Module 1 - Objectives and

Introduction
Welcome to Module 1 of Principles of Marketing! During this course, you will have
the opportunity to read the following text:
Title: MKTG, 9th Edition

Authors: Lamb/ Hair/ McDaniel

ISBN13: 978-1-285-86016-9

Publisher: Cengage

Copyright: 2016

Format: Print version includes Online Printed Access Card

This book provides comprehensive information and tips on Marketing. As you move through the modules
in our course the reading assignments, unless indicated otherwise, will come from this text. 

What exactly is Marketing? Although there are many definitions of the terms, the most common
definition for the term is the one used in business today:

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
(MarketingPower, 2013).

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
stakeholders (MarketingPower, 2013).

The new definition takes into account input from a broad cross-section of the Association membership
(MarketingPower, 2013). Marketing is regarded as an 'activity' instead of a 'function' and positions
marketing as a broader activity in a company/organization, and not just a department (MarketingPower,
2013). The new definition also positions marketing as providing long term value rather than narrowly as
an exchange of money (short-term) for the benefit of the shareholder/organization (MarketingPower,
2013).

During Module 1, we examine the background, current state, and future potential of Marketing and how
businesses today are creating new windows of opportunity using these strategies.

How does Marketing impact your organization? Are you currently in a marketing position? Do you plan to
become a marketer? What aspects of your organization are most affected by marketing? How might the
answers to these questions impact your future?

For Module 1, please read: 

 Chapter 1: What is Marketing?

Consider the Module One objectives (as adapted from the Lamb, Hair, & McDaniel text
(2015):

1-1 Define the term marketing

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. Marketing also
requires all facets of a company to work together to pool ideas and resources. One major goal of
marketing is to create an exchange. An exchange has five conditions, as listed below. Even if all five
conditions are met, an exchange might not occur. People engage in marketing whether or not an
exchange happens.

Five conditions of exchange:

1 There must be at least two parties.

2 Each party has something that might be of value to the other party.

3 Each party is capable of communication and delivery.

4 Each party is free to accept or reject the exchange offer.

5 Each party believes it is appropriate or desirable to deal with the other party.
1-2 Describe four marketing management philosophies

The role of marketing and the character of marketing activities within an organization are strongly
influenced by its philosophy and orientation. A production-oriented organization focuses on the internal
capabilities of the firm rather than on the desires and needs of the marketplace. A sales orientation is
based on the beliefs that people will buy more products if aggressive sales techniques are used and that
high sales volumes produce high profits. A market-oriented organization focuses on satisfying customer
wants and needs while meeting organizational objectives. A societal marketing orientation goes beyond a
market orientation to include the preservation or enhancement of individuals’ and society’s long-term best
interests.
1-3 Discuss the differences between sales and market orientations

First, sales-oriented firms focus on their own needs; market-oriented firms focus on customers’ needs and
preferences. Second, sales-oriented companies consider themselves to be deliverers of goods and
services, whereas market-oriented companies view themselves as satisfiers of customers. Third, sales-
oriented firms direct their products to everyone; market-oriented firms aim at specific segments of the
population. Fourth, sales-oriented organizations place a higher premium on making a sale, while market-
oriented seek a long-term relationship with the customer. Finally, sales-oriented businesses pursue
maximum sales volume through intensive promotion, whereas market-oriented businesses pursue
customer satisfaction through coordinated activities.
1-4 Describe several reasons for studying marketing

First, marketing affects the allocation of goods and services that influence a nation’s economy and
standard of living. Second, an understanding of marketing is crucial to understanding most businesses.
Third, career opportunities in marketing are diverse, profitable, and expected to increase significantly
during the coming decade. Fourth, understanding marketing makes consumers more informed.
2-1 Understand the importance of strategic planning

Strategic planning is the basis for all marketing strategies and decisions. These decisions affect the
allocation of resources and ultimately the financial success of the company.
2-2 Define strategic business units (SBUs)

