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Chapter 1: An Overview of Marketing
Introduction to Chapter 1: An Overview of Marketing Designed & Prepared by Laura Rush B-books, Ltd. Copyright Cengage Learning 2013 All Rights Reserved
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Chapter 1 An Overview of Marketing
Learning Outcomes LO1 Define the term marketing LO2 Describe four marketing management philosophies Discuss the differences between sales and market orientations LO3 LO4 Describe several reasons for studying marketing Copyright Cengage Learning 2013 All Rights Reserved
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Chapter 1 An Overview of Marketing
What is Marketing? A Philosophy An Attitude A Perspective A Marketing Orientation Activities that implement these: Products Distribution Promotion Pricing LO1 Copyright Cengage Learning 2013 All Rights Reserved
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Chapter 1 An Overview of Marketing
What is Marketing? Greater effort Higher quality Repeat business Growth and profits Stockholder satisfaction More investment Employee satisfaction LO1 Copyright Cengage Learning 2013 All Rights Reserved
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Chapter 1 An Overview of Marketing
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 LO1 Copyright Cengage Learning 2013 All Rights Reserved
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Chapter 1 An Overview of Marketing
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 LO1 Copyright Cengage Learning 2013 All Rights Reserved
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Marketing Management Philosophies
Chapter 1 An Overview of Marketing Marketing Management Philosophies Describe four marketing management philosophies LO2 Copyright Cengage Learning 2013 All Rights Reserved
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Marketing Management Philosophies
Chapter 1 An Overview of Marketing Marketing Management Philosophies 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 Orientation Focus is on… Notes: Four competing philosophies influence an organization’s marketing processes. Point out that a firm’s capabilities, such as production, are major considerations in strategic market planning. However, the guiding factor with all orientations should be the determination of what customers want, not what management thinks should be produced or sold. Discussion/Team Activity: Discuss examples of companies/organizations whose marketing management philosophies match each orientation. Production: Henry Ford’s Model T availability in any color as long as it was black/furniture industry Sales: Dot.com businesses in the late 1990s. Market: Ritz Carlton Hotels, Coach Societal: The Body Shop, Turtle Wax, Method LO2 Copyright Cengage Learning 2013 All Rights Reserved
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Chapter 1 An Overview of Marketing
Market Orientation Companies guided by the marketing concept: Focus on customer wants and needs to distinguish products from competitors’ offerings Integrate all the organization’s activities to satisfy these wants Achieve the organization’s long-term goals by satisfying customer wants and needs legally and responsibly LO2 Copyright Cengage Learning 2013 All Rights Reserved
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Achieving a Marketing Orientation
Chapter 1 An Overview of Marketing 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 LO2 Copyright Cengage Learning 2013 All Rights Reserved
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Chapter 1 An Overview of Marketing
Societal Marketing An organization exists not only to satisfy customer wants but also to preserve or enhance individuals’ and society’s long-term best interests. Societal Marketing Orientation Less toxic products More durable products Products with reusable or recyclable materials LO2 Copyright Cengage Learning 2013 All Rights Reserved
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Sales and Marketing Orientations
Chapter 1 An Overview of Marketing Sales and Marketing Orientations Compare these orientations against five categories: Organization’s focus Firm’s business Those to whom the product is directed Firm’s primary goal The tools used to achieve those goals LO3 Copyright Cengage Learning 2013 All Rights Reserved
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Chapter 1 An Overview of Marketing
Customer Value To increase customer value, marketers: Offer products that perform Earn trust Avoid unrealistic pricing Give the buyer facts Offer organization-wide commitment in service and after-sales support Co-Creation LO3 Copyright Cengage Learning 2013 All Rights Reserved
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Customer Satisfaction
Chapter 1 An Overview of Marketing Customer Satisfaction High Customer Satisfaction occurs in firms where: Top management focuses on Customer Satisfaction Employees know their jobs affect customer satisfaction Organizational culture focuses on delighting customers LO3 Copyright Cengage Learning 2013 All Rights Reserved
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Building Relationships
Chapter 1 An Overview of Marketing Building Relationships The strongest relationship marketing strategies depend on: Customer-oriented personnel Employee training programs Empowered employees Teamwork LO3 Copyright Cengage Learning 2013 All Rights Reserved
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What Is This Firm’s Business?
Chapter 1 An Overview of Marketing What Is This Firm’s Business? Answer this question using customer benefits instead of goods/services -Ensures a customer focus -Encourages innovation and creativity -Stimulates an awareness of changes in customer preferences Check out what Encyclopaedia Britannica is doing today to keep up with the times: LO3 Copyright Cengage Learning 2013 All Rights Reserved
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Chapter 1 An Overview of Marketing
Why Study Marketing? Plays an important role in society Vital to business survival, profits and growth Offers career opportunities Affects your life every day LO4 Copyright Cengage Learning 2013 All Rights Reserved
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Chapter 1 An Overview of Marketing
Why Study Marketing? Vital Marketing Activities for Organizations Assess the wants and satisfaction of customers Design and manage product offerings Determine prices and pricing policies Develop distribution strategies Communicate with present and potential customers LO4 Copyright Cengage Learning 2013 All Rights Reserved
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