Transcript Chapter 1: An Overview of Marketing

Introduction
to
Chapter 1: An Overview of Marketing
Designed & Prepared by Laura Rush
B-books, Ltd.
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Learning Outcomes
LO1
Define the term marketing
LO2
Describe four marketing management philosophies
Discuss the differences between sales and market
3
LO
orientations
LO4
Describe several reasons for studying marketing
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What is Marketing?
• A Philosophy
• A Perspective
• An Attitude
• A Marketing
Orientation
Activities that implement
these:
LO1
•
Products
•
Promotion
•
Distribution
•
Pricing
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What is Marketing?
More
investment
Stockholder
satisfaction
Employee
satisfaction
Growth and
profits
Repeat
business
Higher
quality
Greater
effort
LO1
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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
LO1
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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
LO1
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Marketing Management
Philosophies
Describe four marketing
management philosophies
LO2
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Marketing Management Philosophies
Orientation
Production
Sales
LO2
Focus is on…
internal capabilities of the firm
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
Companies guided by the marketing
concept:
Focus on customer wants and needs to distinguish products
from competitors’ offerings

Integrate all the organization’s activities to satisfy these
wants

Achieve the organization’s long-term goals by satisfying
customer wants and needs legally and responsibly

LO2
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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
LO2
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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 long-term best
interests.
• Less toxic products
• More durable products
• Products with reusable
or recyclable materials
LO2
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Sales and Marketing Orientations
Compare these orientations against five categories:





LO3
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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Customer Value
To increase customer value, marketers:
 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
LO3
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Customer Satisfaction
High Customer Satisfaction occurs in firms where:
• Top management focuses on Customer
Satisfaction
• Employees know their jobs affect customer
satisfaction
• Organizational culture focuses on delighting
customers
LO3
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Building Relationships
The strongest relationship marketing
strategies depend on:
LO3

Customer-oriented personnel

Employee training programs

Empowered employees

Teamwork
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What Is This Firm’s Business?
Answer this question using
customer benefits instead of goods/services
-Ensures a customer focus
-Encourages innovation and creativity
-Stimulates an awareness of changes
in customer preferences
Check out what Encyclopaedia Britannica is doing
today to keep up with the times:
http://www.britannica.com
LO3
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Why Study Marketing?
LO4

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 for Organizations
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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