Chapter 1
Overview of Marketing
TOOLS FOR INSTRUCTORS
• Brief Chapter Outline
• Learning Objectives
• Chapter Overview (“Summing Up”)
• Extended Chapter Outline with Teaching Tips
• PowerPoint Slides with Teaching Notes
• Answers to End of Chapter Learning Aids
• Chapter Case Study
• Additional Teaching Tips
BRIEF CHAPTER OUTLINE
What is Marketing?
Why is Marketing Important?
Summing Up
End of Chapter Learning Aids
Chapter Case Study: The Yogurt Wars: Pinkberry vs. Red Mango
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.
,CHAPTER OVERVIEW (“SUMMING UP”)
Define the role of marketing in organizations.
Marketing is the activity, set of institutions, and processes for creating, capturing,
communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large. Marketing strives to create value in many ways. If marketers
are to succeed, their customers must believe that the firm’s products and services are
valuable; that is, they are worth more to the customers than they cost. Another important
and closely related marketing role is to capture value of a product or service based on
potential buyers’ beliefs about its value. Marketers also enhance the value of products and
services through various forms of communication, such as advertising and personal selling.
Through communications, marketers educate and inform customers about the benefits of
their products and services and thereby increase their perceived value. Marketers facilitate
the delivery of value by making sure the right products and services are available when,
where, and in the quantities their customers want. Better marketers are not concerned
about just one transaction with their customers. They recognize the value of loyal
customers and strive to develop long-term relationships with them.
Describe how marketers create value for a product or service.
Value represents the relationship of benefits to costs. Firms can improve their value by
increasing benefits, reducing costs, or both. The best firms integrate a value orientation into
everything they do. If an activity doesn’t increase benefits or reduce costs, it probably
shouldn’t occur. Firms become value driven by finding out as much as they can about their
customers and those customers’ needs and wants. They share this information with their
partners, both up and down the supply chain, so the entire chain collectively can focus on
the customer. The key to true value-based marketing is the ability to design products and
services that achieve precisely the right balance between benefits and costs. Value based
marketers aren’t necessarily worried about how much money they will make on the next
sale. Instead, they are concerned with developing a lasting relationship with their
customers so those customers return again and again.
,Understand why marketing is important, both within and outside the firm.
Successful firms integrate marketing throughout their organizations so that marketing
activities coordinate with other functional areas such as product design, production,
logistics, and human resources, enabling them to get the right product to the right
customers at the right time. Marketing helps facilitate the smooth flow of goods through the
supply chain, all the way from raw materials to the consumer. From a personal perspective,
the marketing function facilitates your buying process and can support your career goals.
Marketing also can be important for society through its embrace of solid, ethical business
practices. Firms “do the right thing” when they sponsor charitable events, seek to reduce
environmental impacts, and avoid unethical practices; such efforts endear the firm to
customers. Finally, marketing is a cornerstone of entrepreneurialism. Not only have many
great companies been founded by outstanding marketers, but an entrepreneurial spirit
pervades the marketing decisions of firms of all sizes.
EXTENDED CHAPTER OUTLINE WITH TEACHING TIPS
I. WHAT IS MARKETING? (PPT SLIDE 1-5, 6)
A. Marketing is about satisfying customer needs and wants. (PPT slide 1-7)
B. Marketing entails an exchange. (PPT slide 1-8)
C. Marketing requires product, price, place, and promotion decisions. (PPT
slide 1-9)
1. Product: Creating Value (PPT slide 1-10)
2. Price: Capturing Value (PPT slide 1-11)
3. Place: Delivering the Value Proposition (PPT slide 1-12)
4. Promotion: Communicating the Value Proposition (PPT slide 1-15)
, D. Marketing can be performed by both individuals and organizations. (PPT
slide 1-17)
E. Marketing impacts various stakeholders. (PPT slide 1-18)
F. Marketing helps create value. (PPT slide 1-19)
1. Production-Oriented Era
2. Sales-Oriented Era
3. Market-Oriented Era
4. Value-Based Marketing Era
Check Yourself: Several questions are offered for students to check their understanding of
core concepts. (PPT slide 1-21)
1. What is the definition of marketing?
Answer: Marketing is the activity, set of institutions, and processes for creating,
capturing, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large
2. Marketing is about satisfying _____ and _____.
Answer: Marketing is about satisfying needs and wants.
3. What are the four components of the marketing mix?
Answer: The four components of the marketing mix are product, place, price, and
promotion.
4. Who can perform marketing?
Answer: Both individuals and organizations can perform marketing as marketing
can entail B2C, B2B, and C2C.
