ch01 marketing

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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel2005 South-Western/Thomson Learning

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An Overview of MarketingAn Overview of Marketing

Prepared byPrepared by

Deborah BakerDeborah Baker

Texas Christian UniversityTexas Christian University

Chapter 1


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Learning ObjectivesLearning Objectives

1. Define the term marketing

2. Describe four marketing managementphilosophies

3. Explain how firms implement the marketingconcept

4. Describe the marketing process and identify

the variables that make up the marketing mix5. Describe several reasons for studying

marketing


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Learning ObjectiveLearning Objective

Define the termmarketing

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On Line

http://www.soapworks.com

On Line

http://www.soapworks.com
http://www.soapworks.com/http://www.soapworks.com/http://www.soapworks.com/


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What Is Marketing?What Is Marketing?

All of the above, plus much more!

Personal Selling?

Advertising?

Making products available in stores?

Maintaining inventories?

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A Philosophy

An Attitude

A Perspective

A Management

Orientation

A Set of Activities,

including:

Products

Pricing

Promotion

Distribution

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American Marketing Association Definition

Marketingis the process of planning andexecuting the conception, pricing, promotion,

and distribution of ideas, goods, and services

to create exchanges that satisfy individual and

organizational goals.

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The Concept of ExchangeThe Concept of Exchange

The idea that people give up

something to receive

something they would rather

have.

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The Concept of ExchangeThe Concept of Exchange

NecessaryConditions

for Exchange

NecessaryConditions

for Exchange

At Least Two PartiesAt Least Two Parties

Something of ValueSomething of Value

Communication and DeliveryCommunication and Delivery

Freedom to Accept or RejectFreedom to Accept or Reject

Desire to Deal with Other PartyDesire to Deal with Other Party

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Exchange may not take place

even if conditions are met

An agreement must be reached

Marketing occurs even if

exchange does not take place

NOSA

LE

NOSA

LE

The Concept of ExchangeThe Concept of Exchange11


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Describe four

marketingmanagementphilosophies.

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CompetingCompeting

PhilosophiesPhilosophies

CompetingCompeting

PhilosophiesPhilosophies

ProductionProduction

SalesSales

MarketMarket

Societal MarketingSocietal Marketing

Marketing ManagementMarketing Management

PhilosophiesPhilosophies22


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OrientationOrientation Key Ideas

ProductionProduction

SalesSales

MarketMarket

SocietalSocietal

Focus on efficiency of internal operations

Focus on satisfying customer needs and wants

while meeting objectivesFocus on satisfying customer needs andwants while enhancing individual andsocietal well-being

Focus on aggressive sales techniques andbelieve that high sales result in high profits

Marketing ManagementMarketing Management

PhilosophiesPhilosophies22


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Achieving a Market OrientationAchieving a Market Orientation

Obtain information about customers, competitors,and markets

Examine the information from a total businessperspective

Determine how to deliver superiorcustomer value

Implement actions to provide valueto customers

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On Line

http://www.westernunion.com

On Line

http://www.westernunion.com
http://www.westernunion.com/http://www.westernunion.com/http://www.westernunion.com/


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Less toxic products More durable products

Products with reusableor recyclable materials

Less toxic products

More durable products

Products with reusableor recyclable materials

Societal Marketing OrientationSocietal Marketing Orientation

Marketing that preserves or

enhances an individuals and

societys long-term bestinterests

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Explain how firms

Implement the marketingconcept

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The Marketing ConceptThe 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 ConceptThe Marketing Concept

Focuses on customer wants and needs to

distinguish products from competition

Integrates all organizations activities to

satisfy customer wants and needs

Achieves organizations long-term goals by

satisfying customer wants and needs

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Customer ValueCustomer Value

The ratio of benefits to the

sacrifice necessary to obtain

those benefits

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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

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On Line

http://www.ZanesCycles.com

On Line

http://www.ZanesCycles.com
http://www.burton.com/http://www.zanescycles.com/http://www.zanescycles.com/http://www.burton.com/http://www.zanescycles.com/http://www.burton.com/


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The feeling that a product has

met or exceeded the

customers expectations.

Customer SatisfactionCustomer Satisfaction33


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Maintaining Customer SatisfactionMaintaining 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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On Line

http://www.volvocars.com

On Line

http://www.volvocars.com
http://www.volvocars.com/http://www.volvocars.com/http://www.volvocars.com/


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Relationship MarketingRelationship Marketing

The name of a strategy

that entails forging

long-term partnerships

with customers, both

individuals and firms.

