chapter 1copyright © 2002 by nelson, a division of thomson canada limited. 1-1 chapter 1 prepared...

Chapter 1 Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 1-1

chap

ter

1

Prepared byPrepared byAngela Zigras, Seneca CollegeAngela Zigras, Seneca College

Deborah Baker, Texas Christian UniversityDeborah Baker, Texas Christian University

AN AN

OVERVIEW OVERVIEW

OF OF

MARKETINGMARKETING


You will learn to….You will learn to….

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

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


What is Marketing?What is Marketing?

The process of planning and The process of planning and executing the conception, pricing, executing the conception, pricing,

promotion, and distribution of ideas, promotion, and distribution of ideas, goods and services to create goods and services to create

exchanges that satisfy individual and exchanges that satisfy individual and organizational goals.organizational goals.


Marketing Includes...Marketing Includes...

• Personal sellingPersonal selling

• AdvertisingAdvertising

• Making products available in storesMaking products available in stores

• Maintaining inventoriesMaintaining inventories


Marketing Activities Revolve Around the Target Market

Marketing Activities Revolve Around the Target Market

DistributionDistributionProductProduct

PricingPricing PromotionPromotion

Target MarketTarget Market


The Concept of ExchangeThe Concept of Exchange

The idea that people give up The idea that people give up something to receive something something to receive something

they would rather have.they would rather have.


Conditions for ExchangeConditions for Exchange

Desire to Deal With Other PartyDesire to Deal

With Other Party

Freedom to Accept or Reject

Freedom to Accept or Reject

Something of Value

Something of Value

Ability to Communicate

Offer

Ability to Communicate

Offer

At Least Two Parties

At Least Two Parties

Necessary Conditions

for Exchange

Necessary Conditions

for Exchange


Was the Exchange Successful? Was the Exchange Successful?

All five conditions must be metAll five conditions must be met

An agreement must be reachedAn agreement must be reached

An exchange is not always madeAn exchange is not always made

Marketing occurs even if the exchange Marketing occurs even if the exchange does not take placedoes not take place


Marketing Management PhilosophiesMarketing Management Philosophies

CompetingCompetingPhilosophiesPhilosophiesCompetingCompeting

PhilosophiesPhilosophies

ProductionProduction

SalesSales

MarketMarket

Societal MarketingSocietal Marketing



PhilosophyPhilosophy Key Ideas

ProductionProduction

SalesSales

MarketMarket

SocietalSocietal

Focus on efficiency of internal operations

Focus on satisfying customer needs and wants

Focus on satisfying customer needs and wants while enhancing individual and societal well-being

Focus on aggressive techniques for overcoming customer resistance



ProductionProductionOrientationOrientation

•Focus on internal capabilities rather than on desired needs

Management assesses resources What is easy to produce, given our equipment?



SalesSalesOrientationOrientation

• People will buy more goods and services when sales are aggressive

• High sales result in high profits

Cannot convince people to buy if they do not need or want the product.



MarketMarketOrientationOrientation

• Organizations exist to satisfy the needs and wants of their customer

• Meeting the long term goals.

Sales depend on a customer's decision to purchase a product.


Marketing ConceptMarketing Concept

The idea that organizations have a The idea that organizations have a right to exist to the extent they right to exist to the extent they

satisfy the needs and wants of their satisfy the needs and wants of their customers while meeting their own customers while meeting their own

objectives.objectives.


The Marketing ConceptThe Marketing Concept

Focus on Focus on Customer Wants Customer Wants

and Needsand Needs

Integrate Organization’s Integrate Organization’s Activities to Satisfy Activities to Satisfy Customer Needs and Customer Needs and

WantsWants

Achieve Organization’s Achieve Organization’s Long Term Goals by Long Term Goals by Satisfying Customer Satisfying Customer

Wants and NeedsWants and Needs


Market Concept RequiresMarket Concept Requires

• Top management leadershipTop management leadership

• A customer focusA customer focus

• Top management leadershipTop management leadership

• Inter-functional coordinationInter-functional coordination

• Customer relationshipsCustomer relationships



• Marketing that preserves or enhances an individual's and society’s long-term best interests.

.

SocietalSocietalOrientationOrientation

Focus on satisfying customers needs and wants while considering societal well being


Comparing Sales and Market Orientations

Comparing Sales and Market Orientations

Market Orientation

Outward Coordinated use of all marketing activities

Customer satisfaction

Specific groups

of people

Satisfying wants and

needs

Organization’sFocus

Firm’sBusiness

ForWhom?

Primary Profit Goal?

Tools to Achieve

Selling goods and services

Everybody Maximum sales

volume

Primarily promotion

InwardSales Orientation


Developing Competitive AdvantageDeveloping Competitive Advantage

Competitive Advantage

Customer Value

Customer Relationships

Customer Satisfaction


Create Customer ValueCreate Customer Value

The ratio of benefits to the sacrifice necessary to obtain those benefits

Commitment in quality, service and after-sales support


Maintain Customer SatisfactionMaintain Customer Satisfaction

The feeling that a product has met or exceeded the

customer's expectations

Provide solutions to customer’s

problems


Build Customer RelationshipsBuild Customer Relationships

The name of a strategy that entails forging long-term

partnerships with customers, both individuals and firms.


Building Customer RelationshipsBuilding Customer Relationships

•Customer orientedCustomer oriented

•Effective trainingEffective training

•Empowered employeesEmpowered employees

•TeamworkTeamwork

•Builds customer loyaltyBuilds customer loyalty


Marketing Process ActivitiesMarketing Process Activities

Understand the organization’s missionUnderstand the organization’s mission

Set marketing objectivesSet marketing objectives

Gather, analyze, interpret “SWOT” informationGather, analyze, interpret “SWOT” information

Develop a marketing strategyDevelop a marketing strategy

Implement the marketing strategyImplement the marketing strategy

Design performance measuresDesign performance measures

Evaluate marketing efforts--change if neededEvaluate marketing efforts--change if needed


Why Study MarketingWhy Study Marketing

• Plays an important role in societyPlays an important role in society

• Vital to business Vital to business

• Offers outstanding career Offers outstanding career opportunitiesopportunities

• Affects your life every dayAffects your life every day


Career OpportunitiesCareer Opportunities

• Professional Professional sellingselling

• AdvertisingAdvertising

• RetailRetail

• Product Product managementmanagement

• Brand Brand management management

• ManufacturingManufacturing

• Service MarketingService Marketing

• Sport and Sport and EntertainmentEntertainment

• CRMCRM

• Market Research Market Research

• Event PlannerEvent Planner

chapter 1copyright © 2002 by nelson, a division of thomson canada limited. 1-1 chapter 1 prepared...

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