BMGT350 Introduction to Marketing Andy MacLeod Chapter 1 Introduction to Marketing Marketing Two Facets A philosophy an attitude a perspective or a management orientation that stresses customer satisfaction An organizational activity set of institutions and processes American Marketing Association AMA 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 Four Marketing Management Philosophies Production Internal capabilities of the firm Sales Aggressive sales techniques and belief that high sales result Market Satisfying customer needs and wants while meeting in high profits objectives Societal Satisfying customer needs and wants while enhancing individual and societal well being Production Orientation If you build it they will come Doesn t consider if what is produced meets market needs Sales Orientation Marketing Selling Things Collecting Money Disregards market needs and consumer demand Often find that despite the quality of their sales force they cannot convince people buy goods or services that neither wanted or needed Marketing Orientation Focusing on customer wants and needs to distinguish products from competitors offering Integrating all the organization s activities to satisfy these wants Achieving the organization s long term goals by satisfying wants and needs legally and responsibly How to Achieve a Market 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 Societal Marketing Orientation An organization exists not only to satisfy customer wants but also to preserve or enhance individuals and society s long term best o Examples Less toxic products more durable products products with reusable or recyclable materials The relationship between benefits and the sacrifice necessary to interests Customer Value obtain those benefits Customer Value Requirements Offer products that perform Earn trust Avoid unrealistic pricing Give the buyer facts Offer organization wide commitment in service and after sales support 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 customers A strategy that focuses on keeping and improving relationships with Chapter 2 Strategic Planning for Competitive Advantages Strategic Planning The managerial process of creating and maintaining a fit between the organization s objectives and resources and the evolving market opportunities Defining the Business Mission The goal of strategic planning is long term profitability and growth Answers the question What business are we in Focuses on the market rather than the good or service Strategic Business Units SBUs may also have a mission statement SWOT Analysis Strengths Things the company does well Weaknesses Things the company does not do well Opportunities Conditions in the external environment that favor strengths Threats Conditions in the external environment that do not relate to existing strengths or favor areas of current weaknesses 01 30 2012 01 30 2012
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