Transcript Chapter 1: An Overview of Marketing

AN OVERVIEW OF
MARKETING
MARKET PLANNING UNIT
ENDURING UNDERSTANDING
STUDENTS WILL UNDERSTAND THAT…….
Marketing is customer focused.
Marketing is much more than advertising
and selling.
A marketing plan is a roadmap for all
companies' business efforts.
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ESSENTIAL QUESTIONS
What is marketing?
How do marketers find their
customers?
What makes marketing
dynamic?
What causes a business to "close
its doors"?
WHAT IS MARKETING?
A Set of Activities
• A Philosophy
Financing
• An Attitude
Selling
• A Perspective
Distribution
• A Management
Orientation
Promotion
Pricing
Marketing Information
Management
Product Service
Management
WHAT IS MARKETING?
American Marketing Association Definition
Marketing is an organizational function
and a set of processes for creating,
communicating, and delivering value to
customers and for managing customer
relationships in ways that benefit the
organization and its stakeholders.
WHAT IS MARKETING?
Customer value
and beneficial
relationships
Creating
Value
Exchange
A
B
WHY STUDY MARKETING?
Describe several
reasons for
studying
marketing
REASONS FOR STUDYING MARKETING
Why Study Marketing?
Important
to
Society
Important
to
Business
Good
Career
Opportunities
+
Marketing affects you every day!
MARKETING MANAGEMENT
PHILOSOPHIES
Describe four
marketing
management
philosophies
MARKETING MANAGEMENT
PHILOSOPHIES
Orientation
Production
1900-1920’s
Sales
1930 -1940’s
Market
1950-1970
Societal
1980 to present
Focus is on…
internal capabilities of the firm. Emphasis on
producing and distributing new products
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
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
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

School bag activity
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
FAILURE TO SUCCESS
HOW SHOULD A BUSINESS BE DEFINED?
Company
Product-Oriented
Answer
Market-Oriented
Answer
Kodak
We make cameras
We help preserve
memories
Verizon
We sell cell phones
Coke
We make soda
Levi
We make jeans
Nike
We design athletic
shoes
Lexus
We build cars
McDonald’s
We sell fast food
AVOIDING MARKETING MYOPIA
Marketing myopia—Focusing on products/company rather than the
customer. Results in failure to see and adjust to the rapid market
changes.
SOCIETAL MARKETING
Societal
Marketing
Orientation
Method video
The Body Shop - Values and Campaigns
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
BUILDING RELATIONSHIPS
Relationship
Marketing
A strategy that focuses
on keeping and
improving
Relationships with
current customers.
BUILDING RELATIONSHIPS

Customer-oriented personnel

Employee training programs

Empowered employees

Teamwork
Zappos
YouTube - The Zappos Family on Nightline
DEFINING A FIRM’S BUSINESS
Use “customer benefits” instead of “goods/services”
-Ensures a customer focus
-Encourages innovation and creativity
-Stimulates an awareness of changes
in customer preferences
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?
Societal Marketing Assignment
Handout
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