Chapter 1: Defining Marketing for the 21st Century
The Importance of Marketing
Finance, operations, and other business functions won’t really matter without
sufficient demand for products and services so the firm can make a profit -> Thus
financial success often depends on marketing ability.
The Scope of Marketing
What is Marketing?
Marketing is about identifying and meeting human and social needs: “meeting
needs profitably”.
The American Marketing Association offers the following formal definition:
Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large.
Marketing management can be seen as: The art and science of choosing
target markets and getting, keeping, and growing customers through creating,
delivering, and communicating superior customer value.
Marketing is a social process by which individuals and groups obtain what they
need and want through creating, offering, and freely exchanging products and
services of value with others.
Selling is NOT the most important part of marketing!
“There will always, one can assume, be need for some selling. But the aim of
marketing is to make selling superfluous. The aim of marketing is to know and
understand the customer so well that the product or service fits him and sells
itself.”
What is Marketed?
Marketers market 10 main types of entities:
- Goods
- Services
- Events
- Experiences
- Persons
- Places
- Properties: Intangible rights of ownership to either real property (real
estate) or financial property (stocks and bonds)
- Organizations
- Information
- Ideas
, Who Markets?
A marketer is someone who seeks a response – attention, a purchase, a vote, a
donation – from another party, called the prospect.
If both parties are seeking to sell something to each other, we call them
both marketers
Marketers are responsible for demand management.
Eight demand stages are possible:
1. Negative demand - Consumers dislike the product and may even pay to
avoid it
2. Nonexistent demand – Consumers may be unaware of or uninterested in
the product
3. Latent demand – Consumers may share a strong need that cannot be
satisfied by an existing product
4. Declining demand – Consumers begin to buy the product less frequently
or not at all
5. Irregular demand – Consumer purchases vary on a seasonal, monthly,
weekly, daily, or even hourly basis
6. Full demand – Consumers are adequately buying all products put into the
marketplace
7. Overfull demand – More consumers would like to buy the product than
can be satisfied
8. Unwholesome demand – Consumers may be attracted to products that
have undesirable social consequences.
In each case, marketers must identify the underlying cause(s) of the demand
state and determine a plan of action to shift demand to a more desired state.
Economists describe a market as a collection of buyers and sellers who transact
over a particular product or product class (such as the housing market or the
grain market).
Marketers use the term market to cover various groupings of customers.
They view sellers as constituting the industry and buyers as constituting
the market. They talk about need markets (the diet seeking market),
product markets (the shoe market), demographic markets (the youth
market), and geographic markets (the Chinese market).
Key Customer Markets
- Consumer markets
o A lot of time is spend on establishing a strong brand image by
developing a superior product and packaging, ensuring its
availability, and backing it with engaging communications and
reliable service.
- Business markets
o Often encounters with well-informed professional buyers skilled at
evaluating competitive offerings. Business buyers buy goods to
make or resell a product to others at a profit.
- Global markets
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Maureenkoek. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.28. You're not tied to anything after your purchase.
