An Overview of Marketing
chapter
1
Prepared by
Deborah Baker
Texas Christian University
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Learning Objectives
1. Define the term marketing
chapter
1
2. Describe four marketing management
philosophies
3. Explain how firms implement the marketing
concept
4. Describe the marketing process and identify the
variables that make up the marketing mix
5. Describe several reasons for studying marketing
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Learning Objective
Define the term marketing
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What is Marketing?

Personal Selling?

Advertising?

Making products available in stores?

Maintaining inventories?
All of the above, plus much more!
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What is Marketing?
A Philosophy
An Attitude
A Set of Activities,
including:
Products
A Perspective
Pricing
A Management
Orientation
Promotion
Distribution
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What is Marketing?
American Marketing Association Definition
Marketing is the process of planning and
executing the conception, pricing, promotion,
and distribution of ideas, goods, and services
to create exchanges that satisfy individual and
organizational goals.
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The Concept of Exchange
At Least Two
Parties
Something of
Value
Ability to
Communicate
Offer
Necessary
Conditions
for Exchange
Freedom to
Accept or Reject
Desire to Deal
With Other Party
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The Concept of Exchange
The idea that people give
up something to receive
something they would
rather have.
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Conditions for Exchange
• There must be at least two parties
and each party…
• Must have something the other party
values
• Must communicate and deliver goods
• Must be free to accept or reject offer
• Must want to deal with other party
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The Concept of Exchange
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Exchange may not take place
even if conditions met

An agreement must be
reached

Marketing occurs even if
exchange does not take place
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2
Learning Objective
Describe four marketing
management philosophies.
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Marketing Management
Philosophies
2
Production
Sales
Market
Competing
Philosophies
Societal Marketing
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Marketing Management
Philosophies
Philosophy
Production
Sales
Market
Societal
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Key Ideas
Focus on efficiency of internal operations
Focus on aggressive techniques for
overcoming customer resistance
Focus on satisfying customer needs and wants
Focus on satisfying customer needs and
wants while enhancing individual and
societal well-being
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Market Orientation Requirements

Top management leadership

A customer focus

Competitor intelligence

Interfunctional coordination

Customer relationships
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Societal Marketing Orientation
Marketing that preserves or
enhances an individual’s
and society’s long-term
best interests
 Less toxic products
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More durable products

Products with reusable
or recyclable materials
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3
Learning Objective
Explain how firms implement
the marketing concept
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The 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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The Marketing Concept
Focusing on customer wants and needs can
be a source of competitive advantage by:

Creating customer value

Maintaining customer satisfaction

Building long-term relationships
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Customer Value
The ratio of benefits to the
sacrifice necessary to
obtain those benefits
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Customer Value Requirements
•
•
•
•
•
Offer products that perform
Give consumers more than they expect
Avoid unrealistic pricing
Give the buyer facts
Offer organization-wide commitment in
service and after-sales support
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Customer Satisfaction
The feeling that a product
has met or exceeded the
customer’s expectations.
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Maintaining Customer Satisfaction



Meet or exceed customer’s expectations
Focus on delighting customers
Provide solutions to customer’s
problems
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Relationship Marketing
The name of a strategy
that entails forging
long-term partnerships
with customers, both
individuals and firms.
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Relationship Marketing’s
Importance
3
Attracting a new customer
may be
TEN TIMES
the cost of keeping
an old customer
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Building Long-Term Relationships

Customer-oriented personnel

Effective training programs

Empowered employees

Teamwork
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Empowerment
Delegation of authority
to solve customers’
problems quickly.
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Learning Objective
Describe the marketing process and
identify the variables that make up
the marketing mix
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Marketing Process Activities
Understand the organization’s mission
Set marketing objectives
Gather, analyze, interpret “SWOT” information
Develop a marketing strategy
Implement the marketing strategy
Design performance measures
Evaluate marketing efforts--change if needed
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Environmental Scanning
Collection and interpretation of
information about forces,
events and relationships in the
external environment that may
affect the future of the
organization or the marketing
plan implementation.
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Environmental Scanning

Examination of macroenvironmental forces
 Social
 Demographic
 Economic
 Technological
 Political / Legal
 Competitive

Helps identify market
opportunities

Provides guidelines for
design of marketing strategy
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The Marketing Mix
A unique blend of product,
distribution, promotion, and
pricing strategies designed to
produce mutually satisfying
exchanges with a target
market.
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Marketing Mix: The “Four Ps”
Price
Promotion
Place
Product
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Product Strategies
•
The starting point of
the “4 Ps”
•
Includes physical
unit, package,
warranty, service,
brand, image, and
value
Product
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Distribution (Place) Strategies
•
Product availability
where and when
customers want them.
•
Involves all activities
from raw materials to
finished products
Place
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Promotion Strategies
•
Role is to bring about
exchanges with target
markets
•
Includes integration
of personal selling,
advertising, sales
promotion, and public
relations
Promotion
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Pricing Strategies
•
The most flexible of
the “4 Ps”
•
Price X Units Sold =
Total Revenue
Price
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Learning Objective
Describe several reasons
for studying marketing.
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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?
“Marketing is too important
to be left to the
marketing department.”
--David Packard
Hewlett-Packard
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Why Study Marketing?


1/4th to 1/3rd of the
entire civilian
workforce in the U.S.
performs
marketing activities
Fastest route up the
corporate ladder
• Professional Selling
• Marketing Research
• Advertising
• Retail Buying
• Distribution Management
• Product Management
• Product Development
• Wholesaling
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Why Study Marketing?

Half of every dollar spent
by consumers pays for
marketing costs

Become a betterinformed consumer
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