CH1 - LHM_ch01_02-13.qxp 7:57 AM Page 2 CHAPTER 1 An...

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1 C H A P T E R An Overview Marketing of Learning Outcomes LO 1 Define the term marketing LO 2 Describe four marketing management philosophies LO 3 Discuss the differences between sales and market orientations LO 4 Describe several reasons for studying marketing LHM_ch01_02-13.qxp 1/2/07 7:57 AM Page 2
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What Is Marketing? What does the term marketing mean to you? Many people think it means the same as personal selling. Others think marketing is the same as personal selling and advertising. Still others believe marketing has something to do with making products available in stores, arranging displays, and main- taining inventories of products for future sales. Actually, mar- keting includes all of these activities and more. 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. This is the marketing process. The American Marketing Association’s definition encom- passes both perspectives: “ Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake- holders. 1 Marketing involves more than just activities performed by a group of people in a defined 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 market- ing department.” Marketing is a process that focuses on delivering value and benefits to cus- tomers, not just selling goods, services, and/or ideas. Marketing uses communica- tion, distribution, and pricing strategies to provide customers and other stakeholders with the goods, services, ideas, values, and benefits they desire when and where they want them. It involves building long-term, mutually rewarding rela- tionships when these benefit all parties concerned. Marketing also entails an under- standing that organizations have many connected stakeholder “partners,” including employees, suppliers, stockholders, distrib- utors, and others. When an organization creates a high level of employee satis- faction, this leads to greater effort, which leads to higher-quality goods and services, which lead to more repeat business, which leads to higher growth and profits, which lead to higher stock- holder satisfaction, which leads to more investment, and so on. 2 The motto of Wegmans Food Markets, the Rochester-based grocery chain ranked by Fortune magazine as the best company to work for in America, states, “Employees first, customers second.” The rationale is that if employees are happy, customers will be too.
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