chapter 1 ver 2e©2000 south-western college publishing1 chapter 1 an overview of marketing prepared...

Chapter 1 Ver 2e ©2000 South-Western College Publishing 1

Chapter 1Chapter 1

An Overview of MarketingAn Overview of Marketing

Prepared byPrepared byDeborah BakerDeborah BakerTexas Christian UniversityTexas Christian University


1. Define the term marketing

2. Describe four marketing management philosophies

3. Explain how firms implement the marketing concept

(continued)

Chapter 1 ObjectivesChapter 1 Objectives


Chapter 1 Objectives (continued)Chapter 1 Objectives (continued)

4. Describe the marketing processand identify the variables that makeup the marketing mix

5. Describe several reasons for studying marketing


What is Marketing?What is Marketing?

All of the above, plus much more!

Personal Selling?

Advertising?

Making products available in stores?

Maintaining inventories?



A Philosophy

An Attitude

A Perspective

A Management Orientation

A Set of Activities, including:

Products

Services

Pricing

Promotion

Distribution


“The aim of marketing is to know and understand the customer so well that the product or service

fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or

service available…”

Peter F. Drucker

Management: Tasks, Responsibilities, Practices

(New York: Harper & Row, 1973)



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.



The Concept of ExchangeThe Concept of Exchange

Desire to Deal With Other PartyDesire to Deal

With Other Party

Freedom to Accept or Reject

Freedom to Accept or Reject

Something of Value

Something of Value

Ability to Communicate

Offer

Ability to Communicate

Offer

At Least Two Parties

At Least Two Parties

Necessary Conditions

for Exchange

Necessary Conditions

for Exchange


The Concept of ExchangeThe Concept of 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

NO SALENO SALE


Marketing Management PhilosophiesMarketing Management Philosophies

Production Orientation

Sales Orientation

Market Orientation

Societal Orientation


PhilosophyPhilosophy


Key Ideas

ProductionProduction

SalesSales

MarketMarket

Focus on aggressive techniques for overcoming customer resistance

Focus on aggressive techniques for overcoming customer resistance

SocietalSocietal

Focus on efficiency of internal operations

Focus on satisfying customer needs and wants

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



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

Market ConceptMarket Concept



Top management leadership

A customer focus

Competitor intelligence

Interfunctional coordination

Market ConceptMarket

Concept RequirementsRequirements


Developing Competitive AdvantageDeveloping Competitive Advantage

Create Customer

Value

Create Customer

Value

Build Long-Term Relationships


Maintain Customer

Satisfaction

Maintain Customer

Satisfaction

Companies Create Competitive

Advantage by Stressing Customer

Importance

Companies Create Competitive

Advantage by Stressing Customer

Importance



Create Customer

Value

Create Customer

Value

Offer products that perform Give consumers more than they expect Avoid unrealistic pricing Give the buyer facts Offer organization-wide commitment

in service and support



Maintain Customer

Satisfaction

Maintain Customer

Satisfaction

Meet or exceed customer’s expectations

Focus on keeping customers satisfied

Provide solutions to customer’s problems



Forge long-term partnerships with customers

Develop customer-oriented personnel Training Empowerment Teamwork

Use Internet as a tool




Importance of Relationship MarketingImportance of Relationship Marketing

Attracting a new customer may be FOUR TIMES the

cost of keeping an old customer


Gather, analyze, interpret information about environmentGather, analyze, interpret information about environment

Understand organization’s mission and marketing’s roleUnderstand organization’s mission and marketing’s role

Conduct a market opportunity analysisConduct a market opportunity analysis

Implement the marketing strategyImplement the marketing strategy

Evaluate marketing efforts and make changesEvaluate marketing efforts and make changes

Develop a marketing strategy Develop a marketing strategy

Marketing ActivitiesMarketing Activities


Marketing StrategyMarketing Strategy

Organization MissionOrganization MissionOrganization MissionOrganization Mission

EvaluationEvaluationEvaluationEvaluation

Market OpportunityMarket OpportunityAnalysisAnalysis

Market OpportunityMarket OpportunityAnalysisAnalysis

Target MarketTarget MarketSelectionSelection

Target MarketTarget MarketSelectionSelection

Market Market Objectives Objectives

Market Market Objectives Objectives

Marketing Marketing Mix Mix

Marketing Marketing Mix Mix

EnvironmentalEnvironmentalScanningScanning

EnvironmentalEnvironmentalScanningScanning

ImplementationImplementationImplementationImplementation

The Marketing ProcessThe Marketing Process


The Marketing ProcessThe Marketing Process

Activities in theMarketing Process

Activities in theMarketing Process

Environmental ScanningEnvironmental Scanning

Organization MissionOrganization Mission

Market Opportunity AnalysisMarket Opportunity Analysis

Marketing StrategyMarketing Strategy

ImplementationImplementation

EvaluationEvaluation

Target MarketMarketing Mix


Social ForcesSocial Forces

Demographic ForcesDemographic Forces

Economic ForcesEconomic Forces

Technological ForcesTechnological Forces

Political & Legal ForcesPolitical & Legal Forces

Competitive ForcesCompetitive Forces

UncontrollableUncontrollableEnvironmental Environmental

InfluencesInfluences

UncontrollableUncontrollableEnvironmental Environmental

InfluencesInfluences

Environmental ScanningEnvironmental Scanning


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

“Marketing is too important to be left to the marketing department.”

--David Packard, Hewlett-Packard

“Marketing is too important to be left to the marketing department.”

--David Packard, Hewlett-Packard



Between a fourth and a third of the entire civilian workforce inthe United States performs marketing activities

Fastest route up the corporate ladder

• Professional Selling

• Marketing Research

• Advertising

• Retail Buying

• Distribution Management

• Product Management

• Product Development

• Wholesaling

• Professional Selling

• Marketing Research

• Advertising

• Retail Buying

• Distribution Management

• Product Management

• Product Development

• Wholesaling



Half of every dollar spent by consumers pays for marketing costs

Understand the buying process

Negotiate more effectively with sellers

Become a better-informed consumer

Be better prepared to demand satisfaction when products do not meet standards

chapter 1 ver 2e©2000 south-western college publishing1 chapter 1 an overview of marketing prepared...

Documents

marketing mix5

aim of marketing

marketing department

satisfying customer

customers expectations

organizations longterm

service availablepeter

products available