Transcript for:
Understanding Marketing Concepts and Definitions

okay let's talk a little bit about what marketing is and what the foundation of marketing is okay so first let's take a look at this definition that I have here and it's in your PowerPoint that I've shared with you about marketing you'll notice first of all nowhere in there does it say I'm going to make someone buy something I'm going to sell something to someone I'm going to do advertisements at all uh one of the Prime myth or fallacies around marketing is that all we are is either sales or advertising and it's interesting because professional selling and advertising are part of one p of marketing uh so it's 1/4th of marketing but because advertising is the most visible component of marketing to the average consumer they think marketing is advertising so the good thing is during this semester you'll figure out that marketing is so much more than advertising I think you'll actually be surprised at how much more it is but let's take a look at this definition okay and I I'll read it but you know you don't have to memorize it you don't have to memorize it the memorization of it the definition will not be on the exam marketing is the activity set of Institutions and processes for creating capturing delivering and communicating value for customers exchanging value for customers clients partners and Society at Large what does all of that mean our goal in marketing is to do just that be a value to our stakeholders uh whether it's our own company whether it's our business partners and then also specifically our our consumers whether they're business customers or individual consumers that is our goal in marketing not to try to sell anyone something so you notice that it says around value capturing value communicating value delivering value and exchanging value the way that we're going to do that is through our four Ps so let's excuse me is through our core aspects of marketing okay and we'll talk about each of these and then we'll come back to the four Ps so let's first take a look at the fact that marketing can be performed by individuals indor or organizations you heard the terms B2B B to C and C to C and if you're if you've ever been like I don't know what that means I'm going to help you out on that so B2B it means one business like Proctor and Gamble you'll hear me talk about Proctor and Gamble a lot this semester there's no way you can have a marketing class and not talk about the world's largest consumer package Goods maker Proctor and Gamble and proor and gamble sells let's say tied detergent to a business customer customer one of their largest business customers is Walmart world's largest brick and mortar um location so in that particular case a business is interacting with another business when you go to Walmart to buy that tide then we have a consumer doing interactions with a business or business to Consumer B Toc let's say though that you happen to have an extra container of tide at home and your roomate excuse me your next door neighbor comes over and says hey do you have any um detergent I'm all out you say well you know what I do have an extra thing of tith you can buy it from me so now we have an individual consumer buying from an individual consumer C to C so you see in that particular case marketing can take place at the individual level or the business level another thing about marketing it affects many different stakeholders okay so with you think about proor and gamble in liquid Tide in a plastic container wow what a heated conversation you've just come up with so first of all you have the St you have the stakeholder their business partner that makes that Li that that container okay uh you have their own company that's making the liquid Tide that's going into the Container uh you have their business partners who are going to handle that Liquid Tide container throughout the supply chain you have the individual consumer who's going to buy it but this does it in there no because remember this is a plastic container and so the environment is a stakeholder as well which is why it's interesting Proctor and Gamble has been uh for the last two years has been um uh testing out uh refillable containers versus one use containers because it that is a stakeholder the environment and and we look at um how a company can affect not just their individual consumer definitely a stakeholder marketing is about satisfying customer needs and wants when we talk about the consumer decision-making process later on we'll learn more about the differences between needs and wants but let's talk mostly about the satisfying the consumer once again it doesn't say marketing is about forcing the consumer to buy my product I want my consumer to buy my product because they find Value in it and because after they try it they're going to have satisfaction because then only satisfied customers return unsatisfied customers tell many others particularly thanks to social media then we have marketing entails and exchange most times it's I give you let's use Walmart in the liquid Tide example again markeet and Walmart says when you go there to buy the liquid Tide that they're going to give you Liquid Tide you're going to give them money that's the most General exchange but believe it or not they're still bartering even at a large scale level of companies bartering back and forth when we get to the Global Marketing chapter you'll figure out why they're still bartering and it has a lot to do with exchange rates but then you think about let's think about something closer to home let's say that you have a textbook and your friend or even maybe your next door neighbor but let's do your friend because that's even better your friend is going to take the same class the next semester okay and that you say okay you can have this textbook you don't take any money from them does an exchange still take place does an exchange still take place and let's think about this does your friend in theory owe you something yeah because you just did a favor a solid for them and there wasn't an exchange of money but there's an exchange of something so let's say then you need a help with the dreaded ride to the airport for the mon um early morning flight and you think well let me call it the friend when they're thinking about well they did give me the textbook let me give them the ride there's still an exchange so even when there's not um implicit money transactions occurring there's still exchanges in marketing okay and then last but not least we have our are four Ps and so in our next um video vignette we'll talk a little bit more about those those four Ps that help create value for the customer okay so we'll jump over to that and talk a little bit about the four piece