Type
Solution Manual
Book Title
Marketing 5th Edition
ISBN 13
978-0077729028

978-0077729028 Chapter 1 Lecture Note

April 8, 2019
Chapter 1
Overview of Marketing
1.1.1.1.1.1.1.1 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
1.1.1.1.1.1.1.2 Brief Chapter Outline
What is Marketing?
Why is Marketing Important?
Summing Up
End of Chapter Learning Aids
Chapter Case Study: A Starbucks Juggernaut
1.1.1.1.1.1.1.3 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.
1.1.1.1.1.1.1.4 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 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.
1.1.1.1.1.1.1.5 Extended Chapter Outline With Teaching Tips
What Is Marketing? (PPT Slide 1-5, 6)
2 Marketing is about satisfying customer needs and wants. (PPT slide 1-7)
3 Marketing entails an exchange. (PPT slide 1-8)
4 Marketing requires product, price, place, and promotion decisions. (PPT
slide 1-9)
5 Product: Creating Value (PPT slide 1-10)
6 Price: Capturing Value (PPT slide 1-11)
7 Place: Delivering the Value Proposition (PPT slide 1-12)
8 Promotion: Communicating the Value Proposition (PPT slide 1-13)
9 Marketing can be performed by both individuals and organizations. (PPT
slide 1-15)
10 Marketing impacts various stakeholders. (PPT slide 1-16)
11 Marketing helps create value. (PPT slide 1-17)
Production-Oriented Era
12 Sales-Oriented Era
13 Market-Oriented Era
14 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,
2. Marketing is about satisfying _____ and _____.
Answer: Marketing is about satisfying needs and wants.
3. What are the four components of the marketing mix?
4. Who can perform marketing?
5. What are the various eras of marketing?
What Is Value-Based Marketing? (PPT Slide 1-20)
How Do Firms Become Value Driven? (PPT slide 1-22)
Sharing Information
15 Balancing Benefits with Costs
16 Building Relationships with Customers
17 Connecting with Customers Using Social and Mobile Media (PPT slide 1-25)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 1-24)
1 Does providing a good value mean selling at a low price?
6. How are marketers connecting with customers using social and mobile media?
Why Is Marketing Important? (PPT Slide 1-25)
Marketing expands firm’s global presence.
18 Marketing is pervasive across the supply chain. (PPT slide 1-26)
19 Marketing enriches society. (PPT slide 1-27)
20 Marketing can be entrepreneurial. (PPT slide 1-28)
Check Yourself: Several questions are offered for students to check their understanding of core
concepts. (PPT slide 1-29)
1 List five functions that illustrate the importance of marketing.
Answer: Exhibit 1.6 reveals the factors related to the importance of marketing. These
7. A firm doing the right thing emphasizes the importance of marketing to _____.

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