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Marketing has often been defined in terms of satisfying customers’ needs and wants. Critics,
however, maintain that marketing does much more than that and creates needs and wants that
did not exist before. According to these critics, marketers encourage consumers to spend more
money than they should on goods and services they really do not need.
Take a position: Marketing shapes consumer needs and wants versus marketing merely
reflects the needs and wants of consumers.
MY OPINION:-
Pro: With the vast amount of information available to marketers today and the emphasis on
relational marketing, marketers are in more of a position to suggest needs and wants to the
public. Certainly, not all consumers have all the needs and wants suggested by society today.
However, with the vast amount of exposure to these societal needs and wants via the media, a
substantial amount of consumers will, through mere exposure, decide that they “have” the
same needs and wants of others. Marketers by their efforts increase peer pressure, and group
thinking, by showing examples of what others may have that they do not. An individual’s
freedom to choose is substantially weakened by constant and consistent exposure to a range of
needs and wants of others. Marketers should understand that when it comes to resisting the
pressure to conform, that individuals are and can be weak in their resolve. Marketers must take
an ethical position to only market to those consumers able to purchase their products.
Con: Marketing merely reflects societal needs and wants. The perception that marketers
influence consumers’ purchasing decisions discounts an individual’s freedom of choice and
their individual responsibility. With the advent of the Internet, consumers have greater
freedom of choice and more evaluative criteria than every before. Consumers can and do
make more informed decisions than previous generations. Marketers can be rightly accused of
influencing wants, along with societal factors such as power, influence, peer pressure, and
social status. These societal factors pre-exist marketing and would continue to exist if there
was no marketing efforts expended.
MARKETING DISCUSSION
Consider the broad shifts in marketing. Are there any themes that emerge to these shifts? Can
they be related to the major societal forces? Which force contributed to which shift?
ANSWER:-
The major themes that emerge in these broad shifts are technology, decentralization, and
empowerment. As companies face increased global competition, they are beginning to
increase their attention to all aspects of marketing and are beginning to encompass marketing
as a corporate goal and not just a departmental function.
The major societal forces at work: two-income families, increased technology, fewer firms,
increased consumer education, and empowerment are forcing companies and marketers to
shift their thinking about marketing and rethink their best business practices.
Global competition:
1. From marketing does the marketing to everyone does the marketing.
2. From organization by products units to organizing by customer segments.
3. From being local to being “glocal”—both global and local.
4. Increase technology.
5. From making everything to buying more goods and services from outside.
6. From emphasizing tangible assets to emphasizing intangible assets increasing
consumer expectations.
7. From relying on old market positions to uncovering new ones.
8. From building brands through advertising to building brands through performance and
integrated communications.
9. From attracting customers through stores and salespeople to making products
available online.
10. From selling to everyone to trying to be the best firm serving a well-defined target
market.
11. From focusing on profitable transactions to focusing on customer lifetime value.
12. From focusing on the financial scorecard to focusing on the marketing scorecard.
13. From a focus on gaining market share to a focus on building customer share.
14. From focusing on shareholders to focusing on stakeholders.
15. Decreased availability of firms.
16. From using many suppliers to working with fewer suppliers in a “partnership.”
MARKETING SPOTLIGHT—Coca-Cola
4. What recommendation would you make to their senior marketing executives going
forward?
Continue to embrace the core values of the brand and expand soft drink sales
opportunities, not from the Coca-Cola brand, but from flanker brands or
acquisitions. Preserve the Coke franchise and defend it steadfastly.
ANS:-
To prepare to be marketers, you need to understand what marketing is, how it works, what is
marketed, and who does the marketing.
What Is Marketing?
Marketing deals with identifying and meeting human and social needs. One of the shortest
definition of marketing is “meeting needs profitably.”
What Is Marketed?
Marketing people are involved in marketing ten types of entities: goods, services, events,
experiences, persons, places, properties, organizations, information, and ideas.
A) Goods
Physical goods constitute the bulk of production and marketing efforts.
B) Services
A growing portion of business activities are focused on the production of services. The
U.S. economy today consists of a 70–30 services to goods mix.
C) Events
Marketers promote time-based events such as trade shows, artistic performances, and
the Olympics.
D) Experiences
By orchestrating several services and goods, a firm can create and market experiences
such as Walt Disney World’s Magic Kingdom.
E) Persons
Celebrity marketing is a major business.
F) Places
Cities, states, regions, and whole nations compete actively to attract tourists, factories,
and new residents.
G) Properties
Are intangible rights of ownership of either real property (real estate) or financial
property (stocks and bonds).
H) Organizations
Actively work to build a strong, favorable, and unique image in the minds of their
target publics.
I) Information
Can be produced and marketed as a product. Schools, universities, and others produce
information and then market it.
J) Ideas
Every market offering includes a basic idea. Products and services are platforms for
delivering some idea or benefit.
