1. foundations of Chapter M A R K E T I N G Copyright © 2003 by Nelson, a division of Thomson Canada Limited. The Nature of Marketing 1

2. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Objectives 1. Define marketing and describe its primary nature. 2. Show how marketing bridges the gap between producer and consumer. 3. Outline the functions of marketing. 4. Demonstrate the scope of marketing. 5. Contrast activities in each of the three orientations of business in the marketing domain. 6. Position marketing as one of the basic business functions. 1 The Nature of Marketing 1-1

3. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. The Purpose of Business To create a CUSTOMER 1 The Nature of Marketing 1-2

4. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. The Marketing Functions Buying Selling Transporting Storing Grading Financing Risk taking Information collecting and disseminating 1 The Nature of Marketing 1-3

5. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. The Essence of Marketing The Exchange Process 1 The Nature of Marketing 1-4

6. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. The Exchange Process The means by which two or more parties give something of value to one another to satisfy felt needs. 1 The Nature of Marketing 1-5

7. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Marketing Process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. 1 The Nature of Marketing 1-6

8. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Utility The want-satisfying power of a product or service. 1 The Nature of Marketing 1-7

9. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. The Utilities Form Time Place Ownership 1 The Nature of Marketing 1-8

10. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Types of Business Orientation Product or Production Sales Market 1 The Nature of Marketing 1-9

11. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Product Orientation A focus on the product itself rather than on the consumer’s needs. 1 The Nature of Marketing 1-10

12. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Sales Orientation A focus on developing a strong sales force to convince consumers to buy whatever the firm produces. 1 The Nature of Marketing 1-11

13. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Market Orientation A focus on understanding customer needs and objectives, then making the business serve the interests of the customer rather than trying to make the customer buy what the business wants to produce. 1 The Nature of Marketing 1-12

14. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Marketing Concept Organization-wide philosophy that holds that the best route to organizational success is to find an unserved or underserved need in society and meet that need better than anyone else, while still meeting long- term organizational objectives. 1 The Nature of Marketing 1-13

15. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Societal Marketing Concept An organization-wide philosophy that holds that the best route to organizational success is to find an unserved or underserved need in society and meet that need better than anyone else, while still meeting long- term organizational objectives and also considering the long term impact on society. 1 The Nature of Marketing 1-14

16. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. The Importance of Marketing People Companies Economy 1 The Nature of Marketing 1-15

17. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Marketing from the Inside Out 1 The Nature of Marketing 1-16 Figure 1.2