MKTG 1ce PPT Ch01

Lamb, Hair, McDaniel ,
Kapoor, Klaise, & Appleby MKTG Canadian Edition
Designed by
Amy McGuire, B-books, Ltd.
CHAPTER
1 An Overview of
Marketing
Prepared by Deborah Baker, Texas Christian

University, and Tina Grant, Durham College
Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved. 1

Learning Outcomes
LO1 Define the term marketing
Describe four marketing management

LO 2
philosophies
LO3 Discuss the differences between sales and

market orientations
LO4 Describe several reasons for studying

marketing
Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 2

LO1 What Is Marketing?
Define the term

marketing
Chapter 1 Copyright ©2010 by Nelson Education Ltd.. All rights reserved 3

What Is Marketing?
Stresses Customer Satisfaction
A Philosophy A Set of Activities…

An Attitude Products
A Perspective
A Management Distribution
Orientation Promotion
Pricing
Focuses on delivering value and benefits to customers
LO1
What Is Marketing?
The accepted definition encompasses both the philosophy
and the organizational function.
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.
LO1
What Is Marketing?
More
investment
Stockholder
satisfaction
Growth and
profits
Repeat
business
Employee
Higher
satisfaction
quality
LO1 Greater
effort
Exchange
Exchange
People giving up something to
receive something they would
rather have.
Chapter
PHOTO
Here
LO1
LO1 Exchange
At
AtLeast
LeastTwo
TwoParties
Parties
Something
Somethingof
ofValue
Value
Conditions
Conditions for
for Communication
Communicationand
andDelivery
Delivery
Exchange
Exchange
Freedom
Freedomto
toAccept
Acceptor
orReject
Reject
Desire
Desireto
toDeal
Dealwith
withOther
OtherParty
Party

LO1 Exchange
 Exchange may not take place even

if conditions are met
 An agreement must be reached
 Marketing occurs even if

exchange does not take place

Watch an Ad – Get Free Software
LO 1
Beyond the
In exchange for “free”
online word-processing,
calendar support, or
network management , A
D
N A R…
T SO
services, many budget- F IRS PON
UT R S
…B OU
conscious corporate users FR
OM
are willing to have the

sponsor’s advertisements
Book
on the pages they use.
SOURCE: Vauhini Vara, “Companies Tolerate Ads to Get Free

Software,” Wall Street Journal, March 27, 2007, B1, B3.
Chapter 1 Copyright ©2010 Nelson Education Ltd. All rights reserved 10

LO2 Marketing Management
Philosophies
Describe four
marketing
management
philosophies

Marketing Management
LO2
Philosophies
Orientation Focus is on…
Production internal capabilities of the firm
aggressive sales techniques and belief

Sales that high sales result in high profits
satisfying customer needs and wants

Market while meeting objectives
satisfying customer needs and

Societal wants while enhancing individual and
societal well-being
Market Orientation
Marketing The idea that the social and

Concept economic justification for an
organization’s existence is the
satisfaction of customer
wants and needs while
meeting organizational
objectives.
LO2
LO2 The Marketing Concept
 Focusing on customer wants and needs to

distinguish products from competitors’
offerings
 Integrating all the organization’s activities to

satisfy these wants
 Achieving the organization’s long-term goals

by satisfying customer wants and needs
legally and responsibly

Achieving a Marketing
LO 2
Orientation
 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
http://www.westernunion.com
Online
Societal Marketing
Societal An organization exists not only

Marketing to satisfy customer wants but
Orientation also to preserve or enhance
individuals’ and society’s long-
term best interests.
• Less toxic products

• More durable products
• Products with reusable
or recyclable materials
LO2
LO2 REVIEW LEARNING OUTCOME
Orientation Focus
Production
Production What
Whatcan
canwe
wemake
makeor
ordo
dobest?
best?
Sales
Sales How
Howcan
canwe
wesell
sellmore
moreaggressively?
aggressively?
Marketing What
Whatdo
docustomers
customers
Marketing want
wantand
andneed?
need?
Societal What
Whatdo
docustomers
customerswant
wantand
andneed,
need,
Societal and
andhow
howcan
canwe
webenefit
benefitsociety?
society?

Listen to your customers...
LO 2
Beyond the
… but look to the future,
as well.
"If I had asked my customers what they

wanted," Henry Ford once remarked, "they
Book
would have said a faster horse."
Tom Kelley with Jonathan Littman, The Ten Faces of Innovation: IDEO's Strategies for Defeating the Devil's Advocate and
Driving Creativity Throughout Your Organization, Currency/Doubleday, 2005

Sales and Marketing
LO 3
Orientations
Discuss the
differences
between sales
and market
orientations

Comparing the Sales and
Market Orientations
You can compare these orientations against

these five categories:
 Organization’s focus
 Firm’s business
 Those to whom the product is directed
 Firm’s primary goal
 The tools used to achieve those goals
LO3
Customer Value
Customer Value
The relationship
between benefits
and the sacrifice
necessary to
obtain those
benefits.
LO3
LO3 Customer Value Requirements
 Offer products that

perform
 Earn trust
 Avoid unrealistic pricing
 Give the buyer facts
 Offer organization-wide
commitment in
service and after-sales
support

