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Chapter 1

The Field of
Marketing
Sommers

Barnes

Ninth Canadian Edition
Presentation by

Karen A. Blotnicky
Mount Saint Vincent University, Halifax, NS
Copyright © 2001 by McGraw-Hill Ryerson Limited

Chapter Goals
To gain an understanding of:
• The relationship between exchange and marketing
• How marketing applies to business and nonbusiness situations
• The evolution of marketing
• Services and relationship marketing
• The factors that drive customer satisfaction
• The difference between marketing and selling
• The marketing concept
• The impact of quality, service and ethics in modern
marketing
• Marketing’s role in the global economy, in an
individual organization, and in your life

Copyright © 2001 McGraw-Hill Ryerson Limited

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Copyright © 2001 McGraw-Hill Ryerson Limited 1-3 . It may not always mean making an immediate sale. promote. and ideas to target markets in order to achieve organizational objectives • Marketing means adopting a customer focus for the organization. and distribute want-satisfying products. keeping the customer’s needs in mind all the time.Definition of Marketing • Marketing is the total system of business activities designed to plan. services. price.

In the Socioeconomic System: Marketing creates utilities: • Image utility is the • Place utility makes a emotional or product accessible to psychological value potential customers that the customer where they want it. attaches to a • Time utility makes a product or brand. product available when • Possession utility is they want it. created when • Information utility is ownership is created by informing transferred to the prospective buyers that a buyer. product exists. 1-4 Copyright © 2001 McGraw-Hill Ryerson Limited .

• Marketing has become increasingly important for service firms and notfor-profit organizations. • Marketing is the only revenueproducing activity for the firm.Importance of Marketing to Organizations • The basic reason for firm’s existence is customers want satisfaction. Copyright © 2001 McGraw-Hill Ryerson Limited 1-5 .

Copyright © 2001 McGraw-Hill Ryerson Limited 1-6 . • Companies now compete in markets all over the world.The Global Importance of Marketing • Nations depend upon marketing to sell their raw materials and industrial output to other countries. starting from nothing 15 years ago. • Honda and Toyota now build cars in Canada.

• Marketing probably relates -.to your career aspirations. Consumers are exposed to 3.The Importance of Marketing in Your Life • Marketing is a large part of your daily life. • Studying marketing will make you a better-informed customer.directly or indirectly -.000 commercial messages a day. Copyright © 2001 McGraw-Hill Ryerson Limited 1-7 .

Key Words in the Marketing Definition • total system: not an ad hoc approach • business activities: but not just for businesses • plan. promote. price. services. distribute : the marketing mix • want-satisfying: meeting customers’ needs • products. ideas: not just products • target markets: not a broad-brush approach • organizational objectives: not just profits 1-8 Copyright © 2001 McGraw-Hill Ryerson Limited .

The Focus of Marketing • marketing involves the exchange of things of value • much of marketing’s focus today is on the creation of value for customers • we must develop a good understanding of customer needs and wants • ultimately. successful companies develop a close customer relationship Copyright © 2001 McGraw-Hill Ryerson Limited 1-9 .

must be involved • Parties must be willing to be involved (voluntary participation) • Each party must have something of value to contribute to the exchange • Parties must communicate with each other to facilitate the exchange process Copyright © 2001 McGraw-Hill Ryerson Limited 1 .10 .Fundamental Bases for Exchange • Two or more people. or units.

emphasis was on making a better physical product • in the sales-orientation stage.Evolution of Marketing • marketing has evolved from a production. to a selling. to a marketing stage • in the production-orientation stage.11 . the emphasis was on how to sell that product • a marketing-oriented organization places emphasis on satisfying the wants and needs of customers Copyright © 2001 McGraw-Hill Ryerson Limited 1 .

