Chapter 1:
Principles of
Marketing
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Learning Outcome
01 03
Define the term marketing Discuss the differences between
sales and market orientations
02 04
Describe four marketing Describe several reasons for
management philosophies studying marketing
01
WHAT IS
MARKETING?
Definition & Principles
”
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.
American Marketing Association Definition
Employee Satisfaction & Marketing
01 02 03
Employee Satisfaction Greater Effort Higher Quality
04 05 06
Repeat Business Growth and Profit Stockholder satisfaction &
More Investment
Exchange
At Least Two Parties
Definition
People giving up something to receive
Something of Value
something they would rather have
Conditions for
Communication and Delivery
Exchange
Freedom to Accept or Reject
Desire to Deal with Other Party
REVIEW LO 1
Creating
Customer value
and beneficial
Value
relationships
Pla
d uc ce
o
Pr t
Exchange
A B
Delivering Pri
ce o tio
Value
om Communicating
Pr n Value
02
MARKETING
MANAGEMENT
PHILOSOPHIES
Philosophies
01 03
Societal :satisfying customer
Sales : aggressive sales
techniques and belief needs and
that high sales result in high wants while enhancing
profits individual and
societal well-being
Production : internal Market :satisfying customer
Capabilities of organization needs and wants while
meeting objectives
02 04
Market Orientation Vs Societal Orientation
Market Societal
Marketing • Focusing on customer wants and needs to An organization exists not only to
Concept distinguish products from competitors’ offerings satisfy customer wants but also to
preserve or enhance individuals’
• Integrating all the organization’s activities to satisfy and society’s long-term best
these wants interests.
• Achieving the organization’s long-term goals by
satisfying customer wants and needs legally and
responsibly
Achieving the • Obtain information about customers, competitors, • Less toxic products
Orientation and markets • More durable products
• Examine the information from a total business • Products with reusable
perspective or recyclable materials
• Determine how to deliver superior
customer value
• Implement actions to provide value
to customers
REVIEW LO 2
03
SALES AND
MARKET
ORIENTATIONS
Market Orientation
Market-oriented firm defines its business in terms of the
benefits sought by customers.
The market oriented business pays more attention to external
factors and is strongly founded on the principles of achieving its
target audience’s needs and wants. This is the foundation upon
which the business builds its progress and achievements.
Anytime there is a change in the wants and needs of its
customers, the business will make suitable changes to
accommodate its audiences. This may necessitate changes in the
creation of products or how they provide services to customers.
Sales Orientation
A sales-oriented firm defines its business in terms of
goods and services.
it looks inwards and focuses on internal efforts to market its
products and services. Such a business will go to great lengths to
ensure that it makes its products or services highly distinguished.
This is in order to continually appeal to its customers.
When a business focuses on sales orientation, it will not pay too
much attention to the needs and wants of its target audience.
Instead the business believes that if they can provide a product or
service that is outstanding, the business will meet all the
requirements of the wants or needs of the customer.
REVIEW LO 3
04
WHY STUDY
MARKETING
REASON OF STUDY MARKETING
01 03
Vital to business survival,
profits
and growth Affects your life every day
Plays an important role in Offers career opportunities
society
02 04
Thank you