Lamb, Sharma, Hair,

McDaniel

CHAPTER 1

An Overview of Marketing
What Is Marketing?

Define the term

marketing
Marketing…
• Two Facets:
1. A philosophy, an attitude, a
perspective, or a management
orientation that stresses customer
satisfaction.
2. An organizational activity, set of
institutions, and processes.
 The Value of Marketing
• Financial success often depends on marketing ability
• Successful marketing builds demand for products and
services, which, in turn, creates jobs
• Marketing builds strong brands and a loyal customer
base, intangible assets that contribute heavily to the
value of a firm
 The Scope of Marketing
• Marketing is about identifying and meeting human
and social needs

• AMA’s formal definition: Marketing is the activity,

set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings
that have value for customers and society at large
 Marketing Management
• The art and science of choosing target markets
and getting, keeping, and growing customers
through creating, delivering, and
communicating superior customer value

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 What is Marketed?
• Goods

• Services

• Events

• Experiences

• Persons

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 What is Marketed?
• Places

• Properties

• Organizations

• Information

• Ideas
 Who Markets?

• A marketer is someone who seeks a response

—attention, a purchase, a vote, a donation—
from another party, called the prospect
What Is Marketing?

Marketing entails
processes that focus on
delivering value and
benefits to customers, not
just selling goods and
services.
 Fig. 1.1
Structure Of Flows In A Modern
Exchange Economy

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 Fig. 1.2
A Simple Marketing System

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 Core Marketing Concepts
• Needs: the basic human requirements such as
for air, food, water, clothing, and shelter

• Wants: specific objects that might satisfy the

need

• Demands: wants for specific products backed

by an ability to pay

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 Types of Needs
STATED

REAL

UNSTATED

DELIGHT

SECRET

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 Exchange
At
AtLeast
LeastTwo
TwoParties
Parties

Something
Somethingof
ofValue
Value

Conditions
Conditionsfor
for Communication
Communicationand
andDelivery
Delivery
Exchange
Exchange
Freedom
Freedomto
toAccept
Acceptor
orReject
Reject

Desire
Desireto
toDeal
Dealwith
withOther
OtherParty
Party
 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.
Marketing Management
Philosophies

Describe four
marketing
management
philosophies
 The Four Marketing
Management 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
 Production Orientation
• Field of Dreams orientation
– “If you build it, they will come.”
– Doesn’t consider if what is produced
meets market needs
 Sales Orientation
• Marketing = Selling Things/Collecting Money
– Disregards market needs and consumer demand.
– Often find that, despite the quality of their sales
force, they cannot convince people to buy goods
or services that are neither wanted nor needed.
 Market Orientation
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
Achieving a Marketing
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
 Societal Marketing
Orientation
An organization exists not only to satisfy customer
wants but also to preserve or enhance individuals’
and society’s long-term best interests.

For example:
• Less toxic products
• More durable products
• Products with reusable or recyclable
materials
Questions That Help Determine
Marketing Philosophy
Orientation Focus

Production
Production What
Whatcan
canwe
wemake
makeor
ordo
dobest?
best?

How
Howcan
canwe
wesell
sellmore
more
Sales
Sales aggressively?
aggressively?

Marketing What
Whatdo
docustomers
customers
Marketing want
wantand
andneed?
need?

Societal What
Whatdo
docustomers
customerswant/need,
want/need,andand
Societal how
howcan
canwe
webenefit
benefitsociety?
society?
Differences between Sales and
Market Orientations

Discuss the
differences
between sales
and market
orientations
The Organization’s Focus

Sales Orientation
Inward looking
What the firm makes

Market Orientation
Outward looking
What the market wants
 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