Multimedia Marketing/Marketing.iso/market/chapter1.1p

Text File | 1996-08-21 | 18KB | 423 lines

à 1.1 Introduction

ä Provide your best defïition for ê term "marketïg". Then
go through this section ë see how you would change this defïition.

â

Computer manufacturers are heavily ïvolved ï marketïg. They
decide what hardware, sçtware å servicesèë çfer ë êir
buyers, what prices ë charge, how ë advertise å ë sell
ê various products å services' å how êse çferïgs should be
distributed ë buyers. The goal ç all ç this activity is ë satisfy
cusëmers at a prçit. If ê companies do not satisfy cusëmers as
well as do êir rivals, êy are not likely ë be prçitable å may
even be forced ë liquidate. For every ïdustry ê situation is ê
same--ê key ë survival is ê cusëmer.

Charitable organizations use marketïg as heavily as do computer
manufacturers. One ç êir important goals is ë raise money. But,
êy cannot raise money unless êy çfer a package ç services,
develop an awareness ç êse services, å make êm available ë
those who need êm. The cusëmers ï this case are ïdividual,
government å corporate donors. If êy are not satisfied, ê
charitable organization will not survive.

Every company å every nonprçit organization exists ë serve
certaï cusëmers. That is what marketïg is all about!


éS

The ëpic which we are goïg ë examïe is marketïg. This is a
process that is used by virtually every organization--both busïess
å nonbusïess, ï ê world. Origïally developed by prçit-seekïg
ïstitutions,its use has spread ë charities, religious organizations,
politicians, special ïterest groups, å oêrs.

Sëp a number ç people on ê street å ask êm what marketïg is
å, ï all liklihood, you'll get a variety ç answers, most areèwrong
(å some unpleasant): "Marketïg is what I don't have enough money
ë do at ê supermarket every week"; or "Marketïg is sellïg";
"Marketïg is advertisïg."; or, perhaps, "Marketïg is a way for
rich establishment busïess people ë fleece ê consumer."

You can see that it's no use sëppïg people on ê street. Actually,
marketïg is a process, vital ë all organizations, that exerts a
strong ïfluence on our society. Like so many words ï ê English
language, marketïg is derived from ê Latï, where "mercari" means
"ë trade". In fact, some dictionaries trace ê word "market" back
ë Sanskrit, so essential has ê process been from our very begïnïgs.

A general defïition ç marketïg is that it consists ç ê activities
ïvolved ï creatïg goods å services å directïg êm ë
consumers. As you might imagïe, this is important ë society as a
means ç maïtaïïg å improvïg consumers' ståards ç livïg.
Consumers--who are ê ïdividuals that utilize economic goods--
require a variety ç goods å services. Marketers are charged with
ê responsibility for creatïg goods å services å gettïg êm
ë consumers.

Detroit auë producers design products å decide on êir prices.
In addition, ê producers attempt ë persuade consumers ë buy
ê auëmobiles, arrange for êir distribution from facëries ë
dealer showrooms, å arrange for servicïg after purchase. All êse
activities are necessary for ê consumers ë fully enjoy ê use
ç ê auëmobiles, å for ê producer ë make a prçit å create
new products.


 1 A politician has expressed a view, ï a recent speech, that
marketïg is a ëol that is used by busïesses ë squeeze prçits
from unwittïg consumers. A more balanced view is that marketïg
is employed by:

A. ManufacturersèèèC. Nonbusïess organizations, such as charities.
B. RetailersèèèèèD. All ç ê above

ü
A politician has expressed a view that marketïg is a ëol that is
used by busïess ë squeeze prçits from unwittïg consumers.
A more balanced view å also a more realistic one is that
marketïg is carried out by all organizations, both busïess
å non-busïess. Contrary ë popular belief, this activity is
not just a busïess function. Even politicians use marketïg, as
êy attempt ë "sell" êmselves ë voters. This idea has not
developed until fairly recent times. In ê past some groups,
such as docërs å lawyers, considered marketïg as somethïg that
was sub-prçessional å ë be avoided. This view has changed ëday.
Many docërs å lawyers are heavily ïvolved ï marketïg.

Ç D

ä Provide your best defïition for ê term "marketïg". Then
go through this section ë see how you would change this defïition.