Each SBU should have these characteristics: a distinct mission and a specific target market; control over

resources; its own competitors; a single business; plans independent from other SBUs in the
organization. Each SBU has its own rate of return on investment, growth potential, and associated risks,
and requires its own strategies and funding.
2-3 Identify strategic alternatives and know a basic outline for a marketing plan

Ansoff’s opportunity matrix presents four options to help management develop strategic alternatives:
market penetration, market development, product development, and diversification. In selecting a
strategic alternative, managers may use a portfolio matrix, which classifies strategic business units as
stars, cash cows, problem children (or question marks), and dogs, depending on their present or
projected growth and market share. Alternatively, the GE model suggests that companies determine
strategic alternatives based on the comparisons between business position and market attractiveness. A
marketing plan should define the business mission, perform a situation analysis, define objectives,
delineate a target market, and establish components of the marketing mix. Other elements that may be
included in a plan are budgets, implementation timetables, required marketing research efforts, or
elements of advanced strategic planning.
2-4 Develop an appropriate business mission statement

The firm’s mission statement establishes boundaries for all subsequent decisions, objectives, and
strategies. A mission statement should focus on the market(s) the organization is attempting to serve
rather than on the good or service offered.
2-5 Describe the components of a situation analysis

In the situation (or SWOT) analysis, the firm should identify its internal strengths (S) and weaknesses (W)
and also examine external opportunities (O) and threats (T). When examining external opportunities and
threats, marketing managers must analyze aspects of the marketing environment in a process called
environmental scanning. The six macroenvironmental forces studied most often are social, demographic,
economic, technological, political and legal, and competitive.
2-6 Identify sources of competitive advantage

There are three types of competitive advantage: cost, product/service differentiation, and niche. Sources
of cost competitive advantage include experience curves, efficient labor, no frills goods and services,
government subsidies, product design, reengineering, production innovations, and new methods of
service delivery. A product/service differentiation competitive advantage exists when a firm provides
something unique that is valuable to buyers beyond just low price. Niche competitive advantages come
from targeting unique segments with specific needs and wants. The goal of all these sources of
competitive advantage is to be sustainable.
2-7 Explain the criteria for stating good marketing objectives

Objectives should be realistic, measurable, time specific, and compared to a benchmark. They must also
be consistent and indicate the priorities of the organization. Good marketing objectives communicate
marketing management philosophies, provide management direction, motivate employees, force
executives to think clearly, and form a basis for control.
2-8 Discuss target market strategies

Targeting markets begins with a market opportunity analysis, or MOA, which describes and estimates the
size and sales potential of market segments that are of interest to the firm. In addition, an assessment of
key competitors in these market segments is performed. After the market segments are described, one or
more may be targeted by the firm.
2-9 Describe the elements of the marketing mix

The marketing mix is a blend of product, place, promotion, and pricing strategies (the four Ps) designed to
produce mutually satisfying exchanges with a target market. The starting point of the marketing mix is the
product offering—tangible goods, ideas, or services. Place (distribution) strategies are concerned with
making products available when and where customers want them. Promotion includes advertising, public
relations, sales promotion, and personal selling. Price is what a buyer must give up in order to obtain a
product and is often the most flexible of the four marketing mix elements.
2-10 Explain why implementation, evaluation, and control of the marketing plan are necessary

Before a marketing plan can work, it must be implemented—that is, people must perform the actions in
the plan. The plan should also be evaluated to see if it has achieved its objectives. Poor implementation
can be a major factor in a plan’s failure, but working to gain acceptance can be accomplished with task
forces. Once implemented, one major aspect of control is the marketing audit, and ultimately continuing to
apply what the audit uncovered through postaudit tasks.
2-11 Identify several techniques that help make strategic planning effective

First, management must realize that strategic planning is an ongoing process and not a once-a-year
exercise. Second, good strategic planning involves a high level of creativity. The last requirement is top
management’s support and participation.

                                                                                                        Reference

Lamb C., Hair J., & McDaniel C. (2013). MKTG 9, (9th ed.), Cengage, ISBN: 9781285860169.