1. Insert Chapter Picture Here Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 1 Designed by Eric Brengle B-books, Ltd. CHAPTER 1 An Overview of Marketing Prepared by Deborah Baker Texas Christian University Marketing Lamb, Hair, McDaniel 9

2. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 2 Learning Outcomes Define the term marketing Describe four marketing management philosophies Discuss the differences between sales and market orientations Describe several reasons for studying marketing LO I LO 2 LO 3 LO 4

3. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 3 Define the term marketing What Is Marketing? LO I

4. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 4 What Is Marketing? Stresses Customer Satisfaction A Philosophy An Attitude A Perspective A Management Orientation A Set of Activities… Products Distribution Promotion Pricing LO I

5. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 5 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. What Is Marketing? LO I American Marketing Association Definition

6. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 6 What Is Marketing? LO I Employee satisfaction Greater effort Higher quality Repeat business Growth and profits Stockholder satisfaction More investment

7. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 7 Exchange Chapter PHOTO Here People giving up something to receive something they would rather have. LO I

8. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 8 Exchange LO I At Least Two Parties Something of Value Communication and Delivery Freedom to Accept or Reject Desire to Deal with Other Party Conditions for Exchange

9. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 9 Exchange LO I  Exchange may not take place even if conditions are met  An agreement must be reached  Marketing occurs even if exchange does not take place

10. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 10 REVIEW LEARNING OUTCOME LO I Product Price Place Promotion Exchange A B Delivering Value Communicating Value Creating Value Customer value and beneficial relationships

11. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 11 Describe four marketing management philosophies Marketing Management Philosophies LO 2

12. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 12 Marketing Management Philosophies LO 2 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…

13. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 13 Market Orientation LO 2 Marketing Concept 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.

14. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 14 The Marketing Concept LO 2  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

15. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 15 Achieving a Marketing Orientation LO 2  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 http://www.westernunion.com

16. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 16 Societal Marketing LO 2 Societal Marketing Orientation 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

17. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 17 REVIEW LEARNING OUTCOME LO 2 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 and need, and how can we benefit society? OrientationFocus

18. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 18 Discuss the differences between sales and market orientations Sales and Marketing Orientations LO 3

19. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 19 Comparing the Sales and Market Orientations LO 3  Organization’s focus  Firm’s business  Those to whom the product is directed  Firm’s primary goal  The tools used to achieve those goals You can compare these orientations against these five categories:

20. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 20 Customer Value Chapter PHOTO Here LO 3 The relationship between benefits and the sacrifice necessary to obtain those benefits. Customer Value

21. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 21 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 Customer Value Requirements

22. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 22 Customer Satisfaction LO 3 Customer Satisfaction Chapter PHOTO Here The feeling that a product met or exceeded the customer’s expectations.

23. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 23 Building Relationships LO 3 Relationship Marketing Chapter PHOTO Here A strategy that focuses on keeping and improving relationships with current customers.

24. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 24 LO 3 Building Relationships  Customer-oriented personnel  Employee training programs  Empowered employees  Teamwork

25. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 Biz Flix The Jerk 25 LO 3

26. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 26 LO 3 Online 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

27. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 27 REVIEW LEARNING OUTCOME LO 3 Sales vs. Market Orientations Organization’s Focus Firm’s Business For Whom? Primary Profit Goal? Tools to Achieve Selling goods and services EverybodyMaximum sales volume Primarily promotion Inward Sales Orientation Market Orientation OutwardCoordinated use of all marketing activities Customer satisfaction Specific groups of people Satisfying wants and needs

28. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 28 Describe several reasons for studying marketing Why Study Marketing LO 4

29. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 29  Plays an important role in society  Vital to business survival, profits and growth  Offers career opportunities  Affects your life every day Why Study Marketing? LO 4

30. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 30 Why Study Marketing LO 4 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

31. Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved Chapter 1 31 REVIEW LEARNING OUTCOME LO 4 Reasons for Studying Marketing Why Study Marketing? Important to Society Important to Business Good Career Opportunities + Marketing affects you every day!