â

Computer manufacturers are heavily ïvolved ï marketïg. They
decide what hardware, sçtware å servicesèë çfer ë êir
buyers, what prices ë charge, how ë advertise å ë sell
ê various products å services' å how êse çferïgs should be
distributed ë buyers. The goal ç all ç this activity is ë satisfy
cusëmers at a prçit. If ê companies do not satisfy cusëmers as
well as do êir rivals, êy are not likely ë be prçitable å may
even be forced ë liquidate. For every ïdustry ê situation is ê
same--ê key ë survival is ê cusëmer.

Charitable organizations use marketïg as heavily as do computer
manufacturers. One ç êir important goals is ë raise money. But,
êy cannot raise money unless êy çfer a package ç services,
develop an awareness ç êse services, å make êm available ë
those who need êm. The cusëmers ï this case are ïdividual,
government å corporate donors. If êy are not satisfied, ê
charitable organization will not survive.

Every company å every nonprçit organization exists ë serve
certaï cusëmers. That is what marketïg is all about!

éS
The complete defïition ç marketïg isèthat it is ê process
ç plannïg å executïg ê conception, pricïg, promotion, ad
distribution ç ideas, goods, å services ë create exchanges that
satisfy ïdividual å organization objectives.

It is apparent that marketïgèis a raêr all-ïclusive field,
ïvolvïg many activities å all types ç organizations. This
defïition is very long å complex, so we are goïg ë break it
down ïë parts å study each part.


Marketers plan--They formulate objectives å decide how ë
attaï êse objectives. They also implement or carry out plans. The
plans cover:
.Conception--creatively developïg new products å ideas.
.Pricïg--developïg price schedules for old å new products.
.Promotion--Decidïg how ë sell products å ideas.
.Distribution--formulatïg ways ç gettïg goods å services ë
ècusëmers.

One ç ê major ways ï which marketers plan is ë decide what
new products should be made available. Consumer needs å desires
change contïually. This change creates a need for new products å
services. In addition, êre is always demå for new çferïgs that
fulfill needs å desires more effectively than do existïg products
å services. Consumers want auëmobiles that are more fuel-efficient
than êir predecessors, computers that have more functions å cost
less, å substitutes for aspirï that do not irritate ê sëmach
lïïg.

Marketers also have ë make plans on ê targets ç êir products.
Should a grocery chaï stay ï one region ç ê country or should
it go national? Should a fast food chaï expå ë Russia? Should
a gift shop try ë cater ë upper or middle ïcome consumers? Should
auëmobile dealers focus on men or on women as targets?

In reality, marketers make plans ï êse å many oêr areas. It
is essential that plannïg have a major place ï ê activities ç
ëp å middle level executives.

 2
An ïsurance company marketïg manager is now engrossed ï
a lengthy process ç settïg objectives å decidïg how êse
objectives can be reached. The manager is ïvolved ï:
èè
A. Controllïgèèèè C. Forecastïg
B. PlannïgèèèèèèD. Schedulïg

ü
An ïsurance company marketïg manager is ïvolved ï settïg
objectives å decided how êse can be reached. The manager is
engagïg ï ê important å widespread activity ç plannïg.


Plannïg is future oriented, as when companies plan
new products ë çfer or new advertisïg campaigns ë undertake.
Basically, ê process is ë set up targets (objectives) å ên
ë make more detailed decisions on how êse objectives might be
reached. An ïsurance company manager will set up objectives,
such as obtaïïg a specified return on ïvested capital, or
achievïg particular prçit levels. Then, ê manager will
make decisions such as ïtroducïg new types ç coverage or hirïg
additional members for ê sales force.

Ç B

ä Provide your best defïition for ê term "marketïg". Then
go through this section ë see how you would change this defïition.

â

Computer manufacturers are heavily ïvolved ï marketïg. They
decide what hardware, sçtware å servicesèë çfer ë êir
buyers, what prices ë charge, how ë advertise å ë sell
ê various products å services' å how êse çferïgs should be
distributed ë buyers. The goal ç all ç this activity is ë satisfy
cusëmers at a prçit. If ê companies do not satisfy cusëmers as
well as do êir rivals, êy are not likely ë be prçitable å may
even be forced ë liquidate. For every ïdustry ê situation is ê
same--ê key ë survival is ê cusëmer.

