MARKTING CHAPTER 1

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Chapter 1: An Overview of Marketing
Prepared by Amit Shah, Frostburg State University
Designed by Eric Brengle, B-books, Ltd.
1
Introduction to

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Learning Outcomes
2
Marketing management philosophies / orientations
Definition of marketing and marketing mix
LO1
LO2

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What is Marketing?
3
Define the term marketing
LO1

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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.
4

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What is Marketing?
• A Philosophy
• An Attitude
• A Perspective
• A Management
Orientation
A Set of Activities
(Marketing Mix)
• Products
• Distribution
• Promotion
• Pricing
5

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People giving up
something to receive
something they would
rather have.
Exchange
6

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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
7

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Review Learning Outcome
What is Marketing?
Exchange
A B
Creating
Value
Customer value
and beneficial
relationships
8
LO1

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Marketing Management
Philosophies
9
Describe four marketing
management philosophies/orientation
LO2

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Marketing Management
Philosophies
10
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…

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Production Orientation
• A production orientation is a philosophy that focuses on the internal
capabilities of the firm rather than on the desires and needs of the
marketplace.
• A production orientation means that management assesses its resources and
asks these questions:
“What can we do best?”
“What can our engineers design?”
“What is easy to produce, given our equipment?”

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Sales Orientation
• A sales orientation is based on the ideas that people will buy more goods
and services if aggressive sales techniques are used and that high sales
result in high profits.
• The fundamental problem with a sales orientation, as with a production
orientation, is a lack of understanding of the needs and wants of the
marketplace. Sales-oriented companies often find that, despite the quality
of their sales force, they cannot convince people to buy goods or services
that are neither wanted nor needed.

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Market Orientation
13
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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Market Orientation
14
 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 Market 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 Orientation
16
Societal
Marketing
Orientation

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Review Learning Outcome
The Four Marketing Management Philosophies
17
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 and need, and
how can we benefit society?
Orientation Focus
LO2