Chapter 1 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
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An Overview of MarketingAn Overview of Marketing
Prepared byPrepared byDeborah BakerDeborah Baker
Texas Christian UniversityTexas Christian University
Chapter 1
Chapter 1 Marketing 7e Lamb Hair McDaniel©2004 South-Western/Thomson Learning
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Learning ObjectivesLearning Objectives
1. Define the term marketing
2. Describe four marketing management philosophies
3. Discuss the differences between sales and market orientations
4. Describe the marketing process
5. Describe several reasons for studying marketing
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Learning ObjectiveLearning Objective
Define the term marketing
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What is Marketing?What is Marketing?
All of the above, plus much more!
Personal Selling? Advertising? Making products available in stores? Maintaining inventories?
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What is Marketing?What is Marketing?
A Philosophy
An Attitude
A Perspective
A Management Orientation
A Set of Activities, including:
Products
Pricing
Promotion
Distribution
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What is Marketing?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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The Concept of ExchangeThe Concept of Exchange
The idea that people give up something to receive something they would
rather have.
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The Concept of ExchangeThe Concept of Exchange
Necessary Conditions
for Exchange
At Least Two Parties
Something of Value
Communication and Delivery
Freedom to Accept or Reject
Desire to Deal With Other Party
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Exchange may not take place even if conditions are met
An agreement must be reached Marketing occurs even if
exchange does not take place
NO SALENO SALE
The Concept of ExchangeThe Concept of Exchange1
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Learning ObjectiveLearning Objective
Describe four marketing management philosophies.
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CompetingCompetingPhilosophiesPhilosophies
Production
Sales
Market
Societal Marketing
Marketing Management Marketing Management PhilosophiesPhilosophies2
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Orientation Key Ideas
Production
Sales
Market
Societal
Focus on efficiency of internal operations
Focus on satisfying customer needs and wants
while meeting objectivesFocus on satisfying customer needs and wants while enhancing individual and societal well-being
Focus on aggressive sales techniques and believe that high sales result in high profits
Marketing Management Marketing Management PhilosophiesPhilosophies2
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The Marketing ConceptThe 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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The Marketing ConceptThe 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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Achieving a Market Achieving a Market OrientationOrientation
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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Less toxic products More durable products Products with reusable
or recyclable materials
Societal Marketing Societal Marketing OrientationOrientation
Marketing that preserves or enhances an individual’s and society’s long-term
best interests
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Learning ObjectiveLearning Objective
Discuss the differences between sales and market orientations.
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Sales vs. Market OrientationsSales vs. Market Orientations
Organization’sFocus
Firm’sBusiness
ForWhom?
Primary Profit Goal?
Tools to Achieve
Selling goods and services
Everybody Maximum sales volume
Primarily promotion
InwardSales Orientation
Market Orientation
Outward Coordinated use of all marketing activities
Customer satisfaction
Specific groups of people
Satisfying wants and needs
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The Organization’s FocusThe Organization’s Focus
Create Customer
ValueBuild Long-Term
RelationshipsMaintain
CustomerSatisfaction
Key Issues in Developing Competitive Advantage
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Customer ValueCustomer Value
The ratio of benefits to the sacrifice necessary to obtain those benefits
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Customer Value Customer Value RequirementsRequirements
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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The feeling that a product has met or exceeded the customer’s expectations.
Customer SatisfactionCustomer Satisfaction3
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Maintaining Customer Maintaining Customer SatisfactionSatisfaction
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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Relationship MarketingRelationship Marketing
The name of a strategy that entails forging
long-term partnerships with customers, both individuals and firms.
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Relationship MarketingRelationship Marketing
RequirementsRequirementsfor for
Building Building RelationshipsRelationships
Who are your customers
What do customers value
How do they prefer to interact
What do they want to buy
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Building Long-Term Building Long-Term RelationshipsRelationships
Customer-oriented personnel
Effective training programs
Empowered employees
Teamwork
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Defining a Firm’s BusinessDefining a Firm’s Business
““BenefitsBenefits” instead of “” instead of “goods/servicesgoods/services””
Ensures a customer focus
Encourages innovation
Stimulates an awareness of changes in customer preferences
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Learning ObjectiveLearning Objective
Describe the marketing process.
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Marketing Process ActivitiesMarketing Process Activities
Understand the organization’s mission
Set marketing objectives
Gather, analyze, interpret “SWOT” information
Develop a marketing strategy
Implement the marketing strategy
Design performance measures
Evaluate marketing efforts--change if needed
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Learning ObjectiveLearning Objective
Describe several reasonsfor studying marketing.
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Why Study Marketing?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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Why Study Marketing?Why Study Marketing?
“Marketing is far too important to be left only to the
marketing department.”
--David Packard Hewlett-Packard
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1/4th to 1/3rd of the civilian workforce in the U.S. performs marketing activities
Fast route up the corporate ladder
• Professional Selling
• Marketing Research
• Advertising
• Retail Buying
• Distribution Management
• Product Management
• Product Development
• Wholesaling
Why Study Marketing?Why Study Marketing?5
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Half of every dollar spent pays for marketing costs
Better-informed consumers
Demand for customer satisfaction
Why Study Marketing?Why Study Marketing?5
