chapter 1 essentials of marketing 4e lamb hair mcdaniel ©2005 south-western/thomson learning 1 an...
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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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An Overview of MarketingAn Overview of Marketing
Prepared byPrepared byDeborah BakerDeborah Baker
Texas Christian UniversityTexas Christian University
Chapter 1
Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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Learning ObjectivesLearning Objectives
1. Define the term marketing
2. Describe four marketing management philosophies
3. Explain how firms implement the marketing concept
4. Describe the marketing process and identify the variables that make up the marketing mix
5. Describe several reasons for studying marketing
Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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Learning ObjectiveLearning Objective
Define the term marketing
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On Linehttp://www.soapworks.com
On Linehttp://www.soapworks.com
Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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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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What Is Marketing?What Is Marketing?
A Philosophy
An Attitude
A Perspective
A Management Orientation
A Set of Activities, including:
Products
Pricing
Promotion
Distribution
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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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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.
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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
Necessary Conditions
for Exchange
Necessary Conditions
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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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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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
NO SALENO SALE
The Concept of ExchangeThe Concept of Exchange11
Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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Learning ObjectiveLearning Objective
Describe four marketing management philosophies.
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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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CompetingCompetingPhilosophiesPhilosophiesCompetingCompeting
PhilosophiesPhilosophies
ProductionProduction
SalesSales
MarketMarket
Societal MarketingSocietal Marketing
Marketing Management Marketing Management PhilosophiesPhilosophies
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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 and wants while enhancing individual and societal well-being
Focus on aggressive sales techniques and believe that high sales result in high profits
Marketing Management Marketing Management PhilosophiesPhilosophies
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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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Achieving a Market Achieving a Market OrientationOrientation
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
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On Linehttp://www.westernunion.com
Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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Less toxic products More durable products Products with reusable
or recyclable materials
Less toxic products More durable products Products with reusable
or recyclable materials
Societal Marketing Societal Marketing OrientationOrientation
Marketing that preserves or
enhances an individual’s
and society’s long-term
best interests
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Learning ObjectiveLearning Objective
Explain how firms Implement the marketingconcept
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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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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.
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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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The Marketing ConceptThe Marketing Concept
Focuses on customer wants and needs to distinguish products from competition
Integrates all organization’s activities to satisfy customer wants and needs
Achieves organization’s long-term goals by satisfying customer wants and needs
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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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Customer ValueCustomer Value
The ratio of benefits to the
sacrifice necessary to
obtain those benefits
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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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Customer Value Customer Value RequirementsRequirements
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 Linehttp://www.ZanesCycles.com
Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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The feeling that a product
has met or exceeded the
customer’s expectations.
Customer SatisfactionCustomer Satisfaction33
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Maintaining Customer Maintaining Customer SatisfactionSatisfaction
Meet or exceed customer’s expectations
Focus on delighting customers
Provide solutions to customer’s problems
Cultivate relationships,NOT one-time transactions
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On Linehttp://www.volvocars.com
Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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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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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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Relationship MarketingRelationship Marketing
RequirementsRequirementsfor for
Building Building RelationshipsRelationships
RequirementsRequirementsfor for
Building Building 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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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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Building Long-Term Building Long-Term RelationshipsRelationships
Customer-oriented personnel
Effective training programs
Empowered employees
Teamwork
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On Linehttp://disney.go.com/
Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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Learning ObjectiveLearning Objective
Describe the marketing process and identify thevariables that make up the marketing mix.
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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
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Marketing Plan Marketing Plan ProcessProcess44
Marketing Strategy
Product
Promotion
Distribution
Price
Marketing Mix
Business Mission Statement
Objectives
Situation or SWOT Analysis
ImplementationEvaluation
Control
Target Market Strategy
Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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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.
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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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Environmental ScanningEnvironmental Scanning
Examination of macroenvironmental forcesSocialDemographicEconomicTechnologicalPolitical / LegalCompetitive
Helps identify market opportunities
Provides guidelines for design of marketing strategy
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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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Defining the Business MissionDefining the Business Mission
Answers the question, “What business are we in and 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 marketswith multiple marketing mixes
Appeal to multiple marketswith multiple marketing mixes
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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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PricePrice
Marketing Mix: The “Four Ps”Marketing Mix: The “Four Ps”
PromotionPromotion
PlacePlace
ProductProduct
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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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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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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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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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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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Promotion StrategiesPromotion Strategies
PromotionPromotion
Role is to bring about exchanges with target markets
Includes integration of personal selling, advertising, sales promotion, and public relations
44On Linehttp://www.paramount.comhttp://www.warnerbros.comhttp://www.universalstudios.com
On Linehttp://www.paramount.comhttp://www.warnerbros.comhttp://www.universalstudios.com
Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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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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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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Following Up the Marketing Following Up the Marketing PlanPlan
Implementation
Evaluation - (Have objectives been achieved?)
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Chapter 1 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
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Learning ObjectiveLearning Objective
Describe several reasonsfor 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 the
marketing department.”
--David Packard Hewlett-Packard
“Marketing is far too important to be left only to the
marketing 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