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1: Marketing's Value to Consumers, Firms and Society
Transcript of 1: Marketing's Value to Consumers, Firms and Society
How is MARKETING defined?
MARKETING can be viewed in 2 ways:
1. MICRO VIEW : as a set of activities performed by organizations.
2. MACRO VIEW: as a social process
MARKETING is the performance of activities that seek to accomplish an organization's objectives by anticipating customer needs which satisfy them.
MARKETING Functions help narrow the gap!
What is MARKETING?
It is more than selling or advertising
It plays an essential role in providing consumers with need -satisfying goods and services
It creates CUSTOMER SATISFACTION.
MARKETING IS CUSTOMER SATISFACTION!
ROLE OF MARKETING IN ECOSYSTEMS
- the way the economy
organizes to use scarce
resources to produce
goods and services and
distribute them for consumption
1. COMMAND ECONOMIES - government officials decide what and how much to produce. (PLANNED ECONOMIES)
MARKET -DIRECTED ECONOMY
-the individual decisions of the many producers and consumers make the macro level decisions it he economy.
Price is a measure of value
; Cost of labor ans materials is a measure of value of the resources
Greatest Freedom of Choice
- consumers are not forced to buy
Role of government
- set rules of the game such as interest rates, supply of money, import and export rules, property is protected, regulate some industries, etc.
THE EFFECTIVENESS AND FAIRNESS OF THE MACRO SYSTEM DEPENDS ON THE OBJECTIVE OF SOCIETY. (Sweeden North Korea, India)
a social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes objectives of society.
The emphasis is on the whole system.
affects every aspect of life.
drives organizations to focus on what it takes to satisfy the customers.
offers many exciting and rewarding career opportunities.
plays a bog part in the economic growth and development because it encourages Research and Innovation.
NEW INNOVATIONS TO FILL THE MARKET NEEDS
refers to the exchanges between individuals or organizations and the activities that facilitates these exchanges -- based on the application of IT.
Amazon.com; e-Bay.com; MSN.com; Google.com
INNOVATION, SPECIALIZATION & ECONOMIES OF SCALE
the marketing intermediaries and collaborators are able to perform their functions better at a lower cost.
Not all goods and services require all functions,
PRODUCTION vs. CONSUMPTION
You cant get very far into a day without bumping into MARKETING! It affects every aspect of our lives.
There is a flow of need-satisfying offerings from a producer to a consumer. MARKETING does not occur unless two or more parties are willing to exchange something for something else.
Exchange is part of an ongoing relationship.
MARKETING has a sale and an ongoing relationship with the cusomer
MARKETING should try to anticipate needs. It should begin with the potential customer needs
MARKETING within the individual firm
Universal Function of MARKETING
Standardization & Grading
PRODUCERS, CONSUMERS AND MARKETING SPECIALISTS (collaborators) PERFORM FUNCTIONS.
-Producers have little choice on goods and services to produce, meet quotas assigned
-Prices are set by the government; assortment of goods are limited
-This can work during war time
and be distributed
TWO BASIC KINDS OF ECOSYSTEMS:
FIVE STAGES IN MARKETING EVOLUTION
SIMPLE TRADE ERA
A time when families traded or sold their "surplus" output to local middlemen who sold the goods to consumers or distant middlemen until the Industrial Revolution
From Industrial Revolution until the 1920's
This is a time when a company focuses on production of a few specific products.
" If we can make, it will sell"
In 1930 had more production capability, production was not a problem but competition and winning customers
This is a time when a company emphasizes selling because of increased competition.
This continued until the 1950's.
The problem was deciding where to put the company;s effort and who will tie together the efforts of research, purchasing and production.
MARKETING DEPARTMENT ERA
This is a time when all marketing activities are brought under the control of one department to improve short-run policy planning and to try to integrate the firm's activities.
MARKETING COMPANY ERA
This is the time when, in addition to short run marketing planning, marketing people develop long range plans, guided by the marketing concept.
Satisfying the customers for a profit.
Some managers still practice the
or making whatever products are easy to produce and try to sell them.
or trying to carry out the marketing concept or offering customers what they need.
TOTAL COMPANY EFFORT
ADOPTION OF THE MARKETING CONCEPT IS NOT EASY!
The marketing concept was first accepted bu consumer products companies such as GE and P&G. COMPETITION was intense which means that trying to satisfy customer's needs was a way to win the competition.
SERVICE INDUSTRIES are slow to adopt.
Its easy to slip into the PRODUCTION ORIENTATION.
(Please refer to page 18)
THE MARKETING CONCEPT & CUSTOMER VALUE
Marketing Concept sees
as the path to PROFIT.
2 VIEWS OF CUSTOMERS:
(2) What to give up for those benefits
- The difference between the benefits a customer sees from a market offering and the cost of obtaining those benefits.
COMPETITION SHOULD NOT BE IGNORED!
The firm who offers superior customer value is likely to win and keep customers.
- The best way to improve customer value and beat the competition is to be first to satisfy a need that others have not considered.
- Firms that embrace the
seek ways to build
PROFITABLE LONG TERM RELATIONSHIPS
- Trying to get a new customer is
then retaining the current customer
MARKETING CONCEPT IN NON-PROFIT ORGANIZATIONS
- Marketing Concept applies to public and private non profit organizations such as government agencies, healthcare organizations, schools, religious groups, ect.
It needs support and resources to survive.
THE MARKETING CONCEPT, SOCIAL RESPONSIBILITY AND MARKETING ETHICS
Micro-Macro Dilemma - producers and consumers making free choices can cause conflicts. What is good for some firms and consumers may not be good for society. (use of plastics)
It is the firm's obligation to improve its positive effects on society and reduce its negative effects.
What products in the market d you think are harmful for consumers in the long run?
Being socially conscious often seems to lead to positive customer response.
Socially conscious marketing's definition of customer satisfaction includes long range effects: The balance
CONSUMER, COMPANY AND SOCIAL INTEREST
It is the moral standards hat guide marketing decisions and actions. These are based on one's
- Advertising is everywhere, and it is often annoying, misleading or wasteful.
- The quality of products is poor and often they are not even safe.
- There are too many unnecessary products.
- Packaging and labeling are often confusing and deceptive.
- Middlemen add too much cost of distribution and just raise prices without anything in return.
-Marketing serves the rich and exploits the poor.
By learning more about marketing oriented decision making, you will be able to make more efficient and socially responsible decisions. This will help individual or the firm and this help our macro marketing system work better!