Dr.

Maha Yusr
University Utara
Malaysia
Marketing Principles 101

Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Marketing in the Twenty-First Century

Chapter 1: Why Marketing Matters to You

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Learning Objectives
LO 1-1

Define marketing and describe a marketers role in creating,

communicating, and delivering value.

LO 1-2

Differentiate among the various eras in the history of marketing.

LO 1-3

Distinguish between consumer needs and consumer wants.

LO 1-4

Explain each of the four elements in the marketing mix.

LO 1-5

Discuss the importance of globalization in the field of marketing.

LO 1-6

Evaluate the potential benefits of corporate social responsibility.

LO 1-7

Demonstrate the relationship between ethical business practices

and marketplace success.

LO 1-8

Analyze the functions of marketing beyond the for-profit firm.

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Apple can charge higher prices than its competitors

without fear of losing sales because of the value
customers place on Apple products.

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Executive Perspective
Steve DeVore
Senior Vice President and General Manager
at Twin Oaks Integrated Marketing

Three components to his professional success: relationships, the

motivation to play up a level and hard work that leads to luck.
If you want to advance in your career, you must add value above and
beyond your job requirements.
His job is to improve the shopping experience of consumers and hes
also always marketing himself to our clients so they will want to work
with him.
His name is his brand and reflects what others think of when they hear
it someone who does the right thing, is passionate, and is positive.

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LO1-1 Value of Marketing

The

An organizational function that consists of three

components
Marketing
Creating value
Perceived benefits known as customer value

Communicating value
Delivering value

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Many of the most

successful firms in the
world, including CocaCola, Walmart, and UPS,
excel at managing their
supply chains efficiently
and have made delivering
value a competitive
advantage in their
industries.

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LO1-2
History
of Marketing

Production Orientation
Prior to the 1920s

Sales Orientation
Especially important during Great Depression

Marketing Concept
Era of expansion beginning in the 1950s
Continues to evolve
Relationship marketing

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History of Hersheys Marketing

Video

Click on the play button to watch

the video.

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Henry Fords production line innovation and success

manufacturing the Model A automobile represents perhaps
the height of the production orientation, during which firms
believed that quality products would sell themselves.

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Trends in News Consumption

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LO1-3
Needs
Versus Wants

Value is created when consumer wants and

needs are satisfied
Exchange
Needs
Wants

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Customers who purchase online from Amazon

exchange information like their e-mail address
and mobile phone numbers, which allows
marketers to target them for a future exchange
when new products are released.

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Most people need

transportation of one
kind or another; its
marketings job to
satisfy that need in a
way that also meets the
customers wants,
perhaps for a luxury car.

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LO1-4

The Marketing Mix: The Four

Ps

PRICE

PRODUCT

PLACE

PROMOTIO
N

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The Marketing Mix and Decisions That Affect It

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Marketing Mix at Volkswagen

Video

Click on the play button to watch

the video.

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New technology like smartphone barcode

scanners makes pricing a more complicated and
influential component of the marketing mix
because consumers can quickly compare prices
from firm to firm and from store to store.

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LO1-5

Trends Affecting Marketing

Global Marketing
Global forces impact every marketing decision
One in every nine jobs in U.S. is supported by exports
In 2012, U.S. exports worth more than $2 trillion
U.S. worlds leading exporter of beef, wheat, corn, and

copyrighted material
Exports account for 14% of total U.S. economy

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Coca-Cola has demonstrated a commitment to

using each of the four Psproduct, price, place,
and promotionto drive global success.

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LO1-6

Trends Affecting Marketing

Less than 5% of world population lives in

United States
Global marketing
Brand

Greater demand on companies

Corporate social responsibility
Stakeholder responsibility

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Stakeholders Impacted by a Firms Commitment

to Corporate Social Responsibility

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Firms like Disney and Nestl that consistently issue CSR

reports and publicize CSR initiatives take great pride in
ranking among the most admired companies in the world.

