Core Concepts of Marketing by John Burnett - HTML preview

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CHAPTER 1

INTRODUCING MARKETING

which

marketer operates. For Esther and Jim Williams, who operate an A&W drive-in

in Mattoon, Illinois, community is quite small. For Verizon Communication, community

encompasses practically the entire world, extending even to outer space.

Regardless of the scope of the marketer's community, maintaining contact with it is

essential. Contact could mean reading the local newspaper and listening to the local gossip .

Or it could mean subscribing to information releases of several marketing research firms

that monitor world events 24 hours a day. every day Either might do the job, although the

differences in financial costs would be great. In

3 we discuss some of the more

important trends in the world community. Esther and jim would find this discussion inter-

esting, but not very useful.

U:timately, to be considered a responsible

in the environments in which it oper-

ates, marketers have the ongoing task of engaging in only pro-societal activities and con-

ducting business in an ethical manner. There are many marKeting companies that donate

millions of dollars or land to communities, clean lakes and rivers, revamp deteriorating neigh-

borhoods, give free product to the needy, manage recycling activities, and so forth. There

is no doubt that the need for marketing to continue such activities will increase.

T he Role of Marketing in t he Firm:

A Basis f or Classification

Marketing is an individualized ano highly creative process. Despite the availability of high-

powered compuLers and sophisticated software capable of analyzing massive amounts of

data, marketing is

more of an art rather than a science. Each business must customize

its marketing efforts in response to its environment and the exchange process. Consequently,

no two marketing strategies are exactly the same.

This requirement of marketing to play slightly different roles, depending upon some

set of situational criteria, has in tum provided us with a division of marketing into a num-

ber of different categories . This is not to imply, however, that there aren't general market-

ing principles that work in most businesses-there are. There is a right and wrong way to

design a package. There are certain advertising strategies that tend to work more often than

others. Rather, we are saying that because of certain factors, a

approach toward

marketing and the ensuing

will require some modification from the basic plan.

Shown in Table 1.1 arc the most common types of marketing categories. Since these

various types of marketing will be discussed throughout this text, a brief introduction is provided at this point.

Macromarketing Versus Micromarketing

The division of marketing into macromarketing and micromarketing is a fairly recent one.

Initially, the division was a result of the controversy concerning the responsibility of mar-

keting. Should marketing be limited to the success of the individual firm , or should mar-

keting consider the economic welfare of a whole society? Accepting the later, or "macro,"

point of view dramatically changes the way marketing is carried out. In this light, every

marketing decision must be evaluated with regard to how it might positively or negatively

affect each person and institution operating in that society. In 1982, Bunt and Burnett sur-

veyed the academic community in order to define more precisely the distinction between

macro- and mircomarketing.4 Their findings suggest that the separation depends upon "what

is being studied," "whether it is being viewed from the perspective of society or the firm,"

and "who receives the consequences of the activity." Examples of macromarketing activities are studying the marketing systems of different nations, the consequences on society

of certain marketing actions, and the impact of certain technologies on the marketing trans-

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MARKETING: DEFINITION AND JUSTIFICATION

13

the f a c e of Charles D u b i n - c h o i r singer, moviegoer and

medicines have helped reduce the number of Jeaths by half.

TV director. Four y e a r s

Charles had " a funny

New medicines are also

to keep more pat ients out o f

in

chest." When Charles heard the

"heart

the hospital by controlling

lead to

from his

he feared losing his

heart

s u c h as high blood

and

cholesterol.

a n d his ability

life fully. But .

to effective

company researchers are

h a r d to

medicines. today he's enjoying

And,

discover

t h a t will help ma ke many illness

with his new healither lifestyle. Charles is also doing his part

and

of the past a n d

more

new

to keep h is heart in

Heart disease is the

hope for a better

p e o p l e

Charles

tl( death

Americans. But in the last .30 years, m o d e r n

can get on w i l h living a n d g o on wit h the

Amer I ca ' s

Companies

the w a y

in t h e s e a r c h (o r c u r e s

AD 1.2

The pharmaceutical ;ndustry tries to maintain contact with consumers.

action. The use of scanners in supermarkets and automatic teller machines in banking illus-

trates the last example. Micromarketing examples include determining how Nikon Steel

should segment its market, recommending how National Jewish Hospital should price their

products, and evaluating the success of the "Just Say No" anti-drug campaign.

Service Marketing Versus Goods Marketing

The distinction between services and goods products is not always clear-cuL In general,

service products tend to be intangible, are often consumed as they are produced, are difficult

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14