Marketing

Marketing

Marketing’s Value to Consumers, Firms & Society

Professor Close

Objectives

• Provide students with an overall introduction to marketing

• Customer service and satisfaction

• Talk about the components of marketing

• Briefly mention about the history of marketing

• What is the importance of marketing

Some Ideas of Marketing

• Traditional Approach– Selling & Advertising (one part)– What else?

• Customer Satisfaction– What do you think it means? Are there any examples

where you were really satisfied or not satisfied?– Examples: Nordstrom, Southwest Air

• Marketing requires 2 or more parties to trade items of value

• Marketing’s job is NOT to get rid of things produced by the firm

Southwest Airlines Reaching out to Customers

Marketing (Micro) Defined

• Marketing is accomplishing the firm objectives by anticipating client needs & directing a flow of need-satisfying products to customers

• Everything we do to get and keep a customer

• Begins with the customer

• Series of sales

History of Marketing (1)

• Always marketing? Sort of….

• Pure subsistence economy: make all the products you consume

• Other disciplines– Economics– Sociology– Psychology

• 1906-1911: marketing emerges as a noun

History of Marketing (2)

• The marketing eras:1. The simple trade era (trading of simple goods)

2. The production era (Industrial evolution)

3. The sales era (emphasis on selling because of competition)

4. The marketing department era (when all marketing activities are under the control of one department)

5. The marketing company era (involves short and long run planning)

Importance of Marketing

• Approx. 50% prices

• Everyone needs it! (politicians, churches, resumes)

• How is marketing important to you?

Marketing Utility

1. Form Utility (Audi)

2. Task Utility (Bellagio)

3. Possession Utility (right to use or consume a product)

4. Time Utility (having the product available when the customer wants it)

5. Place Utility (having the product where the customer wants it)

What is Macro-Marketing? (1)

• Macro-Marketing: directing the overall flow of goods and services to consumers in a way that:– Matches supply and demand (good)– Accomplishes society’s objectives (the

question)– Focuses on individual firms

eBay Commercial

What is Macro-Marketing? (2)

• What about society?– The micro-macro dilemma: “What is good for the

individual may not be good for society.”– Difficult questions (health care, marketing to

children, tobacco)

– Trend is toward market direction, not regulation (Calif. Utilities, telephone)

Marketing’s Importance to Society

• Economic Development: exchange allows– Specialization– Leisure– What else can you think of?

• Issues– Micro and macro issues again– Trends

• Freer trade• WTO: encourages international trade

WTO: Is it good or bad??

Questions about Marketing• Satisfaction: is just satisfaction enough?• Who performs

– Cannot eliminate– Can shift burden

• “Quality” of the system– Plusses

• Connects remote• Innovation• Efficiency• What other plusses do you see with marketing?

– Minuses• Rich benefit vs poor• Marketing is misleading; sometimes intentionally• Privacy is poor• Credit causes indebtedness• What other minuses do you see with marketing?

Summary

• What is marketing?

• How is it different from advertising?

• Macro-marketing takes on an entire system approach

• Individuals view marketing differently

• Any other questions?