CHAPTER 1

AN OVERVIEW OF MARKETING

Economics is the mother science of marketing. Ralph Starr Butler called marketing as a combination of factors. Arch W. Shaw conceived marketing as matter in motion. motion changing form production motion changing place and ownership distribution

Stages of Marketing
1900-1910 Period of Discovery. Borrowed concepts from economics. The concept of marketing occurred and a name given to it. 1910-1920 Period of Conceptualization. Concepts were classified and terms were defined. 1920-1930 Period of Integration. Principles of marketing were postulated and the general body of thought was integrated. Paul W. Ivey was the first to use a book title Principles of Marketing.

1930-1940 Period of Development. Marketing was developed through the use of technology. 1940-1950 Period of Reappraisal. Traditional marketing was reappraised in terms of new needs for marketing knowledge. 1950-1960 Period of Reconception. Conceived and developed managerial decision. 1960-1970 Period of Differentiation. Concepts of marketing are differentiated to have their own identity. 1970 Period of Socialization. Ideas are made by marketing not by the society.

 Marketing has been enriched and broadened by concepts from related discipline such as: Economics Management Accounting Behavioral Sciences (Anthropology, Sociology, Psychology, Political Science)

Goals of Marketing
Maximize consumption Maximize consumer satisfaction Maximize choice Maximize life quality Maximize profit

Approaches to Marketing
Traditional Approaches
The commodity or product approach studies the processes involved in how a product, a group of products or service is marketed. The Institutional Approach provides a descriptive analysis of the operations, nature, evaluation, and functions of particular institutions, such as producers, wholesaler, retailers, and various facilitating agencies. The Functional Approach is the study of marketing functions.

Contemporary Marketing Approaches

The Marketing Mix Marketing mix developed by E. Jerome McCarthy consists of four Ps product, promotion, price, place, all of which influence buyers decision and responses. It is centered on consumer.
PRODUCT

PROMOTION

CONSUMER

PRICE

PLACE

Formula for Marketing Success Desirable Product + Effective Promotion or demand stimulation + Acceptable Price + Availability in right Places = Marketing Success Conceptual Approach This approach studies ideas of marketing rather than the activities of marketing. This approach is view in two ways: Marketing concept views all management decisions to be oriented to market considerations, with the consumer or the customer as the end or object of all business effort. An earlier counterpart of this approach was the Consumer is the King concept. Concept of marketing lays down the various concepts to which marketing is studied. Marketing is increasingly viewed not merely as a group of internal activities or functions but as a way of expressing other insights into the marketing task and performance. Systems (Holistic) Approach A system is a set of interacting and interdependent groups coordination to form a unified whole and organized to accomplish a set of goals. A marketing system is viewed as the set of important institutions and flows that connect an organization to its market. The system consists of the following: 1. Core marketing system consists of a set of supplier whose heterogeneous inputs are transformed by a company and its competitors into valued outputs that pass through marketing intermediaries (wholesalers, retailers, etc.) to reach the final market. 2. Publics may include financial community, pres, general public, interest group, government agencies and legislators and personnel. 3. Macro-environment - includes demography, economics, law and politics, technology, culture and competition. Marketing Management The concept is a managerial approach to marketing. It emphasizes marketing management as a decision-making process and how decision makers, specifically the marketing manager, handles specific marketing problems and situations. Philip Kotler defines marketing management as the analysis, planning, implementation and control of programs designed to bring desired exchanges with target markets for the purpose of achieving organizational objectives.

Eight Marketing Management 1. Conversional Marketing. This is a difficult marketing task since it tries to change peoples wants rather than to serve their wants. 2. Stimulation Marketing. This is the task of trying to stimulate a want for an object in people who initially have no knowledge or interest in an object. 3. Development Marketing. This is the task of trying to develop a new product or service that meets a clear market need. 4. Remarketing. This is the task of trying to rebuild interest in a stable or declining product or service. 5. Synchromarketing. This is the task of trying to alter the time pattern of demand so that it will better match the time pattern of supply. 6. Maintenance marketing. This is the task of trying to maintain the existing level of sales against the erosive forces of competition. 7. Demarketing. This is the task of trying to reduce the demand for a product or service on a temporary or permanent basis. 8. Countermarketing. This is the task of trying to destroy the demand or interest in a particular product or service. Macro-Marketing A marketing system is a system for ensuring that goods and services are produced and distributed to reach the consumers. It exists in two levels the macro level and the micro level. Macro-marketing looks is the economys entire marketing system to see how efficient and fair it is. By contrast, micro-marketing examines individual firms within the economic system, to see how they operate and how they should operate. Thus, it is macro if marketing aims at accomplishing an economys objectives, and micro if marketing aims at carrying out a specific companys objectives. Social Concept The concept depicts marketing as a social institution rather than merely as a business activity or economic process. Marketing is interpreted in terms of environment not only the market but the marketing process itself. Thus, marketing behavior is viewed as a social interaction. Marketing as a social institution has a social responsibilities responsibilities to everyone in society it touches: competitors, suppliers, community, the nation and the consumers.

Comparative Marketing System This concept is corollary to the social concept of marketing. It recognizes existing environmental differences among societies marketing within different countries, and between them. John Fayerweather (1965) saw the relevance of environment to comparative marketing in the following propositions that formed the basis for comparative marketing theory: 1. 2. 3. 4. The similarity of marketing problems and task to all nations Variations arising from differences in basic systems of society Forces of international economics molding international trade patterns Distortion of those problems by nationalistic government policies

MARKETING DEFINED
Marketing is a human activity responsible for managing the demand structure of needsatisfying goods and services in order to facilitate satisfactorily, the exchange process at a reasonable profit, for present and potential customers.

THE SCOPE OF MARKETING

Demography Consumer Behavior Pricing Sales Management Product Management Marketing Research Information System

ROLE OF MARKETING
1. As a career, a profession. Marketing is an important career opportunity. 2. Standard of living. Marketing supports your lifestyle by creating and delivering goods and services to satisfy your diverse activities. 3. Economic Stability. Marketing today has emerged as a sophisticated set of activities to stimulate demand. 4. Employment. It provides millions of jobs to people.