Rachel Lissak BMGT350 D Whitney Fall 2011 Ch 1 1 1 1 What Is Marketing Two sides customer satisfaction 1 A philosophy attitude perspective or management orientation that stresses 2 An organization function that uses different processes to implement the philosophy Marketing defined by the AMA 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 One desired outcome of marketing is an exchange o Exchange people giving one thing up for something they would prefer o An exchange can only take place if one of five conditions occur 1 2 3 4 5 There must be at least two parties Each party has some that might be of value to the other one Each party is capable of communication and delivery Each party is free to accept or reject the exchanging offer Each party believes it is appropriate or desirable to deal with the other party 1 2 Marketing Management Philosophies Product Orientation o Focuses on the internal needs of the firm not the needs of the marketplace o Management assesses its resources and asks What can we do best What can our engineers design What is easy to produce given our equipment o Known as the Field of Dreams Orientation if we build it they will come The furniture industry has been known to follow this consider whether the goods services will meet the needs of the market o Likely to Survive Succeed when there is little competition or the demand is higher o Doesn t place than the supply Sales Orientation o Uses aggressive sales techniques to get people to buy products and services believes that high sales result in high profits consider the wants and needs of the marketplace o Doesn t Market Orientation o Perceived Value what a customer thinks they are buying defines a business This is more important than what the company thinks they are producing o The marketing concept includes Focusing on customer s wants and needs in order to distinguish their products from competitors Integrating their activities including production in order to satisfy these wants Achieving long term goals by satisfying the wants and needs of their customers legally and responsibly o Market Orientation involves Obtaining information about customers competitors and markets Rachel Lissak BMGT350 D Whitney Fall 2011 Ch 1 2 Examining the information from a total business perspective Determining how to deliver superior customer value Implementing actions to provide value to customers Societal Marketing Orientation o Some products that customers may want may not be best for them or for society especially the environment o This philosophy states that an organization exists to preserve or enhance individuals and society s long term best interest in addition to their other objectives An example would be marketing products and containers that are less harmful to the environment 1 3 Difference Between Sales and Market Orientations The Organization s Focus Personnel in sales oriented firms tend to be more inward looking a Focus on selling what the organization makes rather than what the market wants o Customer Value benefit Customer Value what the customer is willing to sacrifice for a certain Customers are looking for goods and services that are of quality they expect and prices they are willing to pay a A high quality product at a high price won t be perceived as a good b A low quality product at a low price won t be perceived as a good value value Lower income consumers are price sensitive but they will pay for things that they think are worth the money Markets interested in customer value a Offer products that perform b Earn trust c Avoid unrealistic pricing d Give the buyer facts e Offer organization wide commitment in service and after sales support f Co creation between the organization and customer o Customer Satisfaction a customer s needs Customer Satisfaction evaluation of whether a good or service has satisfied a Comcast Dish Network and Sprint Nextel are examples of companies who have lost the balance between efficiency and service When an organization has a reputation for delivering high levels of customer satisfaction the culture of the organization is focused on satisfying customers rather than selling products o Building Relationships a Companies can expand market share in three ways i Attracting new customers ii Increasing business with existing customers Rachel Lissak BMGT350 D Whitney Fall 2011 Ch 1 3 ways Relationship Marketing current customers iii Retaining current customers b Building relationships with customers touches on all three of these a Strategy that focuses on keeping and improving relationships with b Assume that many consumers and companies would rather maintain an ongoing relationship than continually switch organizations c Most successful relationship marketing strategies depend on customer oriented personnel effective training programs employees with authority to make decisions and solve problems and teamwork Customer Oriented Personnel a An employee may be the only contact a customer has with the firm in the customer s eyes the employee is the firm The Role of Training Empowerment a Many firms are empowering employees which makes them more likely to work hard and care about the success of the company b Empowerment gives whomever a customer speaks to about a problem the authority to solve it quickly without approval i Gives customers the feeling that their concerns are being addressed and gives employees the feeling that their expertise matters Teamwork common objectives a Teamwork entails collaborative efforts of people to accomplish b When people in the same department or workgroup begin emphasizing cooperation instead of competition job company performance product value and customer satisfaction all improve i It is also enhanced when cross functional teams align their jobs with customer needs The Firm s Business o Sales Oriented firm defines its business or mission in terms of goods and services Misses opportunities to serve customers whose wants and needs can be met through a wide range of products instead of just specific products o Market Oriented firm defines its business in terms of the benefits that its customers are looking for Doesn t mean offering customers everything they want Consumers have a limited set of experiences and they are unlikely to request anything beyond them because they are unaware of their benefits Those to Whom the Product
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