1. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 CHAPTER 1 An Overview of Marketing © WINDSOR & WIEHAHN/STONE/GETTY IMAGES

2. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 2 LO 1 Define the term marketing LO 2 Describe four marketing management philosophies LO 3 Discuss the differences between sales and market orientations LO 4 Describe several reasons for studying marketing Learning Outcomes

3. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 3 What Is Marketing? Define the term marketing

4. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 4 Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. ( 4 P’s?) What Is Marketing? American Marketing Association Definition

5. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 5 What Is Marketing? Marketing entails processes that focus on delivering value and benefits to customers, NOT just selling goods and services.

6. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 6 Exchange Chapter PHOTO Here People giving up something to receive something they would rather have.

7. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 7 Exchange At Least Two Parties Something of Value Communication and Delivery Freedom to Accept or Reject Desire to Deal with Other Party Conditions for Exchange

8. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 8 Exchange Exchange may not take place even if conditions are met (ie., ebay, classifieds, craigslist) An agreement must be reached Marketing occurs even if exchange does not take place

9. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 9 Slide 1-8 The ‘See-if-you’re-an-Expert’ Test 1.True 2.(c) 30% 3.True 4.(c) plastic bottles

10. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 10 Describe four marketing management philosophies Marketing Management Philosophies

11. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 11 Sales Market Societal Production internal capabilities of the firm satisfying customer needs and wants while meeting objectives satisfying customer needs and wants while enhancing individual and societal well-being aggressive sales techniques and belief that high sales result in high profits OrientationFocus is on… The Four Marketing Management Philosophies

12. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 12 Production Orientation Field of Dreams orientation –“If you build it, they will come.” –Doesn’t consider if what is produced meets market needs Ex: furniture industry

13. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 13 Sales Orientation Marketing = Selling Things/Collecting Money –Disregards market needs and consumer demand. –Often find that, despite the quality of their sales force, they cannot convince people to buy goods or services that are neither wanted nor needed. Ex: Telemarketing

14. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 14 Market Orientation Marketing Concept 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.

15. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 15 Market Orientation  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 Marketing Concept

16. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 16 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

17. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 17 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. For example: Less toxic products More durable products Products with reusable or recyclable materials

18. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 18 Questions That Help Determine Marketing Philosophy Production Sales Marketing Societal What can we make or do best? How can we sell more aggressively? What do customers want and need? What do customers want/need, and how can we benefit society? OrientationFocus

19. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 19 Customer Value The relationship between benefits and the sacrifice necessary to obtain those benefits.

20. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 20  Offer products that perform  Earn trust  Avoid unrealistic pricing  Give the buyer facts  Offer organization-wide commitment in service and after-sales support Customer Value Requirements

21. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 21 Customer Satisfaction the customers’ evaluation of a good or service in terms of whether that good or service has met their needs and expectations. Customer Satisfaction is…

22. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 22 Building Relationships Relationship Marketing A strategy that focuses on keeping and improving relationships with current customers. Repeat business!!

23. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 23 Building Relationships  Customer-oriented personnel Every employee represents the firm in the eyes of the customer.  Employee training programs  Empowered employees Employees are given more authority to solve customer problems on the spot.  Teamwork Emphasizing cooperation over competition while helping a customer.

24. Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 24 Why Study Marketing? Important to Society Important to Business Good Career Opportunities Marketing affects you every day! Role in Everyday Life Role in Everyday Life