Marketing: Chapter 1 An overview of Marketing

Marketing

the activity, set of instructions, and processes for creating, communicating, deliverying, and exchanging offerings that have value for customers, clients, partners, and society at large.

Requirements for an exchange

1) There must be at least two parties
2) Each party has something of value to the other party
3) Each party is capable of communication and delivery
4) Each party is free to accept or reject the exchangable offer
5) Each party believes it is appropriate o

Production orientation

a philosophy that focuses on the internal capabilities of the firm, rather than on the desires and needs of the marketplace.
What can we do best? What is easy to produce, given our equipment?
problem: does not consider whether the goods and services that

Sales orientation

based on the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales results in high profits
selling things and collecting money
problem: lack of understanding of the needs of the marketplace
Example:

Marketing concept

the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives What customers think they are buying-the perceived value- defines a business. Distinguishing your

Societal Market Orientation

acknowledging that some products that their customers want may not really be in their best interests or the best interests of society as a whole.
Whether or not to pollute a river

Customer value

relationship between benefits and the sacrifice necessary to obtain those benefits.
Price vs. Quality

Customer satisfaction

customers' evaluation of a good or service in terms of whether that good or service has met their needs and expectations

Relationship marketing

a strategy that focuses on keeping and improving relationships with current customers.
assumes that many consumers and business customers prefer to have an ongoing relationship with one organization rather than switch continually among providers in their

Empowerment

Market-oriented firms giving employees more authority to solve customer problems on the spot.
promotes hard work and self evaluation

Teamwork

entails collaborative efforts of people to accomplish common objectives
improves job performance, company performance, product value, and customer satisfaction

Dynamic Environment

Text definition: the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value
Customer is the center of marketing
The economy affects all aspects of marketing

The marketing mix

Production
Pricing
Distribution
Promotion
The firm uses the marketing mix to help control the needs of customers within a target market
Customer has more control over marketing mix

The orientations

� Product: late 19th century, efficient production of goods allowed goods to meet demand. "if you build it they will come". Internal capabilities rather than customer needs. PORCHE.
� Sales: mid 20's-mid 50's. weak demand required products that would have

Internal marketing

employees and employee development through training recruitment, communication and administration are critical to the marketing success of the organization.
� Claudia from Conoco was a bad example of internal marketing

Value driven marketing

� A customer's subjective assessment of benefits relative to the costs in determining the worth of a product
� Customer value = customer benefits - customer costs
� Customer benefits - anything desired by the customer that is received in an exchange
� Cus

4 P's

promotion
place
product
price

target market

group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges.