Chapter 1: Overview of

Marketing

CHAPTER 1 Question 1
What is marketing? Answer in
1-2 words.

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.

What is Marketing?

Wants vs. Needs

Chapter 1 Question 2
What do people need in order to survive?
Answer 1-2 words
water

Chapter 1 Question 3
Which is more powerful in motivating people,
needs or wants?

What do people NEED?

Chapter 1 Question 4
Lets talk about the thing nearest and dearest to our
hearts.our cellphones!
What type of cellphone do you have?

Chapter 1 Question 5
Which cell phone is better?

Needs?

Marketing Entails an Exchange

Exchange
Consumers exchange more than money for
a product.
Exchange:
Time
Effort
Money

Marketing Requires Product, Price, Place,

and Promotion Decisions

Chapter 1 Question 6
Goods vs. Services
What percent of U.S. GDP is made up of services as
opposed to products?
more than 75%

Goods vs. Services

Services accounts for about 84% of GDP.

Services - Goods

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

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.

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.

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.

Informative Advertising
Launching a new product
An updated or relaunched product.
The objective is to develop initial demand
for a good,service, organization, or cause.

Persuasive Advertising
Marketers use persuasive advertising to increase the
demand for an existing good, service, or
organization.
The idea is persuade a target audience to change
brands, buy their product, and develop customer
loyalty.

Reminder Advertising
Reminder advertising reinforces previous promotional information.
The name of the product, testimonials of past customers, public
response, and sales techniques are repeated in the hopes of reminding
past customers and garnering new ones.
It is used to keep the public interested in, and aware of, a wellestablished product that is most likely at the end of the product
life cycle.

Evolution of Marketing
Production
Sales
Marketing
Value-based marketing

Marketing Evolution
Production: 1920
Sales: 1920-1950
Marketing: 1946
Value Based: Current

Marketing Helps Create Value

Value

The relationship of benefits to costs.

What you get for what you give.
Value driven:

Sharing information, becoming more efficient.

Value Co-creation: Customers and businesses create product together.
Balancing benefits with costs
Building relationships with customers. CRM Customer Relationship
Management.
Connecting with customers using social media.