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

ProductProduct

MarketinMarketing g

ProgramProgram

PlacPlacee

PromotioPromotionn

Buy at Buy at Computers Computers

‘R Us‘R Us

PricPricee

TYPES OF UTILITY

TIME

PLACE

POSSESSION

FORM

INFORMATION

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! Sunday! 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:

Guns

Alcohol

Tobacco

Lotteries/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-XXX-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