Marketing：Real People, Real Decisions.doc

Marketing：Real People, Real Decisions The World of Marketing Chapter 1 Lecture Slides Solomon, Stuart, Carson, amp; Smith Your name here Course title/number Date Chapter Learning Objectives When you have completed your study of this chapter, you should be able to: Define the marketing concept3. Define the objective of marketing. Understand the basics of marketing planning. Describe the evolution of the marketing concept. Explain how marketing is important to both individual and business customers in the market place, in our daily lives, and in society. Explain marketing’s role within an organization. Introduction to the Topic What is marketing? Is is advertising? Sales? Going to the grocery store? It is a functional area within a business, but what does it do? A useful definition from the American Marketing Association: Marketing: the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. Note the many component parts (including the 4 P’s) to this definition, which will all be discussed in good time. Needs versus Wants Marketing attempts to satisfy the needs of consumers. Consumer: the ultimate user of a good or service Could be an individual, business, or organization Need: recognition of any difference between a consumer’s actual state and some ideal or desired state. Want: the desire to satisfy needs in specific ways that are culturally and socially influenced. Why is the difference between these two relevant to marketers? If consumers must learn how to satisfy needs, then they can be influenced in the process. Exchange of Value If marketing is all about exchanges of value, what is value? Customer value: what the customer gets in the purchase, use, and ownership of a product relative to the costs and sacrifices incurred. Exchange: the process by which some transfer of value occurs between a buyer and seller. Most exchanges ar