MKTG 504 - MARKETING

Introduction

Dr. Dennis PittaUniversity of Baltimore

What is Marketing?

Social Activity - carried on by human beings.

Aimed at satisfying NEEDS + WANTS.

Exchange!!

MARKETING

Process in Society-

People and organizations with diverse wants and needs ATTEMPT to satisfy them by forming mutually satisfying exchange relationships.

Of what value are dogs?

Dogs are...

________________________________________________________________________________________________

Why would Pitta want a dog?

Wants are….

DiverseCan be really uniqueNot always identified easilyGreat - great motivators

The result…..

Two just to be sure!!

Ways of Satisfying NEEDS and WANTS

Coercion

Transfer

Origination

Exchange

Net Satisfaction by Method

Party 1 Party 2 NetOriginationCoercionTransferExchange

Marketing Exchange …COMPLEX

Let’s take a car example

1989 Honda Accord ($1,000) _________________

Marketing Exchange …COMPLEX

Let’s take another car example

2007 Rolls Royce Silver Wraith ($250,000) _________________

Marketing Exchange… COMPLEX

Let’s take another car example

2007 Volvo 4 W drive station wagon ($49,000) _________________

Marketing Exchange COMPLEX

Let’s take yet another car example

1970 VW Beetle with ‘Continental hood and rear’ ($4,000) _________________

Marketing Exchange COMPLEX

UTILITARIANSYMBOLICPSYCHOLOGICALSOCIAL

Marketing and Utility

UTILITY = The satisfaction value, or usefulness a user receives from a good or service in relation to his or her wants.

(( Utility = SATISFACTION))

MARKETING CREATES:

PLACE UTILITYTIME UTILITYPOSSESSION UTILITY

Ancient History

Marketing - as an academic discipline - dates back to ~ 1921.

Universal Marketing Function

BuyingSellingTransportingStoring Standardizing and GradingFinanceRisk TakingMarket Investigation

Gaps in Marketing

Gaps exist between those with wants

and those who can satisfy those wants

Gaps in Marketing

PerceptualTemporalSpatialValuationalOwnership

Gaps in Marketing

Perceptual

FirstPerson

Temporal SecondPerson

Spatial

Valuational

Ownership

Bridging Gaps in Marketing

Perceptual (Communication)

Temporal ( Storage)Spatial (Transportation)Valuational

(Communication)Ownership (Exchange)

Bridging Gaps in Marketing

Perceptual======COMMUNICATION=====

FirstPerson

Temporal======STORAGE=====

SecondPerson

Spatial=====TRANSPORTATION===

Valuational=====COMMUNICATION=====

Ownership=====EXCHANGE=====

The Evolution of Marketing

Production Orientation

Sales orientationMarketing

OrientationSocial Orientation

Production Orientation

Production emphasizedCompany focusConsumer often ignored

Sales Orientation

Company FocusSales (volume)

EmphasizedStress on Selling Tactics

Marketing Orientation

Focus: the ConsumerProfit OrientationIntegration of the

Firm

Societal Orientation

Focus: the ConsumerProfit OrientationIntegration of the FirmRecognition that society is

an Exchange Partner

Upcoming Topics

Marketing’s Environment