Chapter 1: An Overview of Marketing Prepared by Amit Shah, Frostburg State University Designed by Eric Brengle, B-books, Ltd. Copyright 2010 by Cengage Learning Inc. All Rights Reserved1

Learning Outcomes Copyright 2010 by Cengage Learning Inc. All Rights Reserved 2 Describe four marketing management philosophies Define the term marketing Discuss the differences between sales and market orientations Describe several reasons for studying marketing LO 1 LO 2 LO 3 LO 4

What is Marketing? A Philosophy An Attitude A Perspective A Management Orientation A Set of Activities Financing Selling Distribution Promotion Pricing Marketing Information Management Product Service Management Copyright 2010 by Cengage Learning Inc. All Rights Reserved 3

What is Marketing? American Marketing Association Definition 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. Copyright 2010 by Cengage Learning Inc. All Rights Reserved 4

What is Marketing? Copyright 2010 by Cengage Learning Inc. All Rights Reserved Product Price Place Promotion Exchange A B Creating Value Customer value and beneficial relationships 5 LO 1

Marketing Management Philosophies Copyright 2010 by Cengage Learning Inc. All Rights Reserved 6 Describe four marketing management philosophies LO 2

Marketing Management Philosophies Copyright 2010 by Cengage Learning Inc. All Rights Reserved 7 Sales ’s Market Societal 1980 to present Production ’s internal capabilities of the firm. Emphasis on producing and distributing new products 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…

Market Orientation Copyright 2010 by Cengage Learning Inc. All Rights Reserved 8 Marketing Concept: 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

The Marketing Concept Copyright 2010 by Cengage Learning Inc. All Rights Reserved 9 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 Airplane activity

Achieving a Marketing Orientation Copyright 2010 by Cengage Learning Inc. All Rights Reserved 10 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 zapposYouTube - The Zappos Family on NightlineYouTube - The Zappos Family on Nightline

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 Societal Marketing Copyright 2010 by Cengage Learning Inc. All Rights Reserved 11 Societal Marketing Orientation Method video

The Four Marketing Management Philosophies Copyright 2010 by Cengage Learning Inc. All Rights Reserved 12 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? OrientationFocus LO 2

Building Relationships Copyright 2010 by Cengage Learning Inc. All Rights Reserved 13 A strategy that focuses on keeping and improving Relationships with current customers. Relationship Marketing

Building Relationships Copyright 2010 by Cengage Learning Inc. All Rights Reserved 14 Customer-oriented personnel Employee training programs Empowered employees Teamwork

Defining a Firm’s Business Copyright 2010 by Cengage Learning Inc. All Rights Reserved 15 Use “ customer benefits ” instead of “ goods/services ” - -Ensures a customer focus -Encourages innovation and creativity -Stimulates an awareness of changes in customer preferences

Why Study Marketing? Copyright 2010 by Cengage Learning Inc. All Rights Reserved 17 Describe several reasons for studying marketing LO 4

Reasons for Studying Marketing Copyright 2010 by Cengage Learning Inc. All Rights Reserved 18 Why Study Marketing? Important to Society Important to Business Good Career Opportunities + Marketing affects you every day! LO 4

HOW DO COLLEGE STUDENTS STUDY? 3M’s RESPONSE TO A NEW-PRODUCT CHALLENGE!

HOW DO COLLEGE STUDENTS STUDY? DISCOVERING STUDENT STUDYING NEEDS 3M Post-it ® Notes or Post-it ® Flags + Felt Tip Highlighters = 3M product that will combine Post-it ® Notes or Post-it ® Flags and Highlighters

Products R Us IN-CLASS ACTIVITY 1-21