Lamb, Hair, McDaniel
MKTG 2009-2010
1
CHAPTER
Chapter 1
An Overview of
Marketing
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1
Learning
Objectives
Define the terms marketing, value, exchange
Describe four marketing management
philosophies
Describe several reasons for studying
marketing
Chapter 1
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2
What Is Marketing?
American Marketing Association Definition
Marketing is the activity, set of institutions,
and processes for ……….., ………., ……….,
and ………..offerings that have ………for
customers, clients, partners, and society at
large.
LO1
Chapter 1
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3
What is Marketing?
Chapter 1
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4
…………………..
The relationship
between benefits
and the sacrifice
necessary to
obtain those
benefits.
LO3
Chapter 1
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……………
Chapter
PHOTO
Here
People giving up something to
receive something they would
rather have.
LO1
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LO1
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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LO1
Chapter 1
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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LO1
Customer value
and beneficial
relationships
Creating
Value
Exchange
A
B
Delivering
Value
Chapter 1
Communicating
Value
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LO2
Marketing Management
Philosophies
Orientation
……………
…………
Focus is on…
internal capabilities of the firm
aggressive sales techniques and belief
that high sales result in high profits
customer needs and wants
…………….. satisfying
while meeting objectives
……………
Chapter 1
satisfying customer needs and
wants while enhancing individual and
societal well-being
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Market Orientation
……………
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.
LO2
Chapter 1
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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.
LO2
Chapter 1
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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
http://www.westernunion.com
Chapter 1
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…………………….
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
LO2
Chapter 1
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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?
Chapter 1
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Customer Satisfaction
Customer
Satisfaction
The feeling that a product
met or exceeded the
customer’s expectations.
LO3
Chapter 1
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Building Relationships
Relationship
Marketing
A strategy that
focuses on
keeping and
improving
relationships with
current customers.
LO3
Chapter 1
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Building Relationships

Customer-oriented personnel

Employee training programs

Empowered employees

Teamwork
LO3
Chapter 1
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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
Chapter 1
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Why Study Marketing?

Half of every dollar spent pays for
marketing costs

Better-informed consumers

Demand for customer satisfaction
Chapter 1
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Check Yourself
1. What is the definition of marketing?
2. Marketing is about satisfying ______
and ______ .
3. What are the four components of the
marketing mix?
4. Who can perform marketing?
5. What are the various eras of
marketing?
Chapter 1
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