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LO1-7

Trends Affecting Marketing

Ethics in Marketing
Marketers must understand the norms and values
expected of them
Relationship between ethical business practices and
marketplace success
Enron ignored the ethical code
Ethics

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Profitability Comparison of the Worlds Most Ethical

Companies and the S&P 500 Index

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Ethical
Decision-Making
Framework

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1-29

LO1-8
Marketing
for Nonprofit Organizations

Nonprofits employ about one in ten American

workers

St. Jude
Childrens
Research
Hospital

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Importance of Marketing to St. Jude

Video

Click on the play button to watch

the video.

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Todays Professional
Lance Gooch
Account Manager, Memphis Grizzlies

Volunteered to get his foot-in-the-door at

a potential employer.
Developed a relationship with a professor who was a big
sports fan and a group leader with the Grizzlies.
Professional success has come from caring about clients.
Advice to graduates: whatever you want to do, work hard to
achieve it.
His personal brand: leadership

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1-33

Marketing Is Everywhere
Featuring Twin Oaks Video

Click on the play button to watch

the video.

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1. Identify a firm that you think effectively markets its goods,

services, or ideas and describe how the firm creates,
communicates, and delivers value.
2. Reflect on the evolution of marketing over the past century
and describe three major changes that you think will impact
the field of marketing over the next decade.
3. Ask five people you know to list their needs and wants. Are
their lists accurate reflections of the definition of each? Are
there any differences due to age or gender?

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4. Illustrate each step of the ethical decision-making framework

by examining whether the state you live in should use a
lottery to help pay for part of your college tuition. What are
the ethical issues? Who are the relevant stakeholders? How
are those stakeholders affected by potential outcomes? What
decision would you make?
5. Describe three examples of promotion that caught your
attention in your hometown. Why do you think each worked
so well?

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1. Why does marketing matter to an organization?

2. How has marketing changed throughout the past
century?

FORECAST

3. What is the difference between needs and wants?

4. What things can I do to influence consumer demand
for my product?
5. How does globalization impact marketing activities?
6. Why is it important to be a good corporate citizen?
7. Why are ethical business practices so important to
marketing?
8. How do nonprofit organizations market themselves?
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Key Terms
Brand
The name, term, symbol, design, or any combination of
these that identifies and differentiates a firms product.
Retur
Corporate social responsibility
n to
An organizations obligation to maximize its positive slide
impact and minimize its negative impact on society.
Retur
Customer value
n to
slide
The perceived benefits, both monetary and nonmonetary,
that customers receive from a product compared to the
cost associated with obtaining it.
Retur
n to
slide

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Key Terms
Ethics
Moral standards expected by a society.
Retur
n to
Exchange
slide
An activity that occurs when a buyer and seller trade things of
Retur
value so that each is better off as a result.
n to
Global marketing
slide
A marketing strategy that consciously addresses customers,
markets, and competition throughout the world.
Retur
n to
Marketing
slide
An organizational function and set of processes for creating,
communicating, and delivering value to customers and
managing customer relationships in ways that benefit the
organization and its employees, customers, investors, andRetur
society as a whole.
n to
slide
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Key Terms
Marketing concept
A marketing strategy that reflects the ideas that a firms
long-term success must include a company-wide effort to
Retur
satisfy customer needs.
n to
Needs
slide

States of felt deprivation. Consumers feel deprived

when they lack something useful or desirable like food,
Retur
clothing, shelter, transportation, and safety.
n to
slide
Production orientation
A marketing strategy in which the firm focused on efficient
processes and production to create quality products and
Retur
reduce unit costs.
n to
slide
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Key Terms
Relationship marketing
A marketing strategy that focuses on attracting, maintaining, and
Retur
enhancing customer relationships.
Sales orientation

n to
slide

A marketing strategy in which personal selling and advertising

are used to persuade consumers to buy new products and more
Retur
of existing products.
Stakeholder responsibility

n to
slide

The obligations an organization has to those who can affect

Retur
whether or not the firm achieves its objectives.
n to
Wants
The form of human needs take as they are shaped by
personality, culture, and buying situation.

slide
Retur
n to
slide
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