Overview of Marketing
TOOLS FOR INSTRUCTORS
• Brief Chapter Outline
• Learning Objectives
• Chapter Overview (“Summing Up”)
• Extended Chapter Outline with Teaching Tips
• PowerPoint Slides with Teaching Notes
• Answers to End of Chapter Learning Aids
• Chapter Case Study
• Additional Teaching Tips
BRIEF CHAPTER OUTLINE
What is Marketing?
Why is Marketing Important?
Summing Up
End of Chapter Learning Aids
Chapter Case Study: The Yogurt Wars: Pinkberry vs. Red Mango
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.
,CHAPTER OVERVIEW (“SUMMING UP”)
Define the role of marketing in organizations.
Marketing is the activity, set of institutions, and processes for creating, capturing,
communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large. Marketing strives to create value in many ways. If marketers
are to succeed, their customers must believe that the firm’s products and services are
valuable; that is, they are worth more to the customers than they cost. Another important
and closely related marketing role is to capture value of a product or service based on
potential buyers’ beliefs about its value. Marketers also enhance the value of products and
services through various forms of communication, such as advertising and personal selling.
Through communications, marketers educate and inform customers about the benefits of
their products and services and thereby increase their perceived value. Marketers facilitate
the delivery of value by making sure the right products and services are available when,
where, and in the quantities their customers want. Better marketers are not concerned
about just one transaction with their customers. They recognize the value of loyal
customers and strive to develop long-term relationships with them.
Describe how marketers create value for a product or service.
Value represents the relationship of benefits to costs. Firms can improve their value by
increasing benefits, reducing costs, or both. The best firms integrate a value orientation into
everything they do. If an activity doesn’t increase benefits or reduce costs, it probably
shouldn’t occur. Firms become value driven by finding out as much as they can about their
customers and those customers’ needs and wants. They share this information with their
partners, both up and down the supply chain, so the entire chain collectively can focus on
the customer. The key to true value-based marketing is the ability to design products and
services that achieve precisely the right balance between benefits and costs. Value based
marketers aren’t necessarily worried about how much money they will make on the next
sale. Instead, they are concerned with developing a lasting relationship with their
customers so those customers return again and again.
,Understand why marketing is important, both within and outside the firm.
Successful firms integrate marketing throughout their organizations so that marketing
activities coordinate with other functional areas such as product design, production,
logistics, and human resources, enabling them to get the right product to the right
customers at the right time. Marketing helps facilitate the smooth flow of goods through the
supply chain, all the way from raw materials to the consumer. From a personal perspective,
the marketing function facilitates your buying process and can support your career goals.
Marketing also can be important for society through its embrace of solid, ethical business
practices. Firms “do the right thing” when they sponsor charitable events, seek to reduce
environmental impacts, and avoid unethical practices; such efforts endear the firm to
customers. Finally, marketing is a cornerstone of entrepreneurialism. Not only have many
great companies been founded by outstanding marketers, but an entrepreneurial spirit
pervades the marketing decisions of firms of all sizes.
EXTENDED CHAPTER OUTLINE WITH TEACHING TIPS
I. WHAT IS MARKETING? (PPT SLIDE 1-5, 6)
A. Marketing is about satisfying customer needs and wants. (PPT slide 1-7)
B. Marketing entails an exchange. (PPT slide 1-8)
C. Marketing requires product, price, place, and promotion decisions. (PPT
slide 1-9)
1. Product: Creating Value (PPT slide 1-10)
2. Price: Capturing Value (PPT slide 1-11)
3. Place: Delivering the Value Proposition (PPT slide 1-12)
4. Promotion: Communicating the Value Proposition (PPT slide 1-15)
, D. Marketing can be performed by both individuals and organizations. (PPT
slide 1-17)
E. Marketing impacts various stakeholders. (PPT slide 1-18)
F. Marketing helps create value. (PPT slide 1-19)
1. Production-Oriented Era
2. Sales-Oriented Era
3. Market-Oriented Era
4. Value-Based Marketing Era
Check Yourself: Several questions are offered for students to check their understanding of
core concepts. (PPT slide 1-21)
1. What is the definition of marketing?
Answer: Marketing is the activity, set of institutions, and processes for creating,
capturing, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large
2. Marketing is about satisfying _____ and _____.
Answer: Marketing is about satisfying needs and wants.
3. What are the four components of the marketing mix?
Answer: The four components of the marketing mix are product, place, price, and
promotion.
4. Who can perform marketing?
Answer: Both individuals and organizations can perform marketing as marketing
can entail B2C, B2B, and C2C.
