Topic 1 Lamb, Hair, and McDaniel, (2016) MKTG9 Cengage Learning
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1 Topic 1 Lamb, Hair, and McDaniel, (2016) MKTG9 Cengage Learning Chapter 1 An Overview of Marketing Cengage Learning. All Rights Reserved.
2 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. 2
3 1-1 What Is Marketing? Define the term marketing 2016 Cengage Learning. All Rights Reserved.
4 Marketing is 1. A philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction. 2. An organizational activity, set of institutions, and processes Cengage Learning. All Rights Reserved. 4
5 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 Cengage Learning. All Rights Reserved. 5
6 Marketing Entails processes that focus on delivering value and benefits to customers, not just selling goods and services Cengage Learning. All Rights Reserved. 6
7 Exchange At Least Two Parties Something of Value Conditions for Exchange Communication and Delivery Freedom to Accept or Reject Desire to Deal with Other Party 2016 Cengage Learning. All Rights Reserved. 7
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 Cengage Learning. All Rights Reserved. 8
9 1-2 Marketing Management Philosophies Describe four marketing management philosophies 2016 Cengage Learning. All Rights Reserved.
10 The Four Marketing Management Philosophies Orientation Production Sales Market Societal Focus is on internal capabilities of the firm aggressive sales techniques and belief that high sales result in high profits satisfying customer needs and wants while meeting objectives satisfying customer needs and wants while enhancing individual and societal well-being 2016 Cengage Learning. All Rights Reserved. 10
11 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. 11
12 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 Cengage Learning. All Rights Reserved. 12
13 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 2016 Cengage Learning. All Rights Reserved. 13
14 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 2016 Cengage Learning. All Rights Reserved. 14
15 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. 15
16 Who s In Charge? Increased availability of comparative research enables customers to shop smarter, putting the customer in the driver seat Cengage Learning. All Rights Reserved. 16
17 Questions That Help Determine Marketing Philosophy Orientation Production Focus What can we make or do best? Sales How can we sell more aggressively? Marketing Societal What do customers want and need? What do customers want/need, and how can we benefit society? 2016 Cengage Learning. All Rights Reserved. 17
18 1-3 Differences between Sales and Market Orientations Discuss the differences between sales and market orientations 2016 Cengage Learning. All Rights Reserved.
19 Comparing the Sales and Market Orientations 5 characteristics: Organization s focus Firm s business Those to whom the product is directed Firm s primary goal Tools the organization uses to achieve its goals 2016 Cengage Learning. All Rights Reserved. 19
20 The Organization s Focus Sales Orientation Inward looking What the firm makes Market Orientation Outward looking What the market wants 2016 Cengage Learning. All Rights Reserved. 20
21 Customer Value Requirements Offer products that perform Earn trust Avoid unrealistic pricing Give the buyer facts Offer organization-wide commitment in service and aftersales support Co-creation with customers 2016 Cengage Learning. All Rights Reserved. 21
22 Customer Satisfaction The customers evaluation of a good or service in terms of whether that good or service has met their needs and expectations Cengage Learning. All Rights Reserved. 22
23 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. 23
24 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 Cengage Learning. All Rights Reserved. 24
25 Defining a Firm s Business Sales Orientation Goods and Services Market Orientation Benefits that customers seek 2016 Cengage Learning. All Rights Reserved. 25
26 Knowing the Firm s Business: Ensures a customer focus Encourages innovation and creativity Stimulates an awareness of changes in customer preferences 2016 Cengage Learning. All Rights Reserved. 26
27 Sales vs. Market Orientations Organization s Focus Firm s Business For Whom? Primary Profit Goal? Tools to Achieve Sales Orientation Inward Selling goods and services Everybody Maximum sales volume Primarily promotion Outward Satisfying wants and needs Specific groups of people Customer satisfaction Market Orientation Coordinated use of marketing activities 2016 Cengage Learning. All Rights Reserved. 27
28 1-4 Why Study Marketing? Describe several reasons for studying marketing 2016 Cengage Learning. All Rights Reserved.
29 Why Study Marketing? Important to Society Important to Business Good Career Opportunities Marketing affects you every day! 2016 Cengage Learning. All Rights Reserved. 29
Chapter 1 Marketing: Creating and Capturing Customer Value
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