecting With Customers Using Social & Mobile Marketing 1-23 Target is Value Driven ©Lars A. Niki Target Commercial 1-24 check yourself 1. Does providing a good value mean selling at a low price? 2. What type of relationship is best for providing value to customers? 1-25 Andrew Ward/Life File/Getty Images ©Roy McMahon/Corbis ©Edward Rozzo/Corbis BananaStock/JupiterImages Jason Reed/Getty Images Digital Vision/Getty Images Why Is Marketing Important? 1-26 Marketing and Society Focusing on Many Factors Product Marketing practices Communities Environment ©M. Hruby 1-27 Marketing Enriches Society Photo by Thomas Cooper/Getty Images Oprah's Angel Network 1-28 Marketing Can Be Entrepreneurial Ben & Jerry’s Product Mission To make, distribute, and sell the finest quality all natural ice cream and euphoric concoctions with a continued commitment to incorporating wholesome natural ingredients and promoting business practices that respect the Earth and the Environment Ben & Jerry’s Website Ben & Jerry’s Commercial 1-29 check yourself 1. List five functions that illustrate the importance of marketing. 2. A firm doing the right thing emphasizes the importance of marketing to ____________. 1-30 Glossary Exchange is the trade of things of value between the buyer and the seller so that each is better off as a result. Return to slide 1-31 Glossary Goods are items that you can physically touch. Return to slide 1-32 Glossary Ideas include thoughts, opinions, and philosophies, and intellectual concepts which can be marketed. Return to slide 1-33 Glossary A supply chain is the group of firms that make and deliver a given set of goods and services. Return to slide 1-34 Glossary Value reflects the relationship of benefits to costs. Return to slide 1-35