Chapter 1: Marketing Overview

Marketing defined
Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
Two Goals of Marketing
1. Attract new customers by promising superior value
2. Keep and grow current customers by delivering satisfaction
Consumer Needs
state of felt deprivation including physical, social, and individual needs
Example: Needs to satisfy hunger
Consumer wants
form that a human need takes as shaped by culture and individual personality
Example: Needs to satisfy hunger, so wants bread
Consumer demands
human wants backed by buying power

Example: Wants bread, so demands money

Marketing vs. selling concept
1. Starting point- Market vs. Factory

2. Focus- Customer needs v.s Existing products

3. Means- Integrated marketing vs. Selling and promoting

4. Ends- Profit through customer satisfaction vs. Profits through sales volume

Marketing is about satisfying ______ and _______.
Customer needs and wants
What are the four P’s of the marketing mix?
Product, price, place, and promotion
Types of products
Goods- tangible
Services- intangible
Ideas- Concepts, opinions, philosophies
What does Place represent in the marketing mix?
All the activities necessary to get the product to the right customer when that customer wants it
Who can perform marketing?
Individuals & organizations
B2C marketing
Businesses sell to consumers
B2B marketing
Businesses selling merchandise or services to another business
C2C marketing
Consumers sell to other consumers
What are the various eras of marketing?
Production-oriented
Sales-oriented
Market-oriented
Value-Based
Production-oriented marketing era
Manufacturers were concerned with product innovation, not with satisfying the needs of individual customers
Sales-oriented marketing era
Depended heavily on heavy doses of personal selling and advertising
Market-oriented era
manufacturers and retailers began focusing on what customers wanted and needs.
Value-based marketing era
manufacturers added on from the market-oriented era to include giving customers a greater value than their competitors.
Does providing a good value mean selling at a low price?
not necessarily, manufacturers need to satisfy customer needs by keeping costs down, so they are able to sell at a low price.
What are the benefits of long-term relationships with customers?
you build loyalty among your most valued customers.
How are marketers connecting with customers using social and mobile media?
Social media sites, location based apps
List four functions that illustrate the importance of marketing.
1. expands firms’ global presence
2. pervasive across marketing channel members
3. Enriches society
4. Can be entrepreneurial
A firm doing the right thing emphasizes the importance of marketing to _______.
Enrich society
Core aspects of marketing
1. occurs in many settings
2. helps create value
3. about satisfying customers need and wants
4.entails an exchange
5. can be performed by both individuals and organizations
6. requires price, product, place and promotion decisions.