ADM2330 Chapter One Overview of Marketing
What is marketing?
Marketing is a set of business practices designed to plan for and present an
organization’s products or services in ways that build effective customers relationships.
Marketing is NOT
o Just about buyers and sellers exchanging money for goods and services
o About making a profit
The fundamental purpose of marketing is to create value for both the firm
o Value is in essence what you get and what you give up.
Core Aspects of Marketing
Core one: Satisfying Customer Needs and Wants
Begins with understanding their needs and wants
o Need: A person feeling physiologically deprived of basic necessities,
such as food, clothing, shelter, and safety.
o Want: the particular way, in which a person chooses to satisfy a need,
which is shaped by a person’s knowledge, culture, and personality.
To understand customer needs and wants, the company must first identify
the customers or market for its products or service.
o Market: Refers to the groups of people who need or want a company’s
products or services and have the ability and willingness to buy them.
o Target market: The customer segment or group to whom the firm is
interested in selling its products and services Core two: Marketing Entails Value Exchange
The exchange can occur between any two parties
o Exchange: The trade of things of value between the buyer and the
seller so that each is better off as a result.
Not simply a buyer and seller exchanging money for a good or service
Can be an exchange of information for convenience
o EX: iTunes Justin Bieber albums
Core three: Marketing Requires Product, Price, Place, and Promotion Decisions
Marketing Mix (four Ps): Product, price, and promotion – the controllable set of
activities that a firm uses to respond to the wants of its target markets.
Product: Creating Value
One main purpose of marketing is to create value by developing a variety of
offerings, including goods, services, and ideas, to satisfy customer needs.
o Goods: Items that can be physically touched
o Services: Intangible customer benefits that are produced by people or
machines and cannot be separated from the product.
o Ideas: Include thoughts, opinions, philosophies, and intellectual concepts.
Price: Transacting Value
Price: The overall sacrifice a consumer is willing to make – money, time,
energy – to acquire a specific product or service.
Place: Delivering Value
• All activities necessary to get the product to the right customer when that
customer wants it.
• Supply chain management is the field that examines these activities.
• Where would you find this product in the store? Promotion: Communicating Value
The communication activities of marketing
Used to inform, persuade and remind potential buyers
Used to influence their opinions or elicit a response
Marketing Is Shaped By Forces And Players Within The Firm and Players
External to the Firm
The consumer is the center of all marketing activities, and offering the best
value possible will attract customers to products and keep them loyal.
For marketers to deliver the best value to their customers, they must
leverage the full potential of their internal capabilities; work effectively with
their partners; and constantly evaluate and respond to the competitive
External forces such as cultural, demographic, social, technological,
economic, and political and legal changes shape a company’s marketing
Core four: Marketing Can Be Performed By Both Individuals And Organizations
B2B (business-to-business): The process of selling merchandise or services
from one business to another.
B2C (business-to-consumer): The process in which businesses sell to consumers.
C2C (consumer-to-consumer): The process in which consumers sell to other
Social media: The use of Internet tools to easily and quickly create and share
content to foster dialogue, social relationships, and personal identities.
Core five: Marketing Occurs in Many Settings
Both profit and non-profit entities
Entire industries Core Six: Marketing Helps Create Value
Product Orientation Era:
Product-oriented companies focus on developing and distributing innovative
products with litt