1. MKT 201 Principles of Marketing
Chapter 1

2. Stresses Customer Satisfaction
Chapter 1 An Overview of Marketing
What Is Marketing?
Stresses Customer Satisfaction
A Philosophy
An Attitude
A Perspective
A Management Orientation
A Set of Activities…
Products
Distribution
Promotion
Pricing
NOTES:
Marketing has two facets. The first is that it’s a philosophy. Second, marketing is an organization function and a set of processes used to implement the philosophy.
David Packard, cofounder of Hewlett-Packard, stated that “marketing is too important to be left only to the marketing department.” Marketing is a process that focuses on delivering value and benefits to customers. It uses communication, distribution, and pricing strategies to provide customers with the goods and services they want. It includes building long-term, mutually rewarding relationships. It entails an understanding that organizations have many connected stakeholder partners, including employees, suppliers, stockholders, distributors, and others.

3. What Is 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. (AMA – Approved – October 2007)

4. Exchange
Exchange
People giving up something to receive something they would rather have.

5. Exchange Conditions for 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

6. Exchange Exchange may not take place even if conditions are met
Chapter 1 An Overview of Marketing
Exchange may not take place even if conditions are met
An agreement must be reached
Marketing occurs even if exchange does not take place
Notes:
An exchange may not take place even if all conditions are met. An agreement between buyer and seller is required before an exchange occurs.
Discuss examples:
* Automobile shopping
* Jewelry shopping
Marketing (for example, advertising, personal selling, sales promotion, etc.) can occur even if exchange does not take place.
Discussion/Team Activity:
Ask class to give examples of shopping when exchanges did occur, then when exchanges did not occur.

7. Marketing Management Philosophies Orientation Focus is on… Production
Chapter 1 An Overview of Marketing
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

8. Market Orientation 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.

9. The 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

10. Achieving a Marketing Orientation
Chapter 1 An Overview of Marketing
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
Online:
Has Western Union rebounded from its failure to define its competitive arena as telecommunications? Describe the company’s value proposition, the market its serves, and whom it seems to be competing against.
Discussion/Team Activity:
Discuss companies that have a market orientation. Marriott International Burton Snowboards Dell Computers Southwest Airlines
Discuss companies that lack(ed) a market orientation. Encyclopedia Britannica Western Union Kmart

11. Societal 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.
Less toxic products
More durable products
Products with reusable or recyclable materials

12. REVIEW LEARNING OUTCOME
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 and need, and how can we benefit society?
Orientation
Focus

13. Comparing the Sales and Market Orientations
You can compare these orientations against these 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

14. Customer Satisfaction
The feeling that a product met or exceeded the customer’s expectations.

15. Building Relationships
Relationship Marketing
A strategy that focuses on keeping and improving relationships with current customers.

16. Building Relationships
Chapter 1 An Overview of Marketing
Building Relationships
Customer-oriented personnel
Employee training programs
Empowered employees
Teamwork
Discussion/Team Activity:
Discuss companies that have excelled at building long-term relationships. Examples: USAA Coca-Cola Walt Disney Southwest Airlines Wegmans Food Markets Nordstrom FedEx

17. REVIEW LEARNING OUTCOME
Chapter 1 An Overview of Marketing
REVIEW LEARNING OUTCOME
Sales vs. Market Orientations
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
Sales Orientation
Market Orientation
Outward
Coordinated use of all marketing activities
Customer satisfaction
Specific groups of people
Satisfying wants and needs
NOTES:
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.

18. Why Study Marketing? Plays an important role in society
Vital to business survival, profits and growth
Offers career opportunities
Affects your life every day

19. Vital Marketing Activities
Why Study Marketing
Vital Marketing Activities
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

20. REVIEW LEARNING OUTCOME
Reasons for Studying Marketing
Why Study Marketing?
Important to Society
Important to Business
Good Career Opportunities +
Marketing affects you every day!