Transcript What Is Marketing?

An Overview of Marketing
CHAPTER
1
Marketing
10
Lamb, Hair, McDaniel
Designed by
Eric Brengle
B-books, Ltd.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Prepared by
Amit Shah
Frostburg State University
1
Learning Outcomes
LOI
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
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2
LOI
What Is Marketing?
Define the term
marketing
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3
LOI
What Is Marketing?
Stresses Customer Satisfaction
A Philosophy
A Set of Activities…
An Attitude
A Perspective
A Management
Orientation
Products
Distribution
Promotion
Pricing
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LOI
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.
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LOI
What Is Marketing?
More
investment
Stockholder
satisfaction
Growth and
profits
Repeat
business
Higher
quality
Employee
satisfaction
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Greater
effort
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LOI
Exchange
Exchange
People giving up something to
receive something they would
rather have.
Chapter
PHOTO
Here
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LOI
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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LOI
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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LOI REVIEW LEARNING OUTCOME
What Is Marketing?
Customer value
and beneficial
relationships
Creating
Value
Exchange
A
B
Delivering
Value
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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
Market
Societal
aggressive sales techniques and belief
that high sales result in high profits
satisfying customer needs and wants while
meeting objectives
satisfying customer needs and
wants while enhancing individual and
societal well-being
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LO2
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.
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LO2
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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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
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LO2
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.
•
•
•
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Less toxic products
More durable products
Products with reusable
or recyclable materials
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LO2
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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LO3 Sales and Marketing Orientations
Discuss the differences
between sales and
market orientations
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LO3
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
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LO3
Customer Value
Customer Value
The relationship between
benefits and the sacrifice
necessary to obtain those
benefits.
Chapter
PHOTO
Here
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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
•
Co-Creation
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LO3
Customer Satisfaction
Customer
Satisfaction
The customer’s evaluation
of a good or service in terms
of whether it has met their
needs and expectations.
Chapter
PHOTO
Here
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LO3
Building Relationships
Relationship
Marketing
A strategy that focuses on
keeping and improving
relationships with current
customers.
Chapter
PHOTO
Here
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LO3
Building Relationships

Customer-oriented personnel

Employee training programs

Empowered employees

Teamwork
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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
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LO3
REVIEW LEARNING OUTCOME
Sales vs. Market Orientations
Organization’s
Focus
Sales
Inward
Orientation
Outward
Market
Orientation
Firm’s
Business
For
Whom?
Selling
Everybody
goods and
services
Satisfying
wants and
needs
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Specific
groups of
people
Primary
Profit
Goal?
Maximum
sales
volume
Tools to
Achieve
Primarily
promotion
Customer Coordinated
satisfaction use of all
marketing
activities
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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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LO4
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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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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