Chapter 1

• Helps create value
  
• Occurs in many settings
  
• Is about satisfying customer needs and wants
  
• It entails an exchange
  
• Requires product, price, place, and promotion decisions
  
• Can be performed by both individuals and organizations
  

Trade of things of value between the buyer and the seller so that each is better off as a result. 

1. Goods/ Services Producers (Sellers)
   
2. Communication/ Delivery
   
3. Customers/ Consumers (Buyers)
   
4. Information / Money

Product

Tangible

Intangible

Can also be marketed 

Capturing Value

All activities necessary to get the product to the right customer when that customer wants it.

Set of approaches and techniques that firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores and other firms involved in the transaction into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, while minimizing systemwide costs and satisfying the service levels required by the customers. 

Communicating the value proposition

Business-Business marketing

Business-Consumer marketing

Consumer-Consumer

Retailers

Supply chain partners

• Undertaking maketing research to understand what potential employees are seeking, as well as what they think about the firm.
  
• Developing a value proposition and an employment brand image
  
• Communicating that brand image to potential employees

A good product would sell itself

• Manufacturers had the capacity to produce more than customers really wanted or were able to buy.
  
• Answer to overproduction.
  
• Depended on personal selling and advertising.
  
• Sellers market

• Suburban communities
  
• Buyers market
  
• Customers had more choices
  
• Production focused on what the consumer wanted and needed
  
• Firms discovered marketing

More than simply providing what consumers wanted

Relationship of benefits to costs

Customers can act as collaborators to create the product or service 

Providing benefits to customers and keeping costs down 

• Share information about customers and competitors across their organization and with other firms
  
• Strive to balance their customers' benefits and costs
  
• Concentrate on building relationships with customers
  

Constantly measure the benefits that customers perceive against the cost of their offerings. 

Anything that happened before or after any transaction is of little importance

Based on the philosophy that buyers and seller should develop long term relationships

Business philosophy and set of strategies, programs, and systems that focus on identifying and building loyalty among the firm's most valued customers.

Advises production about how much of the company's product to make

Group of rims that make and deliver a given set of goods and services 

Raw Material

Consulting Firms

Recognizes that including a strong social orientation in business is a sound strategy that is in both in its own and its customer's best interest.

People who organize, operate, and asume the ris of a new business venture.