Introduction to
Marketing
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Objectives
 To
develop an appreciation for
the historical perspective of how
markets have evolved
 To appreciate both views of the
evolution of marketing.
 To introduce marketing as an
exchange process
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Objectives
 To
understand the societal
implications of marketing
 To comprehend marketing as an
organizational process
 To introduce the fundamentals
of marketing strategy
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Spontaneous Economic Combustion
 Labor
Specialization
 Consumption Satiation
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The Evolution of Marketing
Production Era
Sales Era
Marketing Era
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Relationship
Marketing Era
The Evolution of Marketing
Production Era
Orientation:
Dominant
time period:

Business philosophy
focusing on
manufacturing
efficiency; demand
exceeds supply =
seller’s market
 Prior
1920s
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to the
The Evolution of Marketing
Sales Era
Orientation:
Dominant
time period:

Business philosophy
focusing on selling
existing products;
supply exceeds
demand = buyer’s
market
 Prior
1950s
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to the
The Evolution of Marketing
Marketing Era
Orientation:
Dominant
time period:

Business philosophy
focusing on
consumer wants and
needs; any
supply/demand
situation
 Last
half of 20th
century
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The Evolution of Marketing
Relationship Marketing Era
Orientation:
Dominant
time period:

Business philosophy
focusing on
reinforcing the
customer-oriented
focus of the
marketing era
 Last
decade of
20th century
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AMA Definition of Marketing
 Marketing
is the process of
planning and executing the
conception, pricing, promotion,
and distribution of ideas, goods,
and services to create exchanges
that will satisfy individual
and organizational
objectives
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Broader Definition of Marketing
The definition of
marketing
includes the nonprofit sector of
society (homeless
shelter)
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Broader Definition of Marketing
Oakland Museum
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Hal Riney and
Partners
Broader Definition of Marketing
The definition of
marketing
includes the nonprofit sector of
society (U.S.
Army)
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Broader Definition of Marketing
Drug Free America
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The Martin Agency
Broader Definition of Marketing
The definition of
marketing
includes the nonprofit sector of
society (societal
cause)
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Broader Definition of Marketing
The definition of
marketing
includes the nonprofit sector of
society (forest
protection)
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Exchange Process
Process by which one or more
parties give something of
value to each other to satisfy
perceived needs
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Exchanges
Learning Environment
Tuition
Promised Action
Votes
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Exchanges
Fee
Consulting
Products/services
Money
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Exchanges
Producer
Wholesaler
Retailer
Consumer
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Activities of Marketing
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Activities of Marketing
Exchange
 Buying
- seeking and
evaluating alternatives
 Selling - promotion of
alternatives to consumers
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Activities of Marketing
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Activities of Marketing
Logistical
 Transporting
- movement
of goods and services
 Storing - holding of goods
and services
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Activities of Marketing
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Activities of Marketing
Facilitating
Financing - facilitating exchange
 Risk-taking - holding title
 Providing information understanding markets (consumer
and industrial)
 Standardizing and grading - sorting
by size and quality

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The Marketing Concept
Customer orientation
 Coordinated effort by all departments
of the firm to satisfy customers
 Emphasis on long term profit

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Strategic Marketing Concept
Corporate mission is to seek
 Sustainable
competitive
advantage
 Meet customer needs
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Societal Marketing Concept
Adoption of Marketing Concept
 Considering the needs of society as a
whole




Environment
Health
Safety
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Marketing Myopia
 Short
sightedness by business
firms causing management to
define their business too
narrowly
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Marketing Myopia Examples
Myopic Broad
Description: Description:
 Railroad
 Transportation
company
 Electricity
company
 Television
network
company
 Power
company
 Entertainment
provider
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The Marketing Mix Variables
Product
Distribution
Target
Market
Price
Promotion
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The Marketing Mix Variables
Target Market
Group(s) of potential
customers toward which
a firm directs its
marketing mix(es)
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The Marketing Mix Variables
Product Strategy
Identifying consumer needs and
wants
 New product development
 Designing the product
 Branding
 Packaging

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The Marketing Mix Variables
Distribution Strategy
 Physical
distribution
 Channel management
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The Marketing Mix Variables
Pricing Strategy
 Pricing
objectives
 Price determination
 Pricing policies
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The Marketing Mix Variables
Promotion Strategy
 Advertising
 Personal
selling
 Sales promotion
 POP, sponsorships, PR
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The Marketing Environment
 Microenvironment
 Objectives
and resources
 Macroenvironment
 Competitive
environment
 Legal/political environment
 Socio-cultural environment
 Economic environment
 Technological environment
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Environmental Scanning
 Identification
of important
trends
 Analysis of impact on the
firm
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Separations Between Producers and Consumers
Separations naturally exist between
producers and consumers, buyers
and sellers, and any other parties
who enter into exchanges
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Separations Between Producers and Consumers
Spatial Separation
 Producers
and
consumers are
generally separated by
space or geography
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Functions Of Advertising
Henry Weinhard
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Hal Riney and
Partners
Separations Between Producers and Consumers
Temporal Separation

Producers and consumers want to produce and
consume at different times. Sales of skis
generally occur during the winter but
producers want to manufacture them all year
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Separations Between Producers and Consumers
Perceptual Separation

Producers may lack
information about
the whereabouts of
consumers and
consumers may lack
information about
the producer’s
offerings
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Separations Between Producers and Consumers
Ownership Separation

There is a
separation between
producers and
consumers in
reference to title.
Producers pass
(exchange) title of
product/services for
title to the money
the consumer holds
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Separations Between Producers and Consumers
Values Separation

There is a
separation between
producers and
consumers because
producers value the
costs and prices of
their products while
consumers value the
utility of the product
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Four Types of Utility
Utility
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Four Types of Utility
Form Utility
 Transformation
of
raw materials
and/or labor into
a finished good
and/or service
that the consumer
desires
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Four Types of Utility
Form Utility
Ping
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The Martin Agency
Four Types of Utility
Form Utility
 Transformation
of
raw materials
and/or labor into
a finished good
and/or service
that the consumer
desires
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Four Types of Utility
Utility
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Four Types of Utility
Place Utility
 Availability
of a
good and/or
service where the
consumer wants
or needs it
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Four Types of Utility
Place Utility
 Availability
of a good and/or service
where the consumer wants or needs it
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Four Types of Utility
Place Utility
 Availability
of a
good and/or
service where the
consumer wants
or needs it
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Four Types of Utility
Utility
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Four Types of Utility
Ownership Utility
 Transferring
title
of a good and/or
service from
producer to
consumer
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Four Types of Utility
Utility
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Four Types of Utility
Time Utility
 Availability
of a
good and/or
service when
consumer
wants/needs it
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Four Types of Utility
Time Utility
 Availability
of a
good and/or
service when
consumer
wants/needs it
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Separations/Functions/Utility
Separations Functions of Marketing Utility
Spatial
Transporting
Storing
Place
Temporal
Storing
Transporting
Financing
Risk-Taking
Time
Perceptual
Selling
Providing Information
Form, plus
facilitates
all others
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Separations/Functions/Utility
Separations Functions of Marketing Utility
Ownership
Buying
Selling
Risk-Taking
Financing
Ownership
Values
Buying
Selling
Standardizing and Grading
Providing Information
Ownership
Form
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