This chapter introduces marketing and discusses its key concepts. It defines marketing as creating, communicating, and delivering value for customers. The marketing concept focuses on customer needs and satisfaction. Marketing activities involve understanding customers, creating offerings with value, communicating them to customers, delivering them, and exchanging them for value. Marketing is practiced by all types of organizations and plays an important role in an organization's strategy and interactions with other functions. The chapter concludes with a discussion of how the marketing environment is changing and the career opportunities marketing offers.

1. by Jeff Tanner and Mary Anne Raymondby Jeff Tanner and Mary Anne Raymond
Principles of Marketing

2. Chapter 1Chapter 1
What Is Marketing?What Is Marketing?
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3. This is an introductory course
Its purpose is to familiarize
students with the role of the
marketing organization in the
conduct of doing business in
today’s global marketplace.
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Some of the Key QuestionsSome of the Key Questions

5. • In this chapter
we will establish
the importance and
basic responsibilities
of the marketing
function.
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Defining MarketingDefining Marketing

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Marketing is all about VALUEMarketing is all about VALUE

7. Value* = benefits received – (price + hassle)
* Value is determined by the customer
And
In recognizing the importance of the customer
and value, market oriented companies employ
the marketing concept
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VALUE DefinedVALUE Defined

8. A philosophy
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The Marketing ConceptThe Marketing Concept

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A marketing responsibility
This bundle
is the offering
Getting it
right is…
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Creating Offerings that Have ValueCreating Offerings that Have Value

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Many forms of communication may be used
Describing
the offering
and its value
for the user
outgoing
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Communicating OfferingsCommunicating Offerings

11. Incoming
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Listening to CustomersListening to Customers

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Supply chain
Information flows both ways
Rawmaterialand
componentsuppliers
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Delivering Consumer OfferingsDelivering Consumer Offerings

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Sometimes for cash
Could be a
credit card
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Exchanging OfferingsExchanging Offerings

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The focus has changed from the 4Ps to value
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Key TakeawaysKey Takeaways

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But we will focus on
Organizations
For profit companies
• Wal-Mart
• P&G
• Local businesses
Non-profits
• charities
• schools
• hospitals
• governments
Who Does Marketing?Who Does Marketing?

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Completing this course will help you to more effectively
Marketing YouMarketing You

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Marketing is an enabler
• delivers value
• benefits society
• provides career
opportunities
Marketing research
Merchandising
Sales
Advertising
Product development
Direct marketing
Event marketing
Marketing is the only organizational function that creates revenue!
A growing number of CEOs are people with marketing backgrounds
Why Study Marketing?Why Study Marketing?

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Marketing activities must interact with other functions and staff
Staff
• legal
• inv. rel.
Marketing’s RoleMarketing’s Role

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Most companies have mission statements that emphasize:
 Values
 Customers
 Motivation of employees
Corporate planning uses this mission statement as the framework in
developing the corporate strategy.
The marketing plan, as part of the corporate plan, articulates the
strategy for creating, communicating, and delivering an exchange of value.
The Marketing PlanThe Marketing Plan

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Developing the Marketing PlanDeveloping the Marketing Plan

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The Marketing Environment Is ChangingThe Marketing Environment Is Changing

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Marketing is a process of:
Finding customer needs and wants
— filling the needs and wants with products that have value
— communicating and delivering these products to customers
Planning and implementing the marketing strategy to accomplish the above
— in concert with other organizational entities
— while returning reasonable profits
Marketing activities are evolving in response to
— global trade and competition issues
— customer concerns about ethics, sustainability, and social responsibilities
Marketing offers many varied career opportunities
— marketing ourselves can have personal benefits
Chapter SummaryChapter Summary