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Lamb, Hair, McDaniel

CHAPTER 1

An Overview of Marketing

2012-2013

WINDSO

R&WIEHAHN/STONE/GETTYIMAGES

iStockphoto.com

/SanNguyen

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1. A philosophy, an attitude, a

perspective, or a management

orientation that stresses customersatisfaction.

2. An organizational activity, set of

institutions, and processes.

1

Marketing is

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Marketingis the activity, set ofinstitutions, and processes for creating,

communicating, delivering, and

exchanging offerings that have valuefor customers, clients, partners, and

society at large.

American Marketing Association

Definition of Marketing

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Marketing

entails processes that

focus on delivering value

and benefits to customers,not just selling goods and

services.

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Sales

Market

Societal

Production internal capabilities of the firm

satisfying customer needs and wants

while meeting objectives

satisfying customer needs andwants while enhancing individual andsocietal well-being

aggressive sales techniques andbelief that high sales result in highprofits

Orientat ion Focus is on

The Four Marketing

Management Philosophies

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Production Orientation

Field of Dreams orientation

If you build it, they will come.

Doesnt consider if what is produced

meets market needs

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Sales Orientation

Marketing = Selling Things &

Collecting Money

Disregards market needs and consumer

demand.

Despite the quality of sales force, often

cannot convince people to buy what isneither wanted nor needed.

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Achieving a Marketing

Orientation

Obtain information about customers,competitors, and markets

Examine the information from a totalbusiness perspective

Determine how to deliver superior

customer value

Implement actions to provide valueto customers

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Societal Marketing Orientation

An organization exists not only to satisfy

customer wants but also to preserve or

enhance individuals and societys long-termbest interests.

For example:

Less toxic productsMore durable productsProducts with reusable or recyclablematerials

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Questions That Help Determine

Marketing Philosophy

Production

Sales

Marketing

Societal

What can we make or do best?

How can we sell moreaggressively?

What do customerswant and need?

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

Orientation Focus

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Offer products that perform

Earn trust

Avoid unrealistic pricing

Give the buyer facts

Offer organization-wide commitmentin service and after-sales support

Co-creation with customers

Customer Value Requirements

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the customers evaluation of

a good or service in terms of

whether that good or service

has met their needs and

expectations.

Customer Sat isfact ion is

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a strategy that focuses on keeping andimproving relationships with customers.

Successful strategies need:

Customer-Oriented Personnel

Effective Training Programs

Empowered Employees

Teamwork

Relat ionsh ip Market ing is

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Building Relationships

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

the customer.

Employee training programs

Empowered employees

Employees are given more authority to solve

customer problems on the spot.

Teamwork

Emphasizing cooperation over competition

while helping a customer.

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Defining a Firms Business

3

Sales Orientation

Goods and Services

Market Orientation

Benefits that customers seek

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Knowing the Firms Business: Ensures a customer focus

Encourages innovation and creativity

Stimulates an awareness of changes in

customer preferences

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Sales vs Market Orientations

Sales

Orientat ion

Market

Orientat ion

OrganizationsFocus

FirmsBusiness

For

Whom?

Primary

Prof i t

Goal?

Tools to

Achieve

Sellinggoods andservices

Everybody Maximumsalesvolume

Primarilypromotion

Inward

Outward Coordinateduse of allmarketingactivities

Customersatisfaction

Specific

groups ofpeople

Satisfying

wants andneeds

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Why Study Marketing?

Important

to Society

Important to

Business

Good Career

Opportunities

Marketing affects

you every day!