8uAu 307 ChapLer 1 Cvervlew of MarkeLlng

What |s Market|ng?
Market|ng acLlvlLy seL of lnsLlLuLlons and Lhe processes fro creaLlng capLurlng
communlcaLlng dellverlng and exchanglng offerlngs LhaL have value for cusLomers cllenLs
parLners and socleLy aL large
Market|ng p|an speclfles markeLlng acLlvlLles for a speclflc perlod of Llme
4 ow Lhe producL or servlce wlll be concelved or deslgned
4 ow musL lL should cosL
4 Jhere and how lL wlll be promoLed
4 ow lL wlll geL Lo Lhe consumer
Core AspecLs of MarkeLlng
MarkeLlng ls abouL SaLlsfylng CusLomer needs and JanLs
4 MarkeLplace can be segmenLed lnLo groups of people who are perLlnenL Lo an
organlzaLlon for parLlcular reasons
4 8ulld markeL sLraLegy LhaL LargeLs a group
MarkeL LnLalls an Lxchange
4 nhange Lrade of Lhlngs of value beLween Lhe buyer and Lhe seller so LhaL each ls
beLLer of as a resulL
MarkeLlng 8equlres roducL rlce lace and romoLlon ueclslons
4 Market|ng m| or four s producL prlce place and promoLlon
4 roducL creaLlng value
CreaLe value by developlng a varleLy of offerlngs lncludlng goods servlces and
ldeas Lo saLlsfy cusLomer needs
oods lLems LhaL you can physlcally Louch
O 8rand name adds value Lo goods
erv|nes lnLanglble cusLomer beneflLs LhaL are produced by people or machlnes
and cannoL be separaLed from Lhe producer
deas LhoughLs oplnlons and phllosophles and lnLellecLual concepLs
4 rlce capLurlng value
rlce ls everyLhlng Lhe buyer glves up money Llme energy ln exchange for Lhe
producL
ueLermlne how much cusLomers are wllllng Lo pay so LhaL Lhey are saLlsfled
wlLh Lhe purchase and Lhe seller achleves a reasonable proflL
4 lace dellverlng Lhe value proposlLlon
8epresenLs all Lhe acLlvlLles Lo geL Lhe producL Lo Lhe rlghL cusLomer when Lhe
cusLomer wanLs lL
Supply chaln managemenL seL of approaches and Lechnlques LhaL flrms employ
Lo efflclenLly and effecLlvely lnLegraLe Lhelr suppllers manufacLurers
warehouses sLores and oLher flrms lnvolved ln Lhe LransacLlon lnLo a seamless
value chaln ln whlch merchandlse ls produced and dlsLrlbuLed ln Lhe rlghL
quanLlLles Lo Lhe rlghL locaLlons and aL Lhe rlghL Llme whlle mlnlmlzlng
sysLemwlde cosLs and saLlsfylng Lhe servlce levels requlred by Lhe cusLomers

4 romoLlon communlcaLlng Lhe value proposlLlon
CommunlcaLlon by a markeLer LhaL lnforms persuades and remlnds poLenLlal
buyers abouL a producL or servlce Lo lnfluence Lhelr oplnlons and ellclL a
response
MarkeLlng can be erformed by 8oLh lndlvlduals and CrganlzaLlons
(us|ness to nonsumer) market|ng process by whlch buslness sell Lo consumers
(bus|ness to bus|ness) market|ng process of selllng merchandlse or servlces from one
buslness Lo anoLher
(nonsumer to nonsumer) market|ng consumers sell Lo oLher consumers
lndlvlduals can markeL Lhemselves
4 Applylng for a [ob you do research creaLe a resume and cover leLLer eLc
MarkeLlng lmpacLs varlous SLakeholders
MarkeLlng lmpacLs several oLher sLakeholders such as parLners ln Lhe supply chaln employees
and socleLy aL large
8eLallers ofLen have Lo convlnce manufacLurers Lo sell Lo Lhem
ualry lndusLry's CoL Mllk" slogan has creaLed hlgh levels of awareness abouL Lhe beneflLs of
drlnklng mllk and lncrease mllk consumpLlon
MarkeLlng elps CreaLe value
ow has markeLlng evolved lnLo lLs presenL day lnLegral buslness funcLlon of creaLlng value?
roducLlon orlenLed era
4 @urn of Lhe 20
Lh
cenLury flrms were producLlon orlenLed and belleved a good producL
would sell lLself
4 Concerned wlLh producL lnnovaLlon and noL wlLh saLlsfylng needs of lndlvldual
cusLomers
Sales orlenLed era
4 19201930 CreaL uepresslon and JJll condlLloned cusLomers Lo consume less or
manufacLure lLems Lhemselves
4 lrms overproduced and began dependlng on heavy doses of personal selllng and
adverLlslng
MarkeL orlenLed era
4 ManufacLurers Lurned from focuslng on Lhe war efforL Loward consumer producLs
4 Consumers have cholces based on facLors such as quallLy convenlence and prlce and
Lhus reLallers Lhus began Lo focus on whaL consumers wanLed and needed
4 lrms dlscovered markeLlng
value based markeLlng era
4 Clve cusLomers greaLer value Lhan Lhelr compeLlLors dld
4 Ia|ue reflecLs Lhe relaLlonshlp of beneflLs Lo cosLs or whaL Lhe consumer geLs for whaL
he or she glves
4 Challenge for flrms ls flndlng ouL whaL consumers are looklng for and aLLempLlng Lo
provlde Lhose very goods and servlces and sLlll make a proflL
4 Ia|ue nonreat|on meLhod of provldlng addlLlonal value by offerlng Lhe opporLunlLy for
consumers Lo acL as collaboraLors ln creaLlng Lhe producL or servlce

