This first chapter introduces you to the basic concepts of marketing. We start with the question: What is marketing? Simply put, marketing is engaging customers and managing profitable customer relationships. The aim of marketing is to create value for customers in order to capture value from customers in return. Next we discuss the five steps in the marketing process—from understanding customer needs, to designing customer value–driven marketing strategies and integrated marketing programs, to building customer relationships and capturing value for the firm. Finally, we discuss the major trends and forces affecting marketing in this new age of digital, mobile, and social media. Understanding these basic concepts and forming your own ideas about what they really mean to you will provide a solid foundation for all that follows.

Let’s start with a good story about marketing in action at Nike, the world’s leading sports apparel company and one of the best-known brands on the planet. Nike’s outstanding success results from much more than just making and selling good sports gear. It’s based on a customer-focused marketing strategy by which Nike creates customer value through deep brand–­customer engagement and close brand community with and among its customers.