Marketing = a process by which companies create value for customers and build strong
customer relationships (to capture value from customers in return)
Value is in the eye of the beholder!
value proposition = the set of beneﬁts or values a company promises
to deliver to customers to satisfy their needs.
—> Marketing is about understanding the needs of the customer.
—> the customers don't always know what they want so Marketers
must often understand consumers needs even better than the
consumers themselves do.
Consumer-driving (companies are driving their customers to their products, “you don't know
what you really want”) vs. Consumer-driven marketing strategy (customers drive companies to
decide what they will sell)
a. Satisfying customer needs & wants
—> Need: basic necessities (e.g, hungry)
—->Want: how to fulﬁll that need (e.g, grabbing a coke, drinking juice…)
b. Marketing entails an exchange
—> The exchange can occur between any two parties, not simply a
buyer and seller exchanging money for a good or service
c. Marketing requires marketing mix decisions (product, price, place and promotion!)
i. Product: creating value
—> The fundamental purpose of the ﬁrm is to create value by
developing a variety of offerings, including: goods, values, ideas
ii. Price: transacting value
—> price is everything the buyer gives up in exchange for the
product (money, time, energy)
iii. Place: delivering value
—> Supply chain management (Marketing channel
management) = the ﬁeld that examines all activities necessary
to get the product to the right customer when and where that
customer wants it.
iv. Promotion: communicating value
—> The communication activities of marketing are used to: —> inform, persuade and remind potential buyers
—> inﬂuence their opinions or elicit a response
d. Marketing ca