Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Introduction to Marketing

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Chapter 1 Objectives 1.Understand the concepts associated with and the fundamental differences among business philosophies based on product orientation, selling orientation, market orientation, and relationship marketing orientation. 2.Appreciate how marketing facilitates exchange, between buyers and sellers.

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Chapter 1 Objectives 3.Develop an appreciation of marketing’s impact on society. 4.Recognize marketing’s role as a dynamic strategic process that is able to adapt to changing environmental forces.

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Chapter 1—Marketing Defined The practice of marketing applicable to businesses big and small The planning and implementation of most everything an organization does to facilitate an exchange between itself and its customers

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Chapter 1—Marketing Defined Marketing is a continuous and dynamic strategic decision-making process Strategic process that matches the firm’s strengths and resources to potential opportunities that exist within the marketing environment

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Marketing as a Business Philosophy Four orientations or business philosophies 1.Product Orientation Focus on making products widely available, affordable, and require little selling effort 2.Sales Orientation Promotes the business philosophy of “selling what we make” Objective 1

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Marketing as a Business Philosophy 3.Market Orientation 1.Customer focus 2.Coordinated marketing effort 3.Long-term success 4.Relationship Marketing Orientation Create and sustain mutually satisfying long-term relationships with not only its customers but with other key players such as employees, suppliers, distributors, retailers, community, and society as a whole. Objective 1

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Marketing as an Exchange Process Buying Selling Transporting Storing Objective 2

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Marketing as an Exchange Process Financing Risk taking Standardization and grading Information acquisition and provision Objective 2

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Facilitating Exchange by Narrowing Separations Marketers create and provide utility (value) to its customer base. Four most important forms of utility: 1.Form Utility 2.Place Utility 3.Time Utility 4.Ownership Utility Objective 2

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Marketing’s Impact on Society Societal marketing concept— satisfying customer needs and wants in a manner that is in the best interest of customers and society-at-large Objective 3

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Marketing’s Impact on Society Marketing provides jobs Marketing provides customers with alternatives Marketing helps make products affordable Marketers must be mindful of limited natural resources Objective 3

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Marketing’s Impact on Society Marketers must be mindful of unintended social consequences Marketing promotes societal causes Marketing fuels the global economy Objective 3

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Marketing as a Dynamic Organizational Process Marketing strategy is the birthplace of a product’s value proposition Value proposition—the bundle of benefits the product provides to fulfill customer needs and wants Objective 4

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. The Fundamentals of Marketing Strategy Market Market segmentation Target market Objective 4

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Positioning Image that customers have about a product in relation to the product’s competitors Objective 4

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Marketing Strategy 1.Identifying target markets 2.Tailoring marketing mixes that meet the needs and wants of each specific target market 3.Developing marketing mixes that reinforce the product’s desired positioning strategy in the marketplace Objective 4

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Marketing Mix Product Place (Distribution) Promotion Price Objective 4

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Marketing Mix Product –Refers to goods, services, people, places and ideas Household consumers Business-to-business customers Objective 4

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Marketing Mix Place (Distribution) –Marketing channel is the network of organizations that create time, place and ownership utilities for household consumers and business customers Objective 4

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Marketing Mix Promotion –Integrated Marketing Communication (IMC) System of management and integration of marketing communication elements –Advertising, publicity, sales promotion, personal selling, sponsorship marketing, and point-of- purchase communications Objective 4

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Marketing Mix Price –Pricing decisions are complex and are driven by a variety of considerations including: Customer demand, costs, information availability, competition, profit motives, product considerations, and legal considerations Objective 4

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Marketing Strategy and Environmental Forces Environmental forces –Exist outside the walls of the firm, are less controllable, and include socio- cultural, economic, natural, technological, political and legal, and competitive forces Objective 4