Core Concepts of Marketing Definition: Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others. Alternative Definition: Producing and distributing the right goods: to the right people at the right place at the right time at the right price with the right communication and promotion.

Concepts: Needs, Wants, Demand Products, Services, Ideas Exchange, Transactions, Relationships Markets, Marketer Consumers, Customers 4 Satisfaction = Σ (utilities) L=1 1. Form 2. Place 3. Time 4. Possession

Exchange: The Process by which needs and wants are satisfied. Fife Necessary Conditions: 1. Two or more parties 2. Each has something of value to other 3. Each can communicate and deliver 4. Each is free to accept or reject offers 5. Each finds it desirable or appropriate to deal with the other. Transactions: Measurable Entities: 1. At least two things of value 2. Agreeable Conditions 3. Time of Agreement 4. Place of Agreement “Law of Contracts”

Countertrading: 1. Barter 2. Compensation Deal 3. Product Buyback 4. Counterpurchase

T1-A Summary of factors that affect an organization’s marketing program © 1994 Richard D. Irwin, Inc. To accompany MARKETING, 4/E by Berkowitz, Kerin, Hartley, and Rudelius. Competitive forces Economic forces Social forces Technological forces Regulatory forces Consumer Information Marketing program Environmental forces ProductPromotion Price Place

T1-5 Marketing’s second task: Satisfying consumer needs Organization’s marketing department Discover consumer needs Satisfy consumer needs by finding right: Product Price Promotion Place Satisfy consumer needs by finding right: Product Price Promotion Place Concept for products Ideas about needs Actual products Potential consumers: The market © 1994 Richard D. Irwin, Inc. To accompany MARKETING, 4/E by Berkowitz, Kerin, Hartley, and Rudelius.

Company orientation toward the market place 1.Production approach: Large Scale Production Wide Distribution Homogeneous Product Problem: Consumer insensitive 2.Product approach: Quality Performance Features Problem: Emphasis on product rather than consumer needs Examples: ELGIN WATCH CO. KEVIAR ISDN DIOLIGHT

3. Sales approach: Unsought goods Methods to sell whatever products are produced 4. Marketing approach: Know customer needs and satisfy them more efficiently than your competitors Optimal combination of the four “P” Marketing research

T1-6 Four different orientation in the history of American business Product area Sales area Marketing concept area Market orientation area © 1994 Richard D. Irwin, Inc. To accompany MARKETING, 4/E by Berkowitz, Kerin, Hartley, and Rudelius.

T3-1 Environmental forces affecting the organization, as well as its suppliers and customers Suppliers Organization Marketing department  Other departments  Employees Organization Marketing department  Other departments  Employees Customers Social Demographic shifts Cultural changes Social Demographic shifts Cultural changes Economic Macroeconomic conditions Consumer income Economic Macroeconomic conditions Consumer income Technological Changing technology Economical impact of technology Technological Changing technology Economical impact of technology Competitive Alternative forms of competition Components of competition Increasing foreign competition Competitive Alternative forms of competition Components of competition Increasing foreign competition Regulatory Laws protecting competition  Laws affecting marketing mix actions  Self-regulation  Consumerism Regulatory Laws protecting competition  Laws affecting marketing mix actions  Self-regulation  Consumerism Environmental forces © 1994 Richard D. Irwin, Inc. To accompany MARKETING, 4/E by Berkowitz, Kerin, Hartley, and Rudelius.