AN OVERVIEW OF MARKETING

Marketing at its very core is

The process through which VALUE is exchanged

Marketing
A process of exchange

Process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others

The official definition

Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
American Marketing Association Definition

Marketing Components
A Philosophy An Attitude A Perspective An Orientation
Set of Activities, including: Products Pricing Promotion Distribution

Value Creation
Perceived Benefits
1. Product benefits
Performance Durability Reliability Ease of use

Perceived Costs
1. Monetary costs
Acquisition Cost Usage Cost Maintenance Cost Disposal Cost 2. Time costs

2. Service benefits
On time delivery Responsiveness to problems Technical support quality Availability of support

3. Image benefits
Psychological needs Personality enhancement reinforcement

Acquisition Usage Cost Maintenance Cost Disposal Cost 3. Energy Cost

Total customer benefit

Total Customer VALUE

Total customer cost

What is Perceived Customer Value?

Product value Services value Personnel value Image value Monetary cost Time cost
Energy cost

Total customer benefit

Customer delivered value

Total customer cost

Psychic cost

Creating Value

Exchange A B

Delivering Value

Communicating Value

The Concept of Exchange

At Least Two Parties Something of Value

Necessary Conditions for Exchange

Communication and Delivery Freedom to Accept or Reject Desire to Deal With Other Party

Marketing Management Philosophies

Philosophy
Production Sales Market Societal

Key Ideas
Focus on efficiency of internal operations Focus on aggressive techniques for overcoming customer resistance Focus on satisfying customer needs and wants Focus on satisfying customer needs and wants while enhancing individual and societal well-being

Marketing and Sales Concepts Contrasted

A Need
Needs - state of felt deprivation including physical, social, and individual needs.

A Want
Wants - form that a human need takes, as shaped by culture and individual personality.

This Is Demand
Wants Buying Power

+
Demand