What is Marketing??
MKT I
S
Definition
S Marketing consists of the strategies and tactics used to identify,
create and maintain satisfying relationships with customers that
result in value for both the customer and the marketer.
S At the organizational level, marketing is a vital business
function that is necessary in nearly all industries whether the
organization operates as a for-profit or as a not-for-profit.
For the for-profit organization, marketing is responsible for
most tasks that bring revenue and, hopefully, profits to an
organization. For the not-for-profit organization, marketing
is responsible for attracting customers needed to support the
not-for-profit’s mission, such as raising donations or
supporting a cause. For both types of organizations, it is
unlikely they can survive without a strong marketing effort.
S Marketing is also the organizational business area that
interacts most frequently with the public and, consequently,
what the public knows about an organization is determined
by their interactions with marketers. For example, customers
may believe a company is dynamic and creative based on its
advertising message.
Benefits of Marketing
S
Developing products that satisfy needs, including products that enhance
society’s quality of life
S
Creating a competitive environment that helps lower product prices
S
Developing product distribution systems that offer access to products to a
large number of customers and many geographic regions
S
Building demand for products that require organizations to expand their labor
force
S
Offering techniques that have the ability to convey messages that change
societal behavior in a positive way (e.g., anti-smoking advertising)
Let’s examine our definition of marketing in a little
more detail by looking at the key terms
S Strategies and Tactics
S Strategies are best explained as the direction the marketing effort
takes over some period of time while tactics are actionable steps
or decisions made in order to follow the strategies established. For
instance, if a company’s strategy is to begin selling its products in
a new country, the tactics may involve the marketing decisions
made to carry this out. Performing strategic and tactical planning
activities in advance of taking action is considered critical for
long-term marketing success.
S Identify
S Arguably the most important marketing function involves
efforts needed to gain knowledge of customers, competitors,
and markets (i.e., where marketers do business). We will see
throughout this tutorial how marketing research is utilized
in all decision areas.
S Create
S Competition forces marketers to be creative people. When
marketers begin new ventures, such as building a new company, it
is often based around something that is new (e.g., a new product,
a new way of getting products to customers, a new advertising
approach, etc.). But once something new is launched innovation
does not end. Competitive pressure is continually felt by the
marketer, who must respond by again devising new strategies and
tactics that help the organization remain successful. For
marketers, the cycle of creating something new never ends.
S Maintain
S Today’s marketers work hard to ensure their customers return to
purchase from them again and again. Long gone are the days
when success for a marketer was measured simply in how many
sales they made each day. Now, in most marketing situations,
marketing success is evaluated not only in terms of sales figures
but also by how long a marketer retains good customers.
Consequently, marketers’ efforts to attract customers do not end
when a customer makes a purchase. It continues in various ways
for, hopefully, a long time after the initial purchase.
S Satisfying Relationships
S A key objective of marketing is to provide products and
services that customers really want AND to make customers
feel their contact with the marketer is helping build a good
relationship between the two. In this way the customer
becomes a partner in the transaction, not just a source of
revenue for the marketer.
S
Value for Both Customer and Marketer
S
Value refers to the perception of benefits received for what someone must give
up. For customers, value is most often measured by how much benefit they
feel they are getting for their money, though the value one customer feels may
differ from what another customer feels even though they purchase the same
product. On the other side of the transaction, the marketer for a for-profit
organization may measure value in terms of how much profit they make for
the marketing efforts and resources expended. For a successful marketing
effort to take place both the customer and the marketer must feel they are
receiving something worth while in return for their efforts. Without a strong
perception of value it is unlikely a strong relationship can be built.
Throughout this tutorial we will emphasize value and show ways marketers
build value into the products they offer.
What is it that Marketers do?
S Target Markets – markets consist of customers identified as possessing needs
the marketer believes can be addressed by its marketing efforts
S Products – consists of tangible (e.g., goods) or intangible (e.g., services)
solution to the market’s needs
S Promotion – a means for communicating information about the marketing
organization’s products to the market
S Distribution – the methods used by the marketer that enable the market to
obtain products
S Pricing – ways for the marketer to set and adjust the cost paid by the market to
obtain products
S Supporting Services – additional options that enhance a product’s value
Criticism of Marketing
S Possibly the criticism most frequently made about marketing is that
marketers are only concerned with getting customers to buy whether
they want the product or not. The root of this argument stems from
the belief that marketers are only out to satisfy their own needs and
really do not care about the needs of their customers.
S Marketers are often criticized for exaggerating the benefits offered by
their products. This is especially the case with the part of marketing
that engages in customer communication, such as advertising and
salespeople. The most serious problems arise when product claims are
seen as misleading customers into believing a product can offer a
certain level of value that, in fact, it cannot.
Ethics in Marketing
S Sometimes the line between what is considered ethical and unethical
is difficult to distinguish since what is right and wrong differs
depending on such factors as nationality, culture, and even industry.
S For example, many websites offer users access at no monetary charge
to their content (e.g., articles, videos, audio clips, etc.) but do so only
if users register and provide contact information including email
addresses. Some of these sites then automatically add registrants to
promotional email mailing lists. Some view the practice of automatic
“opt-in” to a mailing list as being unethical since customers do not
request it and are forced to take additional action to be removed from
the list (“opt-out”).
Modern Marketers need the
following….
S Basic Business Skills
S These basic skills include problem analysis and decisionmaking, oral and written communication, basic quantitative
skills, and working well with others.
S An Understanding Marketing’s Impact
S Marketers must know how their decisions will impact other
areas of the company and others business partners.
S Technology Savvy
Modern Marketers need the
following….
S The Need for a Global Perspective
S Thanks in large part to the Internet, nearly any company can
conduct business on a global scale. Yet, just having a website that
is accessible to hundreds of millions of people worldwide does not
guarantee success. Marketers selling internationally must
understand the nuances of international trade and cultural
differences that exist between markets.
S Information Seeker
S The field of marketing is dynamic. Changes occur continually and
often quickly. Marketers must maintain close contact with these
changes through a steady diet of information.