1 Chapter 1 Instructor Shan A. Garib, Fall 2012

◦ an organizational function ◦ a set of processes for creating, communicating, and delivering value to customers ◦ managing customer relationships in ways that benefit the organization and its stakeholders 2

1. Discover the needs and wants of prospective customers 2. Satisfy the needs of customers 3

Exchange Outcome: ultimately, marketing works to bring about an exchange of something desired Eg. Money for car, apple for orange Conditions of Exchange: 1.Two or More Parties with Unsatisfied Needs 2.They posess something desired by the other 3.A Way for the Parties to Communicate 4.Freedon to accept or reject offer 5.Desire to deal with other party 4

Market: Any place where buyers and sellers can exchange goods and services Eg. Ebay, supermarket, classroom 5

 Four competing philosophies influence how and what a company markets: 1. Production 2. Sales 3. Market 4. Social  Philosophy: a way of living, thinking, being 6

 Four competing philosophies influence how and what a company markets: Production – focusses on the internal capabilities of the firm not on desires of marketplace -managment asseses resources regarding how to produce more -does not take into consideration what the marketplace needs 7

 Four competing philosophies influence how and what a company markets: Sales – based on the idea that more people will buy more goods if aggressive sales techniques are used -selling things and collecting money -lack understanding of needs of consumer 8

 Four competing philosophies influence how and what a company markets: Market – based on the idea that the company exists to produce goods and services that the consumer whats -consumer wants to buy the product -firms use this to differentiate -all activities dedicated to this -long term goals achived Market orientation: obtaining info about consumers, competitiors 9

 Four competing philosophies influence how and what a company markets: Societal – based on the idea that the company exists to produce goods and services that the consumer whats AND to preserve societies long run best interest eg. Non toxic bottles 10

 Main differences are between: -the organization’s focus -the firm’s business -whom the product is for -firm’s primary goal -tools to achieve the firm’s goal 11

1.The organization’s focus: -Sales orientated firms are inward looking, selling what the firm makes and not what the market wants eg. North American car makers -Market orientated firms are outward looking, selling what the market desires -customers at centre of business focus eg. Dell Computers 12

1.The organization’s focus: -Market orientated firms interested in offering products with high customer value -products that have quality customers expect and are at a price they are willing to pay Firms Must: -offer products must perform -earn trust -avoid unrealistic pricing -give the buyer facts about the product -offer after-sales support eg. Apple Support 13

1.The organization’s focus: -Market orientated firms interested in offering products with high customer satisfaction -products that have met the customers needs and expectations -culture of firm focussed on delighting customers, not selling products 14

1.The organization’s focus: -Market orientated firms interested in building relationships -get a new customer and retain them -long term -Three ways to expand market share: a)Attract new customers b)Increase new business with existing customers c)Retaining current customers This is done through relationship marketing, b&c. eg. Toyota car club for servicing, ask questions, informed of recalls 15

1.The organization’s focus: -Market orientated firms interested in building relationships -Relationship marketing depends on: a) customer-oriented personnel eg. Walmart Greeter b) training programmes eg. Walt Disney University courses on traditions, philosophy, operational procedures c) empowered employees – with the authority to solve customer problems on the spot and act like owers to get sales making customers feel that their concerns were addressed d) and team work – collaborative efforts easier to accomplish goals of greater customer satisfaction 16

2. The organization’s business: -Sales orientated firms define their business in terms of goods and services -Market orientated firms define their business in terms of the benefits it’s customers seek Three advantages: a) focuss stays on customers b) encourages innovation by seeking different ways to satisfy customers c) Keep abreast of changes in customer tastes and offer relevant products 17

3. Whom the product is for: -Sales orientated firms targets products at everyone -Market orientated firms target their products at specific groups through research and analysis -realize that different people want different features 18

4. The firms primary goal: -Sales orientated firms seek profits through sales volumes -Market orientated firms make a profit through creating customer value, satisfaction, building long term relationships 19

-Marketing plays and important role in society because makes products available: -when you want -in desirable quantities -accessible locations -convenient packages 20

-Marketing is important to businesses because it allows for survival, profits and growth: This is achieved through: -assessing wants and needs of customers -designing and managing products -determining prices -determining distribution -communicating with customers 21

-Marketing offers great career opportunities eg. Sales, research, advertising, buying, distribution -Marketing affects your dailiy life -you encounter marketing and participate in the marketing process as a consumer -by understanding marketing, you will be better informed and will make better buying decisions 22