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An Overview of Marketing
- 1. Chapter 1 Version 3e 1©2003 South-Western chapter An Overview of MarketingAn Overview of Marketing 11 Prepared byPrepared by Deborah BakerDeborah Baker Texas Christian UniversityTexas Christian University
- 2. Chapter 1 Version 3e 2©2003 South-Western chapter Learning ObjectivesLearning Objectives 11 1.1. Define the term marketingDefine the term marketing 2.2. Describe four marketing managementDescribe four marketing management philosophiesphilosophies 3.3. Explain how firms implement the marketingExplain how firms implement the marketing conceptconcept 4.4. Describe the marketing process and identify theDescribe the marketing process and identify the variables that make up the marketing mixvariables that make up the marketing mix 5.5. Describe several reasons for studying marketingDescribe several reasons for studying marketing
- 3. Chapter 1 Version 3e 3©2003 South-Western Learning ObjectiveLearning Objective Define the term marketing 11
- 4. Chapter 1 Version 3e 4©2003 South-Western What is Marketing?What is Marketing? All of the above, plus much more! Personal Selling? Advertising? Making products available in stores? Maintaining inventories? 11
- 5. Chapter 1 Version 3e 5©2003 South-Western What is Marketing?What is Marketing? A Philosophy An Attitude A Perspective A Management Orientation A Set of Activities, including: Products Pricing Promotion Distribution 11
- 6. Chapter 1 Version 3e 6©2003 South-Western What is Marketing?What is Marketing? American Marketing Association Definition Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. 11
- 7. Chapter 1 Version 3e 7©2003 South-Western The Concept of ExchangeThe Concept of Exchange Desire to Deal With Other Party Desire to Deal With Other Party Freedom to Accept or Reject Freedom to Accept or Reject Something of Value Something of Value Ability to Communicate Offer Ability to Communicate Offer At Least Two Parties At Least Two Parties Necessary Conditions for Exchange Necessary Conditions for Exchange 11
- 8. Chapter 1 Version 3e 8©2003 South-Western The Concept of ExchangeThe Concept of Exchange The idea that people give up something to receive something they would rather have. 11
- 9. Chapter 1 Version 3e 9©2003 South-Western • There must be at least two parties and each party… • Must have something the other party values • Must communicate and deliver goods • Must be free to accept or reject offer • Must want to deal with other party Conditions for ExchangeConditions for Exchange 11
- 10. Chapter 1 Version 3e 10©2003 South-Western Exchange may not take place even if conditions met An agreement must be reached Marketing occurs even if exchange does not take place NO SALE NO SALE The Concept of ExchangeThe Concept of Exchange 11
- 11. Chapter 1 Version 3e 11©2003 South-Western Learning ObjectiveLearning Objective Describe four marketing management philosophies. 22
- 12. Chapter 1 Version 3e 12©2003 South-Western CompetingCompeting PhilosophiesPhilosophies CompetingCompeting PhilosophiesPhilosophies ProductionProduction SalesSales MarketMarket Societal MarketingSocietal Marketing Marketing ManagementMarketing Management PhilosophiesPhilosophies 22
- 13. Chapter 1 Version 3e 13©2003 South-Western Marketing ManagementMarketing Management PhilosophiesPhilosophies 22 PhilosophyPhilosophy Key Ideas ProductionProduction SalesSales MarketMarket SocietalSocietal Focus on efficiency of internal operations Focus on satisfying customer needs and wants Focus on satisfying customer needs and wants while enhancing individual and societal well-being Focus on aggressive techniques for overcoming customer resistance
- 14. Chapter 1 Version 3e 14©2003 South-Western Market Orientation RequirementsMarket Orientation Requirements Top management leadership A customer focus Competitor intelligence Interfunctional coordination Customer relationships 22
- 15. Chapter 1 Version 3e 15©2003 South-Western Societal Marketing OrientationSocietal Marketing Orientation Marketing that preserves or enhances an individual’s and society’s long-term best interests Less toxic products More durable products Products with reusable or recyclable materials 22
- 16. Chapter 1 Version 3e 16©2003 South-Western Learning ObjectiveLearning Objective Explain how firms implement the marketing concept 33
- 17. Chapter 1 Version 3e 17©2003 South-Western The Marketing ConceptThe 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. 22
- 18. Chapter 1 Version 3e 18©2003 South-Western The Marketing ConceptThe Marketing Concept Focusing on customer wants and needs can be a source of competitive advantage by: Creating customer value Maintaining customer satisfaction Building long-term relationships 22
- 19. Chapter 1 Version 3e 19©2003 South-Western Customer ValueCustomer Value The ratio of benefits to the sacrifice necessary to obtain those benefits 33
- 20. Chapter 1 Version 3e 20©2003 South-Western Customer Value RequirementsCustomer Value Requirements • Offer products that perform • Give consumers more than they expect • Avoid unrealistic pricing • Give the buyer facts • Offer organization-wide commitment in service and after-sales support 33
