1. Marketing involves creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society. It requires coordination across a company. 2. Companies can have different orientations - production focuses on internal capabilities, sales uses aggressive techniques, marketing concept satisfies customer needs, and societal preserves long-term interests. 3. Sales orientation focuses on the company and aims for high volume, while market orientation focuses on customer needs and satisfaction through coordination.

1. 1 An Overview of Marketing
KE Y T E R M S KE Y C O N C E P TS
LO 1 marketing the activity, LO 1 Define the term marketing. Marketing is the activity, set of institutions, and
set of institutions, and processes for creating, communicating, delivering, and exchanging offerings
processes for creating, that have value for customers, clients, partners, and society at large. Marketing
communicating, delivering, and also requires all facets of a company to work together to pool ideas and resources. One
exchanging offerings that have value major goal of marketing is to create an exchange. An exchange has five conditions, as listed
for customers, clients, partners, and
below. Even if all five conditions are met, an exchange might not occur. People engage in
society at large
marketing whether or not an exchange happens.
exchange people giving up
something in order to receive
something they would rather have
Five conditions of exchange
LO 2 production 1 There must be at least two parties.
orientation a
philosophy that focuses 2 Each party has something that might be of value to the other party.
on the internal capabilities of the firm 3 Each party is capable of communication and delivery.
rather than on the desires and needs
of the marketplace 4 Each party is free to accept or reject the exchange offer.
sales orientation the ideas that 5 Each party believes it is appropriate or desirable to deal with the other party.
people will buy more goods and
services if aggressive sales techniques
are used and that high sales result in
high profits
LO 2 Describe four marketing management philosophies. The role of
marketing concept the idea that marketing and the character of marketing activities within an organization are
the social and economic justification
strongly influenced by its philosophy and orientation. A production-oriented
for an organization’s existence is the
organization focuses on the internal capabilities of the firm rather than on the desires
satisfaction of customer wants and
needs while meeting organizational and needs of the marketplace. A sales orientation is based on the beliefs that people will
objectives buy more products if aggressive sales techniques are used and that high sales volumes
produce high profits. A market-oriented organization focuses on satisfying customer wants
market orientation a philosophy
and needs while meeting organizational objectives. A societal marketing orientation goes
that assumes that a sale does not
depend on an aggressive sales force beyond a market orientation to include the preservation or enhancement of individuals’
but rather on a customer’s decision to and society’s long-term best interests.
purchase a product; it is synonymous
with the marketing concept
societal marketing orientation
the idea that an organization exists
not only to satisfy customer wants
and needs and to meet organizational
objectives but also to preserve or
enhance individuals’ and society’s
long-term best interests
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2. 1 An Overview of Marketing
LO 3 customer value the LO 3 Discuss the differences between sales and market orientations. First,
relationship between sales-oriented firms focus on their own needs; market-oriented firms focus on
benefits and the sacrifice customers’ needs and preferences. Second, sales-oriented companies consider
necessary to obtain those benefits themselves to be deliverers of goods and services, whereas market-oriented companies
customer satisfaction customers’ view themselves as satisfiers of customers. Third, sales-oriented firms direct their products
evaluation of a good or service in terms to everyone; market-oriented firms aim at specific segments of the population. Fourth,
of whether it has met their needs and although the primary goal of both types of firms is profit, sales-oriented businesses pursue
expectations maximum sales volume through intensive promotion, whereas market-oriented businesses
relationship marketing a strategy pursue customer satisfaction through coordinated activities.
that focuses on keeping and improving
relationships with current customers
What is the What business To whom is What is your How do you seek
empowerment delegation of organization’s are you in? the product primary goal? to achieve your
authority to solve customers’ problems focus? directed? goal?
quickly—usually by the first person the Sales Inward, on the Selling goods and Everybody Profit through Primarily through
customer notifies regarding a problem Orientation organization’s services maximum sales intensive promotion
needs volume
teamwork collaborative efforts
Market Outward on the Satisfying customer Specific groups Profit through Through coordinated
of people to accomplish common
Orientation wants and needs wants and needs of people customer marketing and inter-
objectives of customers and delivering satisfaction functional activities
superior value
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LO 4 Describe several reasons for studying marketing. First, marketing
affects the allocation of goods and services that influence a nation’s economy
and standard of living. Second, an understanding of marketing is crucial to
understanding most businesses. Third, career opportunities in marketing are diverse,
profitable, and expected to increase significantly during the coming decade. Fourth,
understanding marketing makes consumers more informed.
Important
to Society
Good Career
Why study Opportunities
marketing?
Marketin affects
Marketing
yo every day!
you
Important
to Business
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