1. CHAPTER 1 World of Marketing: Creating and Delivering Value
Real People, Real Choices
CHAPTER 1 World of Marketing: Creating and Delivering Value

2. Chapter Objectives_1
Know who marketers are, where they work, and understand marketing’s role in the firm
Define what marketing is and how it provides value to everyone involved in the marketing process
Discuss the range of services and goods that are marketed

3. Chapter Objectives_1
Understand value from the perspectives of the customers, producers, and society
Understand the basics of marketing planning and the marketing mix tools used in the marketing process
Describe the evolution of the marketing concept

4. The Value of Marketing
Marketing is the adaptive process, in society and organizations, of collaborating to communicate, create, provide, and sustain value for customers through exchange relationships while meeting the needs of diverse stakeholders.

5. Marketers do it to satisfy needs…
Most successful firms practice the marketing concept
identify consumer needs; provide products that satisfy those needs
Need: difference between a consumer’s actual state and some ideal or desired state
physical or psychological

6. Needs versus Wants
A need is the difference between the actual and ideal states of being!
A want is a desire for a particular product used to satisfy that need
wants are culturally & socially influenced

7. Benefits, Demand, and Markets
A product delivers a benefit when it satisfies a need or want
Desire coupled with the resources to satisfy a want results in demand
A market consists of all the consumers with that need and the resources to make the exchange

8. Exchange Relationships
Exchange - the heart of every marketing act
An exchange occurs when something is obtained for something else in return
Value is in the eye of the beholder
Marketers must create an attractive value proposition

9. What Can Be Marketed?
Consumer Goods and Services
Business-to-Business Goods and Services
Not-for-Profit Marketing
Idea, Place, and People Marketing

10. Analyzing the environment
Marketing as a Process
Marketing planning
Analyzing the environment
What product benefits will our customers be looking for in 5 years?
What capabilities does our firm have that set it apart from the competition?
What additional customer groups might provide important segments in the future?
What legal issues may affect our business?

11. Target Markets
Mass Market - all possible customers regardless of differences in their specific needs and wants
developing a basic product & a single strategy for everyone
Market segments - distinct groups of customers within a larger market
A target market - an organization’s chosen segment

12. Two Different Target Markets?

13. Positioning the Product
Plan how the target market should perceive the product in comparison to competitors’ brands - the market position
What is the market position of Ford? BMW?
Perceptual maps

14. The Marketing Mix (4Ps)
Product
Place
Price
Promotion

15. The Evolution of Marketing
Production Era
Selling Era
Consumer Orientation
New Era Orientation
Customer relationships
Social benefits
Marketing metrics