What Is Marketing?

What is marketing?

Marketing is the process to understand, develop, and influence exchanges with individuals, groups, or organizations in a way to reach the company’s objectives

The marketing approach is characterized by a view of the world that considers exchanges to be based on value creation for all excahnge partners.

Marketing means: - understanding how markets as exchange systems work

- understanding what the problems and expectations of the stakeholders are

- understanding how value can be created for the stakeholders

The Value Chain

A value chain is a chain of activities. products pass through all activities of the chain in order and at each activity the product gains some value. The chain of activities gives the products more added value than the sum of added values of all activities.

The primary value chain activities are:

• Inbound Logistics: the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required.

• Operations: the processes of transforming inputs into finished products and services.

• Outbound Logistics: the warehousing and distribution of finished goods.

• Marketing & Sales: the identification of customer needs and the generation of sales.

• Service: the support of customers after the products and services are sold to them.

The goal of these activities is to create value that exceeds the cost of providing the product or service, thus generating a profit margin.

A company will be successful if it translates resources more efficiently into meaningful outputs that are required by the customers. To do that, a company needs resources of its stakeholders, to satisfy them and make sure that it recieves their support. A basic principle of exchange realtionships with stakeholers is balance of exchange.

Benefits are products, service, relationship and the image

Costs are monetary costs, time, energy, psychological costs

The...