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Chapter 1 Instructor Shan A. Garib, Fall 2012

◦ an organizational function

◦ a set of processes for creating, communicating, and delivering value to customers

◦ managing customer relationships in ways that benefit the organization and its stakeholders

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1. Discover the needs and wants of prospective customers

2. Satisfy the needs of customers

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Exchange Outcome: ultimately, marketing works to bring about an exchange of something desired Eg. Money for car, apple for orange

Conditions of Exchange:

1.Two or More Parties with Unsatisfied Needs2.They posess something desired by the other3.A Way for the Parties to Communicate4.Freedon to accept or reject offer5.Desire to deal with other party

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Market:Any place where buyers and sellers can

exchange goods and services

Eg. Ebay, supermarket, classroom

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Four competing philosophies influence how and what a company markets:

1.Production2.Sales3.Market4.Social

Philosophy: a way of living, thinking, being

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Four competing philosophies influence how and what a company markets:

Production – focusses on the internal capabilities of the firm not on desires of marketplace

-managment asseses resources regarding how to produce more

-does not take into consideration what the marketplace needs

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Four competing philosophies influence how and what a company markets:

Sales – based on the idea that more people will buy more goods if aggressive sales techniques are used -selling things and collecting money -lack understanding of needs of consumer

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Four competing philosophies influence how and what a company markets:

Market – based on the idea that the company exists to produce goods and services that the consumer whats -consumer wants to buy the product -firms use this to differentiate

-all activities dedicated to this-long term goals achived

Market orientation: obtaining info about consumers, competitiors

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Four competing philosophies influence how and what a company markets:

Societal – based on the idea that the company exists to produce goods and services that the consumer whats AND to preserve societies long run best interest

eg. Non toxic bottles

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Main differences are between:

-the organization’s focus-the firm’s business-whom the product is for-firm’s primary goal-tools to achieve the firm’s goal

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1. The organization’s focus:-Sales orientated firms are inward looking, selling what the firm makes and not what the market wants eg. North American car makers

-Market orientated firms are outward looking, selling what the market desires-customers at centre of business focuseg. Dell Computers

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1. The organization’s focus:-Market orientated firms interested in offering products with high customer value-products that have quality customers expect and are at a price they are willing to pay

Firms Must:-offer products must perform-earn trust-avoid unrealistic pricing-give the buyer facts about the product-offer after-sales support eg. Apple Support

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1. The organization’s focus:-Market orientated firms interested in offering products with high customer satisfaction-products that have met the customers needs and expectations-culture of firm focussed on delighting customers, not selling products

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1. The organization’s focus:-Market orientated firms interested in building relationships-get a new customer and retain them -long term

-Three ways to expand market share:a)Attract new customersb)Increase new business with existing customersc)Retaining current customers

This is done through relationship marketing, b&c.eg. Toyota car club for servicing, ask questions, informed of recalls

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1. The organization’s focus:-Market orientated firms interested in building relationships

-Relationship marketing depends on:a) customer-oriented personnel eg. Walmart Greeter

b) training programmes eg. Walt Disney University courses on traditions, philosophy, operational procedures

c) empowered employees – with the authority to solve customer problems on the spot and act like owers to get sales making customers feel that their concerns were addressed

d) and team work – collaborative efforts easier to accomplish goals of greater customer satisfaction

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2. The organization’s business:

-Sales orientated firms define their business in terms of goods and services

-Market orientated firms define their business in terms of the benefits it’s customers seek

Three advantages:a) focuss stays on customersb) encourages innovation by seeking different ways to satisfy customers c) Keep abreast of changes in customer tastes and offer relevant products

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3. Whom the product is for:

-Sales orientated firms targets products at everyone

-Market orientated firms target their products at specific groups through research and analysis

-realize that different people want different features

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4. The firms primary goal:

-Sales orientated firms seek profits through sales volumes

-Market orientated firms make a profit through creating customer value, satisfaction, building long term relationships

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-Marketing plays and important role in society because makes products available:

-when you want-in desirable quantities-accessible locations-convenient packages

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-Marketing is important to businesses because it allows for survival, profits and growth:

This is achieved through:-assessing wants and needs of

customers-designing and managing products-determining prices-determining distribution-communicating with customers

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-Marketing offers great career opportunities eg. Sales, research, advertising, buying,

distribution

-Marketing affects your dailiy life-you encounter marketing and participate in

the marketing process as a consumer-by understanding marketing, you will be

better informed and will make better buying decisions

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