Basic Marketing: A Global-Managerial Approach

Basic Marketing
A Global-Managerial Approach
Stanley J. Shapiro
Kenneth Wong
William D. Perreault, Jr.
E. Jerome McCarthy
For use with Shapiro, Wong, Perreault, and McCarthy texts.
Copyright © 2002 McGraw-Hill Ryerson Limited.
Chapter 1:
Marketing’s Role
within Organizations

What’s marketing about?
Produce Sell
Need Need

Utility and Marketing
From Production
Time
Time
Form
Form
Utility
Utility
Value
Value that
that comes
comes Place
Place
from
from satisfying
satisfying
human
human needs
needs
Task
Task
Possession
Possession
Exhibit 1-1
From Marketing
1-3 For use with Shapiro, Wong, Perreault, and McCarthy texts.
Utility The power to satisfy human need
• 1. Form utility provided when

someone produces something tangible.
• 2. Task utility Provided when

someone performs a task for someone
else--- for instance, when a bank
handle financial transactions.

• 3. Possession utility obtaining a
good or service and having the right to
use or consume it.
• 4. Time utility Having the product

available when the customer wants it.

5. Place utility Having the
product available where the
customer wants it.

Marketing Defined
Micro-marketing Macro-marketing
The performance of A social process that
activities that seek to directs an economy’s
accomplish an flow of goods and
organization’s objectives services to effectively
by anticipating customer match supply and
needs and directing the demand and to meet
flow of need-satisfying society’s objectives.
goods and services.
• 1. Micro-Marketing
 Applies to profit and nonprofit
organizations
 More than just persuading
customers
 . Begins with customer need
4. Builds an ongoing relationship
• 2. Macro-marketing
--- Emphasis is on whole system
1. Difference between micro-
marketing and macro-marketing
• Micro-marketing focus on customer

needs drive all aspects of the marketing
mix
 Macro-marketing is to effectively

match supply and demand and at same
time accomplish society’s objectives.

Marketing’s Changing Role
Focus:
Simple
Simple Trade
Trade Era
Era Sell
Sell Surplus
Surplus
Focus:
Production
Production Era
Era Increase
Increase Supply
Supply
Focus:
Sales
Sales Era
Era Beat
Beat Competition
Competition
Marketing Focus :
Marketing Department
Department
Era
Era Coordinate
Coordinate and
and Control
Control
Marketing Focus :
Marketing Company
Company Long-Run
Long-Run
Era
Era Customer
Customer Satisfaction
Satisfaction
Five stage of marketing evolution
 Simple trade era

• A time when families trade or sold their
surplus out to local intermediaries, who
then resold these good to other
consumers or distant intermediaries.

 Production era (from industrial

revolution until the 1920’s)
• A time when a company focuses

production of a few specific products
—perhaps because few of these
products are available in the market

 Sale era(1929—1950)
• A time when a company

emphasizes selling because of
increased competition.

 Marketing department era (1950-

1960)
• A time when all marketing activities are

brought under the control of one
department to improve short-run policy
planning and to try to integrate the
firm’s activities.
 Marketing company era(1960—)
• A time when, in addition to short-run

marketing planning, marketing people
develop long-range plans—sometimes
ten or more years ahead—and the
whole company effort is guided by the
marketing concept.
The Marketing Concept
Customer
Customer Total
Total Company
Company
Satisfaction
Satisfaction Effort
Effort
The
Marketing
Concept
Profit
Profit
Exhibit 1-2
Notes
• Marketing need team work!

• Service industry are also slow to adopt
the marketing concept.
• Compare marketing orientation with
production orientation
• See exhibit 1-4

What does the marketing concept
mean?
 Marketing concept
• The idea that an organization
should aim all of its efforts at
satisfying its customers—at a
profit.

 Production orientation
• Making whatever products are easy
to produce and then trying to sell
them.
 Marketing orientation
• Trying to carry out the marketing
concept.

Customer Value Reflects Benefits and Costs
Customer value concerns the difference between the benefits a

customer sees from a firm’s market offering and the costs of
obtaining those benefits
Costs Benefit
s
The customer’s view of costs and benefits is not just limited

to economic (or even rational) considerations--and a low
1-7
price may NOT result in superior value. For use with Shapiro, Wong, Perreault, and McCarthy texts.
Nonprofits Need Marketing, Too
Non-
Non- Non-
Non-
Customer
Customer Economic
Economic
Support
Support Measures
Measures
Characteristics
of Nonprofit
Organizations
Poorly
Poorly
Organized
Organized
for
forMarketing
Marketing
---- See exhibit 1-5
CODE OF ETHICS BY AMERICAN
MARKEYING ASSOCIATION
 Responsibility of the marketer
Honesty and Fairness
Rights and duties of parties in the
marketing exchange process
In the area of the 4P’s

QUIZ FOR CHAPTER 1
• 1. What are the five kinds of

economic utility ?
• 2.What’s marketing concept mean?
And what are the three basic idea
included in the definition of the
“marketing concept?
• 3.What are five stages of marketing
evolution?

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Basic Marketing

For use with Shapiro, Wong, Perreault, and McCarthy texts.

For use with Shapiro, Wong, Perreault, and McCarthy texts.

• 1. Form utility provided when

• 2. Task utility Provided when

For use with Shapiro, Wong, Perreault, and McCarthy texts.

• 4. Time utility Having the product

For use with Shapiro, Wong, Perreault, and McCarthy texts.

For use with Shapiro, Wong, Perreault, and McCarthy texts.

• Micro-marketing focus on customer

 Macro-marketing is to effectively

For use with Shapiro, Wong, Perreault, and McCarthy texts.

 Simple trade era

For use with Shapiro, Wong, Perreault, and McCarthy texts.

 Production era (from industrial

• A time when a company focuses

For use with Shapiro, Wong, Perreault, and McCarthy texts.

 Sale era(1929—1950)

• A time when a company

For use with Shapiro, Wong, Perreault, and McCarthy texts.

 Marketing department era (1950-

• A time when all marketing activities are

 Marketing company era(1960—)

• A time when, in addition to short-run

• Marketing need team work!

For use with Shapiro, Wong, Perreault, and McCarthy texts.

For use with Shapiro, Wong, Perreault, and McCarthy texts.

For use with Shapiro, Wong, Perreault, and McCarthy texts.

Customer value concerns the difference between the benefits a

The customer’s view of costs and benefits is not just limited

For use with Shapiro, Wong, Perreault, and McCarthy texts.

• 1. What are the five kinds of

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