Marketing has 2 facets.
First it is a philosophy, an attitude, a perspective or a management orientation. Second, marketing is an organization function and a set of processes used to implement this philosophy.
American Marketing Association Definition of Marketing
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
What does marketing entail?
Marketing entails processes that focus on delivering value and benefits to customers not just selling goods, services, and/or ideas. It uses communication, distribution, and pricing strategies to provide customers and stakeholders w/ the goods, services,
What is one desired outcome of marketing?
Exchange.
What is an exchange?
people giving up something, in order to recieve something they would rather have.
An exchange can take place only if the following 5 conditions exist
1) there must be at least 2 parties.
2) Each party has something that might be 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 exchange offer.
5) Each party believes it is
Marketing Management Philosophies
4 Competing philosophies strongly influence an organizations marketing processes. These philosophies are commonly referred to as production, sales, market and societal marketing orientation.
Production Orientation
a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.
Why does a Production Orientation fall short?
A production orientation falls short because it doesn't consider whether the goods and services that the firm produces most efficiently also meet the needs of the marketplace.
Sales Orientation
based on the idea that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits.
What is the fundamental problem with the sales orientation?
a lack of understanding of the needs and wants of the marketplace.
Market Orientation
1)A simple and intuitively appealing philisophy that articulates a marketing concept.
2)A philosophy that assumes that a sale doesn't depend on an aggressive sales force but rather on a customer's decision to purchase a product.
Marketing Concept
The idea that social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives.
Societal Marketing Orientation
the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.
Customer Value
The relationship between benefits and the sacrifice necessary to obtain those benefits.
Customer Satisfaction
customers' evaluation of a good or service in terms of whether it has met their needs and expectations.
Relationship Marketing
a strategy that focuses on keeping and improving relationships with current customers.
Empowerment
delegation of authority to solve customers' problems quickly- usually by the first person the customer notifies regarding a problem.
Teamwork
collaborative efforts of people to accomplish common objectives.
Why study marketing?
1) Important to society.
2) Important to business.
3) Good career opportunities.
5) Marketing affects you every day.
marketing
the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large.
exchange
people giving up something in order to receive something they would rather have.