What |s Ia|ue ased Market|ng?
CusLomers seek opLlons LhaL provlde Lhe greaLesL beneflLs aL Lhe lowesL cosLs
MarkeLlng flrms aLLempL Lo flnd Lhe mosL deslrable balance beLween provldlng beneflLs Lo
cusLomers and keeplng Lhelr own cosLs down
ow lrms CompeLe on Lhe 8asls of value
AbouL decldlng whlch producLs/ servlces Lo provlde for whom
Cood value can be due Lo low prlces or good quallLy dependlng on Lhe cusLomer
ow uo lrms 8ecome value urlven?
Share lnformaLlon abouL cusLomers and compeLlLors across Lhelr own organlzaLlon and wlLh
oLher flrms LhaL help Lhem ln geLLlng Lhe producL or servlce Lo markeLplace
4 lnformaLlon can be used Lo forecasL sales and allocaLe approprlaLe merchandlse Lo
lndlvldual sLores
SLrlve Lo balance Lhelr cusLomers' beneflLs and cosLs
ConcenLraLe on bulldlng relaLlonshlps wlLh cusLomers
4 @ransant|ona| or|entat|on regards Lhe buyer seller relaLlonshlp as a serles of lndlvldual
LransacLlons so anyLhlng LhaL happened before or afLer Lhe LransacLlon ls of llLLle
lmporLance
4 e|at|ona| or|entat|on meLhod of bulldlng a relaLlonshlp wlLh cusLomers based on Lhe
phllosophy LhaL buyers and sellers should develop a long Lerm relaLlonshlp
4 ustomer re|at|onsh|p management (M) buslness phllosophy and seL of sLraLegles
programs and sysLems LhaL focus on ldenLlfylng and bulldlng loyalLy among Lhe flrm's
mosL valued cusLomers
use lnformaLlon Lo gargeL besL cusLomers wlLh producLs servlces and speclal
promoLlons LhaL appear mosL lmporLanL Lo Lhose cusLomers
What |s Market|ng mportant?
MarkeLlng advlses producLlon abouL how much of Lhe company's producL Lo make and Lhen Lells
loglsLlcs when Lo shlp lL
CreaLes long lasLlng muLual valuable relaLlonshlp beLween Lhe company and Lhe flrms from
whlch lL buys
MarkeLlng expands a flrm's global presence
Makes lL easy for consumers Lo learn abouL new producLs and servlces
MarkeLlng ls ervaslve across Lhe CrganlzaLlon
ln value based markeLlng flrms markeLlng deparLmenL works wlLh oLher funcLlonal areas of Lhe
company Lo deslgn promoLe prlce and dlsLrlbuLe producLs
MarkeLlng ls responslble for coordlnaLlng aspecLs of supply and demand
MarkeLlng ls ervaslve across Lhe Supply Chaln
lrms do noL work ln lsolaLlon flrms work wlLh manufacLurers suppllers and oLher buslnesses
upp|y nha|n group of flrms LhaL make and dellver a glven seL of goods and servlces
Some flrms have a LransacLlonal orlenLaLlon and are ouL for Lhelr own besL lnLeresLs buL bulldlng
a long Lerm relaLlonshlps wlLh oLher flrms lmpacLs a flrm's ablllLy Lo saLlsfy Lhe consumer
MarkeLlng Makes Llfe Lasler and rovldes LmploymenL CpporLunlLles
MarkeLlng provldes consumers wlLh
4 roducL and servlces
4 rlce LhaL makes Lhe consumer comforLable
4 8easonable guaranLee and reLurn pollcles
4 leasanL and convenlenL places for consumers Lo shop
Cffers a hosL of employmenL opporLunlLles
4 CreaLlve slde arLlsLs graphlc deslgners volce LalenLs anlmaLors muslc composers and
wrlLers
4 AnalyLlcal slde markeL researchers lnvenLory managers
4 8uslness arena sLraLeglsLs pro[ecL/ producL manager sale assoclaLes and analysLs
MarkeLlng Lnrlches SocleLy
CorporaLlons encourage Lhelr employees Lo parLlclpaLe ln acLlvlLles LhaL beneflL Lhelr
communlLles and lnvesL heavlly ln soclally responslble acLlvlLles and charlLles
MarkeLlng Can 8e enLrepreneurlal
MarkeLlng ls Lhe cenLer of success for new venLures
LnLrepreneurs have a vlslon abouL how cerLaln comblnaLlon of producLs and servlces could
saLlsfy unfllled needs All undersLood Lhe markeLlng opporLunlLy conducLed a Lhorough
examlnaLlon of Lhe markeLplace and developed and communlcaLed Lhe value of Lhelr producL
and servlces Lo poLenLlal consumers