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CHAPTER

1

An Overview of Marketing

Prepared byDeborah Baker

Texas Christian University

Introduction to MarketingMcDaniel, Lamb, Hair

9

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Learning Outcomes

Define the term marketing

Describe four marketing management philosophies

Discuss the differences between sales and market orientations

Describe several reasons for studying marketing

LOI

LO2

LO3

LO4

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Define the term marketing

What Is Marketing?LOI

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What Is Marketing?

Stresses Customer SatisfactionStresses Customer Satisfaction

A Philosophy

An Attitude

A Perspective

A Management Orientation

A Set of Activities…

Products

Distribution

Promotion

Pricing

LOI

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Marketing is an organizational function and a set of processes for creating,

communicating, and delivering value to customers and for managing customer relationships in ways that benefit the

organization and its stakeholders.

What Is Marketing?LOI

American Marketing Association Definition

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What Is Marketing?LOI

Employee satisfaction

Greater effort

Higher quality

Repeat business

Growth andprofits

Stockholder

satisfaction

More investment

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Exchange

ExchangeExchange

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People giving up something to

receive something they would

rather have.

LOI

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ExchangeLOI

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

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ExchangeLOI

Exchange may not take place even if conditions are met

An agreement must be reached

Marketing occurs even if exchange does not take place

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REVIEW LEARNING OUTCOMELOI

Product

Price

Place

Promotio

n

ExchangeExchangeA BA B

DeliveringValue

CommunicatingValue

CreatingValueCustomer value

and beneficial relationships

Customer valueand beneficial relationships

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Describe four marketing management philosophies

Marketing Management PhilosophiesLO2

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Marketing Management Philosophies

LO2

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…

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Market OrientationLO2

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.

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The Marketing ConceptLO2

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

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Achieving a Marketing OrientationLO2

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

Online

http://www.westernunion.com

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Societal MarketingLO2

SocietalMarketing

Orientation

SocietalMarketing

Orientation

An organization exists not only to

satisfy customer wants but also to

preserve or enhance individuals’ and

society’s long-term best interests.

• Less toxic products

• More durable products

• Products with reusable or recyclable materials

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REVIEW LEARNING OUTCOMELO2

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 and need, and how can we benefit society?

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

Orientation Focus

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Discuss the differences between sales and market orientations

Sales and Marketing OrientationsLO3

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Comparing the Sales and Market Orientations

LO3

Organization’s focus Firm’s business Those to whom the product is directed Firm’s primary goal The tools used to achieve those goals

You can compare these orientations against these five categories:

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Customer Value

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LO3

The relationship between benefits

and the sacrifice necessary to

obtain those benefits.

Customer Value

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LO3

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

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Customer SatisfactionLO3

Customer Satisfaction

Customer Satisfaction

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The feeling that a product

met or exceeded the

customer’s expectations.

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Building RelationshipsLO3

RelationshipMarketing

RelationshipMarketing

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A strategy that focuses on

keeping and improving

relationships with current

customers.

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Building Relationships

Customer-oriented personnel

Employee training programs

Empowered employees

Teamwork

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Biz FlixThe Jerk

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LO3

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LO3

Online

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Defining a Firm’s Business

Use “Use “benefitsbenefits” instead of “” instead of “goods/servicesgoods/services””

– Ensures a customer focus

– Encourages innovation and creativity

– Stimulates an awareness of changes in customer preferences

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Sales 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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Describe several reasonsfor studying marketing

Why Study MarketingLO4

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Plays an important role in society

Vital to business survival, profits and growth

Offers career opportunities

Affects your life every day

Why Study Marketing?LO4

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Why Study Marketing

LO4

Vital Marketing ActivitiesVital Marketing Activities

Assess the wants and satisfaction of customersAssess the wants and satisfaction of customers

Design and manage product offeringsDesign and manage product offerings

Determine prices and pricing policiesDetermine prices and pricing policies

Develop distribution strategiesDevelop distribution strategies

Communicate with present and potential customersCommunicate with present and potential customers

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REVIEW LEARNING OUTCOMELO4

Reasons for Studying Marketing

Why Study Marketing?Why Study Marketing?

Importantto

Society

Importantto

Society

Importantto

Business

Importantto

Business

GoodCareer

Opportunities

GoodCareer

Opportunities

+Marketing affects you every day!