Chapter 1 An Overview of Marketing

Learning Outcomes – CH 1 Understand the meaning of the term “marketing” Understand the evolution of marketing management philosophies Recognize the difference in a sales orientation and a marketing orientation Understand why it is important to study marketing

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”

Marketing involves Exchange Interchange of something of value between two parties Marketing provides a good or service Customer receives the benefit of the product (good or service) Marketer receives the “price” of the product

What is required for exchange to occur? There must be at least two parties Each party must have something of value** Each party must be able to communicate and deliver Each party must be free to accept or reject the offer Each party must feel it is acceptable to deal with the other party

Marketing Management Philosophies Production orientation: Emphasis is on production and technology– “What can we do best?”

Marketing Management Philosophies Sales Orientation The emphasis is on selling existing products “Let’s sell what we have.”

Marketing Management Philosophies The Marketing Concept: Emphasis is on consumer needs and long-range profitability “What can we do to satisfy customer needs and wants? Recognizes that different groups of customers need different features and benefits segmentation

Marketing Management Philosophies Societal Marketing Orientation The emphasis is on customer satisfaction, meeting organizational objectives, AND preserving and enhancing individuals’ and society’s best interests.

**Customer Value The difference between the benefits a customer sees and the costs of obtaining those benefits How can a company create value?

Customer Satisfaction The feeling that a product met or exceeded a customer’s expectations.

Relationship Marketing Marketing activities aimed at building long- term relationships with customers that contribute to the company’s success Typically depends on: Customer-focused employees Training Empowerment Teamwork

Understanding Marketing is important because… it affects society and the economy Choices Innovation Economic growth marketing activities are critical to the survival of a business it creates many career opportunities it affects daily life