Marketing In 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 satisfaction profitably by building value- laden relationships with important customers. The marketing department cannot accomplish this goal by itself. It must team up closely with other departments in the company and partner with organizations throughout its entire value-delivery system to provide superior value to customers. Thus, marketing calls upon everyone in the organization to ‘think customer’ and to do all they can to help create and deliver superior value and satisfaction.” Philip 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 and Product era Four Different Orientations in the History of American Business Sales Era Market Concept Era Market 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 Responsibility Ecological Concerns Pollution Pollution Planned Obsolescence Planned Obsolescence Health Concerns Preservation of Natural Resources DemarketingRecycling

Marketing Management

These functions can be shifted but not eliminated