An Overview of Marketing 1 An Overview of Marketing Prepared by Deborah Baker Texas Christian University

Learning Objectives 1. Define the term marketing Chapter 1 Learning Objectives 1. Define the term marketing 2. Describe four marketing management philosophies 3. Discuss the differences between sales and market orientations 4. Describe several reasons for studying marketing

American Marketing Association Definition Chapter 1 What Is Marketing? American Marketing Association Definition Marketing is 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 the organization and its stakeholders. 1

Marketing 1 Product Price Place Promotion Exchange A B Delivering Chapter 1 Marketing Product Price Place Promotion Exchange A B Delivering value Communicating Creating value Customer value and beneficial relationships 1

The Concept of Exchange Chapter 1 The Concept of Exchange Necessary Conditions for Exchange At Least Two Parties Something of Value Communication and Delivery Freedom to Accept or Reject Desire to Deal With Other Party 1

The Concept of Exchange Chapter 1 The Concept of Exchange However... Exchange may not take place even if conditions are met An agreement must be reached Marketing occurs even if exchange does not take place 1

Marketing Management Philosophies Chapter 1 Marketing Management Philosophies Competing Philosophies Production Sales Market Societal Marketing 2

Chapter 1 The Marketing Concept Focusing on customer wants and needs to distinguish products from competition Integrating all the organization’s activities to satisfy customer wants and needs Achieving the organization’s long-term goals by satisfying customer wants and needs 2

Marketing Management Philosophies Chapter 1 Marketing Management Philosophies Orientation Focus 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 and need, and how can we benefit society? 2

Comparing the Sales and Marketing Orientations You can compare these orientations against these four categories: Organization’s focus Firm’s business Those to whom the product is directed Firm’s primary goal 3

The Organization’s Focus Chapter 1 The Organization’s Focus Key Issues in Developing Competitive Advantage Create Customer Value Build Long-Term Relationships Maintain Customer Satisfaction 3

Customer Value Requirements Chapter 1 Customer Value Requirements Offer products that perform Give consumers more than they expect Avoid unrealistic pricing Give the buyer facts Offer organization-wide commitment in service and after-sales support On Line http://www.iflyswa.com 3

Relationship Marketing Chapter 1 Relationship Marketing Requirements for Building Relationships Who are your customers What do customers value What do they want to buy How do they prefer to interact 3

Defining a Firm’s Business Chapter 1 Defining a Firm’s Business “Benefits” instead of “goods/services” Ensures a customer focus Encourages innovation and creativity Stimulates an awareness of changes in customer preferences On Line http://www.britannica.com 3

Good Career Opportunities Chapter 1 Why Study Marketing? Why Study Marketing? Important to Society Important to Business Good Career Opportunities + Marketing affects you every day! 4