chapter 1: an overview of marketing
TRANSCRIPT
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Chapter 1: An Overview of Marketing
Prepared by Amit Shah, Frostburg State University
Designed by Eric Brengle, B-books, Ltd.
Copyright 2010 by Cengage Learning Inc. All Rights Reserved 1
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Learning Outcomes
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Describe four marketing management philosophies
Define the term marketing
Discuss the differences between sales and market orientations
Describe several reasons for studying marketing
LO1
LO2
LO3
LO4
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What is Marketing?
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Define the term marketing
LO1
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What is Marketing?
• A Philosophy• An Attitude • A Perspective• A Management Orientation
A Set of Activities
• Products• Distribution• Promotion• Pricing
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What is Marketing?
American Marketing Association Definition
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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What is Marketing?
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
Employee satisfaction
Greater effort
Higher quality
Repeat business
Growth andprofits
Stockholdersatisfaction
More investment
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People giving up something to receive something they would
rather have.
Exchange
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Exchange
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Exchange
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Exchange
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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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Review Learning Outcome What is Marketing?
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
Product
Price
Place
Promo
tion
ExchangeExchangeA BA B
CreatingValueCustomer value
and beneficial relationships
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LO1
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Marketing Management Philosophies
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Describe four marketing management philosophies
LO2
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Marketing Management Philosophies
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Sales
Market
Societal
Productioninternal 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
Orientation Focus is on…
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Market Orientation
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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
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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
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Achieving a Marketing Orientation
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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
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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
Societal Marketing
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SocietalMarketingOrientatio
n
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Review Learning Outcome The Four Marketing Management Philosophies
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Production
Sales
Marketing
Societal
What can we make or do best?
How can we sell more aggressively?
What do customerswant and need?
What do customers want and need, and how can we benefit
society?
Orientation Focus
LO2
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Sales and Marketing Orientations
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Discuss the differences between sales and market orientations
LO3
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Sales and Marketing Orientations
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You can compare these orientations against
these five categories: 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
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The relationship between benefits and the sacrifice necessary to obtain those benefits.
Customer
Value
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Customer Value Requirements
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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
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Customer Satisfaction
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The customers’ evaluation of a good or service in terms of whether it has met their needs and expectations.
Customer Satisfactio
n
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Building Relationships
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A strategy that focuses on keeping and improving Relationships with current customers.
Relationship
Marketing
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Building Relationships
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Customer-oriented personnel
Employee training programs
Empowered employees
Teamwork
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Defining a Firm’s Business
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Use “Use “customer benefitscustomer benefits” instead of ” instead of ““goods/servicesgoods/services””
--Ensures a customer focus-Encourages innovation and creativity-Stimulates an awareness of changes in customer preferences
Link for On-Line Activity: http://www.britannica.com
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Review Learning OutcomeSales vs. Marketing Orientations
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Organization’sFocus
Firm’sBusiness
ForWhom?
Primary Profit Goal?
Tools to Achieve
Selling goods and services
Everybody Maximum sales volume
Primarily promotion
InwardSales
Orientation:
Market Orientation
:
Outward Coordinated use of all marketing activities
Customer satisfaction
Specific groups of people
Satisfying wants and needs
LO3
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Why Study Marketing?
Copyright 2010 by Cengage Learning Inc. All Rights Reserved 27
Describe several reasons for studying marketing
LO4
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Why Study Marketing?
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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?
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Vital Marketing Activities for Organizations
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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Review Learning OutcomeReasons for Studying Marketing
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Why Study Marketing?
Importantto
Society
Importantto
Business
GoodCareer
Opportunities
+Marketing affects you every day!
LO4