chapter 1 copyright ©2009 by cengage learning inc. all rights reserved 1 mktg designed by amy...

Chapter 1 Copyright ©2009 by Cengage Learning Inc. All rights reserved 1

MKTG

Designed byAmy McGuire, B-books, Ltd.

Prepared byDeborah Baker, Texas Christian University

Lamb, Hair, McDaniel 2008-2009

1CHAPTER

An Overview of Marketing


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

LO1

LO2

LO3

LO4


Define the term marketing

What Is Marketing?What Is Marketing?LO1


LO1

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


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.

What Is Marketing?

LO1

American Marketing Association Definition


What Is Marketing?

LO1 Greater effort

Higher quality

Repeat business

Growth andprofits

Stockholder

satisfaction

More investment

Employee satisfaction


Exchange

ExchangeExchange

Chapter PHOTO

Here

Chapter PHOTO

Here

People giving up something to

receive something they would

rather have.

LO1


ExchangeLO1

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

An agreement must be reached

Marketing occurs even if exchange does not take place

LO1

Chapter 1 Copyright ©2009 Cengage Learning Inc. All rights reserved 10

LO1B

eyond

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Watch an Ad – Get Free Software

In exchange for “free” online word-processing, calendar support, or network management services, many budget-conscious corporate users are willing to have the sponsor’s advertisements on the pages they use.

SOURCE: Vauhini Vara, “Companies Tolerate Ads to Get Free Software,” Wall Street Journal, March 27, 2007, B1, B3.

…BUT FIRST, AN AD

FROM OUR SPONSOR…


REVIEW LEARNING OUTCOMELO1

Product

Price

Place

Promotio

n

ExchangeExchangeA BA B

DeliveringValue

CommunicatingValue

CreatingValueCustomer value

and beneficial relationships

Customer valueand beneficial relationships


Describe four marketing

management philosophies

Marketing Management Marketing Management PhilosophiesPhilosophies

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…

LO2Marketing Management Philosophies


Market Orientation

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.

LO2


The Marketing Concept

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

LO2


Achieving 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

Online

http://www.westernunion.com

LO2


Societal Marketing

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

LO2


REVIEW LEARNING OUTCOME

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

LO2


LO2B

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Listen to your customers...

Tom Kelley with Jonathan Littman, The Ten Faces of Innovation: IDEO's Strategies for Defeating the Devil's Advocate and Driving Creativity Throughout Your Organization, Currency/Doubleday, 2005

… but look to the future, as well.

"If I had asked my customers what they wanted," Henry Ford once remarked, "they would have said a faster horse."


Discuss the differences

between sales and market orientations

Sales and Marketing Sales and Marketing OrientationsOrientationsLO3


You can compare these orientations against these five categories:

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


Customer ValueCustomer Value

Customer Value

The relationship

between benefits

and the sacrifice

necessary to

obtain those

benefits.

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 RequirementsLO3


Customer Satisfaction



The feeling that a product

met or exceeded the

customer’s expectations.

The feeling that a product

met or exceeded the

customer’s expectations.

LO3


Building Relationships

RelationshipMarketing

RelationshipMarketing

A strategy that

focuses on

keeping and

improving

relationships with

current

customers.

LO3


Building Relationships

Customer-oriented personnel

Employee training programs

Empowered employees

Teamwork

LO3


LO3B

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Building From Within

SOURCE: The Corporate Learning Factbook® 2007: Statistics, Benchmarks and Analysis of the U.S. Corporate Training Market, Bersin & Associates / Karen O’Leonard, January 2007.

Today's companies must build from within, putting more emphasis (and money) on rapidly training younger employees for greater responsibilities.

Growing U.S. economy + Aging workforce

“War for new talent" + Lack of middle managers


Biz Flix

The JerkLO3


Online

http://www.britannica.com

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

LO3



Sales vs. Market Orientations

Sales Orientation

Market Orientation

Organization’sFocus

Firm’sBusiness

ForWhom?

Primary Profit Goal?

Tools to Achieve

Selling goods and services

Everybody Maximum sales volume

Primarily promotion

Inward

Outward Coordinated use of all marketing activities

Customer satisfaction

Specific groups of people

Satisfying wants and needs


LO3B

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Anatomy of an AdTag line ties into relationship marketing

Package is part of the product

Samples are a type of promotion

Ways company creates value

Product directed at people who are not confident selecting paint colors

Store is place

Pink ribbon shows element of societal marketing orientation


Describe several reasons for studying

marketing

Why Study MarketingWhy Study MarketingLO4


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


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



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!

chapter 1 copyright ©2009 by cengage learning inc. all rights reserved 1 mktg designed by amy...

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