1. Copyright ©2009 by Cengage Learning Inc. All rights reserved 1 Designed by Eric Brengle B-books, Ltd. CHAPTER 1 An Overview of Marketing Prepared by Amit Shah Frostburg State University Marketing Lamb, Hair, McDaniel 10

2. Copyright ©2009 by Cengage Learning Inc. All rights reserved Learning Outcomes 2 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 ©2009 by Cengage Learning Inc. All rights reserved What Is Marketing? 3 Define the term marketing LO I

4. Copyright ©2009 by Cengage Learning Inc. All rights reserved What Is Marketing? 4 Stresses Customer Satisfaction A Philosophy An Attitude A Perspective A Management Orientation A Set of Activities… Products Distribution Promotion Pricing LO I

5. Copyright ©2009 by Cengage Learning Inc. All rights reserved What Is Marketing? 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. 5 LO I American Marketing Association Definition

6. Copyright ©2009 by Cengage Learning Inc. All rights reserved What Is Marketing? 6 LO I Employee satisfaction Greater effort Higher quality Repeat business Growth and profits Stockholder satisfaction More investment

7. Copyright ©2009 by Cengage Learning Inc. All rights reserved Exchange 7 Chapter PHOTO Here People giving up something to receive something they would rather have. LO I

8. Copyright ©2009 by Cengage Learning Inc. All rights reserved Exchange 8 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 ©2009 by Cengage Learning Inc. All rights reserved 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 9 LO I

10. Copyright ©2009 by Cengage Learning Inc. All rights reserved REVIEW LEARNING OUTCOME 10 LO I Product Price Place Promotion Exchange A B Delivering Value Communicating Value Creating Value Customer value and beneficial relationships What Is Marketing?

11. Copyright ©2009 by Cengage Learning Inc. All rights reserved Marketing Management Philosophies 11 Describe four marketing management philosophies LO 2

12. Copyright ©2009 by Cengage Learning Inc. All rights reserved Marketing Management Philosophies 12 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 ©2009 by Cengage Learning Inc. All rights reserved Market Orientation 13 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 ©2009 by Cengage Learning Inc. All rights reserved The Marketing Concept  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 14 LO 2

15. Copyright ©2009 by Cengage Learning Inc. All rights reserved 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 15 LO 2

16. Copyright ©2009 by Cengage Learning Inc. All rights reserved Societal Marketing 16 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 ©2009 by Cengage Learning Inc. All rights reserved REVIEW LEARNING OUTCOME 17 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 The Four Marketing Management Philosophies

18. Copyright ©2009 by Cengage Learning Inc. All rights reserved Sales and Marketing Orientations 18 Discuss the differences between sales and market orientations LO 3

19. Copyright ©2009 by Cengage Learning Inc. All rights reserved Comparing the Sales and Market Orientations 19 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 ©2009 by Cengage Learning Inc. All rights reserved Customer Value 20 Chapter PHOTO Here LO 3 The relationship between benefits and the sacrifice necessary to obtain those benefits. Customer Value

21. Copyright ©2009 by Cengage Learning Inc. All rights reserved Customer Value Requirements 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 21 LO 3

22. Copyright ©2009 by Cengage Learning Inc. All rights reserved Customer Satisfaction 22 LO 3 Customer Satisfaction Chapter PHOTO Here The customer’s evaluation of a good or service in terms of whether it has met their needs and expectations.

23. Copyright ©2009 by Cengage Learning Inc. All rights reserved Building Relationships 23 LO 3 Relationship Marketing Chapter PHOTO Here A strategy that focuses on keeping and improving relationships with current customers.

24. Copyright ©2009 by Cengage Learning Inc. All rights reserved Building Relationships 24 LO 3  Customer-oriented personnel  Employee training programs  Empowered employees  Teamwork

25. Copyright ©2009 by Cengage Learning Inc. All rights reserved 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 25 LO 3 http://www.britannica.com

26. Copyright ©2009 by Cengage Learning Inc. All rights reserved REVIEW LEARNING OUTCOME 26 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

27. Copyright ©2009 by Cengage Learning Inc. All rights reserved Why Study Marketing 27 Describe several reasons for studying marketing LO 4

28. Copyright ©2009 by Cengage Learning Inc. All rights reserved Why Study Marketing?  Plays an important role in society  Vital to business survival, profits and growth  Offers career opportunities  Affects your life every day 28 LO 4

29. Copyright ©2009 by Cengage Learning Inc. All rights reserved Why Study Marketing 29 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

30. Copyright ©2009 by Cengage Learning Inc. All rights reserved REVIEW LEARNING OUTCOME 30 LO 4 Reasons for Studying Marketing Why Study Marketing? Important to Society Important to Business Good Career Opportunities + Marketing affects you every day!