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An Overview of Marketing
Chapter 1 An Overview of Marketing Chapter 1 An Overview of Marketing MKTG10 Lamb, Hair, and McDaniel © 2016 Cengage Learning. All Rights Reserved.
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© 2016 Cengage Learning. All Rights Reserved.
Chapter 1 An Overview of Marketing LEARNING OUTCOMES 1-1 Define the term marketing 1-2 Describe four marketing management philosophies 1-3 Discuss the differences between sales and market orientations 1-4 Describe several reasons for studying marketing © 2016 Cengage Learning. All Rights Reserved.
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Define the term marketing
Chapter 1 An Overview of Marketing What Is Marketing? 1-1 Define the term marketing © 2016 Cengage Learning. All Rights Reserved.
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American Marketing Association Definition of Marketing
Chapter 1 An Overview of Marketing American Marketing Association Definition of Marketing 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. © 2016 Cengage Learning. All Rights Reserved.
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© 2016 Cengage Learning. All Rights Reserved.
Chapter 1 An Overview of Marketing Marketing… Entails processes that focus on delivering value and benefits to customers, not just selling goods and services. Notes: When an organization creates a high level of employee satisfaction, this leads to greater effort, which leads to higher quality, and so on. For example, The Home Depot believes that its employees are its biggest competitive advantage. “Taking care of our people” is listed as the first value on the company Web site. Discussion/Team Activity: Ask class to give examples of companies that value employees and discuss how motivated employees create customer and stockholder satisfaction. © 2016 Cengage Learning. All Rights Reserved.
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Exchange Conditions for Exchange At Least Two Parties
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 © 2016 Cengage Learning. All Rights Reserved.
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Marketing Management Philosophies
Chapter 1 An Overview of Marketing Marketing Management Philosophies 1-2 Describe four marketing management philosophies © 2016 Cengage Learning. All Rights Reserved.
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The Four Marketing Management Philosophies
Chapter 1 An Overview of Marketing The Four 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 Sales: Dot.com businesses in the late 1990s. Market: Ritz Carlton Hotels, Coach Societal: The Body Shop, Turtle Wax, method © 2016 Cengage Learning. All Rights Reserved.
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Production Orientation
Chapter 1 An Overview of Marketing Production Orientation Field of Dreams orientation “If you build it, they will come.” Doesn’t consider if what is produced meets market needs © 2016 Cengage Learning. All Rights Reserved. 9
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Sales Orientation Marketing = Selling Things & Collecting Money
Chapter 1 An Overview of Marketing Sales Orientation Marketing = Selling Things & Collecting Money Disregards market needs and consumer demand. Despite the quality of sales force, often cannot convince people to buy what is neither wanted nor needed. © 2016 Cengage Learning. All Rights Reserved. 10
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© 2016 Cengage Learning. All Rights Reserved.
Chapter 1 An Overview of Marketing Market Orientation Marketing Concept 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 Notes: Understanding your competitive arena and competitors’ strengths and weaknesses is a critical component of a market orientation. © 2016 Cengage Learning. All Rights Reserved.
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Societal Marketing Orientation
Chapter 1 An Overview of Marketing 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 © 2016 Cengage Learning. All Rights Reserved.
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© 2016 Cengage Learning. All Rights Reserved.
Who’s In Charge? Increased availability of comparative research enables customers to shop smarter, putting the customer in the driver seat. © 2016 Cengage Learning. All Rights Reserved.
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Questions That Help Determine Marketing Philosophy
Chapter 1 An Overview of Marketing 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? Orientation Focus © 2016 Cengage Learning. All Rights Reserved.
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Differences between Sales and Market Orientations
Chapter 1 An Overview of Marketing Differences between Sales and Market Orientations 1-3 Discuss the differences between sales and market orientations © 2016 Cengage Learning. All Rights Reserved.
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Comparing the Sales and Market Orientations
Chapter 1 An Overview of Marketing Comparing the Sales and Market Orientations Sales Orientation Inward looking What the firm makes Market Orientation Outward looking What the market wants © 2016 Cengage Learning. All Rights Reserved. 16
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Sales vs. Market Orientations
Chapter 1 An Overview of Marketing Sales vs. Market Orientations Sales Orien-tation Market Orien-tation Organization’s Focus Firm’s Business For Whom? Primary Profit Goal? Tools to Achieve Selling goods and services Everybody Maximum sales volume Primarily promotion Inward Outward Coordin-ated use of marketing activities Customer satisfac-tion Specific groups of people Satisfying wants and needs Notes: Sales-oriented firms focus on their own needs; market-oriented firms focus on customers’ needs and preferences. Sales-oriented companies consider themselves to be deliverers of goods and services, whereas market-oriented companies view themselves as satisfiers of customers. Sales-oriented firms direct their products to everyone; market-oriented firms aim at specific segments of the population. Although the primary goal of both types of firms is profit, sales-oriented businesses pursue maximum sales volume through intensive promotion, whereas market-oriented businesses pursue customer satisfaction through coordinated activities. This comparison is not meant to belittle the role of promotion, especially personal selling, in the marketing mix. Salespeople in market-oriented organizations are generally perceived as problem solvers and links to supply sources and new products. Discussion/Team Activity: Identify organizations with sales or market orientations. Discuss the effectiveness of each organization’s strategy. © 2016 Cengage Learning. All Rights Reserved.
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Customer Value Requirements
Chapter 1 An Overview of Marketing Customer Value Requirements 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 with customers Notes: Customer Value is the relationship between benefits and the sacrifice necessary to obtain those benefits. Customer value is not simply a matter of high quality or high price. Instead, the customer’s perception of value is the product/service quality they expect and a price they are willing to pay. Value also includes customization and fast delivery. Discussion/Team Activity: Discuss ways that successful companies deliver superior customer value. Examples: Dell Computer Corporation Lexus Mercedes Benz Amazon.com Southwest Airlines © 2016 Cengage Learning. All Rights Reserved.
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Customer Satisfaction
Chapter 1 An Overview of Marketing Customer Satisfaction The customers’ evaluation of a good or service in terms of whether that good or service has met their needs and expectations. © 2016 Cengage Learning. All Rights Reserved. 19
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Relationship Marketing
Chapter 1 An Overview of Marketing Relationship Marketing Strategy that focuses on keeping and improving relationships with customers. Successful strategies need: Customer-Oriented Personnel Effective Training Programs Empowered Employees Teamwork © 2016 Cengage Learning. All Rights Reserved. 20
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Building Relationships
Chapter 1 An Overview of Marketing 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. Discussion/Team Activity: Discuss companies that have made significant efforts at building long-term relationships. Examples: Four Seasons Coca-Cola Delta Air Lines Hershey Kellogg Nautilus Sears © 2016 Cengage Learning. All Rights Reserved.
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Describe several reasons for studying marketing
Chapter 1 An Overview of Marketing Why Study Marketing? 1-4 Describe several reasons for studying marketing © 2016 Cengage Learning. All Rights Reserved.
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© 2016 Cengage Learning. All Rights Reserved.
Chapter 1 An Overview of Marketing Why Study Marketing? Important to Society Important to Business Good Career Opportunities Marketing affects you every day! © 2016 Cengage Learning. All Rights Reserved.
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