MarketingIn the true sense of the word, Marketing includes economic trends, forecasting, marketing research, product/service creation, market development, pricing, sales promotion, sales, advertising, product/service, public relations, distribution, order handling customer service strategic planning, etc.

Marketing, cont.Marketing, including sales, must be an essential part of the basic organizational structure, supported by finance, controlled by administration, and working closely with production for the income-development activities that produce stability.

““The goal of marketing is to create customer The goal of marketing is to create customer satisfaction profitably by building value-satisfaction profitably by building value-

laden relationships with important laden relationships with important customers. The marketing department customers. The marketing department

cannot accomplish this goal by itself. It must cannot accomplish this goal by itself. It must team up closely with other departments in team up closely with other departments in

the company and partner with organizations the company and partner with organizations throughout its entire value-delivery system throughout its entire value-delivery system

to provide superior value to customers. to provide superior value to customers. Thus, marketing calls upon everyone in the Thus, marketing calls upon everyone in the

organization to ‘think customer’ and to do all organization to ‘think customer’ and to do all they can to help create and deliver superior they can to help create and deliver superior

value and satisfaction.”value and satisfaction.”

Philip Kotler and Gary Armstrong, 1999Philip Kotler and Gary Armstrong, 1999

Reasons to Study Marketing

Costs equal $0.50 on the dollar

Between 1/4 and 1/3 of civilian labor force

engaged in marketing

Marketing activities support entire industries

All people are customers

Due to scarce resources marketing systems must

operate at their peaks

Marketing has a strong impact on peoples beliefs

and lifestyles

Marketing can improve the quality of life

Can be used in business and non-business

applications

Marketing is Controversial

What leads companies to

discover marketing?

Sales Decline

Slow Growth

Changing Buying Patterns

Increasing Competition

What is marketing’s higher

purpose?

Maximize the market’s consumption

Ex: 6 items for $10

Maximize Consumer Satisfaction

Maximize the Quality of Life

Maximize the Consumers Choice

Marketing Management Philosophies

Production Concept

Product Concept

Selling Concept

Marketing Concept

Societal Marketing Concept

Production Production and Product era and Product era

18601860 1900 1900 1920 1920 19601960 1980 1980 2000 2000

Four Different Orientations in Four Different Orientations in the History of American Businessthe History of American Business

Sales EraSales Era

Market Concept EraMarket Concept Era

Market Orientation EraMarket Orientation Era

Utility – The Capacity of a Product to Satisfy

Form

Possession

Time Utility

Place Utility

Marketing Functions

Environmental Function

Consumer Analysis

Product Planning

Distribution Planning

Promotion Planning

Price Planning

Social ResponsibilityEcological ConcernsEcological Concerns PollutionPollution Planned Planned

ObsolescenceObsolescence

Health ConcernsHealth ConcernsPreservation of Preservation of Natural ResourcesNatural ResourcesDemarketingDemarketingRecyclingRecycling

Marketing Management

These functions can be shifted but not

eliminated