What is Marketing?
1. Marketing: planning and executing the development, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that satisfy both buyers'
and sellers' objectives.
2. Consumer needs and wants drive marketing.
3. Marketing Concept: the idea that the whole firm is directed toward serving the
present and potential customers at a profit.
oA firm must get to know what the consumers want.
Providing Value and Satisfaction
4. Consumers want to buy the product that would offer the best value.
5. Value: relative comparison of a product's benefits vs. its costs.
oBenefits include function, emotional satisfaction.
oCosts include sales price, buyers time, and emotional cost of purchasing a
•Value= (Benefits) / (Costs)
6. Utility: ability of a product to satisfy a human want or need. (4 kinds of utility)
oTime Utility: offering products when consumers want them.
•Xmas lights in December
oPlace Utility: making a product available where customers can conveniently
•A store opens up a Christmas department.
oOwnership Utility: conveniently transferring ownership from store to
oForm Utility: by making products available in the first place, turning raw
materials into finished ornaments.
Goods, Services, and Ideas
7. Consumer Goods: products purchased by individuals for their personal use.
oEx. Cars, perfume, medicine.
8. Industrial Goods: products purchased by companies to use directly or indirectly to
produce other products.
oEx. Surgical instruments or earth movers.
9. Services: intangible products, such as time, expertise, or an activity that can be
oEx. Insurance companies, airlines, health clinics
10. Marketers also try to promote ideas
oDon’t drink and drive
11. Relationship Marketing: a type of marketing that emphasizes lasting
relationships with customers and suppliers.
oStrong relationships can create customer loyalty and strong economic/social