Marketing: An Overview of

Lamb, Sharma, Hair,
McDaniel
CHAPTER 1
An Overview of Marketing
What Is Marketing?
Define the term

marketing
Marketing…
• Two Facets:
1. A philosophy, an attitude, a
perspective, or a management
orientation that stresses customer
satisfaction.
2. An organizational activity, set of
institutions, and processes used to
implement this philosophy.
What Is Marketing?
American Marketing Association 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.
What Is Marketing?
Marketing entails
processes that focus on
delivering value and
benefits to customers, not
just selling goods and
services.
Exchange
At
AtLeast
LeastTwo
TwoParties
Parties
Something
Somethingof
ofValue
Value
Conditions
Conditionsfor
for Communication
Communicationand
andDelivery
Delivery
Exchange
Exchange
Freedom
Freedomto
toAccept
Acceptor
orReject
Reject
Desire
Desireto
toDeal
Dealwith
withOther
Other
Party
Party
Exchange
• Exchange may not take place even if
conditions are met.
• An agreement must be reached.
• Marketing occurs even if exchange

does not take place.
Marketing Management
Philosophies
Describe four
marketing
management
philosophies
The Four Marketing
Management Philosophies
Orientation Focus is on…
Production internal capabilities of the firm
aggressive sales techniques and belief

Sales that high sales result in high profits
satisfying customer needs and wants

Market while meeting objectives
satisfying customer needs and

Societal wants while enhancing individual and
societal well-being
Production Orientation
• Field of Dreams 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 to buy goods
or services that are neither wanted nor needed.
Market Orientation
Marketing Concept
 Focusing on customer wants and needs to
distinguish products from competitors’ offerings
 Integrating all the organization’s activities to satisfy

these wants
 Achieving the organization’s long-term goals by

satisfying customer wants and needs legally and
responsibly
Achieving a Marketing
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
interests.
For example:
• Less toxic products
• More durable products
• Products with reusable or recyclable
materials
Questions That Help Determine
Marketing Philosophy
Orientation Focus
Production
Production What
Whatcan
canwe
wemake
makeor
ordo
dobest?
best?
How
Howcan
canwe
wesell
sellmore
more
Sales
Sales aggressively?
aggressively?
Marketing What
Whatdo
docustomers
customers
Marketing want
wantand
andneed?
need?
Societal What
Whatdo
docustomers
customerswant/need,
want/need,andand
Societal how
howcan
canwe
webenefit
benefitsociety?
society?
Differences between Sales and
Market Orientations
Discuss the
differences
between sales
and market
orientations
Comparing the Sales and
Market Orientations
Compare through 5 characteristics:
• Organization’s focus
• Firm’s business
• Those to whom the product is directed
• Firm’s primary goal
• Tools the organization uses to achieve its
goals
The Organization’s Focus
Sales Orientation
Inward looking
What the firm makes
Market Orientation
Outward looking
What the market wants
Customer Value
The relationship between benefits and the sacrifice necessary

to obtain those benefits.
• Customers value goods and services that are of the quality

they expect and that are sold at prices they are willing to
pay.
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
Customer Satisfaction is…

the customers’ evaluation of a
good or service in terms of
whether that good or service
has met their needs and
expectations.
Building Relationships
Relationship Marketing is…
a strategy that focuses on keeping and
improving relationships with customers.
Successful strategies need:

• Customer-Oriented Personnel
• Effective Training Programs
• Empowered Employees
• Teamwork
Building Relationships
 Customer-oriented personnel
Every employee represents the firm in the eyes
of the customer.
 Employee training programs
 Empowered employees
Employees are given more authority to solve
customer problems on the spot.
 Teamwork
Emphasizing cooperation over competition while
helping a customer.
Defining a Firm’s Business
Sales Orientation
Goods and services
Market Orientation
Benefits that customers
seek
 Ensures a customer focus
 Encourages innovation and creativity
 Stimulates an awareness of changes in customer
preferences
Those to Whom the
Product Is Directed
• 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.
• on-demand marketing delivering relevant experiences, integrated across both physical and
virtual environments, throughout the consumer’s decision and buying process.
• The Firm’s Primary Goal

• Tools the Organization Uses to Achieve Its Goals
Sales vs. Market
Orientations
Primary
Organization’s Firm’s For Profit Tools to
Focus Business Whom? Goal? Achieve
Sales Inward Selling Everybody Maximum Primarily

Orientation goods and sales promotion
services volume
Market Outward Satisfying Specific Customer Coordinated

Orientation wants and groups of satisfaction use of all
needs people marketing
activities
Why Study Marketing
Describe several
reasons for studying
marketing
Why
Why Study
Study Marketing?
Marketing?
Reasons for Studying Marketing
Important
Important Important
Important
to
to to
to
Society
Society Business
Business
Good
Good Role
Roleinin
Career
Career Everyday
Everyday
Opportunities
Opportunities Life
Life
+
Marketing affects you every day!

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Lamb, Sharma, Hair,

Define the term

Marketing is the activity, set of institutions,

• An agreement must be reached.

• Marketing occurs even if exchange

Production internal capabilities of the firm

aggressive sales techniques and belief

satisfying customer needs and wants

satisfying customer needs and

 Integrating all the organization’s activities to satisfy

 Achieving the organization’s long-term goals by

The relationship between benefits and the sacrifice necessary

• Customers value goods and services that are of the quality

Customer Satisfaction is…

Successful strategies need:

• The Firm’s Primary Goal

Sales Inward Selling Everybody Maximum Primarily

Market Outward Satisfying Specific Customer Coordinated

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