An Overview of Marketing

1
chapter

Prepared by
Deborah Baker
Texas Christian University

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 Learning Objectives
1. Define the term marketing

2. Describe four marketing management

philosophies
1
3. Explain how firms implement the marketing
concept
chapter

4. Describe the marketing process and identify the

variables that make up the marketing mix

5. Describe several reasons for studying marketing

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Learning Objective

Define the term marketing

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 1
What is Marketing?
 Personal Selling?

 Advertising?

 Making products available in stores?

 Maintaining inventories?

All of the above, plus much more!

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 1
What is Marketing?

A Philosophy A Set of Activities,

including:
An Attitude
Products
A Perspective
Pricing
A Management
Orientation Promotion
Distribution

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 1
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.

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The Concept of Exchange
At
At Least
Least Two
Two
Parties
Parties Something
Something of
of
Value
Value

Necessary Ability
Ability to
to
Necessary Communicate
Conditions Communicate
Conditions Offer
Offer
for
for Exchange
Exchange
Freedom
Freedom toto
Accept
Accept or
or Reject
Reject
Desire
Desire to
to Deal
Deal
With
With Other
Other Party
Party
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The Concept of Exchange

The idea that people give

up something to receive
something they would
rather have.

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Conditions for Exchange
• 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
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The Concept of Exchange

 Exchange may not take place

even if conditions met

A LE  An agreement must be
O S
N reached

 Marketing occurs even if

exchange does not take place
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 2
Learning Objective

Describe four marketing

management philosophies.

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Marketing Management 2
Philosophies
Production
Production

Sales
Sales

Competing Market
Market
Competing
Philosophies
Philosophies
Societal
Societal Marketing
Marketing

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 Marketing Management 2
Philosophies
Philosophy
Philosophy Key Ideas

Production
Production Focus on efficiency of internal operations

Focus on aggressive techniques for

Sales
Sales overcoming customer resistance

Market Focus on satisfying customer needs and wants

Market
Focus on satisfying customer needs and
Societal
Societal wants while enhancing individual and
societal well-being
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Market Orientation Requirements

 Top management leadership

 A customer focus
 Competitor intelligence
 Interfunctional coordination
 Customer relationships

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Societal 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
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Learning Objective

Explain how firms implement

the marketing concept

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The 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.

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The 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

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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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 3
Customer Satisfaction

The feeling that a product

has met or exceeded the
customer’s expectations.

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Maintaining Customer Satisfaction

 Meet or exceed customer’s expectations

 Focus on delighting customers
 Provide solutions to customer’s
problems

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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’s 3
Importance

Attracting a new customer

may be
TEN TIMES
the cost of keeping
an old customer

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Building Long-Term Relationships

 Customer-oriented personnel

 Effective training programs

 Empowered employees

 Teamwork

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 3
Empowerment

Delegation of authority
to solve customers’
problems quickly.

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 4
Learning Objective

Describe the marketing process and

identify the variables that make up
the marketing mix

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Marketing Process Activities
Understand
Understand the
the organization’s
organization’s mission
mission
Set
Set marketing
marketing objectives
objectives
Gather,
Gather, analyze,
analyze, interpret
interpret “SWOT”
“SWOT” information
information
Develop
Develop aa marketing
marketing strategy
strategy
Implement
Implement the
the marketing
marketing strategy
strategy
Design
Design performance
performance measures
measures
Evaluate
Evaluate marketing
marketing efforts--change
efforts--change ifif needed
needed
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Environmental 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.
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Environmental Scanning
 Examination of macroenvironmental forces
Social
Demographic
Economic
Technological
Political / Legal
Competitive

 Helps identify market

opportunities

 Provides guidelines for

design of marketing strategy
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The Marketing Mix

A unique blend of product,

distribution, promotion, and
pricing strategies designed to
produce mutually satisfying
exchanges with a target
market.

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Marketing Mix: The “Four Ps”

Price
Price

Promotion
Promotion

Place
Place

Product
Product
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Product Strategies
• The starting point of
the “4 Ps”
Product
Product
• Includes physical unit,
package, warranty,
service, brand, image,
and value

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Distribution (Place) Strategies
• Product availability
where and when
Place
Place customers want them.

• Involves all activities

from raw materials to
finished products

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Promotion Strategies
• Role is to bring about
exchanges with target
Promotion
Promotion markets

• Includes integration of
personal selling,
advertising, sales
promotion, and public
relations

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Pricing Strategies
• The most flexible of
the “4 Ps”
Price
Price
• Price X Units Sold =
Total Revenue

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 5
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
“Marketing is
is too
too important
important
to
to be
be left
left to
to the
the
marketing
marketing department.”
department.”

----David
David Packard
Packard
Hewlett-Packard
Hewlett-Packard

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Why Study Marketing?
 1/4th to 1/3rd of the •• Professional
ProfessionalSelling
Selling
entire civilian •• Marketing
MarketingResearch
Research
workforce in the U.S. •• Advertising
Advertising
performs •• Retail
RetailBuying
Buying
marketing activities
•• Distribution
DistributionManagement
Management
•• Product
ProductManagement
Management
 Fastest route up the
corporate ladder •• Product
ProductDevelopment
Development
•• Wholesaling
Wholesaling

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Why Study Marketing?

 Half of every dollar spent

by consumers pays for
marketing costs

 Become a better-
informed consumer

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