Chapter 1: Defining Marketing for the New Real-
ities — Comprehensive Exam-Focused Keyword
Glossary
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 be Food, automobiles, refrigerators,
produced, distributed, and pur- televisions, machines, clothing,
chased. and athletic footwear.
Services Intangible activities or benefits Airlines, hotels, banking, ac-
offered to customers. counting, law, medicine, software
programming, and consulting.
Events Occasions that are designed, Trade shows, artistic per-
promoted, and managed to at- formances, company anniver-
tract participants or audiences. saries, the Olympics, the World
Cup, craft fairs, and bookstore
readings.
Experiences Memorable activities created by Disney theme parks, fantasy
combining goods and services. camps, baseball camps, and
climbing Mount Everest.
Persons Individuals whose reputations, Athletes, entertainers, physi-
skills, achievements, or public cians, lawyers, CEOs, consul-
images are marketed. tants, and Oprah Winfrey.
Places Geographic locations marketed Las Vegas, cities, states, regions,
to attract visitors, residents, in- countries, and tourism destina-
vestment, factories, or head- tions.
quarters.
Properties Intangible ownership rights in- Real estate, stocks, bonds, resi-
volving real or financial assets. dential property, and commercial
property.
Organizations Organizations that market their Universities, museums, corpo-
identities, reputations, missions, rations, nonprofit organizations,
and activities. and government entities.
Information
ities — Comprehensive Exam-Focused Keyword
Glossary
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 be Food, automobiles, refrigerators,
produced, distributed, and pur- televisions, machines, clothing,
chased. and athletic footwear.
Services Intangible activities or benefits Airlines, hotels, banking, ac-
offered to customers. counting, law, medicine, software
programming, and consulting.
Events Occasions that are designed, Trade shows, artistic per-
promoted, and managed to at- formances, company anniver-
tract participants or audiences. saries, the Olympics, the World
Cup, craft fairs, and bookstore
readings.
Experiences Memorable activities created by Disney theme parks, fantasy
combining goods and services. camps, baseball camps, and
climbing Mount Everest.
Persons Individuals whose reputations, Athletes, entertainers, physi-
skills, achievements, or public cians, lawyers, CEOs, consul-
images are marketed. tants, and Oprah Winfrey.
Places Geographic locations marketed Las Vegas, cities, states, regions,
to attract visitors, residents, in- countries, and tourism destina-
vestment, factories, or head- tions.
quarters.
Properties Intangible ownership rights in- Real estate, stocks, bonds, resi-
volving real or financial assets. dential property, and commercial
property.
Organizations Organizations that market their Universities, museums, corpo-
identities, reputations, missions, rations, nonprofit organizations,
and activities. and government entities.
Information
