CH 01

An Overview of Marketing
chapter
Chapter 1 Version 3e
Prepared by
Deborah Baker
Texas Christian University
2003 South-Western
Learning Objectives
1. Define the term marketing
chapter
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

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2
Learning Objective
Define the term marketing
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What is Marketing?
Personal Selling?
Advertising?
Making products available in stores?
Maintaining inventories?
All of the above, plus much more!

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What is Marketing?
A Philosophy
An Attitude
A Set of Activities,
including:
Products
A Perspective
Pricing
A Management
Orientation
Promotion
Distribution
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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
Ability
Ability to
to
Communicate
Communicate
Offer
Offer
Necessary
Necessary
Conditions
Conditions
for
for Exchange
Exchange
Desire
Desire to
to Deal
Deal
With
With Other
Other Party
Party
Something
Something of
of
Value
Value
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Freedom
Freedom to
to
Accept
Accept or
or Reject
Reject
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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LE
A
S
O
N
Exchange may not take place even if

conditions met
An agreement must be reached
Marketing occurs even if exchange

does not take place
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Learning Objective
Describe four marketing

management philosophies.
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Marketing Management
Philosophies
Production
Production
Sales
Sales
Market
Market
Competing
Competing
Philosophies
Philosophies
Societal
Societal Marketing
Marketing
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Marketing Management
Philosophies
Philosophy
Philosophy
Key Ideas
Production
Production Focus on efficiency of internal operations
Sales
Sales
Market
Market
Societal
Societal
Focus on aggressive techniques for

overcoming customer resistance
Focus on satisfying customer needs and wants
Focus on satisfying customer needs and
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 individuals
and societys 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
organizations 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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Customer Satisfaction
The feeling that a product

has met or exceeded the
customers expectations.
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Maintaining Customer Satisfaction
Meet or exceed customers expectations

Focus on delighting customers
Provide solutions to customers
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 Marketings
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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Empowerment
Delegation of authority
to solve customers
problems quickly.
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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 organizations
organizations 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
Product
Product
The starting point of

the 4 Ps
Includes physical unit,

package, warranty,
service, brand, image,
and value
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Distribution (Place) Strategies
Product availability
where and when
customers want them.
Involves all activities

from raw materials to
finished products
Place
Place
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Promotion Strategies
Role is to bring about

exchanges with target
markets
Includes integration of
personal selling,
advertising, sales
promotion, and public
relations
Promotion
Promotion
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Pricing Strategies
The most flexible of

the 4 Ps
Price X Units Sold =

Total Revenue
Price
Price
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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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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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1/4th to 1/3rd of the

entire civilian
workforce in the U.S.
performs
marketing activities
Professional
ProfessionalSelling
Selling
Fastest route up the

corporate ladder
Product
ProductManagement
Management
Marketing
MarketingResearch
Research
Advertising
Advertising
Retail
RetailBuying
Buying
Distribution
DistributionManagement
Management
Product
ProductDevelopment
Development
Wholesaling
Wholesaling
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Half of every dollar spent by

consumers pays for marketing
costs
Become a better-informed
consumer
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CH 01

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An Overview of Marketing

2. Describe four marketing management

5. Describe several reasons for studying marketing

Define the term marketing

Making products available in stores?

All of the above, plus much more!

American Marketing Association Definition

The Concept of Exchange

The Concept of Exchange

The idea that people give

Conditions for Exchange

There must be at least two parties

The Concept of Exchange

Exchange may not take place even if

An agreement must be reached

Marketing occurs even if exchange

Describe four marketing

Focus on aggressive techniques for

Market Orientation Requirements

Top management leadership

Societal Marketing Orientation

More durable products

Products with reusable

Explain how firms implement

The Marketing Concept

The idea that the social and

The Marketing Concept

Creating customer value

Maintaining customer satisfaction

Building long-term relationships

The ratio of benefits to the

Customer Value Requirements

Offer products that perform

The feeling that a product

Maintaining Customer Satisfaction

Meet or exceed customers expectations

The name of a strategy

Attracting a new customer

Building Long-Term Relationships

Effective training programs

Describe the marketing process and

Marketing Process Activities

Collection and interpretation of

Examination of macroenvironmental forces

Helps identify market

Provides guidelines for

The Marketing Mix

A unique blend of product,

Marketing Mix: The Four Ps

The starting point of

Includes physical unit,

Distribution (Place) Strategies

Involves all activities

Role is to bring about

The most flexible of

Price X Units Sold =

Describe several reasons

Why Study Marketing?

Plays an important role in society

Vital to business survival, profits

Offers career opportunities

Affects your life every day