Mktg 1ce Ppt Ch01

MKTG

Lamb, Hair, McDaniel , Kapoor, Klaise, & Appleby

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CHAPTER Designed by Amy McGuire, B-books, Ltd. Chapter 1

Canadian Edition

An Overview of Marketing

Prepared by Deborah Baker, Texas Christian University, and Tina Grant, Durham College

Copyright ©2010 by Nelson Education Ltd. All rights reserved.

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Learning Outcomes

LO1

Define the term marketing

LO

Describe four marketing management philosophies

LO3

Discuss the differences between sales and market orientations

LO4

Describe several reasons for studying marketing

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Chapter 1

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LO1

What Is Marketing?

Define the term marketing

Chapter 1

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What Is Marketing? Stresses Customer Satisfaction A Philosophy An Attitude A Perspective A Management Orientation

A Set of Activities… Products Distribution Promotion Pricing

Focuses on delivering value and benefits to customers

LO1 Chapter 1

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What Is Marketing? The accepted definition encompasses both the philosophy and the organizational function.

Marketing is 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 the organization and its stakeholders.

LO1 Chapter 1

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What Is Marketing? More investment Stockholder satisfaction Growth and profits Repeat business

Employee satisfaction

LO1 Chapter 1

Higher quality Greater effort

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Exchange

Exchange

Chapter PHOTO Here

People giving up something to receive something they would rather have.

LO1 Chapter 1

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LO1 Exchange At AtLeast LeastTwo TwoParties Parties Something Somethingof ofValue Value

Conditions Conditions for for Exchange Exchange

Communication Communicationand andDelivery Delivery Freedom Freedomto toAccept Acceptor orReject Reject Desire Desireto toDeal Dealwith withOther OtherParty Party

Chapter 1

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LO1 Exchange

Chapter 1



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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Beyond the Book

1 LO Watch an Ad – Get Free Software

In exchange for “free” online word-processing, calendar support, or network management services, many budgetconscious corporate users are willing to have the sponsor’s advertisements on the pages they use.

D N A R… A , T SO IRS PON F UT R S …B OU OM FR

SOURCE: Vauhini Vara, “Companies Tolerate Ads to Get Free Software,” Wall Street Journal, March 27, 2007, B1, B3.

Chapter 1

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LO2

Marketing Management Philosophies Describe four marketing management philosophies

Chapter 1

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LO2

Marketing Management Philosophies Orientation

Focus is on…

Production internal capabilities of the firm Sales

Chapter 1

aggressive sales techniques and belief that high sales result in high profits

Market

satisfying customer needs and wants while meeting objectives

Societal

satisfying customer needs and wants while enhancing individual and societal well-being Copyright ©2010 by Nelson Education Ltd. All rights reserved

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Market Orientation 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.

LO2 Chapter 1

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LO2 The Marketing Concept

Chapter 1



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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LO

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

http://www.westernunion.com

Online Chapter 1

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Societal Marketing Societal Marketing Orientation

An organization exists not only to satisfy customer wants but also to preserve or enhance individuals’ and society’s longterm best interests. •

Less toxic products

•

More durable products

•

Products with reusable or recyclable materials

LO2 Chapter 1

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LO2 REVIEW LEARNING OUTCOME Orientation

Focus

Production Production

What Whatcan canwe wemake makeor ordo dobest? best?

Sales Sales

How Howcan canwe wesell sellmore moreaggressively? aggressively?

Marketing Marketing

What Whatdo docustomers customers want wantand andneed? need?

Societal Societal

What Whatdo docustomers customerswant wantand andneed, need, and andhow howcan canwe webenefit benefitsociety? society?

Chapter 1

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Beyond the Book

2 LO Listen to your customers...

… 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."

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

Chapter 1

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LO

3

Sales and Marketing Orientations

Discuss the differences between sales and market orientations

Chapter 1

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Comparing the Sales and Market Orientations 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

LO3 Chapter 1

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Customer Value Customer Value The relationship between benefits and the sacrifice necessary to obtain those benefits.

LO3 Chapter 1

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LO3 Customer 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

Chapter 1

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Customer Satisfaction Customer Satisfaction

The feeling that a product met or exceeded the customer’s expectations.

LO3 Chapter 1

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Building Relationships Relationship Marketing A strategy that focuses on keeping and improving relationships with current customers.

LO3 Chapter 1

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Building Relationships 

Customer-oriented personnel



Employee training programs



Empowered employees



Teamwork

LO3 Chapter 1

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Beyond the Book

3 LO Building From Within

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 middle managers

SOURCE: The Corporate Learning Factbook® 2007: Statistics, Benchmarks and Analysis of the U.S. Corporate Training Market, Bersin & Associates / Karen O’Leonard, January 2007.

Chapter 1

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LO3 Defining a Firm’s Business Use “benefits” instead of “goods/services”  Ensures a customer focus  Encourages innovation and creativity  Stimulates an awareness of changes in customer preferences http://www.britannica.com

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LO3 REVIEW LEARNING OUTCOME Sales vs. Market Orientations Organization’s Focus

Firm’s Business

For Whom?

Primary Profit Goal?

Tools to Achieve

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

Chapter 1

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Primarily promotion

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LO4

Why Study Marketing

Describe several reasons for studying marketing

Chapter 1

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LO4 Why Study Marketing?  Plays an important role in society  Vital to business survival, profits and growth  Offers career opportunities  Affects your life every day

Chapter 1

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Why Study Marketing Vital Vital Marketing Marketing Activities Activities Assess Assessthe thewants wantsand andsatisfaction satisfactionof ofcustomers customers Design Designand andmanage manageproduct productofferings offerings Determine Determineprices pricesand andpricing pricingpolicies policies Develop Developdistribution distributionstrategies strategies Communicate Communicatewith withpresent presentand andpotential potentialcustomers customers

Chapter 1

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LO4 31

3 LOAnatomy of an Ad

Beyond the Book

Tag line ties into relationship marketing

Product directed at people who are not confident selecting paint colours

Package is part of the product

Store is place

Samples are a type of promotion

Ways company creates value

Pink ribbon shows element of societal marketing orientation

Chapter 1

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LO4 REVIEW LEARNING OUTCOME Reasons for Studying Marketing

Why Study Marketing?

Important to Society

Important to Business

Good Career Opportunities

+ Marketing affects you every day! Chapter 1

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