After reading this chapter, you should be able to: Define the role of marketing in organizations; describe how marketers create value for a product or service; understand why marketing is important, both within and outside the firm. | overview of marketing one Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 1 LEARNING OBJECTIVES LO 1-1 Define the role of marketing in organizations. LO 1-2 Describe how marketers create value for a product or service. LO 1-3 Understand why marketing is important, both within and outside the firm. 2 What is Marketing? Marketing is 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. 3 What is Marketing? 4 Marketing is about Satisfying Customer Needs and Wants What group is Pepsi targeting with this ad? What other benefits of soft drinks might Pepsi advertise? What groups might these benefits appeal to? PRNewsFoto/PepsiCo; AP Photo. 5 Marketing Entails an Exchange 6 Marketing Requires Product, Price, Place, and . | overview of marketing one Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 1 LEARNING OBJECTIVES LO 1-1 Define the role of marketing in organizations. LO 1-2 Describe how marketers create value for a product or service. LO 1-3 Understand why marketing is important, both within and outside the firm. 2 What is Marketing? Marketing is 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. 3 What is Marketing? 4 Marketing is about Satisfying Customer Needs and Wants What group is Pepsi targeting with this ad? What other benefits of soft drinks might Pepsi advertise? What groups might these benefits appeal to? PRNewsFoto/PepsiCo; AP Photo. 5 Marketing Entails an Exchange 6 Marketing Requires Product, Price, Place, and Promotion Decisions Product Creating value PRNewsFoto/PepsiCo; AP Photo. Price Capturing value ©Digital Vision Ltd. Place Delivering value ©BrandX/JupiterImages/Getty Images. Promotion Communication value ©Stockbyte/PunchStock. 7 Product: Creating Value The fundamental purpose of Marketing is to create value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs. Royalty-Free/Corbis Roz Wodward/Getty Images Flying Colours Ltd./Getty Images 8 Price: Capturing Value Price is everything a buyer gives up (money, time, energy) in exchange for the product. How much are customers willing to pay and can a profit can be made at that point. AP Photo/The Canadian Press, Jacques Boissinot. 9 Place: Delivering the Value Proposition Place, or supply chain management, describes all activities necessary to get the product to the right customer when the customer wants it. Where would you find this product in the store? Courtesy Horizon Organic Dairy 10 .
