1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 Prepared by Deborah Baker Texas Christian University 1 An Overview of Marketing

2 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 Learning Objectives 1.Define the term marketing 2.Describe four marketing management philosophies 3.Explain how firms implement the marketing concept 4.Describe the marketing process and identify the variables that make up the marketing mix

3 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 Learning Objectives 5.Discuss corporate social responsibility 6.Describe the role of ethics and ethical decisions in business 7.Describe several reasons for studying marketing

4 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 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. 1

5 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1Marketing 1 Product Price Place Promotion Exchange A B Delivering value Communicating value Creating value Customer value and beneficial relationships

6 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 The Concept of Exchange Necessary Conditions for Exchange At Least Two Parties Something of Value Communication and Delivery Freedom to Accept or Reject Desire to Deal with Other Party 1

7 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 The Marketing Concept  Focusing on customer wants and needs to distinguish products from competition  Integrating all the organization’s activities to satisfy customer wants and needs  Achieving the organization’s long-term goals by satisfying customer wants and needs 2

8 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 Marketing Management Philosophies 2 Production Sales Market 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

9 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 Implementing the Marketing Concept Create Customer Value Create Customer Value Build Long-Term Relationships Maintain Customer Satisfaction Maintain Customer Satisfaction Key Issues in Implementing the Marketing Concept 3

10 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 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 4

11 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 Price Marketing Mix: The “Four Ps” Promotion Place Product 4

12 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 Review: Marketing Process Marketing Strategy Product Promotion Distribution Price Marketing Mix Organization Mission Market Opportunity Analysis Implementation Evaluation Target Market Strategy 4 Objectives Control

13 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 Corporate Social Responsibility Do what is right. Obey the Law. Be profitable. Be a good citizen. On Line 1 Economic Legal Ethical Philanthropic

14 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 Ethics and Morals Ethics Morals The moral principles or values that generally govern the conduct of an individual. The rules people develop as a result of cultural values and norms. 2

15 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 Ethical Development Levels Preconventional Morality Preconventional Morality Conventional Morality Conventional Morality Postconventional Morality Postconventional Morality More Mature More Selfish 2

16 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 Ethical Decision Making Social Consensus Extent of Problems Top Management Actions Potential Consequences Probability of Harm Number Affected Time Until Consequences 2

17 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 Why Study Marketing? 4 Important to Society Important to Business Good Career Opportunities + Marketing affects you every day!