Chapter 1 What is Marketing Two facets 09 24 2014 o Philosophy attitude perspective or a management orientation that stresses customer satisfaction o Organization function and a set of processes used to implement this philosophy Marketing 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 Exchange one desired outcome of marketing people giving up something in order to receive something else they would rather have o Can only take place if the following five conditions exist 1 There must be at least two parties 2 Each party has something that might be of value to the other party offer 3 Each party is capable of communication and delivery 4 Each party is free to accept or reject the exchange 5 Each party believes it is appropriate or desirable to Product Orientation a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace o Falls short because it does not consider whether the goods and services that the firm produces most efficiently also meet the needs of the marketplace Sales Orientation based on the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits o Not only are sales to the final buyer emphasized but intermediaries are also encouraged to push manufacturers products more aggressively o Problem is a lack of understanding of the needs and wants of the marketplace Marketing Management Philosophies deal with the other party Marketing Concept the idea that the social and economic justification for an organization s existence is the satisfaction of customer wants and needs while meeting organizational objectives o Includes Focusing on customer wants and needs so that the organization can distinguish its product s from competitors offering Integrating all the organization s activities including production to satisfy customer wants Achieving long term goals for the organization by satisfying customer wants and needs legally and responsibly Market Oriented assume that a sale does not depend on an aggressive sales force but rather on a customer s decision to purchase a product o Firms that adapt the marketing concept do this Social Marketing Orientation an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals and society s long term best interests Differences Between Sales and Market Orientations The Organization s Focus o Customer Value the relationship between benefits and the sacrifice necessary to obtain those benefits Marketers interested in customer value Offer products that perform Earn trust Avoid unrealistic pricing Give the buyer facts Offer organization wide commitment in service and after sales support Cocreation companies allow customers to create their own experience customizing o Customer Satisfaction customers evaluation of a good or service in terms of whether that good or service has met their needs and expectations o Relationship Marketing strategy that focuses on keeping and improving relationships with current customers Assumes that many consumers and business customers prefer to have an ongoing relationship with one organization rather than switch continually among providers in search for value o Customer oriented personnel focus on building relationships with customers by having attitudes and actions that are customer oriented Come from an organizational culture that supports its people spot o Empowerment delegation of authority to solve customers problems quickly usually by the first person the customer notifies regarding a problem Allows employees to solve customer problems on the o Teamwork collaborative efforts of people to accomplish common objectives The Firm s Business o In terms of the benefits customers seek instead of goods and services offer at least three important advantages It ensures that the firm keeps focusing on customers and avoids becoming preoccupied with goods services or the organization s internal needs It encourages innovation and creativity by reminding people that there are many ways to satisfy customer wants It stimulates and awareness of changes in customer desires and preferences so that product offerings are more likely to remain relevant Those to Whom the Product is Directed o Customer Relationship Management CRM a company wide business strategy designed to optimize profitability revenue and customer satisfaction by focusing on highly defined and precise customer groups Accomplished by organizing the company around customer segments establishing and tracking customer interactions with the company fostering customer satisfying behaviors and linking all processes of the company from its customers through its suppliers The Firm s Primary Goal o Sales oriented seek to achieve profitability through sales volume and tries to convince potential customers to buy even if the seller knows that the customer and product are mismatched Higher premium on making a sale than retaining customers o Market oriented goal is to make a profit by creating customer value providing customer satisfaction and building long term relationships with customers Tools the Organization Uses to Achieve its Goals o Sales oriented use primarily promotional activities o Market oriented recognize that promotion decisions are only one of four basic marketing mix decisions that must be made Product decisions Place distribution decisions Promotion decisions Pricing decisions Why Study Marketing Important role in society Important to businesses Offers outstanding career opportunities Plays a major role in everyday life Chapter 3 Determinants of a Civil Society Six modes of social control 09 24 2014 o 1 Ethics the moral principles or values that generally govern the conduct of an individual or a group o 2 Laws Often ethical rules and guidelines are codified into law and enforced by governments o 3 Formal and Informal Groups Have codes of conduct o 4 Self Regulation Voluntary acceptance of standards established by nongovernmental entities o 5 The Media Plays a key role in informing the public about the actions of individuals and organizations both good and bad o 6 An Active Civil Society An informed and engaged society can help mold individual and corporate behavior o Deontological Theory states that people
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