Chapter 01 -Introduction to Marketing Power Point

Chapter 1 – What is Marketing?

1.1 Defining Marketing

  • Learning Outcomes:

    • Define marketing and its 4 components.

    • Understand the 4P’s of marketing.

    • Explain differences between 4 components of marketing and 4P components.

    • Define value in marketing.

    • Identify distinctions among market-oriented, product-oriented, and selling-oriented companies.

1.2 What is Marketing?

  • Definition of Marketing: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that provide value for customers, clients, partners, and society.

Components of Marketing

  • Creating: Collaborating with suppliers and customers to develop valuable offerings.

  • Communicating: Describing the offerings and collecting feedback from customers.

  • Delivering: Ensuring that offerings reach the consumer while optimizing value.

  • Exchanging: Trading value for offerings.

1.3 The Four P’s of Marketing

  • Product: Represents goods and services offered.

  • Price: Monetary amount charged for the product.

  • Place: Distribution of the product to the point of purchase.

  • Promotion: The communication strategies used to inform or persuade customers.

1.4 Understanding Value

  • Value Characteristics:

    • Central to marketing activities: Creating, communicating, delivering, and exchanging.

    • Value is what customers gain through purchasing and using a company's offerings.

    • Customer-defined value:

      • Personal value equation: Value = Benefits Received - (Price + Hassle)

1.5 Marketing Philosophies/Orientations

  • Market-Oriented: Focus on satisfying customer wants and needs.

  • Product/Production Orientation: Emphasis on product innovation or efficient production.

  • Selling Orientation: Focus on aggressively selling through advertising and promotions.

  • Value/One-to-One/Service-Dominant Logic: Centers on providing value, blending tangible and intangible offerings.

Who Does Marketing?

  • For-Profit Organizations: Examples include McDonald's, Procter & Gamble, Walmart, Tim Hortons.

  • Non-Profit Organizations: Includes the Heart & Stroke Foundation and Diabetes awareness campaigns.

  • Social Marketing/Individuals: Marketing that aims to achieve specific objectives.

1.6 Why Study Marketing?

  • Benefits of Marketing:

    • Delivers value.

    • Contributes positively to society.

    • Involves costs.

    • Offers various career opportunities.

1.7 Potential Job Opportunities in Marketing

  • Roles include:

    • Marketing Research

    • Merchandising

    • Sales

    • Advertising

    • Product Development

    • Direct Marketing

    • Digital Media/Marketing

    • Event Marketing

    • Non-Profit Marketing

1.8 Marketing Planning

  • A marketing plan aligns with the strategic plan of a company and is influenced by:

    • Customer focus.

    • Environmental trends: social responsibility, sustainability, service-dominant logic.

    • Data availability and effective metrics.

    • Global market considerations.

  • Value Functionality: Value = Benefits Received consists of price paid and effort expended for purchases.