CHAPTER ONE AN OVERVIEW OF MARKETING Prepared by
CHAPTER ONE AN OVERVIEW OF MARKETING Prepared by: Jack Gifford, Miami University (Ohio) © 2001 South-Western College Publishing
WHAT IS MARKETING? • Personal selling? • Advertising? • Making products available in stores? • Maintaining inventories? It is all the above, plus much more! © 2001 South-Western College Publishing 2
WHAT IS MARKETING? A philosophy plus An attitude plus A perspective plus A management orientation + A set of activities, such as: products & services, pricing, promotion, and distribution = 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. © 2001 South-Western College Publishing 3
THE CONCEPT OF EXCHANGE What do we mean by the exchange process? z Two or more parties z Each party must have something the other party values z Communications and ability to deliver z Freedom to accept or reject offer z Want to deal with each other z Authority and means to make transaction z Medium of exchange © 2001 South-Western College Publishing 4
Marketing Management Philosophies z. Production orientation z. Sales orientation z. Marketing orientation z. Societal orientation © 2001 South-Western College Publishing 5
THE ORGANIZATON’S FOCUS Customer Value z Ratio of values/benefits to necessary sacrifices z A core business strategy z Determination of consumer’s definition and measurement of value? z Sacrifices may be financial, psychological, sociological, level of perceived risk, time, etc. BENEFITS © 2001 South-Western College Publishing SACRIFICES 6
THE ORGANIZATION’S FOCUS Customer value z Offer products that perform z Give consumers more than they expect z Avoid unrealistic pricing z Give the buyer facts z Offer organization-wide commitment in service and after-sales support © 2001 South-Western College Publishing 7
THE ORGANIZATON’S GOAL Customer Satisfaction z. Hygiene Factors z. Satisfiers z“Exceed customer expectations” © 2001 South-Western College Publishing 8
Relationship Marketing to Stakeholders z Forging long-term partnerships with customers z Share of customer vs share of market concept z Long-run over short run y. Loyalty programs y. Frequent flyer programs But who are these stakeholders? © 2001 South-Western College Publishing 9
WHO ARE THESE STAKEHOLDERS? z Stakeholders are any person(s) or organization(s) that has an interest in the decisions and actions of the marketer: • Shareholders • Management • Employees • Customers • Supply chain partners • Communities in which marketers operate …… and many others © 2001 South-Western College Publishing 10
TO SUCCEED IN RELATIONSHIP MARKETING, A MARKETER MUST. . . z. Develop customer-oriented personnel through… y. Training (Disney University) y. Empowerment (Federal Express) y. Teamwork and team-building skills (Southwest Airlines ) © 2001 South-Western College Publishing 11
DIFFERENCES BETWEEN SALES AND MARKETING ORIENTATION © 2001 South-Western College Publishing 12
DIFFERENCES BETWEEN SALES AND MARKETING ORIENTATION © 2001 South-Western College Publishing 13
The Marketing Process z A mission statement consistent with the organization’s mission statement z Set measurable marketing objectives z Environmental Scan (Internal and External) z Marketing strategy (Tgt. Mkt. & marketing mix) z Implementation z Measure performance against objectives z Review and feedack © 2001 South-Western College Publishing 14
THE MARKETING PROCESS Marketing Strategy MISSION Target Market STATEMENT Strategy SETTING MARKETING OBJECTIVES Marketing Mix [Product, Price, Promotion, Distribution] ENVIRONMENTAL SCAN Implementation Evaluation ( S. W. O. T. ) Feedback © 2001 South-Western College Publishing 15
Why study marketing? z Plays an important role in society z Marketing is vital to business survival z Marketing affects your life every day z International implications z Be a more knowledgeable consumer AND. . . © 2001 South-Western College Publishing 16
CAREER OPPORTUNITIES !!! z Between a fourth and a third of the entire civilian workforce in the United States performs marketing activities, such as. . . • Sales (organizational or consumer) • Promotion (advertising, PR, sales promotions) • Research • Retailing • Product management • Logistics © 2001 South-Western College Publishing 17
MARKETING AFFECTS YOUR LIFE EVERY DAY z About 50 cents of every dollar you spend pays for marketing costs. z By understanding marketing, you will become a betterinformed consumer and citizen. z You will better understand the buying process and be able to negotiate more effectively with sellers. z You will be better prepared to demand satisfaction when the goods and services you buy do not meet the standards promised by the marketer. © 2001 South-Western College Publishing 18
ETHICS IN MARKETING Healthy Versus Healthy Looking? Is it ethical for Coppertone to produce low ultraviolet ray protection products? z Should the sun-care industry only market goods that are healthy for the consumers, even though consumers want less healthy products? © 2001 South-Western College Publishing 19
GLOBAL PERSPECTIVES z How are some upscale US catalog retailers successfully marketing their products to the younger generation and city dwellers in Japan? z How are these US catalog retailers creating customer value? © 2001 South-Western College Publishing JAPAN 20
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