Late 1800s Early 1930s Mid-1950s Copyright © 2001 McGraw-Hill Ryerson Limited 1900s 1 .Stages in the Evolution of Marketing PRODUCTION ORIENTATION Some industries and organizations remain at the production-orientation stage. PRODUCTION ORIENTATION SALES ORIENTATION MARKETING ORIENTATION Many industries and organizations have progressed to the marketing-orientation stage. PRODUCTION ORIENTATION SALES ORIENTATION Other industries and organizations have progressed only to the sales-orientation stage.12 .

13 .The Marketing Concept • objective is to produce long-term customer satisfaction and organizational success • all of the organization’s planning and operations are customer-oriented • all of the marketing activities of the organization should be consistently designed and delivered • all activities are intended to achieve the firm’s organizational objectives Copyright © 2001 McGraw-Hill Ryerson Limited 1 .

14 . long-term bonds with customers. and even competitors. employees. unions.An Innovation Based on the Marketing Orientation. Relationship marketing has expanded to include all groups an organization interact with: suppliers. Relationship Marketing • • An attempt to build personal. government. Copyright © 2001 McGraw-Hill Ryerson Limited 1 .

Drivers of Customer Satisfaction • getting the core product right is essential • many services and systems support the core • customers expect good technical performance of the product or service • they also expect to be treated well in face-to-face interaction with employees • the company must also consider how it makes the customer feel in many subtle ways Copyright © 2001 McGraw-Hill Ryerson Limited 1 .15 .

16 .in effect.The Difference Between Marketing and Selling • Marketing is the process of determining customer wants and then developing a product to satisfy that need and still yield a satisfactory profit. • Selling is producing a product and then trying to persuade customers to purchase it -. Copyright © 2001 McGraw-Hill Ryerson Limited 1 . It is internally focused. It is externally focused. trying to alter consumer demand.

How Should Marketing Be Defined? Company ProductOriented MarketingOriented Kodak We help preserve beautiful memories.17 . ? Levi Strauss We make blue jeans ? Caterpillar We make Copyright © 2001 McGraw-Hill Ryerson Limited construction ? 1 . m ? HewlettPackard We make computer printers. We make cameras and film.co We sell books and recordings. Amazon.

18 .The Marketing Concept MARKETING CONCEPT Customer orientation + Organization’s performance objectives + + Coordinated marketing activities Customer satisfaction Copyright © 2001 McGraw-Hill Ryerson Limited Organizational success 1 .

The Societal Marketing Concept A revised philosophy. Copyright © 2001 McGraw-Hill Ryerson Limited 1 .19 . called the societal marketing concept. concept involves broadly defining customer and taking a long-term view of customers satisfaction..

it also varies across individuals and over time • quality.20 . is influenced not only by physical products but by service as well • requires a commitment from all staff to deliver the highest quality possible Copyright © 2001 McGraw-Hill Ryerson Limited 1 . he or she is likely to return to buy again • quality is very much defined by the customer. as perceived by the customer.Quality in Marketing • quality in what an organization offers is a major contributor to value and customer satisfaction • if the customer is satisfied with the quality.

• Copyright © 2001 McGraw-Hill Ryerson Limited 1 .21 .Another Innovation: Mass Customization An attempt to provide affordable products customized to come as close as possible to meeting the needs of individual customers. • This is made possible because of advances in information technology.

• The use of marketing tools can create a wide variety of ethical challenges. Copyright © 2001 McGraw-Hill Ryerson Limited 1 .22 . • Ethics are standards of behaviour generally accepted by society. • There is disagreement over what constitutes ethical or unethical behaviour.Ethics in Marketing • Marketing is intended to influence the behaviour of customers and others. • Ethics vary from society to society.

23 . • Rewarding only ethical performance. Copyright © 2001 McGraw-Hill Ryerson Limited 1 . • Employing an “Ethics Officer” to advise employees on ethical dilemmas. • Communicating clearly what is expected of employees.More About Ethics • Corporations are taking action to instill ethical awareness in their employees by: • Avoiding unreasonable pressure on employees to perform.