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19
T E X T 4
Read the text for detailed information and do the following
tasks.
Marketing Principles
Introduction
A vital part of any business undertaking, marketing is a group of
activities designed to expedite transactions by creating, distributing,
promoting, and pricing goods, services, and ideas. Marketing activities
ensure that the products consumers want to purchase are available at a
price they are willing to pay and provide consumers with information
about product features and availability. Both individuals and organiza-
tions engage in marketing activities in the pursuit of business objec-
tives. They occur in a dynamic environment – that is, an environment of
constantly changing laws, regulations, social pressures and opinions,
economic conditions, and technological advances.
This text focuses on the basic principles of marketing. First, we
define and examine the nature of marketing. Then we look at how mar-
keters develop marketing strategies to satisfy the needs and wants of
their customers. Next we discuss buying behavior and the ways market-
ers use research to determine what consumers want to buy and why.
Finally, we explore the impact of the environment on marketing activi-
ties and evaluate their importance.
Nature of Marketing
According to the American Marketing Association, marketing in-
volves planning and executing the development, pricing, promotion,
and distribution of ideas, goods and services to create exchanges that
satisfy individual and organizational goals. This process creates value
by allowing individuals and organizations to obtain what they need and
want. A business cannot achieve its objectives unless it provides some-
thing that customers value.
It is important to note what marketing is not: Marketing is not
manipulating consumers to get them to buy products they don’t want. It
is not just selling and advertising; it is a systematic approach to satisfy-
ing consumers. Marketing focuses on the many activities – planning,
pricing, promoting, and distributing products – that foster exchanges.
20
An exchange is the act of giving up one thing in return for some-
thing else. If you want the latest CD by R.E.M. or Hammer, for exam-
ple, you must give up something in return – in this case, about $15. An
exchange is the transfer of a product for something of equal value, such
as money, credit, labor, or goods. Businesses exchange their goods, ser-
vices, or ideas for money or credit supplied by buyers in a voluntary
exchange relationship. The customer must feel good about the purchase,
or the exchange will not continue. For example, if Federal Express de-
livers your package safely and on time, you will probably feel good
about using its services. But if your package is damaged or late, you
will probably use another delivery-service provider next time you need
overnight-delivery service. Satisfied customers who provide repeat
sales help make Federal Express a profitable business.
When you think of marketing products, you may think of tangible
things – cars, stereo systems, or books, for example. What most con-
sumers want, however, is a way to get a job done, solve a problem, or
gain some enjoyment. You may purchase a Hoover vacuum cleaner not
because you want a vacuum cleaner but because you want clean carpets
in your apartment or dorm room. Therefore, the tangible product itself
may not be as important as the image or the benefits associated with it.
This intangible “something of value” may be capability gained from
using a product or the image evoked by it, such as a designer shirt by
Ralph Lauren.
A product can be a good, a service, or an idea. Goods are physi-
cal, concrete things you can touch. Services are as real as goods, but
you can’t actually see them and touch them: you have to experience
them. They are the result of applying human and mechanical efforts to
people or objects – photograph processing, air travel, medical care, edu-
cation, for example. Ideas include philosophies, images, issues, and
ways of accomplishing objectives. Greenpeace, for example, provides
ideas on how to live and use products in a way that does not harm the
planet.
Marketing is not limited to for-profit businesses. Individuals and
nonprofit organizations also engage in product development, distribu-
tion, pricing, and promotion to achieve objectives. However, the products
these non-business organizations market are usually services and ideas
rather than tangible goods. Political candidates and parties “market”
TEXT4 An exchange is the act of giving up one thing in return for some- thing else. If you want the latest CD by R.E.M. or Hammer, for exam- Read the text for detailed information and do the following ple, you must give up something in return – in this case, about $15. An tasks. exchange is the transfer of a product for something of equal value, such Marketing Principles as money, credit, labor, or goods. Businesses exchange their goods, ser- vices, or ideas for money or credit supplied by buyers in a voluntary Introduction exchange relationship. The customer must feel good about the purchase, A vital part of any business undertaking, marketing is a group of or the exchange will not continue. For example, if Federal Express de- activities designed to expedite transactions by creating, distributing, livers your package safely and on time, you will probably feel good promoting, and pricing goods, services, and ideas. Marketing activities about using its services. But if your package is damaged or late, you ensure that the products consumers want to purchase are available at a will probably use another delivery-service provider next time you need price they are willing to pay and provide consumers with information overnight-delivery service. Satisfied customers who provide repeat about product features and availability. Both individuals and organiza- sales help make Federal Express a profitable business. tions engage in marketing activities in the pursuit of business objec- When you think of marketing products, you may think of tangible tives. They occur in a dynamic environment – that is, an environment of things – cars, stereo systems, or books, for example. What most con- constantly changing laws, regulations, social pressures and opinions, sumers want, however, is a way to get a job done, solve a problem, or economic conditions, and technological advances. gain some enjoyment. You may purchase a Hoover vacuum cleaner not This text focuses on the basic principles of marketing. First, we because you want a vacuum cleaner but because you want clean carpets define and examine the nature of marketing. Then we look at how mar- in your apartment or dorm room. Therefore, the tangible product itself keters develop marketing strategies to satisfy the needs and wants of may not be as important as the image or the benefits associated with it. their customers. Next we discuss buying behavior and the ways market- This intangible “something of value” may be capability gained from ers use research to determine what consumers want to buy and why. using a product or the image evoked by it, such as a designer shirt by Finally, we explore the impact of the environment on marketing activi- Ralph Lauren. ties and evaluate their importance. A product can be a good, a service, or an idea. Goods are physi- cal, concrete things you can touch. Services are as real as goods, but Nature of Marketing you can’t actually see them and touch them: you have to experience According to the American Marketing Association, marketing in- them. They are the result of applying human and mechanical efforts to volves planning and executing the development, pricing, promotion, people or objects – photograph processing, air travel, medical care, edu- and distribution of ideas, goods and services to create exchanges that cation, for example. Ideas include philosophies, images, issues, and satisfy individual and organizational goals. This process creates value ways of accomplishing objectives. Greenpeace, for example, provides by allowing individuals and organizations to obtain what they need and ideas on how to live and use products in a way that does not harm the want. A business cannot achieve its objectives unless it provides some- planet. thing that customers value. Marketing is not limited to for-profit businesses. Individuals and It is important to note what marketing is not: Marketing is not nonprofit organizations also engage in product development, distribu- manipulating consumers to get them to buy products they don’t want. It tion, pricing, and promotion to achieve objectives. However, the products is not just selling and advertising; it is a systematic approach to satisfy- these non-business organizations market are usually services and ideas ing consumers. Marketing focuses on the many activities – planning, rather than tangible goods. Political candidates and parties “market” pricing, promoting, and distributing products – that foster exchanges. 19 20
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