Chapter 1 - What is Marketing?

Why does marketing cost so much? Is marketing worth it?

When marketing results in more informed consumers receiving a greater amount of value, then the cost is justified

What is the relationship between social responsibility, sustainability, service-dominant logic, and the global business environment? How does the concept of metrics fit?

A marketing plan is influenced by these themes. Technology has increased the amount of information available to decision makers. Using data from many sources, we can build more effective metrics that can then be used to create better offerings, better communication plans, and so forth.

What can individuals do for themselves that would be considered marketing?

Creating a resume, selling themselves in an interview, working for a wage (exchange value for pay)

What types of companies engage in marketing?

For-Profit Companies

Why study marketing?

Marketing Enables Profitable Transactions to Occur, Marketing Delivers Value and Marketing Offers People Career Opportunities

How does marketing provide value?

Marketing delivers value to both the customer and the company as it develops a reliable customer base and increases its sales and profitability

Why does everything start with customers? Or is it only marketing that starts with customers?

Most organizations start with an idea of how to serve customers better. Many companies think about potential markets and customers when they start.

What is the difference between nonprofit marketing and social marketing?

Nonprofit marketing is marketing activities conducted to meet the goals of nonprofit organizations and social marketing is conducted in an effort to achieve social change

What are the key parts of a marketing plan?

The essential components of the plan are understanding customers, creating an offering that delivers value, communicating the value to the customer, exchanging with the customer, and evaluating the firm's performance.

What is the marketing mix?

The four P's (product, price, promotion, place)

How has marketing changed from the four Ps approach to the more current value-based perspective?

The four P's fail to capture all the activities of marketing. Also, none of the four Ps describes particularly well what marketing people do

What is the personal value equation?

Value = Benefits received − [Price + Hassle]