© 2000 South-Western College Publishing Slide #1 Marketing Management 2nd Edition Chapter 1: Overview of Marketing Michael R. Czinkota and Masaaki Kotabe

© 2000 South-Western College Publishing Slide #2 Chapter Outline l What is Marketing? l History of Marketing Thought l Structure of Marketing Theory l Marketing and Internal Resources l Complexity of Marketing l The Marketing Mix l Selling versus Marketing l Marketing and Corporate Strategy l Difference Between Products and Benefits l Marketing and Service Cultures

© 2000 South-Western College Publishing Slide #3 What is Marketing? The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create and maintain exchanges that satisfy individual, organizational, and societal goals in the systemic context of a global environment.

© 2000 South-Western College Publishing Slide #4 History of Marketing Thought Bartering First Marketing is not economics 1800s College courses in distribution Early 1900s 1930s First marketing theories 1960s Marketing research 1970s Becomes major business function 1980s & 1990s Focus on customer & external environment

© 2000 South-Western College Publishing Slide #5 Structure of Marketing Theory Dimensions of marketing activitiesDimensions activities Goods v. services services ProductcategoriesProductcategories Consumer v. industrial industrial IndustrysectorIndustrysector Profit v. nonprofit nonprofit Small v. large firms Small v. large firms Domestic v. international international Intermediaries v. end users Intermediaries

© 2000 South-Western College Publishing Slide #6 Marketing and Internal Resources To get ready for a marketing orientation: l Understand what resources the organization has. l Develop a suitable filter for marketing data. l Find out about the customer. l Review the processes to date. l Manipulate resources to achieve marketing objectives.

© 2000 South-Western College Publishing Slide #7 Complexity of Marketing Five main dimensions Multipledecisionmakers Multiple factors Interaction Time frame Globalfactors

© 2000 South-Western College Publishing Slide #8 The Marketing Mix

© 2000 South-Western College Publishing Slide #9 The Marketing Mix l Product line range l Design concept l Color appeal l Style l Package l Brand name l Service function l Warranties Product mix

© 2000 South-Western College Publishing Slide #10 The Marketing Mix l Physical distribution l Supplies l Inventory l Storage l Transportation l Warehousing l Distribution channels l Retailers l Distributors l Wholesalers l Export/import DistributionmixDistributionmix

© 2000 South-Western College Publishing Slide #11 The Marketing Mix l Advertising l Sales catalog l Field sales force l Telephone sales l Public relations l Direct mail l Sales promotion l Premiums & discounts l Merchandising l Research l Electronic interaction CommunicationsmixCommunicationsmix

© 2000 South-Western College Publishing Slide #12 The Marketing Mix l Price structure l Payment terms l Costs PricingmixPricingmix

© 2000 South-Western College Publishing Slide #13 Selling versus Marketing Selling FactoryProductSelling &Profits through promotingsales volume FactoryProductSelling &Profits through promotingsales volume Startingpoint FocusMeansEnds Marketing TargetCustomerIntegratedProfits through marketneedsmarketingcustomer satisfaction TargetCustomerIntegratedProfits through marketneedsmarketingcustomer satisfaction

© 2000 South-Western College Publishing Slide #14 Marketing & Corporate Strategy Market orientation: The organizationwide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organizationwide responsiveness to it.

© 2000 South-Western College Publishing Slide #15 Difference Between Products & Benefits PRODUCTS: l Physical attributes l Example: 2mm drill BENEFITS: l What customer wants l Example: 2mm hole “Customers don’t buy products, they seek to acquire benefits.”

© 2000 South-Western College Publishing Slide #16 Marketing and Service Cultures Why services are more difficult Lack of tangibility Lack of mass marketing Lack of direct competition Professional status