Definition Misconception: Many people mistakenly equate marketing solely with sales and advertising.
Advertising is just one part of marketing (1/4 of marketing, under the 4 Ps).
Marketing involves much more than just advertising.
Definition of Marketing
Core Definition: Marketing is the activity, set of institutions, and processes for creating, capturing, delivering, and communicating value for customers and exchanging value with stakeholders.
Stakeholders: Include the company, business partners, consumers (both businesses and individuals), and society at large.
Marketing's Broader Scope
Value Creation: Goal is to provide value to stakeholders without the primary aim of selling.
Focus on capturing, communicating, delivering, and exchanging value.
Types of Marketing
Performed By:
Individuals or Organizations: Marketing activities can occur at both levels.
B2B (Business to Business): Example, Procter and Gamble selling Tide to Walmart.
B2C (Business to Consumer): Example, a consumer purchasing Tide from Walmart.
C2C (Consumer to Consumer): Example, selling an extra Tide to a neighbor.
Stakeholders in Marketing
Different Stakeholders: Marketing impacts various stakeholders, including:
Business partners (e.g., suppliers of packaging).
The company (e.g., Procter and Gamble producing Tide).
The environment (e.g., impact of packaging).
Consumers (e.g., buyers of the product).
Example: Procter and Gamble's initiative on refillable versus one-use containers.
Customer Needs and Wants
Satisfying Needs: Marketing focuses on meeting consumer needs and wants.
Importance of creating satisfaction, not forcing purchases.
Satisfied customers likely to return; unsatisfied ones may share negative experiences.
Marketing and Exchange
Exchange Concept: Usually involves a transaction, but not always monetary.
Example: Trading favors, like giving a textbook in exchange for a future favor.
Non-monetary exchanges still hold value (e.g., bartering, social favors).
The Four Ps
The upcoming section will cover the Four Ps essential in creating customer value.