Marketing 1

Marketing – an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
• Creating value o Production-Oriented Era – manufacturers were more concerned with product innovation, not with satisfying the needs of individual consumers and retail stores were considered places to hold the merchandise until a consumer wanted it o Sale-Oriented Era – overproduction led to heavy doses of personal selling and advertising o Market-Oriented Era – manufacturers began to focus on consumer wants and needs before they designed, made, or attempted to sell their products and services o Value-Based Marketing Era – give customers greater value than competitors, beyond just meeting the needs and wants of consumers
• Value – reflects the relationship of benefits to cost or what you get for what you give
• Value Co-creation – method of providing additional value to customers by allowing them the opportunity to act as collaborators in creating the product or service
• About satisfying customer needs and wants o Marketplace needs to be segmented or divided into groups so that the organization can target specific groups
• Entails an exchange o Exchange – the trade of things of value between the buyer and the seller so that each is better off as a result o Sellers provide products or services then communicate and facilitate the delivery of their offering to consumers o Buyers complete the exchange by giving money and information to the seller
• Requires product, price, place, and promotion decisions o Product – creating value by developing a variety of offerings, including goods, services, and ideas, to satisfy customer needs o Price – capturing value; everything the buyer gives up (money, time, energy)