very little direct contact with its customers and must distribute its product through various
retail outlets alongs ide its competitors. Communication is impersonal, as evidenced by its
national television and print advertising campaigns, couponing, and point-of-purchase dis-
plays. The success of mass marketing is contingent on the probability that within the huge
audience exposed to the marketing strategy.. there exist sufficient potential customers inter-
ested in the product to make
strategy worthwhile.
Direct marketing establishes a somewhat personal relationship with the customer by
first allowing the customer to purchase the product directly from the manufacturer and then
communicating with the customer on a first-name basis. This type of marketing is experi-
encing tremendous growth. Apparently, marketers have tired of the waste associated with
mass IParketing and customers want more personal attention. Also, modem mechanisms
for coliecting and processing accurate mailing lists have greatly increased the effectiveness
of direct marketing. Catalogue companies (Spiegel, J.e. Penney), telecommunications com-
panies (Sprint), and direct mail companies (Publishers Clearing House) are example of direct
marketers. A modified type of direct marketing is represented by companies that allow
ordeling of product by calling a toll-free number or mailing in an order card as part of an
advertisement.
Although (officially), Intemet marketing is a type of direct marketing, it has evolved
so quickly and demanded the attention of so many companies that a separate section here
is 'varranted. Essentially, Intemet technology (w hich changes by the moment) has created
a new way of doing business. In the Internet age, the way consumers evaluate and follow
through on their purchase decisions has changed significantly. "Call now!" is no longer an effective pitch. Consumers have control over how, when, and where they shop on the Inter-
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MARKETING: DEFINITION AND JUSTIFICATION
17
net. The Internet has all but eliminated the urgency of satisfying the need when the oppor-
tunity is presented . Internet marketing will b e discussed in detail in a later chapter.
Local, Regional, National, International, and
Global Marketers
As one would expect, the size and location of a company's market varies greatly. Local
marketers are concerned with customers that tend to be clustered tightly around the mar-
keter. The marketer is able to learn a great deal about the customer and make necessary
changes quickly. Naturally, the total potential market is limited. There is also the possibil-
ity that a new competitor or environmental factor will put a local marketer out of business.
Regional marketers cover a larger geographic area that may necessitate multiple pro-
duction plants and a more complex distribution network. While regional marketers tend to
serve adjoining cities, parts of states, or entire states, dramatic differences in demand may
still exist, requiring extensive adjustments in marketing strategy.
National marketers distribute their product throughout a country. This may involve
multiple manufacturing plants, a distribution system including warehouses and privately
owned delivery vehicles, and different versions of the marketing "mix" or overall strategy.
This type of marketing offers tremendous profit potential, but also exposes the marketer to
new, aggressive competitors.
International marketers operate in more than one country. As will become clear later
in this book, massive adjustments are normally made in the marketing mix in various coun-
tries. Legal and cultural differences alone can greatly affect a strategy's outcome. As the
U.S. market becomes more and more saturated with U.S.-made products, the continued expan-
sion into foreign markets appears inevitable.
Global marketing differs from international marketing in some very definite ways.
Whereas international marketing means a company sells its goods or services in another
country, it does not necessarily mean that the company has made any further commitments.
Usually the product is still manufactured in the home country, sold by their people, and the
profits are taken back to that country. In the case of Honda Motors, for example, it means
building manufacturing plants in the U.S., hiring local employees, using local distribution
systems and advertising agencies, and reinvesting a large percentage of the profits back into '
the U.S.
Consumer Goods Marketing and Business-to-Business
(Industrial) Marketing
Consumer goods marketers sell to individuals who consume the finished product. Business-
to-business marketers sell to other businesses or institutions that consume the product in
tum as part of operating the business, or use the product in the assembly of the final prod-
uct they sell to consumers. Business-to-business marketers engage in more personal sell-
ing rather than mass advertising and are willing to make extensive adjustments in factors
such as the selling price, product features, terms of delivery, and so forth.
For the consumer goods marketer, the various marketing components are relatively
fixed. In addition, consumer goods marketers might employ emotional appeals and are faced
with the constant battle of getting their product into retail outlets.
Strategic Components of Market ing
A necessary and useful starting point for the study of marketing is consideration of the man-
agement process. The management of marketing serves as the framework for the process
of marketing. Marketing management also serves as a central link between marketing and
18