1. 1 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 1 An Overview of Marketing Canadian Adaptation prepared by Don Hill, Langara College

2. 2 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Learning Objectives 1.Define marketing 2.Describe four management philosophies of business 3.Discuss the differences between sales and market orientations 4.Describe several reasons for studying marketing

3. 3 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Learning Objective Define the term marketing Online www.timhortons.com 1 1 1

4. 4 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 What Is Marketing? A Philosophy An Attitude A Perspective A Management Orientation A Set of Activities, including: Products Pricing Promotion Distribution 1

5. 5 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 What Is Marketing? American Marketing Association Definition Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. 1

6. 6 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1Marketing 1

7. 7 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 The Concept of Exchange Exchange The idea that people give up something to receive something they would rather have. 1

8. 8 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 The Concept of Exchange Necessary Conditions for Exchange At Least Two Parties Something of Value Communication and Delivery Freedom to Accept or Reject Desire to Deal With Other Party 1

9. 9 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1  Exchange may not take place even if conditions are met  An agreement must be reached  Marketing occurs even if exchange does not take place The Concept of Exchange 1

10. 10 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Learning Objective Describe four management philosophies of business 2 2 2

11. 11 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1CompetingPhilosophiesCompetingPhilosophies Production Sales Market Societal Marketing Management Philosophies of Business 2

12. 12 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Societal Orientation Key Ideas Production Sales Market Focus on internal capabilities of the firm Focus on satisfying customer needs and wants while meeting objectives Focus on satisfying customer needs and wants while enhancing individual and societal well-being Focus on aggressive sales techniques and belief that high sales result in high profits Management Philosophies of Business 2

13. 13 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 The 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. 2

14. 14 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 The Marketing Concept  Focusing on customer wants and needs to distinguish products from competition  Integrating all the organization’s activities to satisfy customer wants and needs  Achieving the organization’s long-term goals by satisfying customer wants and needs 2

15. 15 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Achieving a Market 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  Establish and maintain mutually rewarding relationships with customers Online http://www.westernunion.ca 2

16. 16 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Less toxic products More durable products Products with reusable or recyclable materials Less toxic products More durable products Products with reusable or recyclable materials Societal Marketing Orientation Marketing not only to satisfy customer wants and needs but that preserves or enhances an individual’s and society’s long-term best interests 2

17. 17 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Marketing Management Philosophies 2

18. 18 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Learning Objective Discuss the differences between sales and market orientations 3 3 3

19. 19 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Comparing the Sales and Marketing Orientations Organization’s focus Firm’s business Those to whom the product is directed Firm’s primary goal How do you achieve your goal You can compare these orientations against these four categories: 3

20. 20 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 The Organization’s Focus Create Customer Value Create Customer Value Build Long-Term Relationships Maintain Customer Satisfaction Maintain Customer Satisfaction Key Issues in Developing Competitive Advantage 3 Online http://www.rothmansinc.ca

21. 21 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Customer Value The ratio of benefits to the sacrifice necessary to obtain those benefits 3

22. 22 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Customer Value Requirements Offer products that perform Give consumers more than they expect Avoid unrealistic pricing Give the buyer facts Offer organization-wide commitment in service and after-sales support Online http://www.mtdcanada.com/home.asp 3

23. 23 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Customer Satisfaction Customers’ evaluation of a good or service in terms of whether it has met their needs and expectations. Customer Satisfaction 3

24. 24 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Maintaining Customer Satisfaction  Meet or exceed customer’s expectations  Focus on delighting customers  Provide solutions to customer’s problems  Cultivate relationships, NOT one-time transactions 3

25. 25 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Relationship Marketing A strategy that entails forging long-term partnerships with customers. 3

26. 26 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Relationship Marketing Requirements for Building Relationships Requirements for Building Relationships Who are your customers What do customers value How do they prefer to interact What do they want to buy 3 Online http://www.volvocanada.com

27. 27 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Building Long-Term Relationships  Customer-oriented personnel  Effective training programs  Empowered employees  Teamwork 3

28. 28 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Defining a Firm’s Business “Benefits” instead of “goods/services”  Ensures a customer focus  Encourages innovation and creativity  Stimulates an awareness of changes in customer preferences Online www.britannica.com www.themedchocolates.com www.Custom-chocolate.com 3

29. 29 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Sales vs. Market Orientations 3

30. 30 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Learning Objective Describe several reasons for studying marketing. 4 4 4

31. 31 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Why Study Marketing?  Plays an important role in society  Important to business for survival, profits and growth  Offers career opportunities  Affects your life every day 4

32. 32 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Why Study Marketing? “Marketing is far too important to be left only to the marketing department.” -- David Packard Hewlett-Packard “Marketing is far too important to be left only to the marketing department.” -- David Packard Hewlett-Packard 4

33. 33 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1  Between a fourth and a third of the civilian workforce performs marketing activities  Marketing offers great career opportunities Professional Selling Marketing Research Advertising Retail Buying Distribution Management Product Management Product Development Wholesaling Professional Selling Marketing Research Advertising Retail Buying Distribution Management Product Management Product Development Wholesaling Why Study Marketing? 4

34. 34 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1  Half of every dollar spent pays for marketing costs  Better informed consumers  Demand for customer satisfaction Why Study Marketing? 4

35. 35 Copyright © 2009 by Nelson Education, Ltd. All rights reserved. Chapter 1 Review: Why Study Marketing? 4 Why Study Marketing? Important to Society Important to Business Good Career Opportunities + Marketing affects you every day!