Chapter 1 An Overview of Marketing 2014

Chapter 1
1
Lamb, Hair, McDaniel
An Overview
of Marketing
2013-2014
(C) 2014 by Cengage Learning Inc. All Rights
Reserved.

(C) 2014 by Cengage Learning Inc. All Rights Reserved. 2
Define the term marketing
Describe four marketing management
philosophies
Discuss the differences between sales and
market orientations
Describe several reasons for studying
marketing
1
4
3
2

(C) 2014 by Cengage Learning Inc. All Rights Reserved.3
What Is Marketing?
Define the term
marketing
1

1. A philosophy, an attitude, a
perspective, or a management
orientation that stresses customer
satisfaction.
2. An organizational activity, set of
institutions, and processes.
Marketing is…
1

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.
American Marketing Association
Definition of Marketing
1

Marketing…
entails processes that focus on
delivering value and benefits to
customers, not just selling goods
and services.
1

Exchange
At Least Two Parties
Something of Value
Communication and Delivery
Freedom to Accept or Reject
Desire to Deal with Other
Party
Conditions for
Exchange
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.
1

Marketing Management
Philosophies
Describe four
marketing
management
philosophies
2

Sales
Market
Societal
Production internal 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…
The Four Marketing Management
Philosophies
2

Production Orientation
Field of Dreams orientation
– “If you build it, they will come.”
– Doesn’t consider if what is produced
meets market needs
2

Sales Orientation
Marketing =
Selling Things & Collecting Money
2
• Disregards market needs and
consumer demand.
• Despite the quality of sales force,
often cannot convince people to
buy what is neither wanted nor
needed.

Market Orientation
 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
Marketing Concept
2

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
2

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
2

Who’s In Charge?
Increased availability of comparative
research enables customers to shop
smarter, putting the customer in the
driver seat.
2

Questions That Help Determine Marketing
Philosophy
(C) 2014 by Cengage Learning Inc. All Rights Reserved.
Production
Sales
Marketing
Societal
What can we make or do best?
How can we sell more aggressively?
What do customers
want and need?
What do customers want/need, and
how can we benefit society?
Orientation Focus
2
17

Differences between Sales and Market
Orientations
Discuss the differences
between
sales and market
orientations
3

Comparing the Sales and
Market Orientations
5 characteristics:
• 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

The Organization’s Focus
Sales Orientation
Inward looking
What the firm makes
Market Orientation
Outward looking
What the market wants
3

 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
Customer Value Requirements
3

the customers’ evaluation of a
good or service in terms of
whether that good or service
has met their needs and
expectations.
Customer Satisfaction
3

Strategy that focuses on keeping and
improving relationships with customers.
Successful strategies need:
– Customer-Oriented Personnel
– Effective Training Programs
– Empowered Employees
– Teamwork
Relationship Marketing
3

Building Relationships
 Customer-oriented personnel
 Every employee represents the firm in the
eyes of the customer.
 Employee training programs
 Empowered employees
 Employees are given more authority to
solve customer problems on the spot.
 Teamwork
 Emphasizing cooperation over
competition while helping a customer.
3

Defining a Firm’s Business
Sales Orientation
Goods and Services
Market Orientation
Benefits that customers seek
3

Knowing the Firm’s Business:
• Ensures a customer focus
• Encourages innovation and creativity
• Stimulates an awareness of changes in
customer preferences
3

Sales vs. Market Orientations
(C) 2014 by Cengage Learning Inc. All Rights Reserved.
Sales
Orien-
tation
Market
Orien-
tation
Organization’s
Focus
Firm’s
Busines
s
For
Whom?
Primary
Profit
Goal?
Tools to
Achieve
Selling
goods
and
services
Everybody Maximum
sales
volume
Primarily
promotion
Inward
Outward Coordin-
ated use of
marketing
activities
Customer
satisfac-
tion
Specific
groups
of
people
Satisfying
wants
and
needs
27

Why Study Marketing
Describe several
reasons for studying
marketing
4

Why Study Marketing?
Important
to Society
Important to
Business
Good Career
Opportunities
Marketing affects
you every day!
4

Chapter 1 Video
Geoffrey B. Small
Geoffrey B. Small is a super luxury fashion
designer with an eye towards social justice and
connecting with his buyers. In this video, Small
discusses how he began designing clothes and
deciding who and how to connect with his
customers. He also discusses the nature of
consumer behavior and beliefs in terms of how
they purchase fashion and its effect on clothing
prices.
CLICK TO PLAY VIDEO

Chapter 1 An Overview of Marketing 2014

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Chapter 1 An Overview of Marketing 2014