MKT 337 chapter 1

marketing
– performance of activities that seek to accomplish an organization’s objectives by anticipating customer/client needs and directing flow of need satisfying g/s from producer to customer
consumer satisfaction
– extent to which a firm fulfills a customer’s needs, desires, and expectations
how marketing is important to you
– important to every consumer – things you want/need are available when and where you want/need
– important to your job – will help you do your own job better, sell yourself
– use marketing approach to get your next job
– marketing affects innovation and standard of living
micro vs. macro views of marketing
– micro – set of activities performed by organizations
– macro – social process
application to profit and nonprofit organizations –
applies to both profit and nonprofit
– seek more members/acceptance of an idea
– different types of consumers (individuals, business firms, govt agencies, etc.)
aim of marketing
– identify customers’ needs and meet those needs so well that the product almost “sells itself”
– begins with customer needs
– does not do it alone (direction for finance/production, etc.)
– involves exchanges from producer to customer
– builds a relationship
– focus of this text – management oriented micro marketing
macro marketing
– social process that directs an economy’s flow of goods and services from producers to consumers that effectively matches supply/demand and accomplishes objectives of society
– emphasis on whole marketing system
– separation between producers and consumers
challenges of macro marketing
discrepancies and separations
– discrepancies of quantity
– discrepancies of assortment
– spatial separation
– separation in time
– separation in information
– separation in values
– separation of ownership
economies of scale
as a company produces larger numbers of a particular product, cost of each unit of the product goes down
universal functions of marketing
– buying
– selling
– transporting
– storing
– standardization
– financing
– risk taking
– market info
intermediary
– someone who specializes in trade rather than production
– better able to perform marketing functions better and at lower cost than producers/consumers through innovation, specialization, or economies of scale
collaborators
– firms that facilitate or provide one or more of the marketing functions other than buying or selling
e commerce
– new types of market needs
– e commerce example of new type
– refers to exchanges between individuals or organizations and activities that facilitate these exchanges based on applications of information technology
role of marketing in economic systems
– every society needs some sort of economic system (way an economy organizes to use scarce resources to produce g/s and distribute them for consumption by various people and groups in society)
– depends on society’s objectives and nature of political institutions
command economy
govt officials decide what and how much is to be produced and distributed by whom, when, to whom, and why
– “planned” economies
– producers have little choice about what to produce – main task is to meet production quotas assigned
– consumers do have some freedom of choice but g/s are limited.
– activites such as market research, advertising, etc. limited
– can become very difficult and tend to break down when stuff happens
market directed economy
– individual decisions of many producers and consumers make the macro elvel decisions for the whole economy
– price is a measure of value
– greatest freedom of choice
– role of government is setting and enforcing the rules of the game, control interest rates, supply of money, etc.
– adjusts to become more effective and efficient by responding to customer needs
model of a market directed macro marketing system
in this order
– many individual producers
– intermediaries/collaborators
– perform universal marketing functions
– to overcome discrepancies and separation of producers/consumers
– to create value and direct flow of need satisfying goods and services
– many individual consumers
marketing’s role in history (eras)
– trade era
– production era
– sales era
– marketing department era
– marketing company era
simple trade era
families traded/sold their “surplus” output to local distributors
production era
company focuses on production of a few specific products
– if we can make it, it will sell
sales era
– time when a company emphasizes selling because of increased competition
marketing department era
– all marketing activities are brought under the control of one department to improve short run policy planning and try to integrate firm’s activities
marketing company era
– in addition to short term marketing planning, also develop long range plans
marketing concept
the organization aims all its efforts at satisfying its customers at a profit
1. customer satisfaction
2. total company effort
3. profit
production orientation
making whatever products are easy to produce and then trying to sell them
– customers exist to buy firm’s outputs
triple bottom line
– measures an organization’s economic, social, and environmental outcomes as measure of long term success
marketing concept and customer value
– customer value reflects benefits and costs
– customers may not think about it very much
– competition – satisfy a need that others have not even considered
– build relationships with customer value (offer superior customer value, keep satisfied after they buy so repeat purchases, likely to buy other products offered by the firm. builds profitable relationships with its customers)
marketing concept and nonprofit orgs
– support may not come from satisfied “customers” – recruits/supporters
– “bottom line” – different measures of success and different objectives. need to agree to some measure of long run success
marketing concept, social responsibility, and marketing ethics
– micro macro dilemma – what is good for firms/consumers may not be good for society as a whole (plastic water bottles vs. tap water)
– social responsibility – firm’s obligation to improve its positive effects on society and reduce its negative effects
– moral standards that guide marketing decisions and actions (hoensty, responsibility, fairness, respect, transparency)
criticisms of marketing
– advertising is annoying, misleading, wasteful
– poor quality of products
– too many unnecessary products
– retailers add too much, just raise prices
– serves the rich and exploits the poor
– overpromise service, don’t care about consumers
– creates interest in products that pollute the environment
– private information about consumers is collected and used to sell them things they don’t need
– makes people too materialistic and motivates them towards “things” instead of social needs
– buy things they don’t need and can’t afford