Customer Satisfaction
The feeling that a product

Customer
met or exceeded the
Satisfaction customer’s expectations.
LO3
Building Relationships
Relationship
Marketing
A strategy that
focuses on
keeping and
improving
relationships with
current
customers.
LO3
Building Relationships
 Customer-oriented personnel
 Employee training programs
 Empowered employees
 Teamwork
LO3
Building From Within
LO3
Beyond the
Today's companies must build from within,
putting more emphasis (and money) on
rapidly training younger employees for
greater responsibilities.
Growing economy + “War for new talent"

Aging workforce + Lack of middle
managers
Book
SOURCE: The Corporate Learning Factbook® 2007: Statistics, Benchmarks and Analysis of the U.S. Corporate Training
Market, Bersin & Associates / Karen O’Leonard, January 2007.

LO3 Defining a Firm’s Business
Use “benefits” instead of

“goods/services”
 Ensures a customer focus
 Encourages innovation
and creativity
 Stimulates an awareness
of changes in customer
preferences
http://www.britannica.com
Online
Sales vs. Market Orientations

Primary
Organization’s Firm’s For Profit Tools to
Focus Business Whom? Goal? Achieve
Sales Inward Selling Everybody Maximum Primarily

Orientation goods and sales promotion
services volume
Market Outward Satisfying Specific Customer Coordinated

Orientation wants and groups of satisfaction use of all
needs people marketing
activities

LO4 Why Study Marketing
Describe several
reasons for
studying
marketing

LO4 Why Study Marketing?
 Plays an important role in society

 Vital to business survival, profits
and growth
 Offers career opportunities
 Affects your life every day

Why Study Marketing
Vital
Vital Marketing
Marketing Activities
Activities
Assess
Assessthe
thewants
wantsand
andsatisfaction
satisfactionof
ofcustomers
customers
Design
Designand
andmanage
manageproduct
productofferings
offerings
Determine
Determineprices
pricesand
andpricing
pricingpolicies
policies
Develop
Developdistribution
distributionstrategies
strategies
Communicate
Communicatewith
withpresent
presentand
andpotential
potentialcustomers
customers
Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved

LO4
31
LOAnatomy
3
of an Ad
Tag line ties into
Beyond the
relationship
marketing
Product directed
at people who are
not confident
selecting paint
colours
Package is part of
the product
Book
Store is
Samples are a
place
type of promotion
Ways company
Pink ribbon shows
creates value
element of societal
marketing orientation

Reasons for Studying Marketing
Why Study Marketing?
Important Important Good

to to Career
Society Business Opportunities
+
Marketing affects you every day!

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Lamb, Hair, McDaniel ,

Kapoor, Klaise, & Appleby MKTG Canadian Edition

Prepared by Deborah Baker, Texas Christian

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved. 1

LO1 Define the term marketing

Describe four marketing management

LO3 Discuss the differences between sales and

LO4 Describe several reasons for studying

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 2

Define the term

Chapter 1 Copyright ©2010 by Nelson Education Ltd.. All rights reserved 3

A Philosophy A Set of Activities…

Focuses on delivering value and benefits to customers

Marketing is an organizational function and

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 8

 Exchange may not take place even

 An agreement must be reached

 Marketing occurs even if

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 9

are willing to have the

on the pages they use.

SOURCE: Vauhini Vara, “Companies Tolerate Ads to Get Free

Chapter 1 Copyright ©2010 Nelson Education Ltd. All rights reserved 10

Chapter 1 Copyright ©2010 by Nelson Education Ltd.. All rights reserved 11

Production internal capabilities of the firm

aggressive sales techniques and belief

satisfying customer needs and wants

satisfying customer needs and

Marketing The idea that the social and

 Focusing on customer wants and needs to

 Integrating all the organization’s activities to

 Achieving the organization’s long-term goals

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 14

 Examine the information from a total business

 Determine how to deliver superior

 Implement actions to provide value

Societal An organization exists not only

• Less toxic products

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 17

"If I had asked my customers what they

would have said a faster horse."

Chapter 1 Copyright ©2010 Nelson Education Ltd. All rights reserved 18

Chapter 1 Copyright ©2010 by Nelson Education Ltd.. All rights reserved 19

You can compare these orientations against

 Offer products that

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 22

The feeling that a product

 Employee training programs

Growing economy + “War for new talent"

Chapter 1 Copyright ©2010 Nelson Education Ltd. All rights reserved 26

Use “benefits” instead of

 Ensures a customer focus

Sales vs. Market Orientations

Sales Inward Selling Everybody Maximum Primarily

Market Outward Satisfying Specific Customer Coordinated

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 28

Chapter 1 Copyright ©2010 by Nelson Education Ltd.. All rights reserved 29

 Plays an important role in society

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 30

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved

Chapter 1 Copyright ©2010 by Nelson Education Ltd. All rights reserved 32

Why Study Marketing?