Chapter 1: INTRODUCTION

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 Lear ning Outcomes

LO1 Define the term marketing

LO2 Describe marketing management philosophies

Define the marketing mix

LO3

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What is Marketing?

LO1
Define the term
marketing

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 What is Marketing?
A Set of Activities
A Philosophy
Products
An Attitude
Distribution
A Perspective
Promotion
A Management
Orientation Pricing

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 What is Marketing?

American Marketing Association

Definition

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.

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Understanding the Marketplace
and Customer Needs

Core Concepts
Customer needs, wants, and
demands
Market offerings
Value and satisfaction
Exchanges and relationships
Markets
Understanding the Marketplace
and Customer Needs
States of deprivation

Needs Physicalfood, clothing, warmth, safety

Socialbelonging and affection
Individualknowledge and self-expression

Wants Form that needs take as they are shaped by culture and
individual personality

Demands Wants backed by buying power

 What is Marketing?
More
investment
Stockholder
satisfaction
Growth and
profits
Repeat
business
Higher
quality
Employee Greater
satisfaction effort

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Exchange

Exchange

People giving up something

to receive something they
would rather have.

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 Exchange

At Least Two Parties

Something of Value

Conditions for
Communication and Delivery
Exchange

Freedom to Accept or Reject

Desire to Deal with Other Party

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 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

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LO1 Review Learning Outcome
What is Marketing?
Creating
Customer value
Value
and beneficial
relationships

Exchange
A B

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Marketing Management
Philosophies

LO2
Describe four marketing
management philosophies

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Marketing Management
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 while

Market meeting objectives

satisfying customer needs and

Societal wants while enhancing individual and
societal well-being

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Market Orientation

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 to distinguish

products from competitors offerings

Integrating all the organizations activities to satisfy these

wants

Achieving the organizations long-term goals by satisfying

customer wants and needs legally and responsibly

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Achieving a Marketing 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

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 Societal Marketing
An organization exists not
only to satisfy customer
wants but also to preserve
or enhance individuals and
societys long-term best
Societal
Marketing interests.
Orientation
Less toxic products
More durable products
Products with reusable
or recyclable materials

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LO2 Review Learning Outcome
The Four Marketing Management Philosophies

Orientation Focus

Production What can we make or do best?

Sales How can we sell more aggressively?

Marketing What do customers

want and need?

Societal What do customers want and need, and

how can we benefit society?

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MARKETING MIX

LO3
Define the marketing mix

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DEFINITION OF MARKETING
MIX

The marketing mix is the set of

tools (four Ps) the firm uses to
implement its marketing strategy.
It includes product, price,
promotion, and place.

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PRODUCT
Product is anything that can be
offered in a market for attention,
acquisition, use, or consumption
that might satisfy a need or want
Experiences represent what
buying the product or service
will do for the customer

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 PLACE

A set of
interdependent organizations
that ease the transfer of
ownership as products move
from producer to business
user or consumer.

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PRICING

Price is the amount of

money charged for a
product or service. It is
the sum of all the values
that consumers give up
in order to gain the
benefits of having or
using a product or
service.

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PROMOTION

The promotion mix is the

specific blend of
advertising, public
relations, personal selling,
and direct-marketing tools
that the company uses to
persuasively communicate
customer value and build
customer relationships

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