int to mktng ch1

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

Designed byEric BrengleB-books, Ltd.

CHAPTER

1

An Overview of Marketing

Prepared byAmit Shah

Frostburg State University

MarketingLamb, Hair, McDaniel

10

Copyright ©2009 by Cengage Learning Inc. All rights reserved

Learning Learning Learning Learning OutcomesOutcomesOutcomesOutcomes

2

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


What Is Marketing?

3

Define the term marketing

LOI


What Is Marketing?

4

Stresses Customer SatisfactionStresses Customer Satisfaction

A Philosophy

An Attitude

A Perspective

A Management Orientation

A Set of Activities…

Products

Distribution

Promotion

Pricing

LOI


What Is Marketing?

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.

5

LOI

American Marketing Association Definition


What Is Marketing?

6

LOI

Employee satisfaction

Greater effort

Higher quality

Repeat business

Growth andprofits

Stockholder

satisfaction

More investment


Exchange

7

ExchangeExchange

Chapter

PHOTOHere

Chapter

PHOTOHere

People giving up something to

receive something they would

rather have.

LOI


Exchange

8

LOI

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

9

LOI


REVIEW LEARNING OUTCOME

10

LOI

Product

Price

Place

Prom

otion

ExchangeExchange

A BA B

Delivering

Value

Communicating

Value

Creating

ValueCustomer value

and beneficial relationships

Customer value

and beneficial relationships

What Is Marketing?


Marketing Management Philosophies

11

Describe four marketing management philosophies

LO2


Marketing Management Philosophies

12

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…


Market Orientation

13

LO2

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.


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

14

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

15

LO2


Societal Marketing

16

LO2

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



17

LO2

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

The Four Marketing Management Philosophies


Sales and Marketing Orientations

18

Discuss the differences between sales and market orientations

LO3


Comparing the Sales and Market Orientations

19

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:


Customer Value

20

Chapter

PHOTOHere

Chapter

PHOTOHere

LO3

The relationship between

benefits and the sacrifice

necessary to obtain those

benefits.

Customer Value


Customer Value Requirements

• 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

21

LO3


Customer Satisfaction

22

LO3



Chapter

PHOTOHere

Chapter

PHOTOHere

The customer’s evaluation

of a good or service in terms

of whether it has met their

needs and expectations.


Building Relationships

23

LO3

RelationshipMarketing

RelationshipMarketing

Chapter

PHOTOHere

Chapter

PHOTOHere

A strategy that focuses on

keeping and improving

relationships with current

customers.


Building Relationships

24

LO3

� Customer-oriented personnel

� Employee training programs

� Empowered employees

� Teamwork


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

25

LO3

http://www.britannica.com



26

LO3

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


Why Study Marketing

27

Describe several reasonsfor studying marketing

LO4


Why Study Marketing?

� Plays an important role in society

� Vital to business survival, profits

and growth

� Offers career opportunities

� Affects your life every day

28

LO4


Why Study Marketing

29

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



30

LO4

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!

int to mktng ch1

Business

cengage learning

learning outcomesloidefine

rights reserved4

rights reserved6

rights reserved8

rights reserved16

rights reserved17

marketing orientationsdiscuss