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
WTO: Is it good or bad??
• Freer trade
• WTO: encourages international trade
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?