PRINCIPLES OF MARKETING CHAPTER 1 What is

PRINCIPLES OF MARKETING CHAPTER 1

What is marketing’s first task? A. Determine potential consumers B. Discover consumer needs C. Collect information about consumers ANSWER B. Discover consumer needs

The Components of a Market Component #1: Unsatisfied Needs Component #2: Potential Customers Component #3: Purchasing Power ALL THREE CONPONENTS MUST BE PRESENT FOR A MARKET TO EXIST

What is marketing’s second task? A. Satisfying consumer needs B. Developing concepts for a product C. Gathering information about needs ANSWER A. Satisfying consumer needs

Elements in the Marketing Mix Product Place Marketing Program Buy at Computers ‘R Us Price Promotion

TYPES OF UTILITY Ø TIME Ø PLACE Ø POSSESSION Ø FORM Ø INFORMATION Ø SERVICE

HISTORY OF MARKETING PRODUCTION ERA “A good product will sell itself. ” SALES ERA “Creative advertising and selling will overcome consumer resistance and convince them to buy. ” MARKETING ERA “The consumer is King! Find a need and fill it. ”

OBJECTIVES OF MARKETING ERA 1) Creating the desire to generate customer satisfaction 2) Total organizational effort 3) Meet consumers needs better than anybody else 4) Profit as an objective

MARKETING ERA Who comes first, second, and third from the following: Customer, Stockholder, Employee First = Employee Second = Customer Third = Stockholder

MARKETING MYOPIA “Management’s failure to recognize the scope of its business. Future growth is endangered when management is product oriented rather than customer oriented. ”

MYOPIA EXAMPLES Myopic Description: “We are a telephone company. ” Marketing Description: “We are a communications company. ” Myopic Description: “We are in the railroad business. ” Marketing Description: “We are in the transportation business. ” Myopic Description: “We are in the petroleum business. ” Marketing Description: “We are in the energy business. ” Myopic Description: “We are in the animate film business. ” Marketing Description: “We are in the entertainment business. ” Myopic Description: “We are in the sports business. ” Marketing Description: “We are in the entertainment business. ”

TYPES OF NONPROFIT MARKETING Person Marketing “Vote for Edwards” Place Marketing “Portugal … Enjoy It. ” Idea Marketing “Help Prevent Birth Defects. ” Event Marketing “Monster Truck Rally … Sunday!” Organization Marketing “The Marines Need a Few Good Men”

Macromarketing vs. Micromarketing Dilemma: What is good for some producers and consumers may not be good for society as a whole. Examples: üGuns üAlcohol üTobacco üLotteries/Gaming/Casinos

SELF CHECK Answer the following questions

Question #1 What is the first task of marketing? A. Satisfying consumer needs B. Discovering consumer needs C. Gathering market information D. Producing a product

Question #2 What is the second task of marketing? A. Satisfying consumer needs B. Discovering consumer needs C. Gathering market information D. Producing a product

Question #3 Which of the following is NOT a marketing mix function? A. Developing a product B. Producing a product C. Distributing a product D. Advertising a product

Question #4 The phrase “Call 1 -800 -XXXX for a free copy of our magazine” would be an example of ______ utility. A. Place B. Service C. Possession D. Information

Question #5 The phrase “A good product will sell itself” is associated with the _____ era of marketing. A. Production B. Sales C. Marketing D. Consumer

Question #6 Which of the following is NOT a myopia phrase? A. “We are in the sports business” B. “We are in the petroleum business” C. “We are in the transportation business” D. “We are a telephone company”

Question #7 The phrase “Red Cross --- The First To Arrive At A Disaster” is considered _____ marketing. A. Cause B. Event C. Place D. Organization

Question #8 The phrase “Save the Manatee” is considered _____ marketing. A. Place B. Cause C. Person D. Event

ANSWERS 1. B 2. A 3. B 4. D 5. A 6. C 7. D 8. B