chapter 1

• Marketing - the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
• 4 Activities of Marketing: Creating, Communicating, Delivering, Exchanging
• Creating - process of collaborating with suppliers and customers to create offerings that have value.
• Communicating - describing those offering
• Exchanging - trading value for those offerings.
• Delivering - getting those offerings to the consumer in a way that optimizes value
• Product - the goods and services
• 4Ps: Product, Promotion, Place, Price
• Promotion - communication
• Place - the point at which customer can purchase it
• Price - monetary amount charged for the product
• Value - center of everything marketing does
• Value = Benefits received - (price + hassle)
• Hassle - the time and effort the consumer puts into shopping process
• Marketing concept - requires that marketers seek to satisfy customer wants and needs
• Market Orientation - recognize that exchange must be profitable for the company to be successful
• Production orientation - Industrial revolution, 1800s
• Production Orientation - the best way to compete was by reducing production costs. Good products would sell themselves.
• Selling Orientation - 1920s to WW2, it was necessary to push their products by heavily emphasizing advertising and selling.
• Product Orientation - focused on product innovation
• Value era - time when companies emphasize creating value for customers
• One-to-one era - the way to compete is to build relationships with customers one at a time and seek to serve customer's need individually.
• Service-dominant logic era/Service-dominant logic - an approach to business that recognizes that consumers want value no matter how it is delivered.
• Creating Offerings that have value - marketing creates those goods and services that the company offers at a price to its customers
• Communicating Offerings - describing the offering and its value to your potential and current customers.
• Delivering Offerings - making sure that the user understands how to get the most out of the product and is taken care of if he or she requires service later.
• Supply Chain - includes a number of organizations and functions that mine, make, assemble, or deliver materials and products from a manufacturer to customers.
• Logistics - actual transportation and storage of materials and products; primary component of supply chain management.
• Exchanging offerings - transaction between seller and buyer
• For-profit companies - aims to gain monetary benefits by marketing their products and services
• B2C - Business-to-consumer = Businesses sell to customers (end user)
• B2B - business-to-business = businesses offer their services/products to another company
• Marketing by the functions they fulfill: manufacturer, retailers, wholesaler
• Nonprofit Organizations - use marketing to speak for certain causes
• Individuals - use marketing to create value and sell oneself
• Marketing Enables Profitable Transactions to Occur - makes buy-and-sell transactions possible
• Marketing delivers value - delivers value to customers and that value translates into the value of the firm
• Marketing Benefits Society - marketing improves people's lives. Trading and opens job offerings to name a few.
• Marketing costs money - companies allocate large budget for marketing; at least 1/3 of its price.
• Marketing offers people career opportunities - marketing-related professions