1 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-1 The Meaning of Marketing

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-2 C HAPTER O BJECTIVES 1. What is marketing? 2. What is the marketing concept? How has marketing changed? 3. What are marketing functions? Who performs them?

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-3 O BJECTIVE 1 What is marketing?

DEFINEDDEFINED Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-4 Marketing is an organizational function and a collection of processes designed to plan for, create, communicate, and deliver value to customers. Marketing also builds effective customer relationships in ways that benefit the organization and its stakeholders.

EXPLAINEDEXPLAINED Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-5 Marketing Organizational Function Collection of Processes

EXPLAINEDEXPLAINED Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-6 O RGANIZATIONAL F UNCTION CEO FinanceMarketing Human Resources Production

EXPLAINEDEXPLAINED Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-7 C OLLECTION OF P ROCESSES AssemblePricePromote

EXPLAINEDEXPLAINED Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-8 C REATING V ALUE FOR C USTOMERS Value $ Marketing is much more than just developing, advertising, and selling a product – it is about creating value for customers, which in turn keeps customers coming back again and again; this allows the organization to generate profits (or to meet other organizational goals). Value is derived from the economic concept of utility, which is the satisfaction one receives from owning or consuming a product or service.

EXPLAINEDEXPLAINED Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-9 U NDERSTANDING THE M ARKET It's even more important to get to know your target market. If you don’t know who is in your market, you won’t be able to reach them, and you won’t make money. If you don’t know what they want, you'll have no chance of satisfying their needs.

APPLIEDAPPLIED Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-10 M ORE THAN JUST PRODUCTS Marketing EventsProductsServicesPeoplePlaces Causes / Ideas

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-11 O BJECTIVE 2 What is the marketing concept? How has marketing changed?

DEFINEDDEFINED Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-12 The Marketing Concept is an organizational philosophy dedicated to understanding and fulfilling consumer needs through the creation of value.

EXPLAINEDEXPLAINED Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-13 T HE M ARKETING C ONCEPT Value Customer Relationships Customer Loyalty

APPLIEDAPPLIED Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-14 T HE M ARKETING C ONCEPT Commitment to delivering superior customer satisfaction. Competition has been a key reason in the development of the marketing concept, which is an organization’s commitment to providing superior customer satisfaction. The marketing concept did not become widely used by businesses until the latter part of the 20 th century. Marketing has progressed through various eras.

APPLIEDAPPLIED Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-15 E VOLUTION OF M ARKETING Production Orientation Sales Orientation Consumer Orientation Relationship Orientation Today 1908 Model T 1 st Sold 1929 Great Depression 1945 World War II Ends Seller’s MarketBuyer’s Market 1980’s Global Competition How has marketing changed?

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-16 O BJECTIVE 3 What are marketing functions? Who performs them?

DEFINEDDEFINED Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-17 Marketing Functions are activities performed within organizations that create value for specific products or services.

APPLIEDAPPLIED Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-18 M ARKETING F UNCTIONS CEO FinanceMarketing Human Resources Production The Organization Customers

APPLIEDAPPLIED Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-19 I NTERNAL M ARKETING P ARTICIPANTS Marketing Stakeholders Board of Directors Top Management Other Business Departments Marketing Department

APPLIEDAPPLIED Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-20 T HE 4 P’ S OF M ARKETING ProductPrice PlacePromotion Customer

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall1-21 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.