An Overview of Marketing: Lamb, Hair, Mcdaniel, Kapoor, Klaise, & Appleby Canadian Edition

8/14/2019 Mktg 1ce Ppt Ch01
Lamb, Hair, McDaniel ,

Kapoor, Klaise, & Appleby Canadian Edition
MKTG
Designed by
Amy McGuire, B-books, Ltd.
CHAPTER
1 An Overview of
Marketing
Prepared by Deborah Baker, Texas Christian

University, and Tina Grant, Durham College
Chapter 1
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Learning Outcomes
LO1 Define the term marketing
LO2 Describe four marketing management

philosophies
Discuss the differences between sales and

LO3 market orientations
LO4 Describe several reasons for studying

marketing
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1
LO What Is Marketing?
Define the term

marketing
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What Is Marketing?
Stresses Customer Satisfaction
A Philosophy A Set of Activities…

An Attitude Products
A Perspective
A Management Distribution
Orientation Promotion
Pricing
Focuses on delivering value and benefits to customers
LO1
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What Is Marketing?
The accepted definition encompasses both the philosophy
and the organizational function.
Marketing is an organizational function and

a set of processes for creating,
communicating, and delivering value to
customers and for managing customer
relationships in ways that benefit the
organization and its stakeholders.
LO1
Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 5
What Is Marketing?
More
investment
Stockholder
satisfaction
Growth and
profits
Repeat
business
Employee Higher
satisfaction
quality
Greater
LO1 effort
Exchange
Exchange
People giving up something to

receive something they would
rather have.
Chapter
PHOTO
Here
LO1
LO1 Exchange
At
AtLeast
LeastTwo
TwoParties
Parties
Something
Somethingof
ofValue
Value
Conditions
Conditionsfor
for Communication
Communicationand
andDelivery
Delivery
Exchange
Exchange
Freedom to Accept or Reject

Freedom to Accept or Reject
Desire
Desireto
toDeal
Dealwith
withOther
OtherParty
Party

LO1 Exchange
 Exchange may not take place even

if conditions are met
 An agreement must be reached
 Marketing occurs even if

exchange does not take place

Watch an Ad – Get Free Software

LO1
e In exchange for “free”
h online word-processing,
t calendar support, or

network management N

A D …
T, A S O R
services, many budget-
d
U T F I R S S P O N
… B M O U R
conscious corporate users F R O
n
are willing to have the
sponsor’s advertisements
o k
on the pages they use.
y o
e o
SOURCE: Vauhini Vara, “Companies Tolerate Ads to Get Free
Software,” Wall Street Journal , March 27, 2007, B1, B3.
Chapter 1 Copyright ©2010 Nelson Education Ltd. All rights reserved 10

2 Marketing Management
LO Philosophies
Describe four
marketing
management
philosophies
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8/14/2019
Marketing Management Mktg 1ce Ppt Ch01
LO 2
Philosophies
Orientation Focus is on…
Production internal capabilities of the firm
aggressive sales techniques and belief

Sales that high sales result in high profits
satisfying customer needs and wants

Market while meeting objectives
satisfying customer needs and

Societal wants while enhancing individual and
societal well-being

Market Orientation
Marketing The idea that the social and
Concept economic justification for an

organization’s existence is the
satisfaction of customer
wants and needs while
meeting organizational
objectives.
LO2
LO2 The Marketing Concept
 Focusing on customer wants and needs to

distinguish products from competitors’
offerings
 Integrating all the organization’s activities to

satisfy these wants
 Achieving the organization’s long-term goals

by satisfying customer wants and needs
legally and responsibly

8/14/2019
Achieving a Marketing Mktg 1ce Ppt Ch01
LO2
Orientation
 Obtain information about customers, competitors, and

markets
 Examine the information from a total business

perspective
 Determine how to deliver superior

customer value
 Implement actions to provide value

to customers
http://www.westernunion.com
Online
Societal Marketing
Societal An organization exists not only

Marketing to satisfy customer wants but
Orientation also to preserve or enhance
individuals’ and society’s long-
term best interests.
• Less toxic products

• More durable products
• Products with reusable
or recyclable materials
LO2
LO2 REVIEW LEARNING OUTCOME
Orientation Focus
Production
Production What
Whatcan
canwe
wemake
makeor
ordo
dobest?
best?
Sales
Sales How
Howcan
canwe
wesell
sellmore
moreaggressively?
aggressively?
Marketing What
Whatdo
docustomers
customers
Marketing want and need?
want and need?
Societal What
Whatdo
docustomers
customerswant
wantand
andneed,
need,
Societal
and
andhow
howcan
canwe
webenefit
benefitsociety?
society?

