RJM Marketing

• A main objective of marketing is to create customer value.
• Marketing usually involves an exchange between buyers and sellers or between other parties.
• Marketing has an impact on the firm, its suppliers, its customers, and others affected by the firm’s choices.
• Marketing frequently involves enduring relationships between buyers, sellers, and other parties.
• Processes involved include “creating, communicating, delivering, and exchanging offerings.”

Delivering customer value. The central idea behind marketing is the idea that a firm or other entity will create something of value to one or more customers who, in turn, are willing to pay enough (or contribute other forms of value) to make the venture worthwhile considering opportunity costs. Value can be created in a number of different ways. Some firms manufacture basic products (e.g., bricks) but provide relatively little value above that. Other firms make products whose tangible value is supplemented by services (e.g., a computer manufacturer provides a computer loaded with software and provides a warranty, technical support, and software updates). It is not necessary for a firm to physically handle a product to add value—e.g., online airline reservation systems add value by (1) compiling information about available flight connections and fares, (2) allowing the customer to buy a ticket, (3) forwarding billing information to the airline, and (4) forwarding reservation information to the customer.