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An Overview of
Marketing

Learning Objectives

1. Define the term marketing

2. Describe four marketing management
philosophies
3. Discuss the differences between sales
and market orientations

4. Describe several reasons for studying marketing

Learning Objective

Define the term

marketing

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What Is Marketing?

A Philosophy
An Attitude
A Perspective

A Management
Orientation

A Set of Activities,
including:
Products

Pricing
Promotion
Distribution

What Is Marketing?

American Marketing Association Definition

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.

Marketing
Creating
Value

Exchange
A
B

Delivering
Value

Communicating
Value

The Concept of Exchange

Exchange
The idea that people give up
something to receive something
they would rather have.

The Concept of Exchange

At Least Two Parties
Something of Value

Necessary
Conditions for
Exchange

Communication and Delivery

Freedom to Accept or Reject
Desire to Deal With Other Party

The Concept of Exchange

Exchange may not take place even

if conditions are met

An agreement must be reached

Marketing occurs even if exchange

does not take place

Learning Objective

Describe four
marketing
management
philosophies

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Marketing Management Philosophies

Production

Sales

Competing
Philosophies

Market

Societal Marketing

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Marketing Management Philosophies

Orientation
Production
Sales

Market
Societal
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Key Ideas
Focus on internal capabilities of the firm
Focus on aggressive sales techniques and
believe that high sales result in high profits
Focus on satisfying customer needs and wants
while meeting objectives
Focus on satisfying customer needs and
wants while enhancing individual and
societal well-being
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The Marketing Concept

The Marketing Concept

The idea that the social and economic
justification for an organizations
existence is the satisfaction of customer
wants and needs while meeting
organizational objectives.

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The Marketing Concept

Focusing on customer wants and needs to

distinguish products from competition

Integrating all the organizations activities to

satisfy customer wants and needs

Achieving the organizations long-term goals by

satisfying customer wants and needs

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Achieving a Market 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

Establish and maintain mutually rewarding

relationships with customers

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Societal Marketing Orientation

Societal Marketing Orientation

Marketing that preserves or enhances

an individuals and societys long-term
best interests
Less toxic products

More durable products

Products with reusable

or recyclable materials

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Review: Marketing Management Philosophies

Orientation

Focus

Production

What can we make or do best?

Sales

How can we sell more aggressively?

Marketing

What do customers
want and need?

Societal

What do customers want and need,

and how can we benefit society?

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Learning Objective

Discuss the differences

between sales and
market orientations

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Comparing the Sales and Marketing

Orientations
You can compare these orientations
against these four categories:
Organizations focus
Firms business
Those to whom the product is directed
Firms primary goal

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The Organizations Focus

Key Issues in
Developing
Competitive Advantage

Create
Customer
Value

Build Long-Term
Relationships

Maintain
Customer
Satisfaction

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Customer Value

Customer Value
The ratio of benefits to the
sacrifice necessary to obtain
those benefits

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Customer 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

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Customer Satisfaction

Customer Satisfaction
The feeling that a product has
met or exceeded the customers
expectations.

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Maintaining Customer Satisfaction

Meet or exceed customers expectations

Focus on delighting customers

Provide solutions to customers problems

Cultivate relationships,
NOT one-time transactions

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Relationship Marketing

Relationship Marketing
The name of a strategy
that entails forging long-term
partnerships with customers, both
individuals and firms.

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Relationship Marketing
Who are your customers

What do customers value

What do they want to buy

Requirements
for
Building
Relationships
3

How do they prefer to interact

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Building Long-Term Relationships

Customer-oriented personnel

Effective training programs

Empowered employees

Teamwork

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Defining a Firms Business

Benefits instead of goods/services

Ensures a customer focus

Encourages innovation and creativity

Stimulates an awareness of changes

in customer preferences
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Review: Sales vs. Market Orientations

Organizations Firms
Business
Focus

Sales
Inward
Orientation

Outward
Market
Orientation

For
Whom?

Primary
Profit
Goal?

Selling
Everybody Maximum
goods and
sales
services
volume

Satisfying
wants and
needs

Specific
groups of
people

Tools to
Achieve

Primarily
promotion

Customer Coordinated
satisfaction use of all
marketing
activities

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Learning Objective

Describe several reasons

for studying marketing.

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Why Study Marketing?

Plays an important role in society
Vital to business survival, profits
and growth
Offers career opportunities

Affects your life every day

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Why Study Marketing?

Marketing is far too important

to be left only to the
marketing department.
--David Packard
Hewlett-Packard

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Why Study Marketing?

Between a fourth and

a third of the civilian
workforce in the U.S.
performs marketing
activities

Professional Selling
Marketing Research
Advertising
Retail Buying
Distribution Management

Marketing offers great

career opportunities

Product Management
Product Development
Wholesaling

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Why Study Marketing?

Half of every dollar spent

pays for marketing costs

Better-informed consumers

Demand for customer

satisfaction

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Review: Why Study Marketing?

Why Study Marketing?

Important
to
Society

Important
to
Business

Good
Career
Opportunities

+
Marketing affects you every day!
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