An Overview of Marketing

1. An Overview of Marketing Chapter 1 Prepared by Deborah Baker Texas Christian University

2. Learning Objectives 1. Define the term marketing 2. Describe four marketing management philosophies 3. Discuss the differences between sales and market orientations 4. Describe the marketing process 5. Describe several reasons for studying marketing

3. Learning Objective 1 On Line http://www.soapworks.com Define the term marketing

4. All of the above, plus much more! What is Marketing? 1 • Personal Selling? • Advertising? • Making products available in stores? • Maintaining inventories?

5. A Philosophy An Attitude A Perspective A Management Orientation A Set of Activities, including: Products Pricing Promotion Distribution plus What is Marketing? 1

6. American Marketing Association Definition Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and servicesto create exchanges that satisfy individual and organizational goals. What is Marketing? 1

7. The Concept of Exchange 1 The idea that people give up something to receive something they would rather have.

8. At Least Two Parties Something of Value Necessary Conditions for Exchange Communication and Delivery Freedom to Accept or Reject Desire to Deal With Other Party The Concept of Exchange 1

9. NO SALE The Concept of Exchange 1 • Exchange may not take place even if conditions are met • An agreement must be reached • Marketing occurs even if exchange does not take place However...

10. Learning Objective 2 Describe four marketing management philosophies.

11. Competing Philosophies Production Sales Market Societal Marketing Marketing Management Philosophies 2

12. Orientation Key Ideas Production Focus on efficiency of internal operations Sales Focus on aggressive sales techniques and believe that high sales result in high profits Market Focus on satisfying customer needs and wants while meeting objectives Focus on satisfying customer needs and wants while enhancing individual and societal well-being Societal Marketing Management Philosophies 2

13. The Marketing Concept 2 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.

14. The Marketing Concept 2 • Focuses on customer wants and needs to distinguish products from competition • Integrates all organization’s activities to satisfy customer wants and needs • Achieves organization’s long-term goals by satisfying customer wants and needs

15. Achieving a Market Orientation 2 On Line http://www.westernunion.com • 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

16. Societal Marketing Orientation 2 Marketing that preserves or enhances an individual’s and society’s long-term best interests • Less toxic products • More durable products • Products with reusable or recyclable materials

17. Learning Objective 3 Discuss the differences between sales and market orientations.

18. Sales vs. Market Orientations 3 For Whom? Organization’s Focus Firm’s Business Primary Profit Goal? Tools to Achieve Sales Orientation Inward Selling goods and services Everybody Maximum sales volume Primarily promotion Customer satisfaction Market Orientation Outward Coordinated use of all marketing activities Satisfying wants and needs Specific groups of people

19. The Organization’s Focus 3 Key Issues in Developing Competitive Advantage Create Customer Value Build Long-Term Relationships Maintain Customer Satisfaction

20. Customer Value 3 The ratio of benefits to the sacrifice necessary to obtain those benefits

21. Customer Value Requirements 3 On Line http://www.ZanesCycles.com • Offer products that perform • Give consumers more than they expect • Avoid unrealistic pricing • Give the buyer facts • Offer organization-wide commitment in service and after-sales support

22. Customer Satisfaction 3 The feeling that a product has met or exceeded the customer’s expectations.

23. Maintaining Customer Satisfaction 3 On Line http://www.volvocars.com • Meet or exceed customer’s expectations • Focus on delighting customers • Provide solutions to customer’s problems • Cultivate relationships,NOT one-time transactions

24. Relationship Marketing 3 The name of a strategy that entails forging long-term partnerships with customers, both individuals and firms.

25. Requirementsfor Building Relationships Who are your customers What do customers value What do they want to buy How do they prefer to interact Relationship Marketing 3

26. Building Long-Term Relationships 3 • Customer-oriented personnel • Effective training programs • Empowered employees • Teamwork

27. Defining a Firm’s Business 3 On Line http://www.britannica.com “Benefits” instead of “goods/services” • Ensures a customer focus • Encourages innovation • Stimulates an awareness of changes in customer preferences

28. Learning Objective 4 Describe the marketing process.

29. Understand the organization’s mission Set marketing objectives Gather, analyze, interpret “SWOT” information Develop a marketing strategy Implement the marketing strategy Design performance measures Evaluate marketing efforts--change if needed Marketing Process Activities 4

30. Learning Objective 5 Describe several reasonsfor studying marketing.

31. Why Study Marketing? 5 • Plays an important role in society • Vital to business survival, profits and growth • Offers career opportunities • Affects your life every day

32. Why Study Marketing? 5 “Marketing is far too important to be left only to the marketing department.” --David Packard Hewlett-Packard

33. Professional Selling • Marketing Research • Advertising • Retail Buying • Distribution Management • Product Management • Product Development • Wholesaling Why Study Marketing? 5 • 1/4th to 1/3rd of the civilian workforce in the U.S. performs marketing activities • Fast route up the corporate ladder

34. Why Study Marketing? 5 • Half of every dollar spent pays for marketing costs • Better-informed consumers • Demand for customer satisfaction