Core Concepts of Marketing by John Burnett - HTML preview

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CHAPTER 1

INTRODUCING

KEYS TO MARKETING SUCCESS

A prime guideline for marketing success is to realize that establishing customer satisfac-

tion should be the company's number-one priority. The only people who really know what

customers want are the customers themselves. A company that realizes this will develop a

marketing mentality that facilitates information gathering and maintains effective commu-

nication with the primary reason for the company's existence: the customer.

A second guideline is to establish a company image that clearly reflects the values

and aspirations of the company to employees, customers, intermediaries, and the general

public . Philips Petroleum has done this for years with their advertising campaign that focuses

on how their company benefits society.

Third, while marketing requires work that is clearly distinct from other business activ-

ities, it shOUld be central to the entire organization. Marketing is the aspect of the business

that customers see. If they see something they do not like, they look elsewhere.

Fourth, the business should develop a unique strategy that is consistent with the cir-

cumstances that it faces. The marketer must adapt basic marketing principles to the unique

product being sold. This means that what General Foods does may not work for GTE because

one is inherently a goods product and the other a

product. And neither will work

for the State of Kentucky ' s Parks and Recreation Department, because that is a public, non-

profit organization. In other words, imitating what other organizations do without fully understanding one's own situation is a dangerous strategy.

Finally, technological progress dictates how marketing will be performed in the future.

Because of computer technology inventiveness, both consumers and businesses are better

informed. Knowledge is the most important competitive advantage. The world is one mar-

ket, and information is changing at light-speed.

MARKETING CAPSULE

1. The components of marketing management are as follows:

2 . The keys to marketing success are:

a. Corporate-level considerations include the organiza-

a. Satisfy the customer.

tion's mission and objectives.

b. Establish a clear company unage.

b. Functional-level considerations include nonmarketing

c. Make marketing central to the organization.

institutions and marketing institutions.

d. Be proactive.

c. Marketing-level considerations include the mission, the

e. Develop a strategy consistent with the situation .

situation analysis, objectives, strategy, implementation,

budget, and evaluation.

d. The marketing mix includes the primary tools available

to the marketer: product, distribution, promotion, and

price.

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THE WALL STREET JOURNAL.

IN PRACTICE

ing you to return to the Front Sec-

2. Recently, the effectiveness of

Marketing plays a critical role in the

tion at any time.

online marketing efforts has

success of business organizations: it

Articles

to marketing

been questioned. What can mar-

helps them create a competitive

are typically found in the Market-

keters do to measure the suc-

advantage. By continuously collect-

place section. Click on Marketplace

cess of online marketing?

ing information about customers'

now to view today's articles. Just

3. What advantages does receiving

needs and competitors' capabilities

below the main menu on the left

the Wall Street Journal online

and by sharing this information

side, a smaller menu titled In this

provide for users ? Specifically,

across departments, business organi-

Section .. . appears, listing main

marketers?

zations can create a competitive

header topics in Marketplace. One

advantage by increasing value for

of th e topics is MarketinglMedia.

customers.

Visit this section now to read

Individuals working in market-

today 's articles.

ing departments must be knowl-

Chapter I , Introducing Market-

edgeable about all the elements of

ing, provides and overview of the

the business that impact the success

importance and functions of mar-

of marketing efforts. Marketing

keting in business organizations.

objectives are directed by an orga-

Marketing takes many forms, and

nization's mission statement, and

evolves with new technologies. Mar-

marketers use a set of strategies to

keting on the Internet, also known

achieve these objectives.

as e-commerce marketing, provides

Implementation is critical to a

challenges and opportunities for

marketing plan's success; therefore,

marketers. Visit Volkswagen's web-

the marketing budget allocates

site, WWW.vw.com. to see how the

expenditures for each of the compo-

company has extended its market-

nents of the marketing mix. Market-

ing efforts from television and print

ing success depends on several

to its website.

factors, the most important of which

is establishing customer satisfaction

DELIVERABLE

as th e #1 priority.

Search the Interactive Journal for

articles about e-commerce market-

TAKE A TOUR

ing. Under Journal Atlas, click on

The Front Section of the Interactive

Search to conduct a search using

Journal (wsj .com) is similar to the

key words like e-commerce, Inter-

front page of the newspaper version

net, and marketing. Use the Busi-

of The Wall Street Journal. The left

ness Index feature to search for

column displays the menu selection,

articles on specific companies.

with the five major sections listed at

Search the Business Index now to

the top. These five sections are:

find articles on Volkswagen.

1. Front Section

DISCUSSION QUESTIONS

2. Marketplace

3. Money & Investing

1. Some marketers believe the

4. Tech Center

Internet will become the most

S. Personal Journal

effective avenue for marketing

products to consumers. Do you

The menu remains on th e page as

agree or disagree?

yo u navigate through th e site, allow-

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