Chapter 1: Overview of Marketing

Marketing is the activity, set of institutions, and processed for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing strives to create value in many ways. If marketers are to succeed, their customers must believe that the firm's products and services are valuable; that is, they are worth more to the customers than they cost. Another important and closely related marketing role is to capture value of a product or service based on potential buyers' beliefs about its value. Marketers also enhance the value of products and services through various forms of communication, such as advertising and personal selling. Through communications, marketers educate and inform customers about the benefits of their products and services and thereby increase their perceived value. Marketers facilitate the delivery of value by making sure the right products and services are available when, where, and in the quantities their customers want. better marketers are not concerned about just one transaction with their customers. They recognize the value of loyal customers and strive to develop long-term relationships with them.

An organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

A written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four P's, action programs, and projected or pro forma income (and other financial) statements.

The trade of things of value between the buyer and the seller so that each is better off as a result.

Product, price, place, and promotion--the controllable set of activities that a firm uses to respond to the wants of its target markets.

Items that can be physically touched.

Any intangible offering that involves a deed, performance, or effort that cannot by physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer.

Intellectual concepts--thoughts, opinions, and philosophies.

Reflects the relationship of benefits to costs, or what the consumer gets for what s/he gives.

Customers act as collaborators with a manufacturer or retailer to create the product or service.

Marketing is an organizational function and a set of processes for creating, communication, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Needs and wants

Product, price, place, and promotion

Individuals and organizations

Production, sales, market, and value-based

Value represents the relationship of benefits to costs. Firms can improve their value by increasing benefits, reducing costs, or both. The best firms integrate a value orientation into everything they do. If an activity doesn't increase benefits or reduce costs, it probably shouldn't occur. Firms become value driven by finding out as much as they can about their customers and those customers' needs and wants. They share this information with their partners, both up and down the supply chain, so the entire chain collectively can focus on the customer. the key to true value-based marketing is the ability to design products and services that achieve precisely the right balance between benefits and costs. Value-based marketers aren't necessarily worried about how much money they will make on the next sale. Instead, they are concerned with developing a lasting relationship with their customers so those customers return again and againn

A method of building a relationship with customers based on the philosophy that buyers and sellers should develop a long-term relationship.

A business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers.

Value-based marketing isn't just about low price, it is also about creating strong products and services.

A relational orientation is based on the philosophy that buyers and sellers should develop a long-term relationship for the benefit of both parties.

Marketers are steadily embracing new technologies, such as social and mobile media, to allow them to connect better with their customers and thereby serve their needs more effectively.

Successful firms integrate marketing throughout their organizations so that marketing activities coordinate with other functional areas such as product design, production, logistics, and human resources, enabling them to get the right product to the right customers at the right time. Marketing helps facilitate the smooth flow of goods through the supply chain, all the way from raw materials to the consumer. From a personal perspective, the marketing function facilitate your buying process and can support your career goals. Marketing also can be important for society through its embrace of solid, ethical business practices. Firms "do the right thing" when they sponsor charitable events, seek to reduce environmental impacts, and avoid unethical practices; such efforts endear the firm to customers. Finally, marketing is a cornerstone of entrepreneurialism. Not only have many great companies been founded by outstanding marketers, but an entrepreneurial spirit pervades the marketing decisions of firms of all sizes.

The group of firms that make and deliver a given set of goods and services.

The set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption; consists of all the institutions and marketing activities in the marketing process.

1) Expands global presence, pervasive across organization, pervasive across supply chain, makes life easier, enriches society, can be entrepreneurial.

To do the right thing, the firm will emphasize society.