Core Concepts of Marketing by John Burnett - HTML preview

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CHAPTER 1

INTRODUCING M ARKETI NG

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© Elvis Presley Enterprises, Inc.

his pride and joy. But it came down to the reality that I had to open it up for my daugh-

ter's future."

Today 750,000 people visit Graceland each y~ar-52% of them under 35, which

suggests this is a business with a future. The marsion has upgraded its public fac ilities

many times over the years, but there still are no vending machines on the grounds and

the lawns have never been turned into a parking lot. The original 24 ac res have been

expanded into an 80-acre compound and Priscilla intends to add a hotel to the complex.

There are also plans for a casino in Las Vegas-perhaps with an Elvis wedding chapel-

and an international chain of Hard Rock Cafe-style restaurants called Elvis Presley's

Memphis. Finally, a staff of ten lawyers is employed full- time by Elvis Presley Enter-

prises simply to protect Elvis ' s image from interlopers.

Sources: Corie Brown, "Look Who's Taking Care of Business," Newsweek, August 18, 1997, p. 62. Karen Schoemer, "Burning Love," Newsweek, August 18, 1997, pp. 58-61. G. Brown, "More Earll' Elvis Unearthed ," The Denver Pos t, August 15, 1997, p. 9F. Greg Hassell, "King of Trees Rises From Graceland," Houston Chronicle, Dec. 8,1999, p. 11. Duncan Hughes, "Elvis is Back From the Dead Fmancially," Sunday Business, August 15, 1999, p. 23.

INTRODUCTION

The success of Elvis Presley Enterprises was a result of the insights and courage of Priscilla

Presley. Despite her lack of formal training in marketing, she exhibited a creative approach

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MARKETING: DEFINITION AND JUSTIFICATION

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toward doing business that will become more and more necessary as the 21 st century con-

tinues . Innovative thinking has become a prerequisite for success in today's global envi-

ronment, which is saturated with near clone products being sold by millions of comparable competitors. The status quo will no longer suffice. The need for constant change paired with

clear strategies is now essential.

Marketing constitutes just one of the functions available to every business. Along with

research, production, finance, accounting, and a myriad of other functions, marketing con-

tributes to the ability of a business to succeed. In many businesses, marketing may be deemed

of highest importance; in others, it may be relegated to a lesser role. The very existence of

business depends upon successful products and services, which in turn rely on successful

marketing. For this reason, every

person will benefit from even basic marketing

knowledge. Moreover, marketing principles have been

applied to several non-

business institutions for more than 30 years. Bankers, physicians, accounting firms, invest-

ment analysts, politicians, churches, architectural firms , universities, and the United Way

have all come to appreciate the benefits of marketing.

A word of warning: there is a long-standing myth that marketing is easy. After going

through this book you may conclude that marketing is interesting, fun, challenging--even

vague-but it is not easy. Whether you like numbers or hate numbers, like people or hate

people, like doing the same thing every day or like constant change there are opportuni-

ties for you in marketing.

MARKETING: DEFINITION AND J USTIFICATION

Defin ing M arketing

Noted Harvard Professor of Business Theodore Levitt, states that the purpose of all busi-

ness IS to "find and keep customers." Furthermore, the only way you can achieve this objective is to create a competitive advantage. That is, you must convince buyers (potential customers) that what you have to offer them comes closest to meeting their particular need

or want at that point in time. Hopefully, you will be able to provide this advantage consis-

tently, so that eventually the customer will no longer consider other alternatives and will

purchase your product out of habit. This loyal behavior is exhibited by people who drive

only Fords, brush their teeth only with Crest, buy only Dell computers, and have their plumb-

ing fixed only by "Samson Plumbing-On Call 24 hours, 7 days a week." Creating this

blind commitment-without consideration of alternatives-to a particular brand, store, per-

son, or idea is the dream of all businesses. It is unlikely to occur, however, without the sup-

port of an effective marketing program . In fact, the specific role of marketing is to provide assistance in identifying, satisfying, and retaining customers.

While the general tasks of marketing are somewhat straightforward, attaching an accept-

able definition to the concept has been difficu't. A textbook writer once noted, "Marketing is not easy to define. No one has yet been able to formulate a clear, concise definition that

finds universal acceptance." Yet a definition of some sort is necessary if we are to layout the boundaries of what is properly to be considered "marketing." How do marketing activities differ from nonmarketing activities? What activities should one refer to as marketing

activities? What institutions should one refer to

marketing institutions?

Marketing is advertising to advertising agencies, events to event marketers, knock-

ing on doors to salespeople, direct mail to direct mailers. In other words, to a person with

a hammer, everything looks like a nail.

reality, marketing is a way ofthinking about busi-

ness, rather than a bundle of techniques. It's ;nuch more than just selling stuff and collect-

ing money. It's the connection between people and products, customers and companies. Like

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