Transcript Chapter 1

Lamb, Hair, McDaniel
MKTG2008-2009
1
CHAPTER
An Overview of Marketing
Designed by
Amy McGuire, B-books, Ltd.
Chapter 1
Prepared by
Deborah Baker, Texas Christian University
Copyright ©2009 by Cengage Learning Inc. All rights reserved
1
Learning Outcomes
LO1
Define the term marketing
LO2
Describe four marketing management
philosophies
LO3
Discuss the differences between sales and
market orientations
LO4
Describe several reasons for studying
marketing
Chapter 1
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LO1
What Is Marketing?
Define the term
marketing
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What Is Marketing?
Stresses Customer Satisfaction
A Philosophy
A Set of Activities…
An Attitude
Products
A Perspective
Distribution
A Management
Orientation
Promotion
Pricing
LO1
Chapter 1
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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,
and society at large.
LO1
Chapter 1
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What Is Marketing?
More
investment
Stockholder
satisfaction
Growth and
profits
Repeat
business
Employee
satisfaction
LO1
Chapter 1
Higher
quality
Greater
effort
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Exchange
Exchange
Chapter
PHOTO
Here
People giving up something to
receive something they would
rather have.
LO1
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LO1 Exchange
At Least Two Parties
Something of Value
Conditions for
Exchange
Communication and Delivery
Freedom to Accept or Reject
Desire to Deal with Other Party
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LO1 Exchange
Chapter 1

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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Beyond the Book
LO1 Watch an Ad – Get Free Software
Chapter 1
In exchange for “free”
online word-processing,
calendar support, or
network management
services, many budgetconscious corporate users
are willing to have the
sponsor’s advertisements
on the pages they use.
SOURCE: Vauhini Vara, “Companies Tolerate Ads to Get Free
Software,” Wall Street Journal, March 27, 2007, B1, B3.
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LO1 REVIEW LEARNING OUTCOME
Customer value
and beneficial
relationships
Creating
Value
Exchange
A
B
Delivering
Value
Chapter 1
Communicating
Value
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LO2
Marketing Management
Philosophies
Describe four
marketing
management
philosophies
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LO2
Marketing Management
Philosophies
Orientation
Focus is on…
Production internal capabilities of the firm
Sales
Chapter 1
aggressive sales techniques and belief
that high sales result in high profits
Market
satisfying customer needs and wants
while meeting objectives
Societal
satisfying customer needs and
wants while enhancing individual and
societal well-being
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Market Orientation
Marketing
Concept
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.
LO2
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LO2 The Marketing Concept
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
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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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
http://www.westernunion.com
Online
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Societal Marketing
Societal
Marketing
Orientation
An organization exists not only
to satisfy customer wants but
also to preserve or enhance
individuals’ and society’s longterm best interests.
•
•
•
Less toxic products
More durable products
Products with reusable
or recyclable materials
LO2
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LO2 REVIEW LEARNING OUTCOME
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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Beyond the Book
LO2 Listen to your customers...
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… 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."
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
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LO3
Sales and Marketing
Orientations
Discuss the
differences
between sales
and market
orientations
Chapter 1
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Comparing the Sales and
Market Orientations
You can compare these orientations against
these five categories:





Organization’s focus
Firm’s business
Those to whom the product is directed
Firm’s primary goal
The tools used to achieve those goals
LO3
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Customer Value
Customer Value
The relationship
between benefits
and the sacrifice
necessary to
obtain those
benefits.
LO3
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LO3 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
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Customer Satisfaction
Customer
Satisfaction
The feeling that a product
met or exceeded the
customer’s expectations.
LO3
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Building Relationships
Relationship
Marketing
A strategy that
focuses on
keeping and
improving
relationships with
current customers.
LO3
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Building Relationships

Customer-oriented personnel

Employee training programs

Empowered employees

Teamwork
LO3
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Beyond the Book
LO3 Building From Within
Chapter 1
Today's companies must build from within,
putting more emphasis (and money) on
rapidly training younger employees for
greater responsibilities.
Growing U.S. economy
+ Aging workforce
“War for new talent"
+ Lack of middle
managers
SOURCE: The Corporate Learning Factbook® 2007: Statistics, Benchmarks and Analysis of the U.S. Corporate Training
Market, Bersin & Associates / Karen O’Leonard, January 2007.
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Biz Flix
LO3
Chapter 1
The Jerk
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LO3 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
http://www.britannica.com
Online
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LO3 REVIEW LEARNING OUTCOME
Sales vs. Market Orientations
Organization’s
Focus
Firm’s
Business
For
Whom?
Primary
Profit
Goal?
Tools to
Achieve
Sales
Orientation
Inward
Selling
goods and
services
Everybody
Maximum
sales
volume
Market
Orientation
Outward
Satisfying
wants and
needs
Specific
groups of
people
Customer
Coordinated
satisfaction use of all
marketing
activities
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Primarily
promotion
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Beyond the Book
LO3 Anatomy of an Ad
Chapter 1
Tag line ties into
relationship
marketing
Product directed
at people who are
not confident
selecting paint
colors
Package is part of
the product
Samples are a
type of promotion
Store is
place
Ways company
creates value
Pink ribbon shows
element of societal
marketing orientation
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LO4
Why Study Marketing
Describe several
reasons for studying
marketing
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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
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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
LO4
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LO4 REVIEW LEARNING OUTCOME
Reasons for Studying Marketing
Why Study Marketing?
Important
to
Society
Important
to
Business
Good
Career
Opportunities
+
Marketing affects you every day!
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