Notes for Marketing
MARKETING FOR CONSUMERS, FIRMS AN SOCIETY
Marketing provides needed direction for production and helps make sure that the right goods and services are produced and find their way to consumers. It encourages research and innovation – the development and spread of new ideas, goods and services.
Marketing is both a set of activities performed by organizations (micro) and a social process (macro). Aim of marketing is to identify customers’ needs and meet these needs so well that the product almost “sells itself”. Marketing should begin with assessing customer needs – not with the production process.
Marketing does not occur unless two or more parties are willing to exchange something for something else. Marketing exchange may be part of an ongoing relationship, not just a single transaction. High levels of customer satisfaction promote high customer loyalty that in turn, fosters customer retention.
Macro-marketing directs economy’s flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes objectives of society (emphasis is on how the whole marketing system works). Exchange between producers and consumers is hampered by spatial separation, separation in time, separation of information and values and separation of ownership. Marketing functions help narrow the gap: the universal functions of marketing are buying, selling, transporting, storing, standardization and grading, financing risk taking and market information. Intermediary – someone who specializes in trade rather than production. Facilitators – firms that provide one or more of the marketing functions other than buying or selling. Some marketing specialists perform all the functions; others specialize in one or two.
There are two basic kinds of economic systems: planned systems (government planning) and market-directed systems (dollar votes). Most are a mixture of the two extremes. In a market-directed economy, the consumers are not forced to buy any goods or services, except those that must be provided for the good of society – national defence, schools, police and fire protection, highway systems, and public-health services. These are provided by the community – and the citizens are taxed to pay for them.
Five stages in marketing evolution:
the simple trade era – families sold their “surplus” to local middlemen. •
the production era – from the industrial revolution until the 1920s, most companies were in the production era (company focuses on production of a few specific products) •
the sales era – by 1930, the problem wasn’t just to produce, but to sell it (the industrialized western nations had more production capability than ever before) •
the marketing department era – after 1950, the sales were growing rapidly and the problem was deciding where to put the company effort, tying together the efforts of research, purchasing, production, shipping, and sales •
the marketing company era – since 1960 – developing long-range marketing plans and the whole company effort guided by the marketing concept
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 – carrying out marketing concept. Some managers tend to build fences around their own department – thy come and go from the meetings worried only about protecting their own turf.
The marketing concept:
Total company effort
Profit (or another measure of long-term success) as an objective
Customer value – the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits.
Just as most firms face competition for customers, most nonprofits face competition for the resources and support they need. Key measures of long-term success are...
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