Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 1 MKTG Lamb, Hair, McDaniel CHAPTER An Overview of Marketing

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 2 Learning Objectives Define the terms marketing, value, exchange Describe four marketing management philosophies Describe several reasons for studying marketing

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 3 Marketing is the activity, set of institutions, and processes for ……….., ………., ………., and ………..offerings that have ………for customers, clients, partners, and society at large. What Is Marketing? LO 1 American Marketing Association Definition

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 4 What is Marketing?

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 5 ………………….. The relationship between benefits and the sacrifice necessary to obtain those benefits. LO 3

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 6 …………… Chapter PHOTO Here People giving up something to receive something they would rather have. LO 1

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 7 Exchange LO 1 At Least Two Parties Something of Value Communication and Delivery Freedom to Accept or Reject Desire to Deal with Other Party Conditions for Exchange

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 8 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 LO 1

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 9 LO 1 Product Price Place Promotion Exchange A B Delivering Value Communicating Value Creating Value Customer value and beneficial relationships

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 10 ………… …………….. …………… 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… LO 2 Marketing Management Philosophies

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 11 Market Orientation …………… 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. LO 2

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 12 Market Orientation 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. LO 2

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 13 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 LO 2

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 14 ……………………. 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 LO 2

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 15 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

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 16 Customer Satisfaction The feeling that a product met or exceeded the customer’s expectations. LO 3

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 17 Building Relationships Relationship Marketing A strategy that focuses on keeping and improving relationships with current customers. LO 3

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 18 Building Relationships  Customer-oriented personnel  Employee training programs  Empowered employees  Teamwork LO 3

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 19  Plays an important role in society  Vital to business survival, profits and growth  Offers career opportunities  Affects your life every day Why Study Marketing? LO 4

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 20  Half of every dollar spent pays for marketing costs  Better-informed consumers  Demand for customer satisfaction Why Study Marketing?

Chapter 1 Copyright ©2010 by Cengage Learning Inc. All rights reserved 21 Check Yourself 1.What is the definition of marketing? 2.Marketing is about satisfying ______ and ______. 3.What are the four components of the marketing mix? 4.Who can perform marketing? 5.What are the various eras of marketing?