mktg 1ce ppt ch01

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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved. 1

MKTG

Designed by

Amy McGuire, B-books, Ltd.

Prepared byDeborah Baker, Texas Christian

University, andTina Grant, Durham College

Lamb, Hair, McDaniel ,

Kapoor, Klaise, & Appleby Canadian Edition

1CHAPTER An Overview ofMarketing


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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 2

Learning Outcomes

Define the term marketing

Describe four marketing managementphilosophies

Discuss the differences between sales andmarket orientations

Describe several reasons for studyingmarketing

LO1

LO2

LO3

LO4


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Chapter 1 Copyright 2010 by Nelson Education Ltd.. All rights reserved 3

Define the term

marketing

What Is Marketing?What Is Marketing?LO1


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LO1

What Is Marketing?

Stresses Customer Satisfaction

A Philosophy

An Attitude

A Perspective

A ManagementOrientation

A Set of Activities

Products

DistributionPromotion

Pricing

Focuses on delivering value and benefits to customers


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Marketingis an organizational function and

a set of processes for creating,

communicating, and delivering value to

customers and for managing customer

relationships in ways that benefit theorganization and its stakeholders.

What Is Marketing?

LO1

The accepted definition encompasses both the philosophy

and the organizational function.


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What Is Marketing?

LO1 Greatereffort

Higher

quality

Repeat

business

Growth andprofits

Stockholder

satisfaction

Moreinvestment

Employeesatisfaction


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Exchange

Exchange

Chapter

PHOTO

Here

People giving up something toreceive 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 forExchange

Conditions forExchange


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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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Chapter 1 Copyright 2010 Nelson Education Ltd. All rights reserved 10

LO1

B

eyon

d

th

e

B

oo

k

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

sponsors advertisements

on the pages they use.

SOURCE: Vauhini Vara, Companies Tolerate Ads to Get Free

Software, Wall Street Journal, March 27, 2007, B1, B3.

BUTFIRS

T,ANA

D

FROM

OURSPON

SOR


11/33Chapter 1 Copyright 2010 by Nelson Education Ltd.. All rights reserved 11

Describe fourmarketingmanagementphilosophies

Marketing ManagementMarketing Management

PhilosophiesPhilosophiesLO2


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Sales

Market

Societal

Production internal capabilities of the firm

satisfying customer needs and wantswhile meeting objectives

satisfying customer needs andwants while enhancing individual andsocietal well-being

aggressive sales techniques and beliefthat high sales result in high profits

Orientation Focus is on

LO2Marketing Management

Philosophies


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Market Orientation

Marketing

Concept

The idea that the social and

economic justification for an

organizations existence is the

satisfaction of customerwants and needs while

meeting organizational

objectives.

LO2


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The Marketing Concept

Focusing on customer wants and needs todistinguish products from competitors

offerings

Integrating all the organizations activities tosatisfy these wants

Achieving the organizations long-term goals

by satisfying customer wants and needslegally and responsibly

LO2


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Achieving a Marketing

Orientation

Obtain information about customers, competitors, andmarkets

Examine the information from a total businessperspective

Determine how to deliver superiorcustomer value

Implement actions to provide valueto customers

Online

http://www.westernunion.com

LO2
http://www.westernunion.com/http://www.westernunion.com/http://westernunion.com/


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Societal Marketing

Societal

Marketing

Orientation

An organization exists not only

to satisfy customer wants but

also to preserve or enhance

individuals and societys 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 customers

want 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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LO2

Be

yon

d

th

e

Boo

k

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."


19/33Chapter 1 Copyright 2010 by Nelson Education Ltd.. All rights reserved 19

Discuss the

differencesbetween sales

and market

orientations

Sales and MarketingSales and Marketing

OrientationsOrientationsLO3


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You can compare these orientations against

these five categories:

Comparing the Sales and

Market Orientations

LO3

Organizations focus

Firms business

Those to whom the product is directed

Firms primary goal

The tools used to achieve those goals


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Customer Value

The relationshipbetween benefits

and the sacrifice

necessary to

obtain those

benefits.

LO3

Customer Value


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Offer products that

perform

Earn trust

Avoid unrealistic pricing

Give the buyer facts

Offer organization-wide

commitment inservice and after-sales

support

Customer Value RequirementsLO3


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Customer Satisfaction

Customer

Satisfaction

The feeling that a product

met or exceeded the

customers expectations.

LO3


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Building Relationships

Relationship

Marketing

A strategy that

focuses on

keeping and

improving

relationships withcurrent

customers.

LO3


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Building Relationships

Customer-oriented personnel

Employee training programs

Empowered employees

Teamwork

LO3


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LO3

Bey

on

d

the

Boo

k

Building From Within

SOURCE: The Corporate Learning Factbook 2007: Statistics, Benchmarks and Analysis of the U.S. Corporate Training

Market, Bersin & Associates / Karen OLeonard, January 2007.

Today's companies must build from within,putting more emphasis (and money) on

rapidly training younger employees for

greater responsibilities.

Growing economy +Aging workforce

War for new talent"+ Lack of middlemanagers


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Online

http://www.britannica.com

Defining a Firms Business

Use Use benefitsbenefits instead of instead ofgoods/servicesgoods/services

Ensures a customer focus

Encourages innovation

and creativity

Stimulates an awareness

of changes in customerpreferences

LO3
http://www.britannica.com/http://www.britannica.com/http://www.britannica.com/


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REVIEW LEARNING OUTCOMELO3

Sales vs. Market Orientations

SalesOrientation

MarketOrientation

OrganizationsFocus

FirmsBusiness

ForWhom?

PrimaryProfitGoal?

Tools toAchieve

Sellinggoods andservices

Everybody Maximumsalesvolume

Primarilypromotion

Inward

Outward Coordinateduse of allmarketingactivities

Customersatisfaction

Specificgroups ofpeople

Satisfyingwants andneeds


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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


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LO3

Be

yon

d

th

e

Boo

k

Anatomy of an Ad

Tag line ties into

relationshipmarketing

Package is part of

the product

Samples are a

type of promotion

Ways company

creates value

Product directed

at people who are

not confidentselecting paint

colours

Store isplace

Pink ribbon shows

element of societal

marketing orientation


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Chapter 1 Copyright 2010 by Nelson Education Ltd All rights reserved 33

REVIEW LEARNING OUTCOMELO4

Reasons for Studying Marketing

Why Study Marketing?

Important

to

Society

Important

to

Business

Good

Career

Opportunities

+Marketing affects you every day!

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