Transcript Chapter 1 - Cengage Learning

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An Overview of Marketing
Prepared by
Deborah Baker
Texas Christian University
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Learning Objectives
1. Define the term marketing
2. Describe four marketing management
philosophies
3. Discuss the differences between sales
and market orientations
4. Describe several reasons for studying marketing
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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.
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Marketing
Creating value
Customer value
and beneficial
relationships
Exchange
A
B
Delivering
value
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Communicating
value
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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
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The Concept of Exchange
1

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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Marketing Management Philosophies
Production
Sales
Competing
Philosophies
Market
Societal Marketing
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The Marketing Concept
2

Focusing on customer wants and needs to
distinguish products from competition

Integrating all the organization’s activities to
satisfy customer wants and needs

Achieving the organization’s long-term goals by
satisfying customer wants and needs
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Marketing Management Philosophies
Orientation
2
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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Comparing the Sales and Marketing
Orientations
You can compare these orientations
against these four categories:
 Organization’s focus
 Firm’s business
 Those to whom the product is directed
 Firm’s primary goal
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The Organization’s Focus
Key Issues in
Developing
Competitive Advantage
Create
Customer
Value
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Build Long-Term
Relationships
Maintain
Customer
Satisfaction
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Customer Value Requirements
 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
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Relationship Marketing
Who are your customers
What do customers value
What do they want to buy
Requirements
for
Building
Relationships
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How do they prefer to interact
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Defining a Firm’s Business
“Benefits” instead of “goods/services”

Ensures a customer focus

Encourages innovation and creativity

Stimulates an awareness of changes
in customer preferences
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Why Study Marketing?
Why Study Marketing?
Important
to
Society
Important
to
Business
Good
Career
Opportunities
+
Marketing affects you every day!
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