Marketing Chapter 1 Exam 1

The 4 P’s of Marketing


Purpose: Of marketing is to create value by offering goods, services, and ideas to satisfy customer needs


Price: Is everything a buyer gives up (money, time, energy) in exchange for the product or service

  • Note: You’re not only paying for the product or service, you are also paying for the convenience

  • Note: Determining the value/price

    • Only worth what people are willing to pay

    • Based on demand, quality, quantity, popularity, etc.

Place: Represents all the marketing processes necessary to get the product to the right customer when the customer wants it

  • Note: In-store, Online, etc.

  • Note: Deals with retailing and marketing channel management, also known as supply chain management

Promotion: Communication by a marketer that informs, persuades, and reminds potential buyers about a product or service to influence their buying decisions and elicit a response

  • Note: Samples, Creative Packaging, Loyalty Programs, etc.


Marketing can be Performed by Individuals and Organizations:

  • Business to Consumer (B2C)

    • Insurance sales, etc.

  • Business to Business (B2B)

    • Suppliers, etc.

  • Consumer to Consumer (C2C)

    • Selling a textbook to a classmate, etc.


Marketing Affects various Stakeholders:

  • Customers

  • Supply Chain Partners

  • Employees

  • Industry

  • Society 

  • Note: These all need to be considered when creating a Marketing Scheme


Value-Based Marketing Era:


Value: Reflects the relationship of benefits to costs, or what you get for what you give. Marketers use relational orientation and customer relationship management (CRM) to build value.

  • Note: Focused on building and maintaining strong relationships with customers through data-driven interactions across the entire customer lifecycle, utilizing tools and software to manage customer information, interactions, and sales processes to ultimately increase customer loyalty and profitability

  • Note: Understanding customer needs and tailoring marketing efforts to meet them effectively. 

  • Note: CRM’s allow marketers to discover people's shopping trends to create marketing schemes directed towards demographics of certain shoppers. 








How does marketing create value? How do firms become more value driven?

  • Build relationships with customers

    • Data Analytics

  • Gather and analyze information

    • Use of CRM’s

  • Engage in social and mobile marketing

    • Apps

  • Address ethical and societal dilemmas 

    • Usually damages the brand


Marketing Analytics:

  • Note: Modern marketers rely on sophisticated data analytics to refine their approaches 

  • Note: Kroger collects massive amounts of data about how, when, why, where, and what people buy and then analyzes those data to better serve its customers


Social and Mobile Marketing:


Mobile advertising near $400 billion


Mobile Marketing: Any type of marketing activity that’s optimized for mobile devices

  • Push Notifications

  • Apps

  • Pop-up Forms






Mobile Campaign Example:

  • Burger King “Burn That Ad”

Smartphone users could download the Burger King app and utilize its Augmented Reality (AR) scanner to find and virtually “burn” their competitors advertisements earning themselves a free Whopper in the process