Chapter 1: Defining Marketing for the New
Real-ities — Comprehensive Exam-
Focused Keyword Glossary
1.Chapter Scope and Learning Objectives
Chapter 1 establishes the meaning, scope, changing realities, organizational role,
and manage-ment of marketing. After studying the chapter, students should be
able to:
1.Define the scope of marketing.
2.Describe the new marketing realities.
3.Explain the role of marketing in an organization.
4.Illustrate how to organize and manage a modern marketing department.
5.Explain how to build a customer-oriented organization.
2.Core Definitions of Marketing
Marketing
Marketing is the process of identifying and meeting human and social needs in a way
that supports organizational goals. It involves creating, communicating, delivering,
and exchanging offerings that have value for customers, clients, partners, and
society.
Key example: Google recognized the need for efficient access to online information
and created a search engine that organizes and prioritizes search queries. IKEA
responded to consumers’ desire for attractive furnishings at lower prices by creating
knockdown furniture.
American Marketing Association Definition
Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large.
Marketing Management
,Marketing management is the art and science of choosing target markets and
acquiring, retaining, and growing customers through creating, delivering, and
communicating superior customer value.
Social Definition of Marketing
The social definition of marketing views marketing as a societal process through
which indi-viduals and groups obtain what they need and want by creating,
offering, and freely exchanging products and services of value with others.
Managerial Definition of Marketing
The managerial definition of marketing focuses on marketing as an organizational
activity involv-ing target-market selection, value creation, value communication,
customer acquisition, customer retention, and profitable growth.
Marketing as an Art and a Science
Marketing is both an art and a science. It requires creative ideas and insight, but
also careful planning, data analysis, research, measurement, and disciplined
execution.
Marketing versus Selling
Selling is only one part of marketing. Selling focuses on converting an existing
product into cash, whereas marketing begins with understanding customer needs and
develops the right product, price, distribution, communication, and service around
those needs.
Peter Drucker argued that the purpose of marketing is to understand the customer so
well that the product or service fits the customer and sells with minimal need for
persuasion.
Customer Value
Customer value is the benefit customers perceive from an offering in relation to the
sacrifices required to obtain it. Marketing seeks to create, communicate, and deliver
superior customer value.
Exchange
Exchange is the process through which people or organizations obtain something they
need or want by offering something of value in return. Marketing facilitates exchange
,between buyers and sellers.
Offering
, An offering is anything presented to a market to satisfy a need or want. Offerings may
include physical products, services, experiences, information, ideas, people,
organizations, places, events, or properties.
Marketer
A marketer is a person or organization seeking a response from another party, such as
a purchase, vote, donation, subscription, recommendation, or change in behavior.
Demand Management
Marketers do more than stimulate demand. They influence the level, timing, and
composition of demand to support organizational objectives.
3.What Is Marketed? The Ten Marketing Domains
Marketing Domain Meaning Examples from the Chapter
Goods Physical products that can Food, automobiles,
be produced, distributed, refrigerators, televisions,
and pur-chased. machines, clothing, and
athletic footwear.
Services Intangible activities or Airlines, hotels, banking, ac-
benefits offered to counting, law, medicine,
customers. software programming, and
consulting.
Events Occasions that are Trade shows, artistic per-
designed, promoted, and formances, company
managed to at-tract anniver-saries, the
participants or audiences. Olympics, the World Cup,
craft fairs, and bookstore
readings.
Experiences Memorable activities created Disney theme parks,
by combining goods and fantasy camps, baseball
services. camps, and climbing
Mount Everest.
Persons Individuals whose Athletes, entertainers,
reputations, skills, physi-cians, lawyers,
achievements, or public CEOs, consul-tants, and
images are marketed. Oprah Winfrey.
Places Geographic locations Las Vegas, cities, states,
marketed to attract regions, countries, and
visitors, residents, in- tourism destina-tions.
vestment, factories, or
head-quarters.
Properties Intangible ownership Real estate, stocks, bonds,
rights in-volving real or resi-dential property, and
financial assets. commercial property.
