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LEARNING OBJECTIVES

OVERVIEW OF MARKETING

What is the role of marketing in organizations?

How do marketers create value for a product or service?

Why is marketing important both within and outside the firm?

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Building Value Online

How do these companies provide value?

How do these companies provide value?

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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?

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What is Marketing?

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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?

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Marketing Entails an Exchange

Goods/Services Producers (Sellers)

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Marketing Requires Product, Price, Place and Promotion Decisions

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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.

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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

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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?

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Superior Service Ritz-Carlton

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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

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Marketing Can be Performed by Individuals and Organizations

ETSY Website

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Marketing Impacts Stakeholders

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Marketing Helps Create Value

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Value-Based Marketing

“Pure Dark ChocolateLight Exquisite

Cookie”

“Pure Dark ChocolateLight Exquisite

Cookie”

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Value Driven Companies

Share information across their organization

Balance customer’s benefits and costs

Build relationships with customers

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Value Based Marketing

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Target is Value Driven

Target Commercial

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Marketing and SocietyFocusing on many factors

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Marketing Enriches Society

Oprah's Angel Network

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Ben & Jerry’s Product Mission

Ben & Jerry’s Website

Ben & Jerry’s Commercial

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

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Glossary

Exchange is the trade of things of value between the buyer and the seller so that each is better off as a result.

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Glossary

Goods are items that you can physically touch.

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Glossary

Ideas include thoughts, opinions, and philosophies, and intellectual concepts which can be marketed.

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Glossary

A supply chain is the group of firms that make and deliver a given set of goods and services.

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Glossary

Value reflects the relationship of benefits to costs.

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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?

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Check Yourself

1. What are the two methods for increasing value?

2. How can a firm become value driven?

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Check Yourself

1. List five factors that emphasize the importance of marketing.

2. A firm doing the right thing emphasizes the importance of marketing to society