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An Overview of Marketing
CHAPTER
1
Marketing
9
Lamb, Hair, McDaniel
Designed by
Eric Brengle
B-books, Ltd.
Prepared by
Deborah Baker
Texas Christian University
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Learning Outcomes
LOI
Define the term marketing
LO2
Describe four marketing management
philosophies
LO3
Discuss the differences between sales and
market orientations
LO4
Describe several reasons for studying
marketing
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LOI
What Is Marketing?
Define the term
marketing
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What Is Marketing?
Stresses Customer Satisfaction
A Philosophy
An Attitude
A Perspective
A Management
Orientation
A Set of Activities…
Products
Distribution
Promotion
Pricing
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LOI
LOI
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.
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LOI
What Is Marketing?
More
investment
Stockholder
satisfaction
Growth and
profits
Repeat
business
Higher
quality
Employee
satisfaction
Greater
effort
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Exchange
LOI
Exchange
People giving up something to
receive something they would
rather have.
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LOI
Exchange
At Least Two Parties
Something of Value
Conditions for
Exchange
Communication and Delivery
Freedom to Accept or Reject
Desire to Deal with Other Party
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LOI
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
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LOI REVIEW LEARNING OUTCOME
Customer value
and beneficial
relationships
Creating
Value
Exchange
A
B
Delivering
Value
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Communicating
Value
10
LO2
Marketing Management
Philosophies
Describe four marketing
management philosophies
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LO2
Marketing Management Philosophies
Orientation
Focus is on…
Production
internal capabilities of the firm
Sales
Market
Societal
aggressive sales techniques and belief
that high sales result in high profits
satisfying customer needs and wants while
meeting objectives
satisfying customer needs and
wants while enhancing individual and
societal well-being
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LO2
Market Orientation
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.
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LO2
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
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LO2
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
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LO2
Societal Marketing
Societal
Marketing
Orientation
An organization exists not only
to satisfy customer wants but
also to preserve or enhance
individuals’ and society’s longterm best interests.
•
•
•
Less toxic products
More durable products
Products with reusable
or recyclable materials
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LO2 REVIEW LEARNING OUTCOME
Orientation
Focus
Production
What can we make or do best?
Sales
How can we sell more aggressively?
Marketing
What do customers
want and need?
Societal
What do customers want and need,
and how can we benefit society?
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LO3 Sales and Marketing Orientations
Discuss the differences
between sales and
market orientations
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Comparing the Sales and
Market Orientations
You can compare these orientations against
these five categories:
LO3
Organization’s focus
Firm’s business
Those to whom the product is directed
Firm’s primary goal
The tools used to achieve those goals
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Customer Value
LO3
Customer Value
The relationship between
benefits and the sacrifice
necessary to obtain those
benefits.
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LO3
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
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LO3
Customer Satisfaction
Customer
Satisfaction
The feeling that a product
met or exceeded the
customer’s expectations.
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LO3
Building Relationships
Relationship
Marketing
A strategy that focuses on
keeping and improving
relationships with current
customers.
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Building Relationships
Customer-oriented personnel
Employee training programs
Empowered employees
Teamwork
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LO3
LO3
The
Jerk
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LO3
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
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LO3 REVIEW LEARNING OUTCOME
Sales vs. Market Orientations
Organization’s
Focus
Sales
Inward
Orientation
Outward
Market
Orientation
Firm’s
Business
For
Whom?
Selling
Everybody
goods and
services
Satisfying
wants and
needs
Specific
groups of
people
Primary
Profit
Goal?
Maximum
sales
volume
Tools to
Achieve
Primarily
promotion
Customer Coordinated
satisfaction use of all
marketing
activities
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LO4
Why Study Marketing
Describe several reasons
for studying marketing
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LO4
Why Study Marketing?
Plays an important role in society
Vital to business survival, profits
and growth
Offers career opportunities
Affects your life every day
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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
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LO4
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LO4 REVIEW LEARNING OUTCOME
Reasons for Studying Marketing
Why Study Marketing?
Important
to
Society
Important
to
Business
Good
Career
Opportunities
+
Marketing affects you every day!
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