Chapter 1 - Overview of Marketing Marketing 5th
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: A Starbucks Juggernaut
Learning Objectives
LO1 Define the role of marketing in organizations.
LO2 Describe how marketers create value for a product or service.
LO3 Understand why marketing is important, both within and outside the firm.
Chapter Overview (“Summing Up”)
LO1 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
© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1
, Chapter 1 - Overview of Marketing Marketing 5th
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.
LO2 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.
LO3 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)
D. Product: Creating Value (PPT slide 1-10)
© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
2
, Chapter 1 - Overview of Marketing Marketing 5th
E. Price: Capturing Value (PPT slide 1-11)
F. Place: Delivering the Value Proposition (PPT slide 1-12)
G. Promotion: Communicating the Value Proposition (PPT slide 1-13)
H. Marketing can be performed by both individuals and organizations. (PPT slide 1-
15)
I. Marketing impacts various stakeholders. (PPT slide 1-16)
J. Marketing helps create value. (PPT slide 1-17)
1. Production-Oriented Era
B. Sales-Oriented Era
C. Market-Oriented Era
D. Value-Based Marketing Era
Check Yourself: Several questions are offered for students to check their understanding
of core concepts. (PPT slide 1-19)
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.
5. What are the various eras of marketing?
Answer: The eras of marketing include the production era, sales era, market era,
and value-based era.
II. What Is Value-Based Marketing? (PPT Slide 1-20)
A. How Do Firms Become Value Driven? (PPT slide 1-22)
1. Sharing Information
© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
3
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: A Starbucks Juggernaut
Learning Objectives
LO1 Define the role of marketing in organizations.
LO2 Describe how marketers create value for a product or service.
LO3 Understand why marketing is important, both within and outside the firm.
Chapter Overview (“Summing Up”)
LO1 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
© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1
, Chapter 1 - Overview of Marketing Marketing 5th
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.
LO2 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.
LO3 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)
D. Product: Creating Value (PPT slide 1-10)
© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
2
, Chapter 1 - Overview of Marketing Marketing 5th
E. Price: Capturing Value (PPT slide 1-11)
F. Place: Delivering the Value Proposition (PPT slide 1-12)
G. Promotion: Communicating the Value Proposition (PPT slide 1-13)
H. Marketing can be performed by both individuals and organizations. (PPT slide 1-
15)
I. Marketing impacts various stakeholders. (PPT slide 1-16)
J. Marketing helps create value. (PPT slide 1-17)
1. Production-Oriented Era
B. Sales-Oriented Era
C. Market-Oriented Era
D. Value-Based Marketing Era
Check Yourself: Several questions are offered for students to check their understanding
of core concepts. (PPT slide 1-19)
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.
5. What are the various eras of marketing?
Answer: The eras of marketing include the production era, sales era, market era,
and value-based era.
II. What Is Value-Based Marketing? (PPT Slide 1-20)
A. How Do Firms Become Value Driven? (PPT slide 1-22)
1. Sharing Information
© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
3
