1 Lamb, Hair, McDaniel CHAPTER 1 An Overview of Marketing © WINDSOR & WIEHAHN/STONE/GETTY IMAGES © iStockphoto.com/San Nguyen © 2013 by Cengage Learning Inc. All Rights Reserved.

2 Define the term “marketing” Describe four marketing management philosophies Discuss the differences between sales and market orientations Describe several reasons for studying marketing Learning Outcomes

3 Define the term “marketing” What Is Marketing? 1

4  A philosophy, attitude, perspective, or a management orientation that stresses customer satisfaction  But it is also….  An organizational activity, set of institutions, and processes 1 Marketing is…

5 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. American Marketing Association Definition of Marketing 1

6 1 Marketing… entails processes that focus on delivering value and benefits to customers, not just selling goods and services. Marketing

7 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 Exchange

8  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 Exchange

9 Describe four marketing management philosophies Marketing Management Philosophies 2

10 2-Sales… Market….. 4-Societal… 1-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 OrientationFocus is on… Four Marketing Management Philosophies 2

11 1-Production Orientation Field of Dreams orientation –“If you build it, they will come.” –Doesn’t consider if what is produced meets market needs 2

12 1-Production Orientation 2

13 2-Sales Orientation Sales/Marketing = Selling Things &Collecting Money –Disregards market needs and consumer demand. –Despite the quality of sales force, often cannot convince people to buy what is neither wanted nor needed. 2 2-Sales Orientation

14 3-Market Orientation  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 Marketing Concept 2 3-Market Orientation

15 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 2 3-Market Orientation-Achieving

16 Societal Marketing Orientation An organization exists not only to satisfy customer wants but also to preserve or enhance individuals’ and society’s long-term best interests. For example: Less toxic products More durable products Products with reusable or recyclable materials 2 4-Societal Market Orientation

17 Marketing Philosophy Questions Production Sales Marketing Societal 1-What can we make or do best? 2-How to sell more aggressively? 3- What do customers want/need? 4-What do customers want/need, and how can we benefit society? OrientationFocus 2

18 Focus on the differences between sales (2) and market (3) orientations Differences between Sales and Market Orientations 3

19 Comparing Sales & Marketing Orientations 5 characteristics to explore: A.Organization’s Focus B.Firm’s Business C.Those to whom the product is directed D.Firm’s Primary Goal E.Tools the organization uses to achieve its goals 3

20 Sales vs. Market Orientations Sales Orientation Market Orientation A-Organization’s Focus B-Firm’s Business C-For Whom? D-Primary Profit Goal? E-Tools to Achieve Selling goods and services EverybodyMaximum sales volume Primarily promotion Inward OutwardCoordinated use of all marketing activities Customer satisfaction Specific groups of people Satisfying wants and needs 3

21 A-The Organization’s Focus Sales Orientation Inward looking What the firm makes Market Orientation Outward looking What the market wants 3

22 B-The Firm’s Business Sales Orientation a- G oods and Services Market Orientation Benefits that customers seek 3

23 C-For Whom? Sales Orientation a- Everybody Market Orientation Specific Groups of People 3

24 D-Primary Profit Goal Sales Orientation a- Maximum Sales Volume Market Orientation Create Value and Provide Customer Satisfaction 3

25  Offer products that perform  Earn trust  Avoid unrealistic pricing  Give the buyer facts  Offer organization-wide commitment in service and after-sales support  Co-creation with customers Value Requirements 3

26 This is the customers’ evaluation of a good or service in terms of whether that good or service has met their needs and expectations. 3 Customer Satisfaction

27 E-Tools to Achieve Sales Orientation a- Promotion Market Orientation Marketing Activities- Relationship Marketing 3

28 A strategy that focuses on keeping and improving relationships with customers. Successful strategies need: 1.Customer-Oriented Personnel 2.Effective Training Programs 3.Empowered Employees 4.Teamwork Relationship Marketing 3

29 Relationship Marketing (con’t) 1. Customer-oriented personnel All employees represent the firm in the eyes of the customer 2. Employee training programs 3. Empowered employees Employees are given more authority to solve customer problems on the spot 4. Teamwork Emphasizing cooperation over competition while helping a customer 3

30 Knowing the Firm’s Business Ensures a customer focus Encourages innovation and creativity Stimulates an awareness of changes in customer preferences 3

Describe several reasons for studying marketing Why Study Marketing 31 4

32 Why Study Marketing? Important to Society Important to Business Good Career Opportunities Marketing affects you every day!

33 Chapter 1 Video “Company Clip” Video - Method Do you think the company is best described as having a market orientation or a societal-marketing orientation? _lamb/company_clips/ch01.html © 2013 by Cengage Learning Inc. All Rights Reserved.