Listen
LO2 to your customers...
e … but look to the future,

h as well.
t
d "If I had asked my customers what they
n wanted," Henry Ford once remarked, "they
o k
would have said a faster horse."
y o
e o
B B
Tom Kelley with Jonathan Littman, The Ten Faces of Innovation: IDEO's Strategies for Defeating the Devil's Advocate and
Driving Creativity Throughout Your Organization, Currency/Doubleday, 2005

3
Sales and Marketing
LO Orientations
Discuss the
differences
between sales
and market
orientations
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Comparing the Sales and

Market Orientations
You can compare these orientations against
 Organization’s
these five categories:
focus
 Firm’s business
 Those to whom the product is directed
 Firm’s primary goal
 The tools used to achieve those goals
LO3
Customer Value
Customer Value
The relationship
between benefits
and the sacrifice
necessary to
obtain those
benefits.
LO3
LO3 Customer Value Requirements
 Offer products that

perform
 Earn trust
 Avoid unrealistic pricing

 Give the buyer facts
 Offer organization-wide
commitment in
service and after-sales
support

Customer Satisfaction
The feeling that a product

Customer
met or exceeded the
Satisfaction customer’s expectations.
LO3
Building Relationships
Relationship
Marketing
A strategy that
focuses on
keeping and
improving
relationships with
current
customers.
LO3
Building Relationships
 Customer-oriented personnel
 Employee training programs
 Empowered employees
 Teamwork
LO3
Building From Within
LO 3
Today's companies must build from within,

e putting more emphasis (and money) on
h rapidly training younger employees for
t greater responsibilities.
d Growing economy + “War for new talent"
n Aging workforce + Lack of middle

managers
o k
y o
e o
B B
SOURCE: The Corporate Learning Factbook® 2007: Statistics, Benchmarks and Analysis of the U.S. Corporate Training
Market , Bersin & Associates / Karen O’Leonard, January 2007.

LO 3
Defining a Firm’s Business
Use “benefits
“benefits”
” instead of
“goods/services”
 Ensures a customer focus
 Encourages innovation
and creativity
 Stimulates an awareness
of changes in customer
preferences
http://www.britannica.com
Online
LO3 REVIEW LEARNING OUTCOME
Sales vs. Market Orientations

Primary
Organization’s Firm’s For Profit Tools to
Focus Business Whom? Goal? Achieve
Sales Inward Selling Everybody Maximum Primarily

Orientation goods and sales promotion
services volume
Market Outward Satisfying Specific Customer Coordinated

Orientation wants and groups of satisfaction use of all
needs people marketing
activities
LO Why Study Marketing
Describe
reasonsseveral
for
studying
marketing
Chapter 1 Copyright ©2010 by Nelson Education Ltd.. All rights reserved 29

LO4 Why Study Marketing?
 Plays an important role in society
 Vital to business survival, profits
and growth
 Offers career opportunities
 Affects your life every day
Why Study Marketing
Vital
VitalMarketing
MarketingActivities
Activities
Assess
Assessthe
thewants
wantsand
andsatisfaction
satisfactionof
ofcustomers
customers
Design
Designand
andmanage
manageproduct
productofferings
offerings
Determine
Determineprices
pricesand
andpricing
pricingpolicies
policies
Develop
Developdistribution
distributionstrategies
strategies
Communicate
Communicatewith
withpresent
presentand
andpotential
potentialcustomers
customers
4
Chapter 1
Copyright ©2010 by Nelson Education Ltd. All rights reserved
LO
31
31/33
LOAnatomy of an Ad 3
Tag line ties into

relationship
e
marketing
h
t Product directed
at people who are
not confident
d
selecting paint
colours
Package is part of
n
the product
o k Store is
y o
Samples are a
place
type of promotion
e o
Pink ribbon shows
Ways company
creates value
B B
element of societal
marketing orientation
LO 4
REVIEW LEARNING OUTCOME
Reasons for Studying Marketing
Why Study Marketing?
Important Important Good

to to Career
Society Business Opportunities
+
Marketing affects you every day!
Chapter 1 Copyright ©2010 by Nelson Education Ltd All rights reserved 33

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8/14/2019 Mktg 1ce Ppt Ch01

Lamb, Hair, McDaniel ,

Prepared by Deborah Baker, Texas Christian

LO1 Define the term marketing

LO2 Describe four marketing management

Discuss the differences between sales and

LO4 Describe several reasons for studying

Define the term

A Philosophy A Set of Activities…

Focuses on delivering value and benefits to customers

Marketing is an organizational function and

People giving up something to

Freedom to Accept or Reject

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 8

 Exchange may not take place even

 An agreement must be reached

 Marketing occurs even if

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 9

Watch an Ad – Get Free Software

e In exchange for “free”

t calendar support, or

Chapter 1 Copyright ©2010 Nelson Education Ltd. All rights reserved 10

Orientation Focus is on…

Production internal capabilities of the firm

aggressive sales techniques and belief

satisfying customer needs and wants

satisfying customer needs and

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 12

Marketing The idea that the social and

Concept economic justification for an

LO2 The Marketing Concept

 Focusing on customer wants and needs to

 Integrating all the organization’s activities to

 Achieving the organization’s long-term goals

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 14

 Obtain information about customers, competitors, and

 Examine the information from a total business

 Determine how to deliver superior

 Implement actions to provide value

Societal An organization exists not only

• Less toxic products

LO2 REVIEW LEARNING OUTCOME

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 17

e … but look to the future,

Chapter 1 Copyright ©2010 Nelson Education Ltd. All rights reserved 18

Comparing the Sales and

You can compare these orientations against

LO3 Customer Value Requirements

 Offer products that

 Avoid unrealistic pricing

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 22

The feeling that a product

 Employee training programs

Today's companies must build from within,

d Growing economy + “War for new talent"

n Aging workforce + Lack of middle

Chapter 1 Copyright ©2010 Nelson Education Ltd. All rights reserved 26

 Ensures a customer focus

LO3 REVIEW LEARNING OUTCOME

Sales vs. Market Orientations

Sales Inward Selling Everybody Maximum Primarily

Market Outward Satisfying Specific Customer Coordinated

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 28