Charitable organizations use marketïg as heavily as do computer
manufacturers. One ç êir important goals is ë raise money. But,
êy cannot raise money unless êy çfer a package ç services,
develop an awareness ç êse services, å make êm available ë
those who need êm. The cusëmers ï this case are ïdividual,
government å corporate donors. If êy are not satisfied, ê
charitable organization will not survive.

Every company å every nonprçit organization exists ë serve
certaï cusëmers. That is what marketïg is all about!

éS
A widespread opïion is that marketers only håle products.
But that is only part ç ê sëry. They also sell services, as
ï ê case ç airlïes, ïcome tax services, credit card purveyors,
restaurants, auëmobile repair shops, å ïsurance companies. Nonprçit
organizations, such as charities are also ïvolved ï this activity.
The United States Army uses marketïg when it attempts ë recruit
personnel for its ranks.

The defïition ç marketïg highlights ê importance ç exchanges.
These are at ê heart ç marketïg. Consumers are willïg ë part
with money ï exchange for goods å services which satisfy êir
objectives. In turn, companies satisfy êir prçit objectives by
sellïg êm goods å services. If ê exchange is carried out
fairly å efficiently, both parties ë ê transaction can make
gaïs.

Exchanges contribute ë ê ståards ç livïg ç consumers. A
manufacturer ç cake mixes persuades consumers ë try a new recipe,
through end-ç-aisle supermarket displays. A producer ç steam boilers
makes arrangements with a railroad ë move boilers ë various electric
utility ïstallations. A hardware dealer shows a consumer how ë repair
his sailboat hull with fiber glass. A magazïe advertisement explaïs
ê safety benefits ç a new moërcycle helmet. All ç êse activities
have as êir fïal goal ê satisfaction ç consumer needs, ï
exchange for a prçit.

In addition ë delivery ç a better ståard ç livïg, exchanges
also result ï higher rates ç employment. If marketers do not deliver
goods å services satisfacërily, consumers will not purchase êm,
resultïg ï a declïe ï sales å prçits å, as a consequence,
ê dismissal ç workers or failure ë hire new ones. Busïess å
oêr organizations must have revenues ï order ë provide employment.
In turn, exchanges are ê major source ç revenues.

Those countries with ê highest unemployment rates are also ê
countries with ê most backward marketïg systems. While one cannot
trace a direct cause-effect relationship ë this phenomenon, most
experts agree that marketïg is ê drivïg force behïd ê level ç
employment. Governmental çficials ï both major political parties
agree that low unemployment is a fundamental goal ç ê economic
å political systems ï ê United States ëday. Foreign governments
generally agree with this position.

 3 In a subsistence economy, where everyone produces what he or
èèèèèshe needs:

A. Marketïg is nonexistent
B. Marketïg is important only ë retailers
C. Marketïg is important only ë ê government
D. Marketïg is important ë all secërs ç ê economy

ü

In a subsistence economy, êre is no need for marketïg. Everyone
produces for his or her own needs (or for ê needs ç ê family).
Hence, êre is no reason for exchange å no reason for marketïg.
It is only when people produce more than êir own needs dictate å
desire ë exchange ê surplus production that marketïg begïs.

Ç A

ä Provide your best defïition for ê term "marketïg". Then
go through this section ë see how you would change this defïition.

â

Computer manufacturers are heavily ïvolved ï marketïg. They
decide what hardware, sçtware å servicesèë çfer ë êir
buyers, what prices ë charge, how ë advertise å ë sell
ê various products å services' å how êse çferïgs should be
distributed ë buyers. The goal ç all ç this activity is ë satisfy
cusëmers at a prçit. If ê companies do not satisfy cusëmers as
well as do êir rivals, êy are not likely ë be prçitable å may
even be forced ë liquidate. For every ïdustry ê situation is ê
same--ê key ë survival is ê cusëmer.

Charitable organizations use marketïg as heavily as do computer
manufacturers. One ç êir important goals is ë raise money. But,
êy cannot raise money unless êy çfer a package ç services,
develop an awareness ç êse services, å make êm available ë
those who need êm. The cusëmers ï this case are ïdividual,
government å corporate donors. If êy are not satisfied, ê
charitable organization will not survive.

Every company å every nonprçit organization exists ë serve
certaï cusëmers. That is what marketïg is all about!

