OB

  • Organizational Behavior (OB): The study of how people interact within groups and organizations, focusing on improving organizational effectiveness and individual performance.  

    MARKETING--WHAT'S IT ALL ABOUT?

    ·      Marketing is more than selling or advertising

    ·      How did all those bicycles get here?  

    PRODUCTION--actually making goods or performing services.

    CUSTOMER SATISFACTION--the extent to which a firm fulfills a consumer's needs, desires, and expectations.

     

    MARKETING IS IMPORTANT TO YOU

    ·      Marketing is important to every consumer 

    ·      Marketing will be important to your job 

    ·      A marketing approach can help you get your next job 

    ·      Marketing affects innovation and standard of living 

    INNOVATION--the development and spread of new ideas, goods, and services.

     

    HOW SHOULD WE DEFINE MARKETING?

    ·      There are micro and macro views of marketing

    ·      Marketing defined

    MARKETING--the performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client.

    ·      Applies to profit and nonprofit organizations

    ·      More than just persuading customers

    ·      Begins with customer needs

    ·      Does not do it alone

    ·      Marketing involves exchanges

    PURE SUBSISTENCE ECONOMY—each family unit produces everything it consumes.

    ·      Builds a relationship with the customer

    ·      The focus of this text—management-oriented micro-marketing

     

    LO 1.2: Understand the difference between marketing and macro-marketing.

     

    MACRO-MARKETING

    ·      Separation between producers and consumers

     (Exhibit 1-1) "Marketing Facilitates Production and Consumption"

    ECONOMIES OF SCALE--as a company produces larger numbers of a particular product, the cost of each unit of the product goes down.

     

    LO 1.3: Know the marketing functions and why marketing specialists—including intermediaries and collaborators—develop to perform them.

     

    ·      Marketing functions help narrow the gap

    UNIVERSAL FUNCTIONS OF MARKETING--buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information.

    BUYING FUNCTION--looking for and evaluating goods and services.

    SELLING FUNCTION--promoting the product.

    TRANSPORTING FUNCTION--the movement of goods from one place to another.

    STORING FUNCTION--holding goods until customers need them.

    STANDARDIZATION AND GRADING--sorting products according to size and quality.

    FINANCING--provides the necessary cash and credit to produce, transport, store, promote, sell, and buy products.

    RISK TAKING--bearing the uncertainties that are part of the marketing process.

    MARKET INFORMATION FUNCTION--the collection, analysis, and distribution of all the information needed to plan, carry out, and control marketing activities.

    ·      Producers, consumers, and marketing specialists perform functions

    INTERMEDIARY--someone who specializes in trade rather than production.

    COLLABORATORS--firms that facilitate or provide one or more of the marketing functions other than buying or selling.

    ·      Functions can be shifted and shared

     

    LO 1.4: Understand what a market-driven economy is and how it adjusts the macro-marketing system.

     

    MARKETING'S ROLE HAS CHANGED A LOT OVER THE YEARS

    "Stages of Marketing Evolution"

    ·      Simple trade era to production era

    SIMPLE TRADE ERA--a time when families traded or sold their "surplus" output to local distributors, who resold the goods to other consumers or other distributors.

    ·      From the production to the sales era

    PRODUCTION ERA--a time when a company focuses on production of a few specific products--perhaps because few of these products are available in the market.

    SALES ERA--a time when a company emphasizes selling because of increased competition.

    ·      To the marketing department era

    MARKETING DEPARTMENT ERA--a time when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm's activities.

    ·      To the marketing company era

    MARKETING COMPANY ERA--a time when in addition to short-run marketing planning, marketing people develop long range plans--sometimes five or more years ahead--and the whole company effort is guided by the marketing concept.

     

     

    LO 1.5: Know what the marketing concept is—and how it should guide a firm or nonprofit organization.

     

    WHAT DOES THE MARKETING CONCEPT MEAN?

    MARKETING CONCEPT--an organization aims all its efforts at satisfying its customers—at a profit.

    PRODUCTION ORIENTATION--making whatever products are easy to produce and then trying to sell them.

    MARKETING ORIENTATION--trying to carry out the marketing concept.

    (Exhibit 1-3) "Organizations with a Marketing Orientation Carry Out the Marketing Concept"

     

    ·      Customer satisfaction guides the whole system

    ·      The whole company works together to satisfy customers

    MARKETING METRICS—which refer to numeric data that allow marketing managers to evaluate performance, often against a target or goal.

    ·      Survival and success require a profit

     

     

    Marketing Analytics in Action: Revenue, Cost, Profit

     

    ·      Many organizations go beyond profit

    TRIPLE BOTTOM LINE—measures an organization’s economic, social, and environmental outcomes—as a measure of long-term success.

    ·      Adoption of the marketing concept is not universal

    (Exhibit 1-4) "Some Differences in Outlook between Adopters of the Marketing Concept and the Typical Production-Oriented Managers"

     

    LO 1.6: Understand what customer value is and why it is important to customer satisfaction.

     

    THE MARKETING CONCEPT AND CUSTOMER VALUE

    ·      Take the customer's point of view

    ·      Customer value reflects benefits and costs

    CUSTOMER VALUE--the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits.

    (Exhibit 1-5) "Customer Value Equals Benefits Minus Costs"

    ·      Customers may not think about it very much

    ·      Where does competition fit?

    ·      Build relationships with customer value

    (Exhibit 1-6) "Satisfying Customers with Superior Customer Value to Build Profitable Relationships"

     

     

    THE MARKETING CONCEPT APPLIES IN NONPROFIT ORGANIZATIONS

    ·      Newcomers to marketing thinking

    ·      Support may not come from satisfied "customers"

    ·      What is the "bottom line"?

    ·      May not be organized for marketing

    "Nonprofit Organizations and the Marketing Concept"

                    

    LO 1.7 Know how social responsibility and marketing ethics relate to the marketing concept.

     

    THE MARKETING CONCEPT, SOCIAL RESPONSIBILITY, AND MARKETING ETHICS

    ·      Society's needs must be considered

    MICRO-MACRO DILEMMA--what is "good" for some producers and consumers may not be good for society as a whole.

    SOCIAL RESPONSIBILITY--a firm's obligation to improve its positive effects on society and reduce its negative effects.

    ·      Should all consumer needs be satisfied?

    ·      What if it cuts into profits?

    ·      The marketing concept guides marketing ethics

    MARKETING ETHICS—the moral standards that guide marketing decisions and actions.

     

    Ethical Dilemma

     

    ·      Marketing has its critics

    (Exhibit 1-8) "Sample Criticisms of Marketing"