CHAPTER 1
OVERVIEW OF MARKETING
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LEARNING OUTCOMES
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 the marketing process
LO 5 Describe several reasons for studying
marketing
LO 6 Describe the trend in marketing
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LO 1
WHAT IS MARKETING?
Stresses Customer Satisfaction
A Philosophy A Set of Activities…
An Attitude
Products
A Perspective
Distribution
A Management
Promotion
Orientation
Pricing
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LO 1
WHAT IS MARKETING?
American Marketing Association Definition
Marketing is the process of planning
and executing the product conception,
pricing, promotion,and distribution of
ideas, goods, and service to create
exchanges that satisfy individual and
organizational goals.
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LO 1
WHAT IS MARKETING?
American Marketing Association Definition
Marketing is the activity, set of
institutions, and processes for creating,
communicating, delivering, and
exchanging offerings that have value for
customers, clients, partners
partners, and society
at large.
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LO 1
WHAT IS MARKETING?
More
Partners refers to investment
employees, suppliers,
Stockholder
stockholders, distributors, satisfaction
and others.
Growth and
profits
Repeat
business
For example:
Higher
When organization creates quality of goods
high level of
employee satisfaction Greater
effort
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LO 1
THE CONCEPT OF EXCHANGE
EXCHANGE People giving up
something to receive
something they would
rather have.
Chapter
PHOTO
Here
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LO 1
THE CONCEPT OF EXCHANGE
At Least Two Parties
Something of Value
Necessary
Conditions Communication and Delivery
for
Exchange
Freedom to Accept or Reject
Desire to Deal With Other
Party
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LO 1
THE 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
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LO 1
REVIEW LEARNING OUTCOME
What Is Marketing?
Creating
Customer value
Value
and beneficial
relationships
Exchange
A B
Delivering Communicating
Value Value
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LO 2
MARKETING MANAGEMENT
PHILOSOPHIES
Production
Sales
Competing Market
Philosophies
Societal Marketing
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LO 2
MARKETING MANAGEMENT
PHILOSOPHIES
Orientation Focus is on
Production internal capabilities of the firm
rather than on the desire and
needs of the marketplace.
Sales aggressive sales techniques and
belief that high sales result in high
profits.
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LO 2
MARKETING MANAGEMENT
PHILOSOPHIES
Orientation Focus is on
Market satisfying customer needs and
wants while meeting organizational
objectives
Societal satisfying customer needs and
Marketing wants and to meet organizational
objectives and also to preserve or
enhance individual and societal
well-being
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LO 2
MARKET ORIENTATION
Marketing The idea that the social and
Concept economic justification for an
organization’s existence is the
satisfaction of customer wants
and needs while meeting
organizational objectives.
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LO 2
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
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LO 2
ACHIEVING A MARKET ORIENTATION
u Obtain information about customers,
competitors, and markets
u Examine the information from a total business
perspective
u Determine how to deliver superior
customer value
u Implement actions to provide value
to customers
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LO 2
SOCIETAL MARKETING ORIENTATION
Societal An organization exists not only
Marketing to satisfy customer wants but
Orientation 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
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LO 2
REVIEW LEARNING OUTCOME
THE FOUR MARKETING MANAGEMENT PHILOSOPHIES
ORIENTATION FOCUS
Production What can we make or do best?
Sales How can we sell more aggressively?
Marketing What do customers
want and need?
Societal What do customers want and need,
and how can we benefit society?
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LO 3
SALES vs. MARKETING ORIENTATION
Organization’s Firm’s For Primary Tools to
Focus Business Whom? Profit Achieve
Goal?
Sales Inward Selling Everybody Maximum Primarily
Orientation goods and sales promotion
services volume
Market Outward Satisfying Specific Customer Coordinated
Orientation wants and groups of satisfaction use of all
needs people marketing
activities
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LO 3
THE ORGANIZATION’S FOCUS
Key Issues in
Developing
Competitive Advantage
Create Maintain
Build Long-Term
Customer Customer
Relationships
Value Satisfaction
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LO 3
CUSTOMER VALUE
Customer Value The relationship
between benefits and
the sacrifice necessary
to obtain those benefits.
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LO 3
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
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LO 3
CUSTOMER SATISFACTION
Customer The customer’s evaluation
Satisfaction of a good or service in
terms of whether it has
met their needs and
expectations.
Chapter
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LO 3
MAINTAINING CUSTOMER
SATISFACTION
u Meet or exceed customer’s expectations
u Focus on delighting customers
u Provide solutions to customer’s problems
u Cultivate relationships,
NOT one-time transactions
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LO 3
BUILDING RELATIONSHIPS
Relationship A strategy that focuses
Marketing on keeping and
improving relationships
Chapter with current
PHOTO
customers.
Here
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LO 3
BUILDING LONG-TERM RELATIONSHIP
u Customer-oriented personnel
u Effective training programs
u Empowered employees
u Teamwork
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LO 3
DEFINING A FIRM’S BUSINESS
Use “benefits” instead of “goods/services”
– Ensures a customer focus
– Encourages innovation and creativity
– Stimulates an awareness of changes
in customer preferences
[Link]
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LO 4
MARKETING PROCESS ACTIVITIES
Understand the organization’s mission
Set marketing objectives
Gather, analyze, interpret “SWOT” information
Develop a marketing strategy
Implement the marketing strategy
Design performance measures
Evaluate marketing efforts--change if needed
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LO 5
WHY STUDY MARKETING?
u Plays an important role in society
u Vital to business survival, profits
and growth
u Offers career opportunities
u Affects your life every day
§ Better-informed customer
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LO 5
WHY STUDY MARKETING
VITAL MARKETING ACTIVITIES
Assess the wants and satisfaction of customers
Design and manage product offerings
Determine prices and pricing policies
Develop distribution strategies
Communicate with present and potential customers
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LO 5
REVIEW LEARNING OUTCOME
Reasons for Studying Marketing
Why Study Marketing?
Important Important Good
to to Career
Society Business Opportunities
+
Marketing affects you every day!
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LO 6
TREND IN MARKETING
• Increased use of E-Commerce
– allow customer to do their transaction online
– provide information about the background & company policy
and service offered
– placement of advertisement and promotion online
• Increased use of e-mail to reach out to prospects and
customers more frequently at a very low cost.
• Increased use of blogs, social networking, and other
social media to create dialog and relationships with
prospects and customers.
• Emphasis customer retention
• Detailed method to measure customer satisfaction
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