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Relationship MarketingRelationship Marketing

RequirementsRequirements

forforBuildingBuilding

RelationshipsRelationships

RequirementsRequirements

forforBuildingBuilding

RelationshipsRelationships

Who are your customers?Who are your customers?

What do customers value?What do customers value?

How do they prefer to interact?How do they prefer to interact?

What do they want to buy?What do they want to buy?

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Building Long-Term RelationshipsBuilding Long-Term Relationships

Customer-oriented personnel

Effective training programs

Empowered employees

Teamwork

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On Line

http://disney.go.com/

On Line

http://disney.go.com/
http://disney.go.com/http://disney.go.com/http://disney.go.com/http://disney.go.com/http://disney.go.com/http://disney.go.com/http://disney.go.com/http://disney.go.com/http://disney.go.com/http://disney.go.com/http://disney.go.com/


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Describe the marketingprocess and identify the

variables that make upthe marketing mix.

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Marketing Process ActivitiesMarketing Process Activities

Understand the organizations missionUnderstand the organizations 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

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Marketing PlanMarketing Plan

ProcessProcess44

Marketing Strategy

Product

Promotion

Distribution

Price

Marketing Mix

Business MissionStatement

Objectives

Situation or SWOTAnalysis

Implementation

Evaluation

Control

Target MarketStrategy


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Environmental ScanningEnvironmental Scanning

Collection and interpretation of

information about forces, eventsand relationships in the external

environment that may affect the

future of the organization or themarketing plan implementation.

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Environmental ScanningEnvironmental Scanning

Examination of macroenvironmental forcesSocialDemographicEconomic

TechnologicalPolitical / LegalCompetitive

Helps identify market

opportunities

Provides guidelines fordesign of marketing strategy

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Defining the Business MissionDefining the Business Mission

Answers the question,What business are we inand where are we going?

Focuses on the market(s)rather than the good or service

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The activities of selecting and

describing one or more target

markets and developing and

maintaining a market mix that will

produce mutually satisfying

exchanges with target markets.

Marketing StrategyMarketing Strategy44


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Appeal to the entire market

with one marketing mix

Appeal to the entire market

with one marketing mix

Target Market SelectionsTarget Market Selections

Concentrate on one

marketing segment

Concentrate on one

marketing segment

Appeal to multiple markets

with multiple marketing mixes

Appeal to multiple markets

with multiple marketing mixes

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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel2005 South-Western/Thomson Learning 33

PricePrice

Marketing Mix: The Four PsMarketing Mix: The Four Ps

PromotionPromotion

PlacePlace

ProductProduct

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Product StrategiesProduct Strategies

The starting point of the

4 Ps

Includes physical unit,

package, warranty,

service, brand, image,

and value

ProductProduct

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Distribution (Place) StrategiesDistribution (Place) Strategies

PlacePlace

Product availability where

and when customers

want them.

Involves all activities from

raw materials to finished

products

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Promotion StrategiesPromotion Strategies

PromotionPromotion

Role is to bring about

exchanges with target

markets

Includes integration of

personal selling,

advertising, salespromotion, and public

relations

44On Line

http://www.paramount.com

http://www.warnerbros.com

http://www.universalstudios.com

On Line

http://www.paramount.com

http://www.warnerbros.com

http://www.universalstudios.com
http://www.paramount.com/http://www.warnerbros.com/http://www.universalstudios.com/http://www.universalstudios.com/http://www.warnerbros.com/http://www.paramount.com/http://www.universalstudios.com/http://www.warnerbros.com/http://www.paramount.com/


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Pricing StrategiesPricing Strategies

The most flexible of the

4 Ps

Price X Units Sold =

Total Revenue

PricePrice

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Following Up the Marketing PlanFollowing Up the Marketing Plan

Implementation

Evaluation - (Have objectives

been achieved?)

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Describe several reasons

for studying marketing.

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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

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Why Study Marketing?Why Study Marketing?

Marketing is far too important

to be left only to themarketing department.

--David Packard

Hewlett-Packard

Marketing is far too important

to be left only to themarketing department.

--David Packard

Hewlett-Packard

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1/4th to 1/3rd of the

civilian workforce

in the U.S. performs

marketing activities

Fast 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


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Half of every dollar spent

pays for marketing costs

Better-informed consumers

Demand for customer

satisfaction

Why Study Marketing?Why Study Marketing?55

ch01 marketing

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