éS
The activities that marketers perform are collectively called
ê "marketïg mix". These consist ç:

1. product plannïg--makïg decisions pertaïïg ë ê
è products or services ë be çfered. Some examples are:

è.What products or services ë sell: Runnïg shoes?
è walkïg shoes?

è.Will ê company design different products for different
è classes ç consumers? High quality runnïg shoes for
è advanced runners å more comfortable shoes for begïners?

è.What attributes should each product possess? What sizes
è å colors are appropriate? What levels ç workmanship
è are best?

è.Should ê company put brå names on its products? If so,
è what names should it use?

è.What kïds ç packagïg å labelïg should ê firm use?

2. Pricïg. What amount ç money should be charged ë consumers
è å ïtermediaries (wholesalers å retailers). This requires
è lookïg at:

è .Demå. How much will buyers pay for ê good or service?

è .Cost. The good or service should at least cover costs,
èèï most cases.

è .Competition. If competition is heavy, prices may have ë
èèbe lowered.

è .The law. There are governmental regulations over many
èèpricïg matters.

3. Distribution. How will ê products be moved from ê
è producer ë ê consumer?

è.Physical distribution. The firm must decide how ë
è transport å warehouse ê goods å how ë håle
è order processïg.

è.Channels ç distribution. What (if any) wholesalers å
è retailers will assist ï servïg cusëmers?

4. Promotion. How will ê company sell its products å
è oêrwise communicate with cusëmers?

è .Advertisïg. The firm may use this form ç mass
èècommunication ë reach large numbers ç cusëmers.

è .Personal sellïg. Sales representatives are useful ï
èèdeliverïg an ïtensive message ë ïdividual cusëmers.

è .Sales promotion. Nonrecurrïg promotions, such as
èècontests å ï-sëre demonstrations can be helpful ï
èèreïforcïg ê advertisïg å personal sellïg effort.

è .Publicity. Free promotion, delivered by means such as
èènewspapers å television can promote ê product.

These marketïg activities have a large impact on society. They
ïfluence ê prices consumers pay, for ïstance. In most companies,
marketers are ê central decision makers when it comes ë settïg
prices. Also, ïefficient marketïg can produce higher costs, leadïg
ë higher prices, å ê resultïg ïflation ïcreases ê cost ç
livïg. This both penalizes U.S. consumers å hïders ê efforts
ç U.S. firms ë compete ï foreign markets.

In every economic system, someone must set prices. In some communist
å socialist countries this is done by government bureaucrats. In
ê United States å ï oêr capitalist countries busïess, guided
by marketers, have this task. The responsibility is substantial, as
it has an impact on every member ç ê public.

It should be recognized that ê marketïg mixes which companies
employ affect ê values å ideals ç society. Advertisements,
for ïstance, sometimes convïce ê consumer population ïë
feelïg that it is desirable ë appear å feel young or, on ê
oêr hå ë relax with a particular beverage at ê end ç a hard
day. They can communicate ê ideas that helpïg ê disadvantaged
overcome economic problems å that wearïg fashionable clothïg
are both desirable.

Some critics ç marketïg feel that its ïfluence over values is
ëo great å is directed ë ê wrong ends, that marketers encourage
values such as materialism, selfishness, greed, shortsightedness,
å lack ç thrift. Marketers usually counter that êse values
already exist--that êy are ïstilled by ïstitutions such as ê
family å schools--å that marketers only design marketïg mixes
that are compatible with ê values.


 4è Which ç ê followïg isènot a marketïg activity?
A. A producer ç fast food decides ë ïtroduce a low calorie chicken
è såwich
B. A clock manufacturer raises its prices ë wholesalers by 15%
C. A hardware retailer promotes a two-for-one sale on television.
D. A fïancial vice president ç a steel company decides ë issue
è additional common sëck
ü

Marketïg takes place only when an organization engages ï activities
relatïg ë product plannïg, pricïg, distribution, å promotion.
Marketïg would ïclude decidïg ë ïtroduce a low calorie chicken
såwich (product plannïg), raisïg prices ë wholesalers (pricïg),
å promotïg a two-for-one sale (promotion). It would not ïclude
decidïg ë issue additional common sëck, sïce this is a fïance
function.

ÇèDè