Download presentation
Presentation is loading. Please wait.
1
Chapter 1 An Overview of Marketing
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2
Learning Outcomes Define the term marketing
Chapter 1 An Overview of Marketing Define the term marketing Describe four marketing management philosophies Discuss the differences between sales and market orientations Describe several reasons for studying marketing
3
American Marketing Association's definition
Chapter 1 An Overview of Marketing LO 1 American Marketing Association's definition Activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large Has two facets Marketing has two facets. It focuses on delivering value and benefits to customers using 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. Discussion/Team Activity Ask the class to give examples of companies that value employees, and discuss how motivated employees create customer and stockholder satisfaction.
4
Conditions for exchange
Chapter 1 An Overview of Marketing LO 1 Conditions for exchange At least two parties must be involved Something of value must be present Parties are capable of communication and delivery Desire to deal with the other party exists Each party is free to accept or reject the offer An exchange may not take place even if all conditions are met. An agreement between two parties is required before an exchange occurs. Marketing (for example, advertising, personal selling, sales promotion, etc.) can occur even if an exchange does not take place. Discussion/Team Activity Ask the class to give examples of marketing when exchanges did occur and also when exchanges did not occur.
5
Marketing Management Philosophies
Chapter 1 An Overview of Marketing LO 2 Orientation Focus Production Internal capabilities of the firm Sales Aggressive sales techniques and the belief that high sales result in high profits Market Satisfying customer wants and needs while meeting organizational objectives Societal Satisfying customer wants and needs while enhancing individual and societal well-being Four competing philosophies influence an organization’s marketing processes. 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 and Turtle Wax
6
Differences between Sales and Market Orientations
LO 3 Sales-oriented firm Inward looking Focuses on what the firm makes Market-oriented firm Outward looking Focuses on what the market wants
7
Customer Value Requirements
Chapter 1 An Overview of Marketing LO 3 Offer products that perform Earn trust Avoid unrealistic pricing Give the buyer facts Offer organization-wide commitment in service and after-sales support Co-create with customers Customer value is the relationship between benefits and the sacrifice necessary to obtain those benefits. It 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. Discussion/Team Activity Discuss ways that successful companies deliver superior customer value. Examples Dell Computer Corporation Lexus Mercedes Benz Amazon.com Southwest Airlines
8
Customer Satisfaction
LO 3 Customers’ evaluation of a good or service in terms of whether that good or service has met their needs and expectations Relationship marketing Strategy that focuses on keeping and improving relationships with customers
9
Customer Relationship Management (CRM)
LO 3 Company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction By focusing on highly defined and precise customer groups On-demand marketing Delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer’s decision and buying process
10
Sales-oriented organizations
Firm’s Primary Goals LO 3 Sales-oriented organizations Seek to achieve profitability through sales volume Make a profit by creating customer value, providing customer satisfaction, and building long-term relationships with customers Market-oriented organizations
11
Tools the Organization Uses to Achieve Its Goals
LO 3 Sales-oriented organizations Seek to generate sales volume through intensive promotional activities Market-oriented organizations Recognize that promotion decisions are only one of four basic marketing mix decisions that must be made
12
Why Study Marketing? LO 4 Important to Society
Chapter 1 An Overview of Marketing LO 4 Important to Society Good Career Opportunities Important to Business Marketing affects you every day!
13
Key Terms Marketing Exchange Production orientation Sales orientation
Marketing concept Market orientation Societal orientation Societal marketing orientation Customer value Customer satisfaction Relationship marketing Empowerment Teamwork Customer relationship management(CRM) On-demand marketing
14
Summary Marketing plays an important role in society Four marketing philosophies influence an organization's marketing processes Substantial differences exist between sales and market orientations
Similar presentations
