Chapter 1- Marketings value to Consumers, Firms, and Society
Chapter 1- Marketing Value to Consumers, Firms, and Society
Marketing is much more than selling and advertising. Think about it in this way:
What are some products I used this morning?
1. Apple Products
2. Starbucks Products
3. Stanley cup
Why do I prefer these products over others? What technological advances that are used, making me prefer these products over others? How did the price of these products impact the initial sale? All these things and more can impact what and why I use certain products over others. This is the whole purpose of Business Marketing.
Marketing affects almost every aspect of your daily life
How will we use marketing in our workplaces or life in general?
1. One of the first things that we do is market ourselves
Ex: Making a resume
2. Marketing is the backbone of business and is in every discussion we make.
What is Marketing?
Marketing is all about ongoing relationships that can be spilt into three categories
1. We market people with people
2. We market people and products
3. We market people and organizations
The aim of Marketing? To identify customer needs and then meet those needs.
Command Economy v. Market direct economy. What are they? Why are they important?
Command Economy- marketing decisions based towards the government and or the whole economy.
· Government officials decide the who, what, when, where, and why.
Ex: China, Russia, Cuba
Market directed economy- marketing decisions directed towards the consumer.
Ex: America, Japan, UK
Marketing’s role has changed a lot over the years
Marketing has 5 stages: the simple trade era, the production era, the sales era, the marketing department era, and marketing company era.
Before these stages, marketing began with the pure subsistence economy
Pure subsistence economy- states that each family unit produces everything it consumes. There is no need to exchange goods and service, and no marketing is involved.
· The family fends for itself
After pure subsistence economy the five stages of marketing come into play
1. Simple trade era- families trading or selling their surplus to local distributors (more variety)
2. Production era- the company focuses on production of few specific products. This era focuses making of more production and machines
3. Sales era- we made all this great stuff; now how do we sell. Emphasizes selling because of increased competition
4. Marketing department era- marketing activities are brought under the control of one department to improve short term planning
5. Marketing company era- Adding to the short-term plan to develop long range plans. every aspect of the company needs to understand how marketing works and how it affects production
What does the Marketing Concept and Production Orientation mean?
The marketing concept- aims all of its services to the people they are trying to serve. Aims to satisfy customer at a profit
· People first, production seconds
Production orientation- making whatever products that are easy to produce and selling them. aims to put production first and people second
· Can tie into the marketing concept
Examples of Marketing Concept v. Production Orientation: Think Walmart v. Target and or McDonalds v. Chickfla
Triple Bottom Line- people, profit, planet
Social Responsibility- a firms obligation to improve its positive effects on society and reduce its negative effects. Can be spilt into four categories
1. Minimalist Approach- if I obey all stated laws, I don’t have any other responsibilities
2. Cynical approach- Saying that you will do something about a problem, but does something else entirely. Find a way to fix the problem in nonethical ways
3. Reactive approach- when something happens and the organization jumps into to fix the problem
4. Proactive Approach- providing items that people don’t have access to