- 21. Chapter 1 Version 3e 21©2003 South-Western The feeling that a product has met or exceeded the customer’s expectations. Customer SatisfactionCustomer Satisfaction 33
- 22. Chapter 1 Version 3e 22©2003 South-Western Maintaining Customer SatisfactionMaintaining Customer Satisfaction Meet or exceed customer’s expectations Focus on delighting customers Provide solutions to customer’s problems 33
- 23. Chapter 1 Version 3e 23©2003 South-Western Relationship MarketingRelationship Marketing The name of a strategy that entails forging long-term partnerships with customers, both individuals and firms. 33
- 24. Chapter 1 Version 3e 24©2003 South-Western Relationship Marketing’sRelationship Marketing’s ImportanceImportance Attracting a new customer may be TEN TIMES the cost of keeping an old customer 33
- 25. Chapter 1 Version 3e 25©2003 South-Western Building Long-Term RelationshipsBuilding Long-Term Relationships Customer-oriented personnel Effective training programs Empowered employees Teamwork 33
- 26. Chapter 1 Version 3e 26©2003 South-Western EmpowermentEmpowerment Delegation of authority to solve customers’ problems quickly. 33
- 27. Chapter 1 Version 3e 27©2003 South-Western Learning ObjectiveLearning Objective Describe the marketing process and identify the variables that make up the marketing mix 44
- 28. Chapter 1 Version 3e 28©2003 South-Western Marketing Process ActivitiesMarketing Process Activities Understand the organization’s missionUnderstand the organization’s mission Set marketing objectivesSet marketing objectives Gather, analyze, interpret “SWOT” informationGather, analyze, interpret “SWOT” information Develop a marketing strategyDevelop a marketing strategy Implement the marketing strategyImplement the marketing strategy Design performance measuresDesign performance measures Evaluate marketing efforts--change if neededEvaluate marketing efforts--change if needed 44
- 29. Chapter 1 Version 3e 29©2003 South-Western Environmental ScanningEnvironmental Scanning Collection and interpretation of information about forces, events and relationships in the external environment that may affect the future of the organization or the marketing plan implementation. 44
- 30. Chapter 1 Version 3e 30©2003 South-Western Environmental ScanningEnvironmental Scanning Examination of macroenvironmental forces Social Demographic Economic Technological Political / Legal Competitive Helps identify market opportunities Provides guidelines for design of marketing strategy 44
- 31. Chapter 1 Version 3e 31©2003 South-Western A unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market. The Marketing MixThe Marketing Mix 44
- 32. Chapter 1 Version 3e 32©2003 South-Western PricePrice Marketing Mix: The “Four Ps”Marketing Mix: The “Four Ps” 44 PromotionPromotion PlacePlace ProductProduct
- 33. Chapter 1 Version 3e 33©2003 South-Western Product StrategiesProduct Strategies ProductProduct 44 • The starting point of the “4 Ps” • Includes physical unit, package, warranty, service, brand, image, and value
- 34. Chapter 1 Version 3e 34©2003 South-Western Distribution (Place) StrategiesDistribution (Place) Strategies 44 PlacePlace • Product availability where and when customers want them. • Involves all activities from raw materials to finished products
- 35. Chapter 1 Version 3e 35©2003 South-Western Promotion StrategiesPromotion Strategies 44 PromotionPromotion • Role is to bring about exchanges with target markets • Includes integration of personal selling, advertising, sales promotion, and public relations
- 36. Chapter 1 Version 3e 36©2003 South-Western Pricing StrategiesPricing Strategies 44 PricePrice • The most flexible of the “4 Ps” • Price X Units Sold = Total Revenue
- 37. Chapter 1 Version 3e 37©2003 South-Western Learning ObjectiveLearning Objective Describe several reasons for studying marketing. 55
- 38. Chapter 1 Version 3e 38©2003 South-Western Why Study Marketing?Why Study Marketing? Plays an important role in society Vital to business survival, profits and growth Offers career opportunities Affects your life every day 55
- 39. Chapter 1 Version 3e 39©2003 South-Western Why Study Marketing?Why Study Marketing? “Marketing is too important to be left to the marketing department.” --David Packard Hewlett-Packard “Marketing is too important to be left to the marketing department.” --David Packard Hewlett-Packard 55
- 40. Chapter 1 Version 3e 40©2003 South-Western 1/4th to 1/3rd of the entire civilian workforce in the U.S. performs marketing activities Fastest route up the corporate ladder • Professional Selling • Marketing Research • Advertising • Retail Buying • Distribution Management • Product Management • Product Development • Wholesaling • Professional Selling • Marketing Research • Advertising • Retail Buying • Distribution Management • Product Management • Product Development • Wholesaling Why Study Marketing?Why Study Marketing? 55
- 41. Chapter 1 Version 3e 41©2003 South-Western Half of every dollar spent by consumers pays for marketing costs Become a better-informed consumer Why Study Marketing?Why Study Marketing? 55