1. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 1 MKTG 1 CHAPTER An Overview of Marketing

2. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 2 Learning Outcomes Define the term marketing Describe four marketing management philosophies Discuss the differences between sales and market orientations Describe several reasons for studying marketing LO 1 LO 2 LO 3 LO 4

3. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 3 LO 1 What Is Marketing? Stresses Customer Satisfaction A Philosophy An Attitude A Perspective A Management Orientation A Set of Activities… Products Distribution Promotion Pricing

4. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 4 Marketing is the activity, set of institutions, and processes for ……….., ………., ………., and ………..offerings that have ………for customers, clients, partners, and society at large. What Is Marketing? LO 1 American Marketing Association Definition

5. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 5 What Is Marketing? LO 1 Greater effort Higher quality Repeat business Growth and profits Stockholder satisfaction More investment Employee satisfaction

6. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 6 …………… Chapter PHOTO Here People giving up something to receive something they would rather have. LO 1

7. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 7 Exchange LO 1 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 ©2010 by Cengage Learning Inc. All rights reserved 8 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 LO 1

9. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 9 REVIEW LEARNING OUTCOME LO 1 Product Price Place Promotion Exchange A B Delivering Value Communicating Value Creating Value Customer value and beneficial relationships

10. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 10 ………… …………….. …………… 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… LO 2 Marketing Management Philosophies

11. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 11 Market Orientation …………… 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. LO 2

12. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 12 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 LO 2

13. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 13 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 Online http://www.westernunion.com LO 2

14. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 14 ……………………. 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 LO 2

15. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 15 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? OrientationFocus LO 2

16. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 16 You can compare these orientations against these five categories: Comparing the Sales and Market Orientations LO 3  Organization’s focus  Firm’s business  Those to whom the product is directed  Firm’s primary goal  The tools used to achieve those goals

17. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 17 ………………….. The relationship between benefits and the sacrifice necessary to obtain those benefits. LO 3

18. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 18  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 LO 3

19. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 19 ……………… The feeling that a product met or exceeded the customer’s expectations. LO 3

20. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 20 Building Relationships ………………. A strategy that focuses on keeping and improving relationships with current customers. LO 3

21. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 21 Building Relationships  Customer-oriented personnel  Employee training programs  Empowered employees  Teamwork LO 3

22. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 22 Online http://www.britannica.com Defining a Firm’s Business Use “benefits” instead of “goods/services”  Ensures a customer focus  Encourages innovation and creativity  Stimulates an awareness of changes in customer preferences LO 3

23. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 23 REVIEW LEARNING OUTCOME LO 3 Sales vs. Market Orientations Sales Orientation Market Orientation Organization’s Focus Firm’s Business For Whom? Primary Profit Goal? Tools to Achieve Selling goods and services ……………Maximum sales volume Primarily promotion ………….. …………….Coordinated use of all marketing activities ………….. ………… … Satisfying wants and needs

24. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 24  Plays an important role in society  Vital to business survival, profits and growth  Offers career opportunities  Affects your life every day Why Study Marketing? LO 4

25. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 25 Why Study Marketing LO 4 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

26. Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 26 REVIEW LEARNING OUTCOME LO 4 Reasons for Studying Marketing Why Study Marketing? Important to Society Important to Business Good Career Opportunities + Marketing affects you every day!