1. 1 Lamb, Hair, McDaniel CHAPTER 1 An Overview of Marketing 2010-2011

2. 2 LO 1 Define the term marketing LO 2 Describe four marketing management philosophies LO 3 Discuss the differences between sales and market orientations LO 4 Describe several reasons for studying marketing Learning Outcomes

3. 3 Define the term marketing What Is Marketing? LO 1

4. 4 Marketing… Stresses Customer Satisfaction A Philosophy An Attitude A Management Orientation A Set of Activities Products Promotion Pricing LO 1

5. 5 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. What Is Marketing? American Marketing Association Definition LO 1

6. 6 What Is Marketing? Greater effort Higher quality Repeat business Growth and profits Stockholder satisfaction More investment Employee satisfaction LO 1

7. 7 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 LO 1

8. 8 Exchange Exchange may not take place even if conditions are met An agreement must be reached Marketing occurs even if exchange does not take place LO 1

9. 9 Product Price Place Promotion Exchange A B Delivering Value Communicating Value Creating Value Customer value and beneficial relationships LO 1

10. 10 Describe four marketing management philosophies Marketing Management Philosophies LO 2

11. 11 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 OrientationFocus is on… The Four Marketing Management Philosophies LO 2

12. 12 Production Orientation Field of Dreams orientation – “If you build it, they will come.” – Doesn’t consider if what is produced meets market needs LO 2

13. 13 Sales Orientation Selling = Collecting Money – Disregards market needs and consumer demand. – Failing to recognize what the customer wants leads to business failures Dot-com busts in late 1990’s LO 2

14. 14 Market Orientation  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 Marketing Concept LO 2

15. 15 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 LO 2

16. 16 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 LO 2

17. 17 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? OrientationFocus Questions That Help Determine Marketing Philosophy LO 2

18. 18 Listen to your customers... Tom Kelley with Jonathan Littman, The Ten Faces of Innovation: IDEO's Strategies for Defeating the Devil's Advocate and Driving Creativity Throughout Your Organization, Currency/Doubleday, 2005 … but look to the future, as well. "If I had asked my customers what they wanted," Henry Ford once remarked, "they would have said a faster horse." LO 2

19. 19 Discuss the differences between sales and market orientations Sales and Marketing Orientations LO 3

20. 20 Comparing the Sales and Market Orientations Compare through 5 categories: Organization’s focus Firm’s business Those to whom the product is directed Firm’s primary goal The tools used to achieve those goals LO 3

21. 21  Offer products that perform  Earn trust  Avoid unrealistic pricing  Give the buyer facts  Offer organization-wide commitment in service and after-sales support  Co-creation with customers Customer Value Requirements LO 3

22. 22 Building Relationships  Customer-oriented personnel  Employee training programs  Empowered employees  Teamwork LO 3

23. 23 Relationship Marketing Successful strategies need: Customer-Oriented Personnel Effective Training Programs Empowered Employees Teamwork LO 3

24. 24 Building From Within SOURCE: The Corporate Learning Factbook® 2008: Statistics, Benchmarks and Analysis of the U.S. Corporate Training Market, Bersin & Associates / Karen O’Leonard, January 2008. Today's companies must build their management teams from within, putting more emphasis (and money) on rapidly training younger employees for greater responsibilities. “War for new talent” or training from within Challenging economy + Lack of middle managers + Aging workforce LO 3

25. 25 http://www.britannica.com Defining a Firm’s Business Use “benefits” instead of “goods/services”  Ensures a customer focus  Encourages innovation and creativity  Stimulates an awareness of changes in customer preferences LO 3

26. 26 Sales vs. Market Orientations Sales Orientation Market Orientation Organization’s Focus Firm’s Business For Whom? Primary Profit Goal? Tools to Achieve Selling goods and services EverybodyMaximum sales volume Primarily promotion Inward OutwardCoordinated use of all marketing activities Customer satisfaction Specific groups of people Satisfying wants and needs LO 3

27. 27 Describe several reasons for studying marketing Why Study Marketing LO 4

28. 28 Reasons for Studying Marketing Why Study Marketing? Important to Society Important to Business Good Career Opportunities + Marketing affects you every day! LO 4

29. 29 Why Study Marketing? Vital Marketing Activities Assess the wants and satisfaction of customers Design and manage product offerings Determine prices and pricing policies Develop distribution strategies Communicate with present and potential customers LO 4

30. 30 Marketing Trends YouTube “Celebrity” endorsements – Popular channel stars get money for using or hyping products or companies – Videos release to coincide with school release times Popular in Tween markets – “Fred” is the second most popular channel on YouTube http://www.youtube.com/fred http://www.youtube.com/fred Source: “Playing the Web Card: YouTube Breakout Stars New Faves of Marketers,” wwd.com, August 18, 2009; Albrecht, Chris. “’Fred’ Cranks up the YouTube Views and Ad Dollars,” BusinessWeek, November 18, 2008, online at http://www.businessweek.com/technology/content/nov2008/tc20081118_508970.htmhttp://www.businessweek.com/technology/content/nov2008/tc20081118_508970.htm LO 4