Transcript Chapter 1
1 An Overview of Marketing Prepared by Deborah Baker Texas Christian University Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 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 Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 2 Learning Objectives 5. Discuss corporate social responsibility 6. Describe the role of ethics and ethical decisions in business 7. Describe several reasons for studying marketing Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 3 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. 1 Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 4 Marketing Creating value Customer value and beneficial relationships Exchange A B Delivering value 1 Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Communicating value 5 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 1 Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 6 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 Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 7 Marketing Management Philosophies Orientation 2 Focus Production What can we make or do best? Sales How can we sell more aggressively? Market What do customers want and need? Societal What do customers want and need, and how can we benefit society? Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 8 Implementing the Marketing Concept Key Issues in Implementing the Marketing Concept Create Customer Value 3 Build Long-Term Relationships Maintain Customer Satisfaction Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 9 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 4 Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 10 Marketing Mix: The “Four Ps” Product Place Promotion Price 4 Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 11 Review: Marketing Process Organization Mission Market Opportunity Analysis Marketing Strategy Target Market Strategy Objectives Marketing Mix Product Distribution Control Promotion Price Implementation Evaluation 4 Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 12 Corporate Social Responsibility Philanthropic Be a good citizen. Ethical Do what is right. Obey the Law. Legal Be profitable. Economic On Line http://www.hp.com 1 Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 13 Ethics and Morals Ethics Morals 2 The moral principles or values that generally govern the conduct of an individual. The rules people develop as a result of cultural values and norms. Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 14 Ethical Development Levels More Selfish Preconventional Morality Conventional Morality More Mature 2 Postconventional Morality Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 15 Ethical Decision Making Extent of Problems Top Management Actions Probability of Harm 2 Potential Consequences Time Until Consequences Social Consensus Number Affected Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 16 Why Study Marketing? Why Study Marketing? Important to Society Important to Business Good Career Opportunities + Marketing affects you every day! 4 Chapter 1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved 17