1. An Overview of Marketing
Chapter 1 An Overview of Marketing
An Overview of Marketing
Chapter 1
“Marketing is too important to be left only to the marketing department.” – David Packard
Lamb, Hair, McDaniel
(C) 2014 by Cengage Learning Inc. All Rights Reserved.

2. (C) 2014 by Cengage Learning Inc. All Rights Reserved.
Chapter 1 An Overview of Marketing
Marketing is…
A philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction.
An organizational activity, set of institutions, and processes.
NOTES:
Marketing has two facets. First, it’s a philosophy. Second, marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
David Packard, cofounder of Hewlett-Packard, stated that “marketing is too important to be left only to the marketing department.” Marketing is a process that focuses on delivering value and benefits to customers. It uses communication, distribution, and pricing strategies to provide customers with the goods and services they want. It involves building long-term, mutually rewarding relationships. It entails an understanding that organizations have many connected stakeholder partners, including employees, suppliers, stockholders, distributors, and others. 1
(C) 2014 by Cengage Learning Inc. All Rights Reserved.

3. Exchange Conditions for Exchange At Least Two Parties
Chapter 1 An Overview of Marketing
Exchange
At Least Two Parties
Something of Value
Communication and Delivery
Freedom to Accept or Reject
Desire to Deal with Other Party
Conditions for Exchange 1
(C) 2014 by Cengage Learning Inc. All Rights Reserved.

4. The Four Marketing Management Philosophies
Chapter 1 An Overview of Marketing
The Four Marketing Management Philosophies
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 2
(C) 2014 by Cengage Learning Inc. All Rights Reserved.

5. Achieving a Marketing Orientation
Chapter 1 An Overview of Marketing
Achieving a Marketing Orientation
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
Discussion/Team Activity:
Discuss companies that have a market orientation. L.L.Bean
Amazon.com
Four Seasons Hotels and Resorts
Publix Super Markets
2. Discuss how Western Union lack(ed) a market orientation. 2
(C) 2014 by Cengage Learning Inc. All Rights Reserved.

6. Questions That Help Determine Marketing Philosophy
Chapter 1 An Overview of Marketing
Questions That Help Determine Marketing Philosophy
Production
Sales
Marketing
Societal
What can we make or do best?
How can we sell more aggressively?
What do customers want and need?
What do customers want/need, and how can we benefit society?
Orientation
Focus 2
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7. Comparing the Sales and Market Orientations
Chapter 1 An Overview of Marketing
Comparing the Sales and Market Orientations
5 characteristics:
Organization’s focus
Firm’s business
Those to whom the product is directed
Firm’s primary goal
Tools the organization uses to achieve its goals 3
(C) 2014 by Cengage Learning Inc. All Rights Reserved.

8. Building Relationships
Chapter 1 An Overview of Marketing
Building Relationships
Customer-oriented personnel
Every employee represents the firm in the eyes of the customer.
Employee training programs
Empowered employees
Employees are given more authority to solve customer problems on the spot.
Teamwork
Emphasizing cooperation over competition while helping a customer.
Discussion/Team Activity:
Discuss companies that have made significant efforts at building long-term relationships. Examples: Four Seasons Coca-Cola Delta Air Lines Hershey Kellogg Nautilus Sears 3
(C) 2014 by Cengage Learning Inc. All Rights Reserved.

9. Defining a Firm’s Business
Chapter 1 An Overview of Marketing
Defining a Firm’s Business
Sales Orientation
Goods and Services
Market Orientation
Benefits that customers seek
Notes:
A sales-oriented firm defines its business in terms of goods and services. A market-oriented firm defines its business in terms of the benefits sought by customers.
A market orientation does not always mean that the customers will receive what they want, such as tires that last for 100,000 miles for $25.
Go to Britannica’s Web site. What evidence do you see that Britannica has redefined its core business? What do you think its business definition currently is? How has the company met the challenge of CD-ROM technology and online content distribution? 3
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10. Knowing the Firm’s Business:
Ensures a customer focus
Encourages innovation and creativity
Stimulates an awareness of changes in customer preferences 3
(C) 2014 by Cengage Learning Inc. All Rights Reserved.

11. Sales vs. Market Orientations
Chapter 1 An Overview of Marketing
Sales vs. Market Orientations
Sales Orien-tation
Market Orien-tation
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
Outward
Coordin-ated use of marketing activities
Customer satisfac-tion
Specific groups of people
Satisfying wants and needs
NOTES:
1) sales-oriented firms focus on their own needs; market-oriented firms focus on customers’ needs and preferences.
2) sales-oriented companies consider themselves to be deliverers of goods and services, whereas market-oriented companies view themselves as satisfiers of customers.
3) sales-oriented firms direct their products to everyone; market-oriented firms aim at specific segments of the population.
4) although the primary goal of both types of firms is profit, sales-oriented businesses pursue maximum sales volume through intensive promotion, whereas market-oriented businesses pursue customer satisfaction through coordinated activities.
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.
(C) 2014 by Cengage Learning Inc. All Rights Reserved.

12. (C) 2014 by Cengage Learning Inc. All Rights Reserved.
Chapter 1 An Overview of Marketing
Why Study Marketing?
Important to Society
Important to Business
Good Career Opportunities
Marketing affects you every day! 4
(C) 2014 by Cengage Learning Inc. All Rights Reserved.