Transcript Document
An Overview of Marketing Chapter 1 Prepared by Deborah Baker Texas Christian University Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 1 Learning Objectives 1. Define the term marketing 2. Describe four marketing management philosophies 3. Explain how firms implement the marketing concept 4. Describe the marketing process and identify the variables that make up the marketing mix 5. Describe several reasons for studying marketing Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 2 1 Learning Objective On Line http://www.soapworks.com Define the term marketing Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 3 1 What Is Marketing? Personal Selling? Advertising? Making products available in stores? Maintaining inventories? All of the above, plus much more! Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 4 1 What Is Marketing? A Philosophy An Attitude A Perspective A Management Orientation A Set of Activities, including: Products Pricing Promotion Distribution Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 5 1 What Is Marketing? American Marketing Association Definition Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 6 1 The Concept of Exchange The idea that people give up something to receive something they would rather have. Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 7 1 The Concept of Exchange At Least Two Parties Something of Value Necessary Conditions for Exchange Communication and Delivery Freedom to Accept or Reject Desire to Deal with Other Party Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 8 1 The Concept of 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 Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 9 2 Learning Objective Describe four marketing management philosophies. Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 10 Marketing Management Philosophies 2 Production Sales Competing Philosophies Market Societal Marketing Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 11 Marketing Management Philosophies 2 Orientation Production Sales Market Societal Key Ideas Focus on efficiency of internal operations Focus on aggressive sales techniques and believe that high sales result in high profits Focus on satisfying customer needs and wants while meeting objectives Focus on satisfying customer needs and wants while enhancing individual and societal well-being Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 12 2 Achieving a Market Orientation On Line http://www.westernunion.com 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 Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 13 2 Societal Marketing Orientation Marketing that preserves or enhances an individual’s and society’s long-term best interests Less toxic products More durable products Products with reusable or recyclable materials Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 14 3 Learning Objective Explain how firms Implement the marketing concept Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 15 3 The 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. Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 16 3 The Marketing Concept Focuses on customer wants and needs to distinguish products from competition Integrates all organization’s activities to satisfy customer wants and needs Achieves organization’s long-term goals by satisfying customer wants and needs Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 17 3 Customer Value The ratio of benefits to the sacrifice necessary to obtain those benefits Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 18 3 Customer Value Requirements On Line http://www.ZanesCycles.com Offer products that perform Give consumers more than they expect Avoid unrealistic pricing Give the buyer facts Offer organization-wide commitment in service and after-sales support Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 19 3 Customer Satisfaction The feeling that a product has met or exceeded the customer’s expectations. Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 20 3 Maintaining Customer Satisfaction On Line http://www.volvocars.com Meet or exceed customer’s expectations Focus on delighting customers Provide solutions to customer’s problems Cultivate relationships, NOT one-time transactions Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 21 3 Relationship Marketing The name of a strategy that entails forging long-term partnerships with customers, both individuals and firms. Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 22 3 Relationship Marketing Who are your customers? What do customers value? Requirements for Building Relationships What do they want to buy? How do they prefer to interact? Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 23 3 Building Long-Term Relationships On Line http://disney.go.com/ Customer-oriented personnel Effective training programs Empowered employees Teamwork Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 24 4 Learning Objective Describe the marketing process and identify the variables that make up the marketing mix. Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 25 4 Marketing Process Activities Understand the organization’s mission Set marketing objectives Gather, analyze, interpret “SWOT” information Develop a marketing strategy Implement the marketing strategy Design performance measures Evaluate marketing efforts--change if needed Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 26 4 Business Mission Statement Marketing Plan Process Objectives Situation or SWOT Analysis Marketing Strategy Target Market Strategy Marketing Mix Product Distribution Promotion Price Implementation Evaluation Control Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 27 4 Environmental Scanning Collection and interpretation of information about forces, events and relationships in the external environment that may affect the future of the organization or the marketing plan implementation. Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 28 4 Environmental Scanning Examination of macroenvironmental forces Social Demographic Economic Technological Political / Legal Competitive Helps identify market opportunities Provides guidelines for design of marketing strategy Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 29 4 Defining the Business Mission Answers the question, “What business are we in and where are we going?” Focuses on the market(s) rather than the good or service Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 30 Marketing Strategy 4 The activities of selecting and describing one or more target markets and developing and maintaining a market mix that will produce mutually satisfying exchanges with target markets. Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 31 4 Target Market Selections Appeal to the entire market with one marketing mix Concentrate on one marketing segment Appeal to multiple markets with multiple marketing mixes Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 32 4 Marketing Mix: The “Four Ps” Price Promotion Place Product Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 33 4 Product Strategies The starting point of the “4 Ps” Product Includes physical unit, package, warranty, service, brand, image, and value Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 34 4 Distribution (Place) Strategies Place Product availability where and when customers want them. Involves all activities from raw materials to finished products Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 35 4 Promotion Strategies On Line http://www.paramount.com http://www.warnerbros.com http://www.universalstudios.com Role is to bring about exchanges with target markets Promotion Includes integration of personal selling, advertising, sales promotion, and public relations Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 36 4 Pricing Strategies The most flexible of the “4 Ps” Price Price X Units Sold = Total Revenue Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 37 4 Following Up the Marketing Plan Implementation Evaluation - (Have objectives been achieved?) Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 38 5 Learning Objective Describe several reasons for studying marketing. Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 39 5 Why Study Marketing? Plays an important role in society Vital to business survival, profits and growth Offers career opportunities Affects your life every day Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 40 5 Why Study Marketing? “Marketing is far too important to be left only to the marketing department.” --David Packard Hewlett-Packard Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 41 5 Why Study Marketing? 1/4th to 1/3rd of the civilian workforce in the U.S. performs marketing activities Fast route up the corporate ladder • Professional Selling • Marketing Research • Advertising • Retail Buying • Distribution Management • Product Management • Product Development • Wholesaling Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 42 5 Why Study Marketing? Half of every dollar spent pays for marketing costs Better-informed consumers Demand for customer satisfaction Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel ©2005 South-Western/Thomson Learning 43