MKTG 301 1st Edition Lecture 1 Current Lecture Marketing is 1 A philosophy an attitude a perspective or management orientation that stresses customer satisfaction 2 An organizational activity set of institutions and processes 3 Entails processes that focus on delivering value 4 Exchange a seller or buyer trade hands 1 Exchange may NOT take place even if conditions are met 2 An agreement must be reached 3 Marketing OCCURS even if exchange did not take place 5 The Four Marketing Management Philosophies 1 Orientation Focus is on INTERNALLY 2 Production internal capabilities of the firm 3 Sales aggressive sales techniques and belief that high sales result in high profits 4 Market satisfying customer needs and wants while meeting objectives 5 Societal satisfying customer needs and wants while enhancing individual and societal well being 6 Marketing Concept REALLY IMPORTANT TESTABLE 1 Focusing on customer wants and needs to be distinguish products from competitors offerings 2 Integrating all the organization s activities to satisfy these wants 3 Achieving the organization s long term goals by satisfying customer wants and needs legally and responsibly 1 THE TOTAL SOCIAL AND ECONOMIC JUSTIFICATION FOR OUR FIRM S EXISTENCE IS TO MEET WANTS AND NEEDS OF CUSTOMERS WHILE SATISFYING ORGANIZATIONAL OBJECTIVES 7 Societal marketing orientation 1 An organization exists not only to satisfy customer wants but also to preserve or enhance individuals and society s long term set interests 2 For example Less toxic products more durable products 8 Who s in Charge 1 The customer ex power of social media 9 Relationship Marketing 1 Strategy that focuses on keeping and improving relationships w customers 2 Successful strategies need 1 Customer oriented personnel 2 Effective training programs 3 Empowered employees 4 Teamwork 3 Sales vs Market Orientation Chart works as a guide 10 Characteristics of Strategic Business Units SBUs 1 A distinct mission and specific target market 2 Control over its resources 3 Its own competitors 4 A single business or a collection of related businesses 5 Plans independent of other SBUs 11 Ansoff s Opportunity Matrix Chart 1 Market penetration Increase market share among existing customers 2 Market development attract new customers to existing products 3 Product development create new products for present markets 4 Diversification introduce new products into new markets