Organizations Organizations that market Universities, museums,
their identities, reputations, corpo-rations, nonprofit
Real-ities — Comprehensive Exam-
Focused Keyword Glossary
1.Chapter Scope and Learning Objectives
Chapter 1 establishes the meaning, scope, changing realities, organizational role,
and manage-ment of marketing. After studying the chapter, students should be
able to:
1.Define the scope of marketing.
2.Describe the new marketing realities.
3.Explain the role of marketing in an organization.
4.Illustrate how to organize and manage a modern marketing department.
5.Explain how to build a customer-oriented organization.
2.Core Definitions of Marketing
Marketing
Marketing is the process of identifying and meeting human and social needs in a way
that supports organizational goals. It involves creating, communicating, delivering,
and exchanging offerings that have value for customers, clients, partners, and
society.
Key example: Google recognized the need for efficient access to online information
and created a search engine that organizes and prioritizes search queries. IKEA
responded to consumers’ desire for attractive furnishings at lower prices by creating
knockdown furniture.
American Marketing Association Definition
Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large.
Marketing Management
,Marketing management is the art and science of choosing target markets and
acquiring, retaining, and growing customers through creating, delivering, and
communicating superior customer value.
Social Definition of Marketing
The social definition of marketing views marketing as a societal process through
which indi-viduals and groups obtain what they need and want by creating,
offering, and freely exchanging products and services of value with others.
Managerial Definition of Marketing
The managerial definition of marketing focuses on marketing as an organizational
activity involv-ing target-market selection, value creation, value communication,
customer acquisition, customer retention, and profitable growth.
Marketing as an Art and a Science
Marketing is both an art and a science. It requires creative ideas and insight, but
also careful planning, data analysis, research, measurement, and disciplined
execution.
Marketing versus Selling
Selling is only one part of marketing. Selling focuses on converting an existing
product into cash, whereas marketing begins with understanding customer needs and
develops the right product, price, distribution, communication, and service around
those needs.
Peter Drucker argued that the purpose of marketing is to understand the customer so
well that the product or service fits the customer and sells with minimal need for
persuasion.
Customer Value
Customer value is the benefit customers perceive from an offering in relation to the
sacrifices required to obtain it. Marketing seeks to create, communicate, and deliver
superior customer value.
Exchange
Exchange is the process through which people or organizations obtain something they
need or want by offering something of value in return. Marketing facilitates exchange
,between buyers and sellers.
Offering
, An offering is anything presented to a market to satisfy a need or want. Offerings may
include physical products, services, experiences, information, ideas, people,
organizations, places, events, or properties.
Marketer
A marketer is a person or organization seeking a response from another party, such as
a purchase, vote, donation, subscription, recommendation, or change in behavior.
Demand Management
Marketers do more than stimulate demand. They influence the level, timing, and
composition of demand to support organizational objectives.
3.What Is Marketed? The Ten Marketing Domains
Marketing Domain Meaning Examples from the Chapter
Goods Physical products that can Food, automobiles,
be produced, distributed, refrigerators, televisions,
and pur-chased. machines, clothing, and
athletic footwear.
Services Intangible activities or Airlines, hotels, banking, ac-
benefits offered to counting, law, medicine,
customers. software programming, and
consulting.
Events Occasions that are Trade shows, artistic per-
designed, promoted, and formances, company
managed to at-tract anniver-saries, the
participants or audiences. Olympics, the World Cup,
craft fairs, and bookstore
readings.
Experiences Memorable activities created Disney theme parks,
by combining goods and fantasy camps, baseball
services. camps, and climbing
Mount Everest.
Persons Individuals whose Athletes, entertainers,
reputations, skills, physi-cians, lawyers,
achievements, or public CEOs, consul-tants, and
images are marketed. Oprah Winfrey.
Places Geographic locations Las Vegas, cities, states,
marketed to attract regions, countries, and
visitors, residents, in- tourism destina-tions.
vestment, factories, or
head-quarters.
Properties Intangible ownership Real estate, stocks, bonds,
rights in-volving real or resi-dential property, and
financial assets. commercial property.
Organizations Organizations that market Universities, museums,
their identities, reputations, corpo-rations, nonprofit
