Chapter1: Overview of Marketing

List of Learning Objectives

Define marketing and explain its core concepts Illustrate how marketers create value for a product or service Summarize the four orientations of marketing Identify the role of customer relationship management in creating value Explain the importance of marketing both within and outside the firm
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Chapter1 Lecture Outline

Definition of marketing Core concepts of marketing

Why is marketing important?

What is Marketing?
Class Intro Survey Question:
What would be the First word/ First thing that you think of when someone says the word Marketing to you?

Ma

r ke t

ing

What is Marketing? (contd)

Common Miss-perceptions:

Marketing = Advertising Marketing makes people buy what they dont need

CMO in the company is less important than CFO, CTO, etc

Only the marketing department is responsible for the companys marketing activity

What is Marketing? (contd)

Definition:
It is the process by which companies create value for customers, build relationships to communicate and deliver value to customers in order to capture value from customers in return.

_____ is in essence what you get for what

you give up

LO1

Marketings Core Aspects

Needs, Wants, Exchange

Customers Basic Needs Wants Company offers
Product, Service, Experience, etc

Demands

Marketing entails a _________ exchange

LO2

The Marketing 4P

LO2

Marketing Can Be Performed by Both Individuals and Organizations

B2B:

B2C:

C2C:

Marketing in Many Settings

Product Marketing Person Marketing Place Marketing

Cause Marketing
Event Marketing

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Marketing helps create Value

Production-oriented era

Sales-oriented era

Market-oriented era

Value-based marketing era

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Production Era
Focus on making the production process efficient

Assumes consumers will favor products that:

are widely available at a low cost offer the most quality, performance, features

Profits through production efficiencies and/or

superior products

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Sales Era
Focus on increasing sales volume to make profit

-- heavy advertising
-- large discount

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Marketing Era
Customers are the paths to sales and profits. Marketing becomes an integrated process in the

company.
Profit through customer satisfaction.

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Determinants of Customer Satisfaction

Expectation
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Performance
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Expectation
10

Performance
8

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Value Based Marketing Era

Maintain market (customer) oriented + focus on

delivering value better than competitor.

The value that matters is in the eyes of ______ !

Looking to profits through long-term, value-added

relationships
-- inside company -- outside company

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The Societal Marketing Concept

Customer satisfaction and long-run societal well-being are the keys to both achieving the companys goals and fulfilling its responsibilities. Balances human welfare, company profits and consumer satisfaction. Addresses broader social issues.

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Evolution of Guiding Principles for Marketing

1920 Production Sales

1950

1990
Value-Based Marketing

Marketing

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LO5

Why is Marketing Important?

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