1. An Overview of Marketing
Chapter 1 An Overview of Marketing
An Overview of Marketing
CHAPTER 1
Marketing Lamb, Hair, McDaniel 9
Marketing cannot be accomplished in isolation. Even though the marketing function resides with marketers, the concept of marketing must permeate the entire organization.
Designed by
Eric Brengle
B-books, Ltd.
Prepared by
Deborah Baker
Texas Christian University

2. Marketing Management Philosophies
Chapter 1 An Overview of Marketing
Marketing Management Philosophies
LO2
Describe four marketing management philosophies

3. Marketing Management Philosophies
Chapter 1 An Overview of Marketing
LO2
Sales
Market
Societal
Production
internal capabilities of the firm
satisfying customer needs and wants while meeting objectives
satisfying customer needs and wants while enhancing individual and societal well-being
aggressive sales techniques and belief that high sales result in high profits
Orientation
Focus is on…
Notes:
Four competing philosophies influence an organization’s marketing processes.
Point out that a firm’s capabilities, such as production, are major considerations in strategic market planning.
However, the guiding factor with all orientations should be the determination of what customers want, not what management thinks should be produced or sold.
Discussion/Team Activity:
Discuss examples of companies/organizations whose marketing management philosophies match each orientation.
Production: Henry Ford’s Model T availability in any color as long as it was black
Sales: Dot.com businesses in the late 1990s.
Market: Ritz Carlton Hotels, Coach
Societal: The Body Shop, Turtle Wax, method

4. Market Orientation LO2 Marketing Concept
Chapter 1 An Overview of Marketing
Market Orientation
LO2
Marketing
Concept
The idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives.

5. The Marketing Concept LO2
Chapter 1 An Overview of Marketing
LO2
Focusing on customer wants and needs to distinguish products from competitors’ offerings
Integrating all the organization’s activities to satisfy these wants
Achieving the organization’s long-term goals by satisfying customer wants and needs legally and responsibly

6. Achieving a Marketing Orientation
Chapter 1 An Overview of Marketing
LO2
Obtain information about customers, competitors, and markets
Examine the information from a total business perspective
Determine how to deliver superior customer value
Implement actions to provide value to customers
Online:
Has Western Union rebounded from its failure to define its competitive arena as telecommunications? Describe the company’s value proposition, the market its serves, and whom it seems to be competing against.
Discussion/Team Activity:
Discuss companies that have a market orientation. Marriott International Burton Snowboards Dell Computers Southwest Airlines
Discuss companies that lack(ed) a market orientation. Encyclopedia Britannica Western Union Kmart
Online

7. Societal Marketing LO2 Societal Marketing Orientation
Chapter 1 An Overview of Marketing
Societal Marketing
LO2
Societal Marketing
Orientation
An organization exists not only to satisfy customer wants but also to preserve or enhance individuals’ and society’s long-term best interests.
Less toxic products
More durable products
Products with reusable or recyclable materials

8. Sales and Marketing Orientations
Chapter 1 An Overview of Marketing
Sales and Marketing Orientations
LO3
Discuss the differences
between sales and
market orientations

9. Sales vs. Market Orientations
Chapter 1 An Overview of Marketing
LO3
Sales vs. Market Orientations
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
Market Orientation
Outward
Coordinated use of all marketing activities
Customer satisfaction
Specific groups of people
Satisfying wants and needs
NOTES:
This comparison is not meant to belittle the role of promotion, especially personal selling, in the marketing mix. Salespeople in market-oriented organizations are generally perceived as problem solvers and links to supply sources and new products.
Discussion/Team Activity:
Identify organizations with sales or market orientations. Discuss the effectiveness of each organization’s strategy.

10. Customer Value LO3 Customer Value Chapter PHOTO Here
Chapter 1 An Overview of Marketing
Customer Value
LO3
Customer Value
The relationship between benefits and the sacrifice necessary to obtain those benefits.
Chapter PHOTO Here

11. Customer Value Requirements
Chapter 1 An Overview of Marketing
LO3
Offer products that perform
Earn trust
Avoid unrealistic pricing
Give the buyer facts
Offer organization-wide commitment in service and after-sales support
Notes:
Customer value is not simply a matter of high quality or high price. Instead, the customer’s perception of value is the product/service quality they expect and a price they are willing to pay.
Value also includes customization and fast delivery.
Discussion/Team Activity:
Discuss ways that successful companies deliver superior customer value. Examples: Dell Computer Corporation Lexus Mercedes Benz Amazon.com Southwest Airlines

12. Customer Satisfaction
Chapter 1 An Overview of Marketing
Customer Satisfaction
LO3
Customer Satisfaction
Chapter PHOTO Here
The feeling that a product met or exceeded the customer’s expectations.

13. Building Relationships
Chapter 1 An Overview of Marketing
Building Relationships
LO3
Relationship Marketing
Chapter PHOTO Here
A strategy that focuses on keeping and improving relationships with current customers.

14. Building Relationships
Chapter 1 An Overview of Marketing
Building Relationships
Customer-oriented personnel
Employee training programs
Empowered employees
Teamwork
Discussion/Team Activity:
Discuss companies that have excelled at building long-term relationships. Examples: USAA Coca-Cola Walt Disney Southwest Airlines Wegmans Food Markets Nordstrom FedEx
LO3