Chapter 1 Slides

Why is the study of marketing relevant to our global economy?
-Marketing costs consume a sizeable portion of buyers’ dollars.
-Marketing is used in nonprofit organizations
-Marketing is important to business and economy
-Marketing fuels our global economy
The World Wildlife Fund supporting the protection of endangered species is an example of what?
Nonprofit
Importance of Marketing
-Marketing knowledge enhances consumer awareness
-Marketing connects people through technology
-Socially responsible marketing can promote the welfare of customers and society
-Marketing offers many exciting career prospects
Examples of leading internet activites
Using e-mail, using a search engine, getting news, getting travel info, etc.
Marketing
The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange, relationships with customers, and develop and maintain favorable relationships with stake holders in a dynamic environment.
Customers
The purchasers of an organizations’ products; the focal point of all marketing activities.
Exchange
The provision or transfer of goods, services, or ideas in return for something of value.
The evolution of the Marketing Concept
Production Orientation, Sales Orientation, and Market Orientation
Production Orientation
1850s-1900s The Industrial Revolution occurred, mass production, and rigidly structured jobs. Demand > Supply, caveat emptor, and profit was gained by mass production.
Sales Orientation
1900s-1950s Focus on personal selling and advertising, sales viewed as major means of increasing profits. Demand = Supply, Sales Rep > Customer, profit was gained by sale pushing.
Market Orientation
1950s-2000s Customer orientation, companies determined needs and wants of customers. Demand > Supply, Sales Rep <> Customers, profit was gained by customer satisfaction, caveat vendor.
The Marketing Concept
A philosophy that an organization should try to provide products that satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals.
Relationship Marketing
Establishing long-term, mutually satisfying buyer-seller relationships.
Value-Driven Marketing
A customer’s subjective assessment of benefits relative to costs in determining the worth of a product. Value= Customer benefits-Customer Costs
Market Segmentation
The process of dividing a total market into market segments or groups consisting of people who have relatively similar product needs.
Target Markets
A specific group of customers on whom an organization focuses its marketing efforts.
Marketing Strategy
Select a target market then develop using the marketing mix.
Marketing Mix
Four marketing activities- product, distribution, promotion, and pricing- that a firm can control to meet the needs of customers within its target markets.
4 P’s of Marketing Mix
Product- goods, services, or ideas that satisfy customer needs
Distribution- the ready, convenient, and timely availability of products
Promotion- activities that inform customers about the organization and its products
Pricing- decisions and actions that establish pricing objectives and policies and set product prices (it determines the value of the exchange)
Product Variable
Goods, Services, and Ideas