An Overview of Marketing Chapter 1 An Overview of Marketing An Overview of Marketing Chapter 1 “Marketing is too important to be left only to the marketing department.” – David Packard Lamb, Hair, McDaniel 2013-2014 (C) 2014 by Cengage Learning Inc. All Rights Reserved.

(C) 2014 by Cengage Learning Inc. All Rights Reserved. Chapter 1 An Overview of Marketing Marketing is… A philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction. An organizational activity, set of institutions, and processes. NOTES: Marketing has two facets. First, it’s a philosophy. Second, 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. David Packard, cofounder of Hewlett-Packard, stated that “marketing is too important to be left only to the marketing department.” Marketing is a process that focuses on delivering value and benefits to customers. It uses communication, distribution, and pricing strategies to provide customers with the goods and services they want. It involves building long-term, mutually rewarding relationships. It entails an understanding that organizations have many connected stakeholder partners, including employees, suppliers, stockholders, distributors, and others. 1 (C) 2014 by Cengage Learning Inc. All Rights Reserved.

Exchange Conditions for Exchange At Least Two Parties Chapter 1 An Overview of Marketing Exchange At Least Two Parties Something of Value Communication and Delivery Freedom to Accept or Reject Desire to Deal with Other Party Conditions for Exchange 1 (C) 2014 by Cengage Learning Inc. All Rights Reserved.

The Four Marketing Management Philosophies Chapter 1 An Overview of Marketing The Four Marketing Management Philosophies 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… Notes: Four competing philosophies influence an organization’s marketing processes. Point out that a firm’s capabilities, such as production, are major considerations in strategic market planning. However, the guiding factor with all orientations should be the determination of what customers want, not what management thinks should be produced or sold. Discussion/Team Activity: Discuss examples of companies/organizations whose marketing management philosophies match each orientation. Production: Henry Ford’s Model T availability in any color as long as it was black Sales: Dot.com businesses in the late 1990s. Market: Ritz Carlton Hotels, Coach Societal: The Body Shop, Turtle Wax, method 2 (C) 2014 by Cengage Learning Inc. All Rights Reserved.

Achieving a Marketing Orientation Chapter 1 An Overview of Marketing 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 Discussion/Team Activity: Discuss companies that have a market orientation. L.L.Bean Amazon.com Four Seasons Hotels and Resorts Publix Super Markets 2. Discuss how Western Union lack(ed) a market orientation. 2 (C) 2014 by Cengage Learning Inc. All Rights Reserved.

Questions That Help Determine Marketing Philosophy Chapter 1 An Overview of Marketing Questions That Help Determine Marketing Philosophy Production Sales Marketing Societal What can we make or do best? How can we sell more aggressively? What do customers want and need? What do customers want/need, and how can we benefit society? Orientation Focus 2 (C) 2014 by Cengage Learning Inc. All Rights Reserved.

Comparing the Sales and Market Orientations Chapter 1 An Overview of Marketing 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 3 (C) 2014 by Cengage Learning Inc. All Rights Reserved.

Building Relationships Chapter 1 An Overview of Marketing 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. Discussion/Team Activity: Discuss companies that have made significant efforts at building long-term relationships. Examples: Four Seasons Coca-Cola Delta Air Lines Hershey Kellogg Nautilus Sears 3 (C) 2014 by Cengage Learning Inc. All Rights Reserved.

Defining a Firm’s Business Chapter 1 An Overview of Marketing Defining a Firm’s Business Sales Orientation Goods and Services Market Orientation Benefits that customers seek Notes: A sales-oriented firm defines its business in terms of goods and services. A market-oriented firm defines its business in terms of the benefits sought by customers. A market orientation does not always mean that the customers will receive what they want, such as tires that last for 100,000 miles for $25. Go to Britannica’s Web site. What evidence do you see that Britannica has redefined its core business? What do you think its business definition currently is? How has the company met the challenge of CD-ROM technology and online content distribution? 3 (C) 2014 by Cengage Learning Inc. All Rights Reserved.

Knowing the Firm’s Business: Ensures a customer focus Encourages innovation and creativity Stimulates an awareness of changes in customer preferences 3 (C) 2014 by Cengage Learning Inc. All Rights Reserved.

Sales vs. Market Orientations Chapter 1 An Overview of Marketing Sales vs. Market Orientations Sales Orien-tation Market Orien-tation Organization’s Focus Firm’s Business For Whom? Primary Profit Goal? Tools to Achieve Selling goods and services Everybody Maximum sales volume Primarily promotion Inward Outward Coordin-ated use of marketing activities Customer satisfac-tion Specific groups of people Satisfying wants and needs NOTES: 1) sales-oriented firms focus on their own needs; market-oriented firms focus on customers’ needs and preferences. 2) sales-oriented companies consider themselves to be deliverers of goods and services, whereas market-oriented companies view themselves as satisfiers of customers. 3) sales-oriented firms direct their products to everyone; market-oriented firms aim at specific segments of the population. 4) although the primary goal of both types of firms is profit, sales-oriented businesses pursue maximum sales volume through intensive promotion, whereas market-oriented businesses pursue customer satisfaction through coordinated activities. This comparison is not meant to belittle the role of promotion, especially personal selling, in the marketing mix. Salespeople in market-oriented organizations are generally perceived as problem solvers and links to supply sources and new products. Discussion/Team Activity: Identify organizations with sales or market orientations. Discuss the effectiveness of each organization’s strategy. (C) 2014 by Cengage Learning Inc. All Rights Reserved.

(C) 2014 by Cengage Learning Inc. All Rights Reserved. Chapter 1 An Overview of Marketing Why Study Marketing? Important to Society Important to Business Good Career Opportunities Marketing affects you every day! 4 (C) 2014 by Cengage Learning Inc. All Rights Reserved.