Chapter 1 Marketing two facets customer satisfaction philosophy An attitude a perspective or a management orientation that stresses Organization function and a set of processes that used to implement this o Exchange people giving up something in order to receive something they would rather have At least two parties Each party has something that might be of value Each party is capable of communication and delivery Each party is free to accept or reject the exchange offer Each party believes it is appropriate to deal with other Four Management Marketing Philosophies party Production Orientation focuses on internal capabilities of firm rather than on desires and needs of market place o What can we do best o Field of dreams orientation o If competition is weak and demand exceeds supply production orientated firm can survive Sales Orientation people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits o Sales to final buyer are emphasized intermediaries are encouraged to push more aggressively o Problem lack of understanding of needs and wants of marketplace Marketing Orientation Assumes that a sale does not depend on an aggressive sales force but rather on a customer s decision to purchase a product o Marketing Concept Social economic justification for an organizations existence is that satisfaction of customer wants and needs while meeting organizational objectives o Recipe for success is to develop a thorough understanding of customers and competition Societal Marketing Orientation extends the marketing concept by acknowledging that some products that customers want may not really be in their best interests or interests of society as a whole o Preserve and enhance individuals and society s best interests o The sale of ethical and environmentally friendly products Difference Between Sales and Market Orientations Organization s Focus o Personnel in sales oriented firms are inward looking focusing on selling what the organization makes rather than making what market wants Customer Value relationship between benefits and sacrifice necessary to obtain benefits Offer products that perform Earn Trust Avoid Unrealistic pricing Give buyer facts Offer organization wide commitment Co creation with customers Customer Satisfaction the customers evaluation of a good or service in terms of whether that good or service has met their needs and expectations Relationship Marketing focuses on keeping and improving relationships with customers Successful Strategies Customer oriented personnel employee attitudes are customer oriented Effective training programs Empowerment solve customer problems on Teamwork emphasize cooperation over the spot competition The Firm s Business Sales Oriented firm defines business in terms of goods and services o Inward Focus o Selling Goods and Services o For Everybody o Primary goal maximum sales volume o Tools to achieve primarily promotion Market Orientation Benefits that customer s seek o Outward Focus o Satisfying wants and needs o For Specific groups of people o Primary Goal is customer satisfaction o Tools to achieve coordinated use of all marketing activities Why Study Marketing Important Role in Society Marketing makes products available to an entire population at accessible locations large quantities and sanitary and convenient forms Marketing is Important to Business o Assesses the wants and satisfactions of present and potential customers o Designing and managing product offerings o Determining prices and pricing policies o Developing distribution strategies o Communicating with present and potential customers Outstanding Career opportunities Marketing in Everyday life
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