Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 CHAPTER 1 An Overview of...

Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1

CHAPTER 1

An Overview of Marketing

© W

IND

SO

R &

WIE

HA

HN

/ST

ON

E/G

ET

TY

IMA

GE

S


LO 1 Define the term marketing

LO 2 Describe four marketing management philosophies

LO 3 Discuss the differences between sales and market orientations

LO 4 Describe several reasons for studying marketing

Learning OutcomesLearning Outcomes


What Is Marketing?What Is Marketing?

Define the term marketing


Marketing is the activity, set of institutions, and processes for creating, communicating,

delivering, and exchanging offerings that have value for customers, clients, partners, and

society at large.

( 4 P’s?)

What Is Marketing?

American Marketing Association Definition


What Is Marketing?

Marketing entails processes that focus on

delivering value and benefits to customers, NOT

just selling goods and services.


Exchange

ExchangeExchange

Chapter PHOTO

Here

Chapter PHOTO

Here

People giving up something to receive

something they would rather have.


Exchange

At Least Two PartiesAt Least Two Parties

Something of ValueSomething of Value

Communication and DeliveryCommunication and Delivery

Freedom to Accept or RejectFreedom to Accept or Reject

Desire to Deal with Other PartyDesire to Deal with Other Party

Conditions for Exchange

Conditions for Exchange


Exchange

• Exchange may not take place even if conditions are met (ie., ebay, classifieds, craigslist)

• An agreement must be reached

• Marketing occurs even if exchange does not take place

Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 9Slide 1-8

The ‘See-if-you’re-an-Expert’ Test

1. True2. (c) 30%

3. True4. (c) plastic bottles


Describe four marketing

management philosophies

Marketing Management Marketing Management PhilosophiesPhilosophies


Sales

Market

Societal

Production internal capabilities of the firm

satisfying customer needs and wants while meeting objectives

satisfying customer needs and wants while enhancing individual and societal well-being

aggressive sales techniques and belief that high sales result in high profits

Orientation Focus is on…

The Four Marketing Management Philosophies


Production Orientation

• Field of Dreams orientation– “If you build it, they will come.”

– Doesn’t consider if what is produced meets market needs

• Ex: furniture industry


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.

• Ex: Telemarketing


Market Orientation

MarketingConcept

MarketingConcept

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.


Market OrientationMarket Orientation

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

Marketing Concept


Achieving a Marketing OrientationAchieving 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

ProductionProduction

SalesSales

MarketingMarketing

SocietalSocietal

What can we make or do best?What can we make or do best?

How can we sell more aggressively?

How can we sell more aggressively?

What do customerswant and need?

What do customerswant and need?

What do customers want/need, and how can we benefit society?

What do customers want/need, and how can we benefit society?

Orientation Focus


Customer ValueCustomer Value

Customer Value

The relationship between benefits

and the sacrifice necessary to

obtain those benefits.


Offer products that perform

Earn trust

Avoid unrealistic pricing

Give the buyer facts

Offer organization-wide commitment in service and after-sales support

Customer Value Requirements


Customer Satisfaction

the customers’ evaluation of a good or service in terms of whether that good or service has met their needs and expectations.

Customer Satisfaction is…


Building Relationships

RelationshipMarketing

RelationshipMarketing

A strategy that

focuses on

keeping and

improving

relationships with

current

customers.

•Repeat

business!!


Building Relationships

Customer-oriented personnelEvery employee represents the firm in the eyes of the customer.

Employee training programs

Empowered employeesEmployees are given more authority to solve customer problems on the spot.

Teamwork

Emphasizing cooperation over competition while helping a customer.


Why Study Marketing?Why Study Marketing?

Importantto

Society

Importantto

Society

Importantto

Business

Importantto

Business

GoodCareer

Opportunities

GoodCareer

Opportunities

Marketing affects you every day!

Role inEveryday

Life

Role inEveryday

Life

Date post:	03-Jan-2016
Category:	Documents
Upload:	nicholas-owens
View:	217 times
Download:	4 times

Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 CHAPTER 1 An Overview of...

Documents