Who Markets?
Marketers and Prospects
A marketer is someone seeking a response (attention, purchase, vote, donation, etc.) from
another party called the prospect.
Marketers use the term “ market” to cover various groups of customers. They view the sellers
as constituting the industry and the buyers as constituting the market. They talk about need
markets, product markets, demographic markets, and geographic markets.
The competing concepts under which organizations have conducted marketing activities
include; the production concept, product concept, selling concept, marketing concept, and
holistic marketing concept.
Production Concept
A) The production concept holds that consumers will prefer products that are widely
available and inexpensive.
Product Concept
A) The product concept holds that consumers will favor those products that offer the most
quality, performance, or innovative features.
Selling Concept
A) The selling concept holds that consumers and businesses, will ordinarily not buy
enough of the organization’s products, therefore, the organization must undertake
aggressive selling and promotion effort.
Marketing Concept
A) The marketing concept holds that the key to achieving organizational goals consists of
the company being more effective than competitors in creating, delivering, and
communicating superior customer value to its chosen target markets.
1) Reactive market orientation—understanding and meeting consumers’ expressed
needs.
2) Proactive marketing orientation—researching or imagining latent consumers’
needs through a “probe-and-learn” process.
Companies that practice both reactive and proactive marketing
orientation are implementing a total market orientation.
Relationship Marketing
A) Relationship marketing has the aim of building mutually satisfying long-term
relationships with key parties—customers, suppliers, distributors, and other marketing
partners. Relationship marketing builds strong economic, technical, and social ties
among the parties.
1) Marketing must not only do customer relationship management (CRM) but also
partnership relationship management (PRM).
2) Four key constituents for marketing are:
a. Customers.
b. Employees.
c. Marketing partners (channel partners).
d. Members of the financial community.
3) The ultimate outcome of relationship marketing is the building of a unique
company asset called a marketing network.
A marketing network consists of the company and its supporting stakeholders (customers,
suppliers, distributors, retailers, ad agencies, university scientists, and others) with whom it has
built mutually profitable business relationships.
Integrated Marketing
A) The marketer’s task is to devise marketing activities and assemble fully integrated
marketing programs to create, communicate, and deliver value for consumers.
The 4Ps of marketing: product, price, place, and promotion
Marketing—mix decisions must be made for influencing the trade channels as well as the final
consumers.
1) Robert Lauterborn suggests that the sellers 4Ps correspond to the customers’ 4Cs:
4Ps 4Cs
Product Customer solution
Price Customer cost
Place Convenience
Promotion Communication
B) Two key themes of integrated marketing are:
1) Many different marketing activities are employed to communicate and deliver
value.
2) All marketing activities are coordinated to maximize their joint efforts.
Internal Marketing
A) Holistic marketing incorporates internal marketing, ensuring that everyone in the
organization embraces appropriate marketing principles.
B) Internal marketing must take place on two levels:
1) At one level, the various marketing functions (sales force, advertising, customer
services, product management, and marketing research) must work together.
2) Secondly, marketing must be embraced by the other departments—they must
“think customer.” Marketing is not a department so much as a company
orientation.
Core Concepts
Creates foundations for marketing management and holistic marketing orientation.
Supply Chain
A) Describes a longer channel stretching from raw materials to finished goods.
B) Represents a value delivery system.
Competition
A) Includes all the actual and potential rival offering and substitutes that a buyer might
consider.
Marketing Environment
A) Consists of the task environment and the broad environment.
B) Task environment includes the immediate actors involved in producing, distribution,
and promoting the offering: suppliers, company, dealers, and target customers.
C) The broad environment consists of six components:
1) Demographic.
2) Economic.
3) Natural.
4) Technological.
5) Political-legal.
6) Social-cultural.
Marketing Planning
A) Consists of analyzing marketing opportunities.
B) Selecting target markets.
C) Designing marketing strategies.
D) Developing marketing programs.
Managing the marketing effort.
A) A number of important trends and forces are eliciting a new set of beliefs and practices
on the part of business firms. These fourteen major shifts are:
1) From marketing does the marketing to everyone does the marketing.
2) From organization by products units to organizing by customer segments.
3) From making everything to buying more goods and services from outside.
4) From using many suppliers to working with fewer suppliers in a “partnership.”
5) From relying on old market positions to uncovering new ones.
6) From emphasizing tangible assets to emphasizing intangible assets.
7) From building brands through advertising to building brands through performance
and integrated communications.
8) From attracting customers through stores and salespeople to making products
available online.
9) From selling to everyone to trying to be the best firm serving a well-defined target
market.
10) From focusing on profitable transactions to focusing on customer lifetime value.
11) From a focus on gaining market share to a focus on building customer share.
12) From being local to being “glocal”—both global and local.
13) From focusing on the financial scorecard to focusing on the marketing scorecard.
14) From focusing on shareholders to focusing on stakeholders.