mktg 1ce ppt ch01
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved. 1
MKTG
Designed by
Amy McGuire, B-books, Ltd.
Prepared byDeborah Baker, Texas Christian
University, andTina Grant, Durham College
Lamb, Hair, McDaniel ,
Kapoor, Klaise, & Appleby Canadian Edition
1CHAPTER An Overview ofMarketing
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 2
Learning Outcomes
Define the term marketing
Describe four marketing managementphilosophies
Discuss the differences between sales andmarket orientations
Describe several reasons for studyingmarketing
LO1
LO2
LO3
LO4
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Chapter 1 Copyright 2010 by Nelson Education Ltd.. All rights reserved 3
Define the term
marketing
What Is Marketing?What Is Marketing?LO1
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 4
LO1
What Is Marketing?
Stresses Customer Satisfaction
A Philosophy
An Attitude
A Perspective
A ManagementOrientation
A Set of Activities
Products
DistributionPromotion
Pricing
Focuses on delivering value and benefits to customers
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 5
Marketingis 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 theorganization and its stakeholders.
What Is Marketing?
LO1
The accepted definition encompasses both the philosophy
and the organizational function.
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 6
What Is Marketing?
LO1 Greatereffort
Higher
quality
Repeat
business
Growth andprofits
Stockholder
satisfaction
Moreinvestment
Employeesatisfaction
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 7
Exchange
Exchange
Chapter
PHOTO
Here
People giving up something toreceive something they would
rather have.
LO1
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 8
ExchangeLO1
At Least Two PartiesAt Least Two Parties
Something of ValueSomething of Value
Communication and DeliveryCommunication and Delivery
Freedom to Accept or RejectFreedom to Accept or Reject
Desire to Deal with Other PartyDesire to Deal with Other Party
Conditions forExchange
Conditions forExchange
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 9
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
LO1
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Chapter 1 Copyright 2010 Nelson Education Ltd. All rights reserved 10
LO1
B
eyon
d
th
e
B
oo
k
Watch an Ad Get Free Software
In exchange for free
online word-processing,
calendar support, or
network management
services, many budget-conscious corporate users
are willing to have the
sponsors advertisements
on the pages they use.
SOURCE: Vauhini Vara, Companies Tolerate Ads to Get Free
Software, Wall Street Journal, March 27, 2007, B1, B3.
BUTFIRS
T,ANA
D
FROM
OURSPON
SOR
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Describe fourmarketingmanagementphilosophies
Marketing ManagementMarketing Management
PhilosophiesPhilosophiesLO2
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 12
Sales
Market
Societal
Production internal capabilities of the firm
satisfying customer needs and wantswhile meeting objectives
satisfying customer needs andwants while enhancing individual andsocietal well-being
aggressive sales techniques and beliefthat high sales result in high profits
Orientation Focus is on
LO2Marketing Management
Philosophies
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 13
Market Orientation
Marketing
Concept
The idea that the social and
economic justification for an
organizations existence is the
satisfaction of customerwants and needs while
meeting organizational
objectives.
LO2
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 14
The Marketing Concept
Focusing on customer wants and needs todistinguish products from competitors
offerings
Integrating all the organizations activities tosatisfy these wants
Achieving the organizations long-term goals
by satisfying customer wants and needslegally and responsibly
LO2
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 15
Achieving a Marketing
Orientation
Obtain information about customers, competitors, andmarkets
Examine the information from a total businessperspective
Determine how to deliver superiorcustomer value
Implement actions to provide valueto customers
Online
http://www.westernunion.com
LO2
http://www.westernunion.com/http://www.westernunion.com/http://westernunion.com/ -
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 16
Societal Marketing
Societal
Marketing
Orientation
An organization exists not only
to satisfy customer wants but
also to preserve or enhance
individuals and societys long-
term best interests.
Less toxic products
More durable products
Products with reusable
or recyclable materials
LO2
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 17
REVIEW LEARNING OUTCOME
ProductionProduction
SalesSales
MarketingMarketing
SocietalSocietal
What can we make or do best?What can we make or do best?
How can we sell more aggressively?How can we sell more aggressively?
What do customers
want and need?
What do customerswant and need?
What do customers want and need,and how can we benefit society?
What do customers want and need,and how can we benefit society?
