Lamb, Hair, McDaniel
2012-2013
CHAPTER 1
An Overview of Marketing
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© 2013 by Cengage Learning Inc. All Rights Reserved.
Learning Outcomes
1
Define the term “marketing”
2
Describe four marketing management
philosophies
3
Discuss the differences between sales and
market orientations
4
Describe several reasons for studying marketing
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What Is Marketing?
Define the term
“marketing”
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3
Marketing is…
 A philosophy, attitude, perspective, or
a management orientation that
stresses customer satisfaction
 But it is also….
 An organizational activity, set of
institutions, and processes
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American Marketing Association
Definition of 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.
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1
Marketing
Marketing…
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entails processes that
focus on delivering value
and benefits to customers,
not just selling goods and
services.
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Exchange
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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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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1
Marketing Management
Philosophies
Describe four
marketing
management
philosophies
2
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Four Marketing Management
Philosophies
Orientation
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Focus is on…
1-Production
Internal capabilities of the firm
2-Sales…....
Aggressive sales techniques and
belief that high sales result in high
profits
3-Market…..
Satisfying customer needs and wants
while meeting objectives
4-Societal…
Satisfying customer needs and
wants while enhancing individual and
societal well-being
2
1-Production Orientation
Field of Dreams orientation
– “If you build it, they will come.”
– Doesn’t consider if what is produced
meets market needs
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2
1-Production Orientation
http://www.youtube.com/watch?v=7SB16il97yw&feature=relmfu
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2
2-Sales Orientation
Orientation
2-Sales
• Sales/Marketing =
Selling Things &Collecting Money
– Disregards market needs and consumer
demand.
– Despite the quality of sales force, often
cannot convince people to buy what is
neither wanted nor needed.
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2
3-MarketOrientation
Orientation
3-Market
Marketing Concept
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
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
2
Achieving
a
Marketing
Orientation
3-Market Orientation-Achieving
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
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
2
4-Societal
Market 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.
For example:
• Less toxic products
• More durable products
• Products with reusable or recyclable
materials
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2
Marketing Philosophy Questions
Orientation
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Focus
Production
1-What can we make or do best?
Sales
2-How to sell more aggressively?
Marketing
3- What do customers want/need?
Societal
4-What do customers want/need,
and how can we benefit society?
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Differences between Sales and Market
Orientations
Focus on the
differences
between sales (2)
and market (3)
orientations
3
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Comparing Sales & Marketing
Orientations
5 characteristics to explore:
A.
B.
C.
D.
E.
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Organization’s Focus
Firm’s Business
Those to whom the product is directed
Firm’s Primary Goal
Tools the organization uses to achieve its goals
3
Sales vs. Market Orientations
A-Organization’s
Focus
B-Firm’s
Business
C-For
Whom?
D-Primary
Profit
Goal?
E-Tools to
Achieve
Primarily
promotion
Sales
Orientation
Inward
Selling
goods and
services
Everybody
Maximum
sales
volume
Market
Orientation
Outward
Satisfying
wants and
needs
Specific
groups of
people
Customer
Coordinated
satisfaction use of all
marketing
activities
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A-The Organization’s Focus
Sales Orientation
Inward looking
What the firm makes
http://www.youtube.com/watch?v=Uundu-aPiBQ
Market Orientation
Outward looking
What the market wants
http://www.youtube.com/watch?v=62kxPyNZF3Q
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3
B-The Firm’s Business
Sales Orientation
a-
Goods and Services
Market Orientation
Benefits that customers seek
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3
C-For Whom?
Sales Orientation
a-
Everybody
Market Orientation
Specific Groups of People
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3
D-Primary Profit Goal
Sales Orientation
a-
Maximum Sales Volume
Market Orientation
Create Value and Provide
Customer Satisfaction
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3
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 with customers
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3
Customer Satisfaction
This is the customers’ evaluation
of a good or service in terms of
whether that good or service has
met their needs and
expectations.
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3
E-Tools to Achieve
Sales Orientation
a-
Promotion
Market Orientation
Marketing ActivitiesRelationship Marketing
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3
Relationship Marketing
A strategy that focuses on keeping and
improving relationships with customers.
Successful strategies need:
1.
2.
3.
4.
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Customer-Oriented Personnel
Effective Training Programs
Empowered Employees
Teamwork
3
Relationship Marketing (con’t)
Customer-oriented personnel
All employees represent the firm in the eyes
of the customer
2. Employee training programs
3. Empowered employees
Employees are given more authority to
solve customer problems on the spot
4. Teamwork
Emphasizing cooperation over competition
while helping a customer
1.
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3
Knowing the Firm’s Business
• Ensures a customer focus
• Encourages innovation and creativity
• Stimulates an awareness of changes in
customer preferences
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3
Why Study Marketing
Describe several
reasons for studying
marketing
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Why Study Marketing?
Important
to Society
Important to
Business
Good Career
Opportunities
Marketing affects
you every day!
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Chapter 1 Video
“Company Clip” Video - Method
Do you think the company is best described as
having a market orientation or a societal-marketing
orientation?
http://www.cengage.com/marketing/book_content/
1439039429_lamb/company_clips/ch01.html
© 2013 by Cengage Learning Inc. All Rights Reserved.
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