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.
188.8.131.52.184.108.40.206 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