Chapter 1An Overview of Marketing

Learning Outcomes – CH 1Understand the meaning of the term “marketing”

Understand the evolution of marketing management philosophies

Recognize the difference in a sales orientation and a marketing orientation

Understand why it is important to study marketing

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 involves ExchangeInterchange of something of value between

two partiesMarketing provides a good or service

Customer receives the benefit of the product (good or service)

Marketer receives the “price” of the product

What is required for exchange to occur?There must be at least two partiesEach party must have something of value**Each party must be able to communicate and

deliverEach party must be free to accept or reject

the offerEach party must feel it is acceptable to deal

with the other party

Marketing Management PhilosophiesProduction

orientation:

Emphasis is on production and technology– “What can we do

best?”

Marketing Management PhilosophiesSales Orientation

The emphasis is on selling existing products “Let’s sell what we

have.”

Marketing Management PhilosophiesThe Marketing Concept:

Emphasis is on consumer needs and long-range profitability

“What can we do to satisfy customer needs and wants?

Recognizes that different groups of customers need different features and benefits segmentation

Marketing Management PhilosophiesSocietal Marketing

OrientationThe emphasis is on

customer satisfaction, meeting organizational objectives, AND preserving and enhancing individuals’ and society’s best interests.

**Customer ValueThe difference

between the benefits a customer sees and the costs of obtaining those benefits

How can a company create value?

Customer SatisfactionThe feeling that a

product met or exceeded a customer’s expectations.

Relationship MarketingMarketing activities

aimed at building long-term relationships with customers that contribute to the company’s success

Typically depends on:Customer-focused

employeesTrainingEmpowermentTeamwork

Understanding Marketing is important because…it affects society and

the economyChoicesInnovationEconomic growth

marketing activities are critical to the survival of a business

it creates many career opportunities

it affects daily life