Orientation Focus
LO2
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Chapter 1 Copyright 2010 Nelson Education Ltd. All rights reserved 18
LO2
Be
yon
d
th
e
Boo
k
Listen to your customers...
Tom Kelley with Jonathan Littman, The Ten Faces of Innovation: IDEO's Strategies for Defeating the Devil's Advocate and
Driving Creativity Throughout Your Organization, Currency/Doubleday, 2005
but look to the future,as well.
"If I had asked my customers what they
wanted,"Henry Ford once remarked, "they
would have said a faster horse."
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Discuss the
differencesbetween sales
and market
orientations
Sales and MarketingSales and Marketing
OrientationsOrientationsLO3
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 20
You can compare these orientations against
these five categories:
Comparing the Sales and
Market Orientations
LO3
Organizations focus
Firms business
Those to whom the product is directed
Firms primary goal
The tools used to achieve those goals
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 21
Customer Value
The relationshipbetween benefits
and the sacrifice
necessary to
obtain those
benefits.
LO3
Customer Value
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 22
Offer products that
perform
Earn trust
Avoid unrealistic pricing
Give the buyer facts
Offer organization-wide
commitment inservice and after-sales
support
Customer Value RequirementsLO3
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 23
Customer Satisfaction
Customer
Satisfaction
The feeling that a product
met or exceeded the
customers expectations.
LO3
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 24
Building Relationships
Relationship
Marketing
A strategy that
focuses on
keeping and
improving
relationships withcurrent
customers.
LO3
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 25
Building Relationships
Customer-oriented personnel
Employee training programs
Empowered employees
Teamwork
LO3
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Chapter 1 Copyright 2010 Nelson Education Ltd. All rights reserved 26
LO3
Bey
on
d
the
Boo
k
Building From Within
SOURCE: The Corporate Learning Factbook 2007: Statistics, Benchmarks and Analysis of the U.S. Corporate Training
Market, Bersin & Associates / Karen OLeonard, January 2007.
Today's companies must build from within,putting more emphasis (and money) on
rapidly training younger employees for
greater responsibilities.
Growing economy +Aging workforce
War for new talent"+ Lack of middlemanagers
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 27
Online
http://www.britannica.com
Defining a Firms Business
Use Use benefitsbenefits instead of instead ofgoods/servicesgoods/services
Ensures a customer focus
Encourages innovation
and creativity
Stimulates an awareness
of changes in customerpreferences
LO3
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 28
REVIEW LEARNING OUTCOMELO3
Sales vs. Market Orientations
SalesOrientation
MarketOrientation
OrganizationsFocus
FirmsBusiness
ForWhom?
PrimaryProfitGoal?
Tools toAchieve
Sellinggoods andservices
Everybody Maximumsalesvolume
Primarilypromotion
Inward
Outward Coordinateduse of allmarketingactivities
Customersatisfaction
Specificgroups ofpeople
Satisfyingwants andneeds
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Chapter 1 Copyright 2010 by Nelson Education Ltd.. All rights reserved 29
Describe severalreasons for
studying
marketing
Why Study MarketingWhy Study MarketingLO4
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 30
Plays an important role in society
Vital to business survival, profits
and growth Offers career opportunities
Affects your life every day
Why Study Marketing?LO4
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 31
Why Study Marketing
LO4
Vital Marketing ActivitiesVital Marketing Activities
Assess the wants and satisfaction of customersAssess the wants and satisfaction of customers
Design and manage product offeringsDesign and manage product offerings
Determine prices and pricing policiesDetermine prices and pricing policies
Develop distribution strategiesDevelop distribution strategies
Communicate with present and potential customersCommunicate with present and potential customers
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Chapter 1 Copyright 2010 by Nelson Education Ltd. All rights reserved 32
LO3
Be
yon
d
th
e
Boo
k
Anatomy of an Ad
Tag line ties into
relationshipmarketing
Package is part of
the product
Samples are a
type of promotion
Ways company
creates value
Product directed
at people who are
not confidentselecting paint
colours
Store isplace
Pink ribbon shows
element of societal
marketing orientation
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Chapter 1 Copyright 2010 by Nelson Education Ltd All rights reserved 33
REVIEW LEARNING OUTCOMELO4
Reasons for Studying Marketing
Why Study Marketing?
Important
to
Society
Important
to
Business
Good
Career
Opportunities
+Marketing affects you every day!