Transcript What is International Business?

Marketing Management
2nd Edition
Michael R. Czinkota and Masaaki Kotabe
Chapter 1:
Overview of Marketing
© 2000 South-Western College Publishing
Slide #1
Chapter Outline
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What is Marketing?
History of Marketing Thought
Structure of Marketing Theory
Marketing and Internal Resources
Complexity of Marketing
The Marketing Mix
Selling versus Marketing
Marketing and Corporate Strategy
Difference Between Products and Benefits
Marketing and Service Cultures
© 2000 South-Western College Publishing
Slide #2
What is Marketing?
The process of planning and executing the
conception, pricing, promotion, and
distribution of ideas, goods, and services
to create and maintain exchanges that
satisfy individual, organizational, and
societal goals in the systemic context of a
global environment.
© 2000 South-Western College Publishing
Slide #3
History of Marketing Thought
First
1800s
Early 1900s
Bartering
1960s
Marketing
research
Marketing
is not economics
College
courses in
distribution
1930s
First marketing
theories
1970s
1980s & 1990s
Becomes major
business function
© 2000 South-Western College Publishing
Focus on customer
& external environment
Slide #4
Structure of Marketing Theory
Goods v.
services
Product
categories
Consumer v.
industrial
© 2000 South-Western College Publishing
Industry
sector
Dimensions
of marketing
activities
Profit v.
nonprofit
Small v.
large firms
Domestic v.
international
Intermediaries
v. end users
Slide #5
Marketing and Internal Resources
To get ready for a marketing orientation:
 Understand what resources the
organization has.
 Develop a suitable filter for marketing
data.
 Find out about the customer.
 Review the processes to date.
 Manipulate resources to achieve
marketing objectives.
© 2000 South-Western College Publishing
Slide #6
Complexity of Marketing
Multiple
decision
makers
Multiple factors
Five main dimensions
Interaction
Time frame
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Global
factors
Slide #7
The Marketing Mix
Marketing mix
Product
mix
© 2000 South-Western College Publishing
Distribution
mix
Communications
mix
Pricing
mix
Slide #8
The Marketing Mix
Product
line range
Design concept
Color appeal
Style
Package
Brand name
Service function
Warranties
© 2000 South-Western College Publishing
Product mix
Slide #9
The Marketing Mix
Physical
distribution
Supplies
Distribution
mix
Inventory
Storage
Transportation
Warehousing
Distribution
channels
Retailers
Distributors
Wholesalers
Export/import
© 2000 South-Western College Publishing
Slide #10
The Marketing Mix
Advertising
Sales
catalog
Field sales force
Telephone sales
Public relations
Direct mail
Sales promotion
Premiums & discounts
Merchandising
Research
Electronic interaction
© 2000 South-Western College Publishing
Communications
mix
Slide #11
The Marketing Mix
Price
structure
Payment terms
Costs
© 2000 South-Western College Publishing
Pricing
mix
Slide #12
Selling versus Marketing
Selling
Starting
point
Factory
Focus
Product
Means
Selling &
promoting
Ends
Profits through
sales volume
Marketing
Target
market
Customer
needs
© 2000 South-Western College Publishing
Integrated
marketing
Profits through
customer satisfaction
Slide #13
Marketing & Corporate Strategy
Market orientation:
The organizationwide generation of market
intelligence pertaining to current and
future customer needs, dissemination of
the intelligence across departments, and
organizationwide responsiveness to it.
© 2000 South-Western College Publishing
Slide #14
Difference Between Products & Benefits
PRODUCTS:
Physical
attributes
Example: 2mm
drill
BENEFITS:
What customer
wants
Example: 2mm hole
“Customers don’t buy products,
they seek to acquire benefits.”
© 2000 South-Western College Publishing
Slide #15
Marketing and Service Cultures
Lack of tangibility
Lack of direct
competition
Why
services are
more difficult
Lack of mass
marketing
Professional status
© 2000 South-Western College Publishing
Slide #16