Chapter 1
Overview of Marketing
TOOLS FOR INSTRUCTORS
• Brief Chapter Outline
• Learning Objectives
• Chapter Overview (“Summing Up”)
• Extended Chapter Outline with Teaching Tips
o Topics, key terms, and boxed inserts referenced to PPT slide
• PowerPoint Slides with Teaching Notes
• Answers to End of Chapter Learning Aids
• Chapter Case Study
• Additional Teaching Tips
BRIEF CHAPTER OUTLINE
What is Marketing?
What is Value-Based Marketing?
Why is Marketing Important?
Summing Up
End of Chapter Learning Aids
Chapter Case Study: iPad Launch
,LEARNING OBJECTIVES
LO1 Define the role of marketing in organizations.
LO2 List the elements of the marketing mix.
LO3 Describe how marketers create value for a product or service.
LO4 Understand why marketing is important, both within and outside the firm.
,CHAPTER OVERVIEW (“SUMMING UP”)
What is the role of marketing in organizations?
In definition form, “Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer relationships in
ways that benefit the organization and its stakeholders.” 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.
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.
How do 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 a move doesn’t increase benefits or reduce costs, it probably shouldn’t occur. Marketers also
have found that providing good value is one of the best ways to maintain a sustainable advantage
over their competitors. 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 the
right balance between benefits and costs—not too little, not too much. Finally, 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.
Why is marketing important both within and outside the firm?
, The marketing function is important both within and outside the firm. Many brands and stores now
appear in multiple countries, which complicates the challenge for marketers. 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.
Marketing also helps facilitate the smooth flow of goods through the supply chain, all the way from
raw materials to the consumer. From a
Overview of Marketing
TOOLS FOR INSTRUCTORS
• Brief Chapter Outline
• Learning Objectives
• Chapter Overview (“Summing Up”)
• Extended Chapter Outline with Teaching Tips
o Topics, key terms, and boxed inserts referenced to PPT slide
• PowerPoint Slides with Teaching Notes
• Answers to End of Chapter Learning Aids
• Chapter Case Study
• Additional Teaching Tips
BRIEF CHAPTER OUTLINE
What is Marketing?
What is Value-Based Marketing?
Why is Marketing Important?
Summing Up
End of Chapter Learning Aids
Chapter Case Study: iPad Launch
,LEARNING OBJECTIVES
LO1 Define the role of marketing in organizations.
LO2 List the elements of the marketing mix.
LO3 Describe how marketers create value for a product or service.
LO4 Understand why marketing is important, both within and outside the firm.
,CHAPTER OVERVIEW (“SUMMING UP”)
What is the role of marketing in organizations?
In definition form, “Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer relationships in
ways that benefit the organization and its stakeholders.” 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.
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.
How do 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 a move doesn’t increase benefits or reduce costs, it probably shouldn’t occur. Marketers also
have found that providing good value is one of the best ways to maintain a sustainable advantage
over their competitors. 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 the
right balance between benefits and costs—not too little, not too much. Finally, 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.
Why is marketing important both within and outside the firm?
, The marketing function is important both within and outside the firm. Many brands and stores now
appear in multiple countries, which complicates the challenge for marketers. 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.
Marketing also helps facilitate the smooth flow of goods through the supply chain, all the way from
raw materials to the consumer. From a
