Download - 2011.2.01 Marketing
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Lamb, Hair, McDaniel
CHAPTER 1
An Overview of Marketing
2010-2011
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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
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Define the term marketing
What Is Marketing?What Is Marketing?
LO1
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Marketing…Marketing…
•Stresses Customer Satisfaction
•A Philosophy
•An Attitude
•A Management Orientation
•A Set of Activities
•Products
•Promotion
•PricingLO1
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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?
American Marketing Association Definition
LO1
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What Is Marketing?
Greater effort
Higher quality
Repeat business
Growth andprofits
Stockholder
satisfaction
More investment
Employee satisfaction
LO1
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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 Party
Desire to Deal with Other Party
Conditions for Exchange
Conditions for Exchange
LO1
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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
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Product
Price
Place
Promotio
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ExchangeExchangeA BA B
DeliveringValue Communicating
Value
CreatingValueCustomer value
and beneficial relationships
Customer valueand beneficial relationships
LO1
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Describe four marketing
management philosophies
Marketing Management Marketing Management PhilosophiesPhilosophies
LO2
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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
LO2
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Production Orientation
• Field of Dreams orientation– “If you build it, they will come.”– Doesn’t consider if what is produced meets
market needs
LO2
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Sales Orientation
• Selling = Collecting Money– Disregards market needs and consumer
demand.– Failing to recognize what the customer
wants leads to business failures• Dot-com busts in late 1990’s
LO2
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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
LO2
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Achieving a Marketing Achieving a Marketing OrientationOrientation
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
LO2
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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.
• Less toxic products• More durable products• Products with reusable or recyclable materials
LO2
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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
Questions That Help Determine Marketing Philosophy
LO2
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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."
LO2
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Discuss the differences
between sales and market orientations
Differences between SalesDifferences between Sales and Marketing and Marketing
OrientationsOrientations
LO3
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Comparing the Sales and Market Orientations
Compare through 5 categories:• Organization’s focus• Firm’s business• Those to whom the product is directed• Firm’s primary goal• Tools the organization uses to achieve its
goals
LO3
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Offer products that perform Earn trust
Avoid unrealistic pricing
Give the buyer facts
Offer organization-wide commitment in service and after-sales support
Co-creation with customers
Customer Value Requirements
LO3
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Building Relationships Customer-oriented personnel
One employee represents the entire firm to a customer who only interacts with him.
Employee training programs Empowered employees
Give customers confidence that their concerns are being addressed and employees feel that they matter.
TeamworkEmphasizing cooperation over competition while
helping a customer. LO3
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Relationship Marketing
A strategy that focuses on keeping and improving relationships with customers.
Successful strategies need:• Customer-Oriented Personnel• Effective Training Programs• Empowered Employees• Teamwork
LO3
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Building From Within
SOURCE: The Corporate Learning Factbook® 2008: Statistics, Benchmarks and Analysis of the U.S. Corporate Training Market, Bersin & Associates / Karen O’Leonard, January 2008.
Today's companies must build their management teams from within, putting more emphasis (and money) on rapidly training younger employees for greater responsibilities.
“War for new talent” or training from within
Challenging economy
+ Lack of middle managers
+ Aging workforce
LO3
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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
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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
LO3
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Describe several reasons for studying
marketing
Why Study MarketingWhy Study Marketing
LO4
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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!LO
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Why Study Marketing?
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
LO4
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Marketing Trends
YouTube “Celebrity” endorsements– Popular channel stars get money for using or
hyping products or companies– Videos release to coincide with school release
times• Popular in Tween markets
– “Fred” is the second most popular channel on YouTube http://www.youtube.com/fred
Source: “Playing the Web Card: YouTube Breakout Stars New Faves of Marketers,” wwd.com, August 18, 2009; Albrecht, Chris. “’Fred’ Cranks up the YouTube Views and Ad Dollars,” BusinessWeek, November 18, 2008, online at http://www.businessweek.com/technology/content/nov2008/tc20081118_508970.htm
LO4