An Overview of Marketing

Chapter 1

1
1 Learning Objective
On
OnLine
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[Link]
[Link]

Define the term

marketing

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1 What is Marketing?

 Personal Selling?
 Advertising?
 Making products available in stores?
 Maintaining inventories?

All of the above, plus much more!

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1 What is Marketing?

A Philosophy A Set of Activities,

including:
An Attitude
Products
A Perspective
Pricing
A Management
Orientation Promotion
Distribution

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1 What is Marketing?

American Marketing Association Definition

Marketing is the process of planning and

executing the conception, pricing, promotion,
and distribution of ideas, goods, and services
to create exchanges that satisfy individual and
organizational goals.

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1 The Concept of Exchange

The idea that people give

up something to receive
something they would
rather have.

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1 The Concept of Exchange

At
AtLeast
Least Two
TwoParties
Parties

Something
Somethingof
ofValue
Value
Necessary
Necessary
Conditions
Conditions Communication
Communicationand
and Delivery
Delivery
for
for Exchange
Exchange
Freedom
Freedom to
to Accept
Acceptor
orReject
Reject

Desire
Desireto
toDeal
DealWith
WithOther
OtherParty
Party
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1 The Concept of Exchange

 Exchange may not take place

even if conditions are met
ALE  An agreement must be reached
O S
N
 Marketing occurs even if
exchange does not take place

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2 Learning Objective

Describe four
marketing
management
philosophies.

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 Marketing Management
2
Philosophies

Production
Production

Sales
Sales

Competing Market
Market
Competing
Philosophies
Philosophies
Societal
Societal Marketing
Marketing

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 Marketing Management
2
Philosophies

Orientation
Orientation Key Ideas

Production
Production Focus on efficiency of internal operations

Focus on aggressive sales techniques and

Sales
Sales believe that high sales result in high profits

Focus on satisfying customer needs and wants

Market
Market
while meeting objectives
Focus on satisfying customer needs and
Societal
Societal wants while enhancing individual and
societal well-being
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2 The Marketing Concept

The idea that the social and

economic justification for an
organization’s existence is the
satisfaction of customer wants
and needs while meeting
organizational objectives.

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2 The Marketing Concept

 Focuses on customer wants and needs to

distinguish products from competition

 Integrates all organization’s activities to

satisfy customer wants and needs

 Achieves organization’s long-term goals

by satisfying customer wants and needs

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2 Achieving a Market Orientation
On
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 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

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2 Societal Marketing Orientation

Marketing that preserves or

enhances an individual’s
and society’s long-term
best interests

 Less
Less toxic
toxic products
products
 More
More durable
durable products
products
 Products
Products with
with reusable
reusable
or
or recyclable
recyclable materials
materials
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3 Learning Objective

Discuss the differences

between sales and
market orientations.

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3 Sales vs. Market Orientations

Organization’s Firm’s For Primary Tools to

Focus Business Whom? Profit Achieve
Goal?

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

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3 The Organization’s Focus

Key
Key Issues
Issues in
in
Developing
Developing
Competitive
Competitive
Advantage
Advantage

Create
Create Maintain
Maintain
Build
Build Long-Term
Long-Term
Customer
Customer Customer
Customer
Relationships
Relationships
Value
Value Satisfaction
Satisfaction

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3 Customer Value

The ratio of benefits to the

sacrifice necessary to
obtain those benefits

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3 Customer Value Requirements
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 Offer products that perform

 Give consumers more than they expect
 Avoid unrealistic pricing
 Give the buyer facts
 Offer organization-wide commitment in
service and after-sales support

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3 Customer Satisfaction

The feeling that a product

has met or exceeded the
customer’s expectations.

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3 Maintaining Customer Satisfaction
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 Meet or exceed customer’s expectations

 Focus on delighting customers
 Provide solutions to customer’s
problems
 Cultivate relationships,
NOT one-time transactions

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3 Relationship Marketing

The name of a strategy

that entails forging
long-term partnerships
with customers, both
individuals and firms.

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3 Relationship Marketing

Who
Who are
are your
your customers
customers

What
What do
do customers
customers value
value

What
What do
do they
they want
want to
to buy
buy
Requirements
Requirements
for
for
Building
Building How
How do
do they
they prefer
prefer to
to interact
interact
Relationships
Relationships

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3 Building Long-Term Relationships

 Customer-oriented personnel

 Effective training programs

 Empowered employees

 Teamwork

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3 Defining a Firm’s Business
On
OnLine
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[Link]
[Link]

“Benefits” instead of “goods/services”

 Ensures a customer focus

 Encourages innovation

 Stimulates an awareness of changes

in customer preferences
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4 Learning Objective

Describe the marketing

process.

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4 Marketing Process Activities

Understand
Understand the
the organization’s
organization’s mission
mission
Set
Set marketing
marketing objectives
objectives
Gather,
Gather, analyze,
analyze, interpret
interpret “SWOT”
“SWOT” information
information
Develop
Develop aa marketing
marketing strategy
strategy
Implement
Implement the
the marketing
marketing strategy
strategy
Design
Design performance
performance measures
measures
Evaluate
Evaluate marketing
marketing efforts--change
efforts--change ifif needed
needed
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5 Learning Objective

Describe several reasons

for studying marketing.

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5 Why Study Marketing?

 Plays an important role in society

 Vital to business survival, profits

and growth

 Offers career opportunities

 Affects your life every day

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5 Why Study Marketing?

“Marketing
“Marketing is is far
far too
too important
important
to
to be
be left
left only
only to
to the
the
marketing
marketing department.”
department.”

----David
David Packard
Packard
Hewlett-Packard
Hewlett-Packard

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5 Why Study Marketing?

 1/4th to 1/3rd of the •• Professional

ProfessionalSelling
Selling
civilian workforce •• Marketing
MarketingResearch
Research
in the U.S. performs •• Advertising
Advertising
marketing activities •• Retail
RetailBuying
Buying
•• Distribution
DistributionManagement
Management
 Fast route up the
•• Product
ProductManagement
Management
corporate ladder
•• Product
ProductDevelopment
Development
•• Wholesaling
Wholesaling

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5 Why Study Marketing?

 Half of every dollar spent

pays for marketing costs

 Better-informed
consumers

 Demand for customer

satisfaction

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