Learning Outcomes
    1-1   Define the term marketing
    1-2   Describe four marketing management 
    philosophies
    1-3   Discuss the differences between sales and 
    market orientations
    1-4   Describe several reasons for studying marketing
                          © 2019 Cengage. All rights reserved.
                      What is Marketing?
                                  (slide 1 of 2)
     •   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
        – American Marketing Association (AMA)’s definition
     •   Has two facets
        – It is a philosophy, an attitude, a perspective, or a 
            management orientation that stresses customer 
            satisfaction
        – It is an organization function and a set of processes used 
            to implement this philosophy
                                 © 2019 Cengage. All rights reserved.
                    What is Marketing?
                              (slide 2 of 2)
    •   Exchange: people giving up something in order to 
        receive something else they would rather have
    •   Conditions for an exchange:
        – At least two parties must be involved
        – Something of value must be present
        – Parties are capable of communication and delivery
        – Each party is free to accept or reject the offer
        – Desire to deal with the other party exists
                              © 2019 Cengage. All rights reserved.
     Marketing Management Philosophies
    •  Four competing philosophies strongly influence an 
       organization’s marketing processes
        – Production orientation
        – Sales orientation
        – Market orientation
        – Societal marketing orientation
                               © 2019 Cengage. All rights reserved.
                  Production Orientation
    •  Production orientation: a philosophy that focuses 
       on the internal capabilities of the firm rather than on 
       the desires and needs of the marketplace
        – Management assesses its resources and asks questions 
           regarding their strengths and capabilities
        – Does not consider if the goods and services produced by 
           the firm meets the needs of the marketplace
        – Product-oriented firms can survive if competition is weak or 
           demand exceeds supply
    •  What can we make or do best?
                                © 2019 Cengage. All rights reserved.