Chapter 1: What Is Marketing?

by Jeff Tanner and Mary Anne Raymondby Jeff Tanner and Mary Anne Raymond

Principles of Marketing

Chapter 1Chapter 1What Is Marketing?What Is Marketing?

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This is an introductory courseIts 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

• In this chapter we will establish the importance and basic responsibilitiesof the marketing function.

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Defining MarketingDefining Marketing

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Marketing is all about VALUEMarketing is all about VALUE

Value* = benefits received – (price + hassle)

* Value is determined by the customerAnd

In recognizing the importance of the customer and value, market oriented companies employ the marketing concept

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VALUE DefinedVALUE Defined

A philosophy

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The Marketing ConceptThe Marketing Concept

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A marketing responsibility

This bundleis 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

Incoming

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Listening to CustomersListening to Customers

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Supply chain

Information flows both ways

Raw

mate

rial and

com

ponent

sup

plie

rs

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Delivering Consumer OfferingsDelivering Consumer Offerings

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Sometimes for cash

Could be acredit card

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Exchanging OfferingsExchanging Offerings

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The focus has changed from the 4Ps to value14

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 researchMerchandisingSalesAdvertisingProduct developmentDirect marketingEvent 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 indeveloping 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 The Marketing Environment Is ChangingChanging

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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