1. Welcome to the World of Marketing: Create and Deliver Value
Chapter One
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

2. Chapter Objectives
Understand who marketers are, where they work, and marketing’s role in the firm
Explain what marketing is and how it provides value to everyone involved in the marketing process
Explain the evolution of the marketing concept
Understand the range of services and goods that organizations market
Understand value from the perspectives of customers, producers, and society
Explain the basics of market planning and the marketing mix tools we use in the marketing process
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

3. Welcome to “Brand You”
You are a product and have “market value” as a person
You “position” yourself for a job interview in a number of ways
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

4. The Who and Where of Marketing
Marketers:
Come from many different backgrounds
Work in a variety of locations
Maintain cross-functional relationships within the firm
Enjoy exciting, diverse careers
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

5. The Value of Marketing Definition of Marketing (AMA, 2007)
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

6. Marketing Meets Needs
Marketing meets the needs of diverse stakeholders
Successful firms practice the marketing concept
Needs, wants, and benefits
Demands and markets
The modern marketplace
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

7. Marketing is about Creating Utility
Utility: The sum of the benefits we receive from using a product/service
Form utility
Place utility
Time utility
Possession utility
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

8. Marketing is about Exchange Relationships
An exchange occurs when something is obtained for something else in return—like cash for goods or services
Buyer receives a product (an object, service, or idea that satisfies a need)
Seller receives something of equivalent value
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

9. The Evolution of Marketing
The Production Era
Production orientation
The Sales Era
Selling orientation
The Relationship Era
Consumer orientation
Total quality management
The Triple Bottom Line Era
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

10. The Production Era Dominated by production orientation
A management philosophy that emphasizes the most efficient ways to produce and distribute products
Marketing played an insignificant role
Henry Ford’s Model T and Ivory soap are examples of products that were created under a production orientation
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

11. The Sales Era
When product availability exceeds demand, businesses may focus on a one-time sale of goods rather than repeat business
Dominated by selling orientation
Managerial view of marketing is as a sales function, or a way to move products out of warehouses to reduce inventory
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

12. The Relationship Era Focused on a customer orientation
A management philosophy that emphasizes satisfying customers’ needs and wants
Marketing becomes more important in the firm
Total Quality Management (TQM) is widely followed in the marketing community
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

13. The Triple Bottom Line Era: Make Money and a Contribution
Focuses on building long-term bonds with customers
Triple orientation seeks to maximize the financial, social, and environmental bottom lines
Marketing uses customer relationship management (CRM) to build bonds with consumers
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

14. The Triple Bottom Line Era: Make Money and a Contribution
Social marketing concept :
Management philosophy that marketers must satisfy customers’ needs in ways that also benefit society and deliver value to the firm
Sustainability is a key trend that applies to many aspects of business
Triple bottom line firms place a greater focus on accountability
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

15. What Can Be Marketed? From “serious” goods to fun things
Products mirror changes in popular culture
Marketing messages often communicate myths
Product: any good, service, or idea
Consumer goods/services
Business-to-business goods/services
Not-for-profit marketing
Idea, place, and people marketing
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

16. The Marketing of Value
Marketing creates and communicates the value proposition as:
A marketplace offering that fairly and accurately sums up the value that the customer will realize if the consumer purchases a product or service
Perspectives of value differ between customers, sellers, and society
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

17. Value from the Customer’s Perspective
Customer perspective
Value is the ratio of costs (price) to benefits (utilities)
Value proposition includes the whole bundle of benefits the firm promises to deliver, not just the benefits of the product
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

18. Value from the Seller’s Perspective
Value for the seller takes many forms
Seller’s should build value by marketing with customers, not to them
Partnering with customers via brandfests
Customers have value – it is more expensive to attract new customers than to retain current ones
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

19. Value from the Seller’s Perspective
Lifetime value of a customer
Calculate the projected profit from a particular customer to allow a firm to decide which customers are “worth keeping” vs. which should be “fired”
Creating a competitive advantage
Identify a distinctive competency
Turn distinctive competencies into differential benefits
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

20. Value from Society’s Perspective
Marketing transactions add or subtract value from society:
Stressing socially responsible and ethical decisions is good business
Marketing is often criticized
Marketing’s dark side
Some marketing activities have detrimental effects on society
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.

21. Marketing Is a Process
Marketing planning is a major portion of the process and it involves the following:
Analyzing the marketing environment
Developing a marketing plan
Deciding on a market segment
Choosing the marketing mix—product, price, promotion, and place
© 2012 Pearson Education, Inc. publishing as Prentice-Hall.