Chapter 1: An Overview of Marketing Prepared by Amit Shah, Frostburg State University Designed by...

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

Learning Outcomes

Copyright 2010 by Cengage Learning Inc. All Rights Reserved

2

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

What is Marketing?

• A Philosophy

• An Attitude

• A Perspective

• A Management Orientation

A Set of Activities

• Financing

• Selling

• Distribution

• Promotion

• Pricing

• Marketing Information Management

• Product Service ManagementCopyright 2010 by Cengage

Learning Inc. All Rights Reserved 3

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.


4

What is Marketing?


Product

Price

Place

Promo

tion

ExchangeExchangeA BA B

CreatingValueCustomer value

and beneficial relationships

Customer valueand beneficial relationships

5

LO1

Marketing Management Philosophies


6

Describe four marketing management philosophies

LO2

Marketing Management Philosophies


7

Sales1930 -1940’s

Market1950-1970

Societal1980 to present

Production1900-1920’s internal capabilities of the firm. Emphasis on

producing and distributing new products

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…

Market Orientation


8

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

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

Airplane activity

Achieving a Marketing Orientation


10

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

zapposYouTube - The Zappos Family on Nightline

http://www.youtube.com/watch?v=tFyW5s_7ZWc

http://www.youtube.com/watch?v=tFyW5s_7ZWc

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


SocietalMarketingOrientatio

n

Method video

The Four Marketing Management Philosophies


12

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

Building Relationships


A strategy that focuses on keeping and improving

Relationships with current customers.

Relationship

Marketing

Building Relationships


Customer-oriented personnel

Employee training programs

Empowered employees

Teamwork

Defining a Firm’s Business


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

Why Study Marketing?


17

Describe several reasons for studying marketing

LO4

Reasons for Studying Marketing


Why Study Marketing?Why Study Marketing?

Importantto

Society

Importantto

Society

Importantto

Business

Importantto

Business

GoodCareer

Opportunities

GoodCareer

Opportunities

+Marketing affects you every day!

LO4

HOW DO COLLEGE STUDENTS STUDY?3M’s RESPONSE TO A NEW-PRODUCT CHALLENGE!

HOW DO COLLEGE STUDENTS STUDY?DISCOVERING STUDENT STUDYING NEEDS

3M Post-it® Notes or Post-it® Flags

+Felt Tip Highlighters

=3M product that

will combinePost-it® Notes or

Post-it® Flags andHighlighters

http://highered.mcgraw-hill.com/sites/0073381063/student_view0/chapter1/_video_cases.htm

Products R Us

IN-CLASS ACTIVITY

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