chapter 1 copyright ©2009 by cengage learning inc. all rights reserved 1 mktg designed by amy...
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Chapter 1 Copyright ©2009 by Cengage Learning Inc. All rights reserved 1
MKTG
Designed byAmy McGuire, B-books, Ltd.
Prepared byDeborah Baker, Texas Christian University
Lamb, Hair, McDaniel 2008-2009
1CHAPTER
An Overview of Marketing
Chapter 1 Copyright ©2009 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
LO1
LO2
LO3
LO4
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Define the term marketing
What Is Marketing?What Is Marketing?LO1
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LO1
What Is Marketing?
Stresses Customer SatisfactionStresses Customer Satisfaction
A Philosophy
An Attitude
A Perspective
A Management Orientation
A Set of Activities…
Products
Distribution
Promotion
Pricing
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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.
What Is Marketing?
LO1
American Marketing Association Definition
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What Is Marketing?
LO1 Greater effort
Higher quality
Repeat business
Growth andprofits
Stockholder
satisfaction
More investment
Employee satisfaction
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Exchange
ExchangeExchange
Chapter PHOTO
Here
Chapter PHOTO
Here
People giving up something to
receive something they would
rather have.
LO1
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ExchangeLO1
At Least Two PartiesAt Least Two Parties
Something of ValueSomething of Value
Communication and DeliveryCommunication and Delivery
Freedom to Accept or RejectFreedom to Accept or Reject
Desire to Deal with Other PartyDesire to Deal with Other Party
Conditions for Exchange
Conditions for Exchange
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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
LO1
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LO1B
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Watch an Ad – Get Free Software
In exchange for “free” online word-processing, calendar support, or network management services, many budget-conscious corporate users are willing to have the sponsor’s advertisements on the pages they use.
SOURCE: Vauhini Vara, “Companies Tolerate Ads to Get Free Software,” Wall Street Journal, March 27, 2007, B1, B3.
…BUT FIRST, AN AD
FROM OUR SPONSOR…
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REVIEW LEARNING OUTCOMELO1
Product
Price
Place
Promotio
n
ExchangeExchangeA BA B
DeliveringValue
CommunicatingValue
CreatingValueCustomer value
and beneficial relationships
Customer valueand beneficial relationships
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Describe four marketing
management philosophies
Marketing Management Marketing Management PhilosophiesPhilosophies
LO2
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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…
LO2Marketing Management Philosophies
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Market Orientation
MarketingConcept
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.
LO2
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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
LO2
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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
LO2
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Societal Marketing
SocietalMarketing
Orientation
SocietalMarketing
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
LO2
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REVIEW LEARNING OUTCOME
ProductionProduction
SalesSales
MarketingMarketing
SocietalSocietal
What can we make or do best?What can we make or do best?
How can we sell more aggressively?How can we sell more aggressively?
What do customerswant and need?
What do customerswant and need?
What do customers want and need, and how can we benefit society?
What do customers want and need, and how can we benefit society?
Orientation Focus
LO2
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LO2B
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Listen to your customers...
Tom Kelley with Jonathan Littman, The Ten Faces of Innovation: IDEO's Strategies for Defeating the Devil's Advocate and Driving Creativity Throughout Your Organization, Currency/Doubleday, 2005
… but look to the future, as well.
"If I had asked my customers what they wanted," Henry Ford once remarked, "they would have said a faster horse."
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Discuss the differences
between sales and market orientations
Sales and Marketing Sales and Marketing OrientationsOrientationsLO3
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You can compare these orientations against these five categories:
Comparing the Sales and Market Orientations
LO3
Organization’s focus Firm’s business Those to whom the product is directed Firm’s primary goal The tools used to achieve those goals
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Customer ValueCustomer Value
Customer Value
The relationship
between benefits
and the sacrifice
necessary to
obtain those
benefits.
LO3
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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 RequirementsLO3
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Customer Satisfaction
Customer Satisfaction
Customer Satisfaction
The feeling that a product
met or exceeded the
customer’s expectations.
The feeling that a product
met or exceeded the
customer’s expectations.
LO3
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Building Relationships
RelationshipMarketing
RelationshipMarketing
A strategy that
focuses on
keeping and
improving
relationships with
current
customers.
LO3
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Building Relationships
Customer-oriented personnel
Employee training programs
Empowered employees
Teamwork
LO3
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LO3B
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Building From Within
SOURCE: The Corporate Learning Factbook® 2007: Statistics, Benchmarks and Analysis of the U.S. Corporate Training Market, Bersin & Associates / Karen O’Leonard, January 2007.
Today's companies must build from within, putting more emphasis (and money) on rapidly training younger employees for greater responsibilities.
Growing U.S. economy + Aging workforce
“War for new talent" + Lack of middle managers
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Biz Flix
The JerkLO3
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Online
http://www.britannica.com
Defining a Firm’s Business
Use “Use “benefitsbenefits” instead of ” instead of ““goods/servicesgoods/services””
Ensures a customer focus
Encourages innovation and creativity
Stimulates an awareness of changes in customer preferences
LO3
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REVIEW LEARNING OUTCOMELO3
Sales vs. Market Orientations
Sales Orientation
Market Orientation
Organization’sFocus
Firm’sBusiness
ForWhom?
Primary Profit Goal?
Tools to Achieve
Selling goods and services
Everybody Maximum sales volume
Primarily promotion
Inward
Outward Coordinated use of all marketing activities
Customer satisfaction
Specific groups of people
Satisfying wants and needs
Chapter 1 Copyright ©2009 Cengage Learning Inc. All rights reserved 31
LO3B
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Anatomy of an AdTag line ties into relationship marketing
Package is part of the product
Samples are a type of promotion
Ways company creates value
Product directed at people who are not confident selecting paint colors
Store is place
Pink ribbon shows element of societal marketing orientation
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Describe several reasons for studying
marketing
Why Study MarketingWhy Study MarketingLO4
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Plays an important role in society
Vital to business survival, profits and growth
Offers career opportunities
Affects your life every day
Why Study Marketing?LO4
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Why Study Marketing
LO4
Vital Marketing ActivitiesVital Marketing Activities
Assess the wants and satisfaction of customersAssess the wants and satisfaction of customers
Design and manage product offeringsDesign and manage product offerings
Determine prices and pricing policiesDetermine prices and pricing policies
Develop distribution strategiesDevelop distribution strategies
Communicate with present and potential customersCommunicate with present and potential customers
Chapter 1 Copyright ©2009 by Cengage Learning Inc. All rights reserved 35
REVIEW LEARNING OUTCOMELO4
Reasons for Studying Marketing
Why Study Marketing?Why Study Marketing?
Importantto
Society
Importantto
Society
Importantto
Business
Importantto
Business
GoodCareer
Opportunities
GoodCareer
Opportunities
+Marketing affects you every day!