Marketing Notes
Chapter 1: Overview of Marketing
Marketing is the activity, set of institutions, and processes for creating, capturing, communicating, delivering,
and exchanging offerings that value for customers, clients, partners, and society at large
• Activity: doing something
• Institutions: companies, organizations, people
• Process for creating: multiple steps for making something
• Capturing: grabbing people’s attention, getting money
• Communicating: getting the word out
• Delivering: getting the things on the shelves
• Exchanging offerings: give something in return
Core Aspects of Marketing:
• Marketing helps create value
• Marketing is about satisfying customer needs and wants
• Marketing entails an exchange
• Marketing requires product, price, place, and promotion decisions
• Marketing can be performed by both individuals and organizations
• Marketing affects various stakeholders
Marketing Entails an exchange
Exchange: the trade of things of value between the buyer and the seller so that each is better off as a result
• Communications and delivery
• Customers/ consumers (buyers)
• Money and information
• Goods/ services producers (sellers)
➢ Each party to the exchange gives up something of value:
➢ The customer usually gives up money, however, sometimes they also give up time and
information.
➢ The firm gives up the good or service.
➢ The exchange in the end is mutually beneficial.
Marketing requires the 4 P’s
• Product
• Price
• Place
• Promotion Decisions
Product: Creating Value
The fundamental purpose of Marketing is to create value by developing a variety of offerings, including goods,
services, and ideas, to satisfy customer needs
➢ Goods: items that you can physically touch
➢ Services: intangible customer benefits that are produced by people or machines and cannot be
separated from the producer
➢ Ideas: include thoughts, opinions, and philosophies, and intellectual concepts which can be marketed
Price: Capturing Value
• Price is everything a buyer gives up (money, time, energy) in exchange for the product
• How much are customers willing to pay and can a profit can be made at the point?
• A good example of how price expresses value is the variations in price associated with air travel. The
prices can vary based on demand for the flight, timing, and destinations.
Place: Delivering the value Proposition
• Place, or supply chain management, describes all activities necessary to get the product to the right
customer when the customer wants it
• supply chain: the group of firms that make and deliver a given set of goods and services.
Promotion: Communicating the Value Proposition
• Promotion is communication by a marketer that informs, persuades, and reminds potential buyers
about a product or service so as to influence their opinions or elicit a response
• Even the best products and services will go unsold if marketers cannot communicate their value to
customers.
• Promotion generally can enhance a product’s or service’s value.
Marketing can be performed by individuals and organizations
• Manufacturer (makes monitors), Retailer (sells PCs & monitors), Consumer A, Consumer B
• This exhibit illustrates how the same product, a desktop computer, can be sold from firm to firm, from
firm to consumer, and then sold from consumer to consumer.
• Exp: esty.com
