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CHAPTER ONE
AN OVERVIEW OF
MARKETING
Prepared by: Jack Gifford,
Miami University (Ohio)
© 2001 South-Western College
Publishing
WHAT IS MARKETING?
•Personal selling?
•Advertising?
•Making products available in stores?
•Maintaining inventories?
It is all the
above, plus
much more!
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WHAT IS MARKETING?
A philosophy plus
An attitude plus
A perspective plus
A management orientation
+
A set of activities,
such as: products &
services, pricing,
promotion, and
distribution
=
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
What do we mean by the exchange process?
Two or more parties
Each party must have something the other party
values
Communications and ability to deliver
Freedom to accept or reject offer
Want to deal with each other
Authority and means to make transaction
Medium of exchange
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Marketing Management Philosophies
Production orientation
Sales orientation
Marketing orientation
Societal orientation
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THE ORGANIZATON’S FOCUS
Customer Value
 Ratio of values/benefits to
necessary sacrifices
 A core business strategy
 Determination of
consumer’s definition and
measurement of value?
 Sacrifices may be
financial, psychological,
sociological, level of
perceived risk, time, etc.
BENEFITS
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SACRIFICES
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THE ORGANIZATION’S FOCUS
Customer value
 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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THE ORGANIZATON’S GOAL
Customer Satisfaction
Hygiene Factors
Satisfiers
“Exceed
customer
expectations”
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Relationship Marketing to
Stakeholders
 Forging long-term
partnerships with customers
 Share of customer vs share of
market concept
 Long-run over short run
Loyalty programs
Frequent flyer programs
But who are these stakeholders?
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WHO ARE THESE STAKEHOLDERS?
Stakeholders are any
person(s) or
organization(s) that
has an interest in the
decisions and actions
of the marketer:
•Shareholders
•Management
•Employees
•Customers
•Supply chain partners
•Communities in which
marketers operate ……
and many others
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TO SUCCEED IN RELATIONSHIP
MARKETING, A MARKETER MUST...
Develop customer-oriented personnel
through…
Training (Disney University)
Empowerment (Federal Express)
Teamwork and team-building skills (Southwest
Airlines )
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DIFFERENCES BETWEEN SALES AND
MARKETING ORIENTATION
What is the
organization's
focus?
What business are
you in?
To whom is the
product directed?
Sales
Orientation
Inward, upon the
organization's
needs
Selling goods and
services
Everybody
Marketing
Orientation
Outward, upon the
wants and
preferences of the
consumers
Satisfying
consumer wants
and needs
Specific groups of
people
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DIFFERENCES BETWEEN SALES AND
MARKETING ORIENTATION
What is your
primary goal?
How do you seek to ?
achieve your goals?
Sales
Orientation
Profit through
maximum sales
volume
Primarily through
intensive promotion
Marketing
Orientation
Profit through
customer
satisfaction
Through
coordinated
marketing activities
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The Marketing Process
A mission statement consistent with the
organization’s mission statement
Set measurable marketing objectives
Environmental Scan (Internal and External)
Marketing strategy (Tgt. Mkt. & marketing mix)
Implementation
Measure performance against objectives
Review and feedack
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THE MARKETING PROCESS
Marketing Strategy
MISSION
Target Market
STATEMENT
Strategy
SETTING
MARKETING
OBJECTIVES
Marketing Mix
[Product,Price,Promotion,
Distribution]
ENVIRONMENTAL
SCAN
Implementation
Evaluation
( S. W. O. T. )
Feedback
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Why study marketing?
 Plays an important role in society
 Marketing is vital to business
survival
 Marketing affects your life every day
 International implications
 Be a more knowledgeable consumer
AND...
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CAREER OPPORTUNITIES !!!
 Between a fourth and a
third of the entire civilian
workforce in the United
States performs
marketing activities, such
as...
•Sales (organizational
or consumer)
•Promotion
(advertising, PR, sales
promotions)
•Research
•Retailing
•Product management
•Logistics
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MARKETING AFFECTS YOUR LIFE
EVERY DAY
 About 50 cents of every dollar you spend pays for
marketing costs.
 By understanding marketing, you will become a betterinformed consumer and citizen.
 You will better understand the buying process and be able
to negotiate more effectively with sellers.
 You will be better prepared to demand satisfaction when
the goods and services you buy do not meet the standards
promised by the marketer.
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ETHICS IN MARKETING
Healthy Versus Healthy Looking?
Is it ethical for Coppertone
to produce low ultraviolet
ray protection products?
 Should the sun-care
industry only market
goods that are healthy for
the consumers, even
though consumers want
less healthy products?
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GLOBAL PERSPECTIVES
 How are some upscale US
catalog retailers
successfully marketing
their products to the
younger generation and
city dwellers in Japan?
 How are these US catalog
retailers creating customer
value?
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JAPAN
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