Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 1-1 chapter 1 Prepared by Angela Zigras, Seneca College Deborah Baker, Texas Christian University AN OVERVIEW OF MARKETING

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 1-2 You will learn to…. 1. Define the term marketing 2. Describe four marketing management philosophies 3. Discuss the differences between sales and market orientations 4. Describe the marketing process 5. Describe several reasons for studying marketing 1. Define the term marketing 2. Describe four marketing management philosophies 3. Discuss the differences between sales and market orientations 4. Describe the marketing process 5. Describe several reasons for studying marketing

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 1-3 What is Marketing? The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 1-4 Marketing Includes... Personal sellingPersonal selling AdvertisingAdvertising Making products available in storesMaking products available in stores Maintaining inventoriesMaintaining inventories

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 1-5 Marketing Activities Revolve Around the Target Market Distribution Product Pricing Promotion Target Market

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 1-6 The Concept of Exchange The idea that people give up something to receive something they would rather have.

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 1-7 Conditions for Exchange Desire to Deal With Other Party Freedom to Accept or Reject Something of Value Ability to Communicate Offer At Least Two Parties Necessary Conditions for Exchange

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 1-8 Was the Exchange Successful? All five conditions must be met An agreement must be reached An exchange is not always made Marketing occurs even if the exchange does not take place

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited. 1-9 Marketing Management Philosophies CompetingPhilosophiesCompetingPhilosophies Production Sales Market Societal Marketing

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Marketing Management Philosophies Philosophy Key Ideas Production Sales Market Societal Focus on efficiency of internal operations Focus on satisfying customer needs and wants Focus on satisfying customer needs and wants while enhancing individual and societal well-being Focus on aggressive techniques for overcoming customer resistance

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Marketing Management Philosophies ProductionOrientation Focus on internal capabilities rather than on desired needs Management assesses resources What is easy to produce, given our equipment?

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Marketing Management Philosophies SalesOrientation People will buy more goods and services when sales are aggressive High sales result in high profits Cannot convince people to buy if they do not need or want the product.

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Marketing Management Philosophies MarketOrientation Organizations exist to satisfy the needs and wants of their customer Meeting the long term goals. Sales depend on a customer's decision to purchase a product.

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Marketing Concept The idea that organizations have a right to exist to the extent they satisfy the needs and wants of their customers while meeting their own objectives.

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited The Marketing Concept Focus on Customer Wants and Needs Integrate Organization’s Activities to Satisfy Customer Needs and Wants Achieve Organization’s Long Term Goals by Satisfying Customer Wants and Needs

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Market Concept Requires Top management leadership Top management leadership A customer focus A customer focus Top management leadership Top management leadership Inter-functional coordination Inter-functional coordination Customer relationships Customer relationships

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Marketing Management Philosophies Marketing that preserves or enhances an individual's and society’s long-term best interests.. SocietalOrientation Focus on satisfying customers needs and wants while considering societal well being

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Comparing Sales and Market Orientations Market Orientation Outward Coordinated use of all marketing activities Customer satisfaction Specific groups of people Satisfying wants and needs Organization’s Focus Firm’s Business For Whom? Primary Profit Goal? Tools to Achieve Selling goods and services Everybody Maximum sales volume Primarily promotion Inward Sales Orientation

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Developing Competitive Advantage Competitive Advantage Customer Value Customer Relationships Customer Satisfaction

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Create Customer Value The ratio of benefits to the sacrifice necessary to obtain those benefits Commitment in quality, service and after-sales support

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Maintain Customer Satisfaction The feeling that a product has met or exceeded the customer's expectations Provide solutions to customer’s problems

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Build Customer Relationships The name of a strategy that entails forging long-term partnerships with customers, both individuals and firms.

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Building Customer Relationships Customer orientedCustomer oriented Effective trainingEffective training Empowered employeesEmpowered employees TeamworkTeamwork Builds customer loyaltyBuilds customer loyalty

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Marketing Process Activities Understand the organization’s mission Set marketing objectives Gather, analyze, interpret “SWOT” information Develop a marketing strategy Implement the marketing strategy Design performance measures Evaluate marketing efforts--change if needed

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Why Study Marketing Plays an important role in societyPlays an important role in society Vital to businessVital to business Offers outstanding career opportunitiesOffers outstanding career opportunities Affects your life every dayAffects your life every day

Chapter 1Copyright © 2002 by Nelson, a division of Thomson Canada Limited Career Opportunities Professional sellingProfessional selling AdvertisingAdvertising RetailRetail Product managementProduct management Brand managementBrand management ManufacturingManufacturing Service MarketingService Marketing Sport and EntertainmentSport and Entertainment CRMCRM Market ResearchMarket Research Event PlannerEvent Planner