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Chapter 1 - Overview of Marketing Marketing 6th
Chapter 1
Overview of Marketing
Tools for Instructors
Brief Chapter Outline
Learning Objectives
Extended Chapter Outline with Teaching Tips
Answers to End of Chapter Learning Aids
Chapter Case Study
Additional Teaching Tips
Connect Activities
Brief Chapter Outline
What Is Marketing?
Why Is Marketing Important?
End of Chapter Learning Aids
Chapter Case Study: From Beans to Pralines: The Global Chocolate Market
Learning Objectives
LO1-1 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.
LO1-2 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.
LO1-3 Understand why marketing is important, both within and outside the firm.
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McGraw-Hill Education. 1
Chapter 1 - Overview of Marketing Marketing 6th
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.
Extended Chapter Outline with Teaching Tips
I. What Is Marketing?
A. Marketing Is About Satisfying Customer Needs and Wants
B. Marketing Entails an Exchange
C. Marketing Requires Product, Price, Place, and Promotion Decisions
1. Product: Creating Value
2. Price: Capturing Value
3. Place: Delivering the Value Proposition
4. Promotion: Communicating the Value Proposition
D. Marketing Can Be Performed by Individuals and Organizations
E. Marketing Affects Various Stakeholders
F. Marketing Helps Create Value
1. Production-Oriented Era
2. Sales-Oriented Era
3. Market-Oriented Era
4. Value-Based Marketing Era
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1. What is the definition of marketing?
Answer: 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
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education. 2
Chapter 1 - Overview of Marketing Marketing 6th
2. Marketing is about satisfying _____ and _____.
Answer: Marketing is about satisfying needs and wants.
3. What are the four components of the marketing mix?
Answer: The four components of the marketing mix are product, place, price, and promotion.
4. Who can perform marketing?
Answer: Both individuals and organizations can perform marketing as marketing can entail B2C,
B2B, and C2C.
5. What are the various eras of marketing?
Answer: The eras of marketing include the production era, sales era, market era, and
value-based era.
G. How Do Marketing Firms Become More Value Driven?
1. Marketing Analytics
1. Balancing Benefits with Costs
2. Building Relationships with Customers
3. Connecting with Customers Using Social and Mobile Media
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
1 Does providing a good value mean selling at a low price?
Answer: Value-based marketing isn’t just about low price; it is also about creating strong products
and services.
6. How are marketers connecting with customers using social and mobile media?
Answer: Marketers are steadily embracing new technologies, such as social and mobile media, to
allow them to connect better with their customers and thereby serve their needs.
II. Why Is Marketing Important?
A Marketing Expands Firms’ Global Presence
A. Marketing Is Pervasive across Marketing Channel Members
B. Marketing Enriches Society
C. Marketing Can Be Entrepreneurial
Progress Check: Several questions are offered for students to check their understanding of core
concepts.
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education. 3
Chapter 1 - Overview of Marketing Marketing 6th
1 List four functions that illustrate the importance of marketing.
Answer: Exhibit 1.6 reveals the factors related to the importance of marketing. These include
expanding global presence, stretching throughout the organization, working throughout the supply
chain, making life easier, and enriching society.
7. A firm doing the right thing emphasizes the importance of marketing to _____.
Answer: A firm doing the right thing emphasizes the importance of marketing to society.
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education. 4
