1 An Overview of Marketing
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Define the term marketing 3–4 Describe four marketing management philosophies 4–7 Discuss the differences between sales and market orientations 7–12 Describe several reasons for studying marketing 12–13
“Marketing is too important to be left only to the marketing department.”
A FTER YO U FIN IS H T HIS C H A PTE R , G O TO
What Is Marketing?
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What does the term marketing mean to you? Many people think it marketing the means the same as personal selling. Others think marketing is the activity, set of institutions, and processes for creating, same as advertising. Still others believe marketing has something communicating, delivering, and to do with making products available in stores, arranging displays, exchanging o erings that have and maintaining inventories of products for future sales. Actually, value for customers, clients, marketing includes all of these activities and more. partners, and society at large Marketing has two facets. First, it is a philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction. Second, marketing is an organization function and a set of processes used to implement this philosophy. The American Marketing Association’s de nition of marketing focuses on the second facet. 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.1 Marketing involves more than just activities performed by a group of people in a de ned area or department. In the often-quoted words of David Packard, co-founder of Hewlett-Packard, “Marketing is too important to be left only to the marketing department.” Marketing entails processes that focus on delivering value and bene ts to customers, not just selling goods, services, and/or ideas. It uses communication, distribution, and pricing strategies to provide customers and other stakeholders with the goods, services, ideas, values, and bene ts they desire when and where they want them. It involves building long-term, mutually rewarding relationships when these bene t all parties concerned. Marketing also entails
What do you think?
Marketing is selling.
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S T R O N G LY D I S A G R E E S T R O N G LY A G R E E
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Employees as Competitive Adv antage customer service
Rewarding employees for outstanding job performance (sales, meeting development goals, etc.) reinforces positive behaviors, such as , and maintains employee (and by extension, customer) satisfaction. Recognizing an individual doesn’t have to cost a fortune. For example, trusting an outstand-
an understanding that organizations have many connected stakeholder “partners,” including employees, suppliers, stockholders, distributors, and others. Research shows that companies that reward employees with incentives and recognition on a consistent basis are those that perform best.2 Home Depot CEO Frank Blake rejects the notion that you should pay employees as little as you can and get as much work out of them as possible. In fact, The Home Depot believes that its employees are its biggest competitive advantage, listing “taking care of our people” as the rst value on the company Web site.3 One desired outcome of marketing is an exchange; people giving up something in order to receive something they would rather have. Normally, we think of money as the medium of exchange. We “give up” money to “get” the goods and services we want. Exchange does not require money, however. Two people may barter or trade such items as baseball