Core Concepts of Marketing by John Burnett - HTML preview

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CHAPTER 1

INTRODUCING MARKETING

Sources: Ian P. Murphy, "Aided by Research, Harley Goes Whole Hog," The Marketing News, December 2, 1996, p. 16 ; Richard A. Melcher, "Tune-up Time for Harley," Business Week, April 8,1996, pp. 90 . 94; Kelly BatTOn,

"HogWild," Forbes, May 15 ,2000, pp. 68- 70.

Questio liS:

1. Identify the ways in which Harley-Davidson exhibits the propositions discussed in

chapter.

2. Would you consider Harley to be a marketing organization') Why or why not?

REFERENCES

I. Dictionary of Marketing Tenns, Peter D. Bennett, Ed. , American Mar-

4. Shelby D. Hunt and John J. Burnett, "The MacromarketingIMicro-

keting Association , 1988 p. 54.

marketing Dichotomy: A Taxonomical Model," Joumal of Markel-

2. "A New Recipe for the Family Dinner," Adweek, April 27 . 1992, p. 46.

ing, Summer. 1982 pp. 11-26.

3. Theodore Levitt, "Marketing Myopia," Harvard Business Review,

July-August, 1960, pp. 45-66.

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UNDERSTANDING AND

APPROACHING THE MARKET

LEARNIN G OBJECT IVE S

After studying this chapter, you should be able to :

Understand the role of the ma r ket in the exchange process.

Distinguish between the basic kinds of markets.

Appreciate the differences between the undifferentiated and seg-

mental approach toward markets.

Understand the various bases for market segmentation.

Translate segmentation concepts into the activity of selecting a

target market.

THE WE B SE G MENT

Onli ne advert is ing is still a relatively tiny market, but an increasing number of

companies are vying for the right to tell advertisers and their ad agencies where and how

to responsibly spend their limited pool of Web ad dollars.

Easier said than done. No reliable measurements exist for determining the size of

the Web audience, leaving advertisers to sort through a dizzying number of competing

claims from different web sites. The creator of a system that catches on with advertisers

has a big opportunity: the chance to become the Nielsen of the Internet.

The latest entrant in the race to accurately count Web viewers: Relevant.Knowledge,

an Atlanta-based company founded by fOrmer Turner Broadcasting executives and

staffed with research executives with experience counting eyeballs in traditional media

like television and radio. This company provides standardized, detailed demographic

data and faster feedback about Web viewing, among other services. Relevant. Knowledge

has been delivering data on a test basis to companies including CNN, Sony, cINET, and

Microsoft's MSN Network.

Relevant.Knowledge is taking aim at one of the biggest issues bedeviling online

advertisers and publishers : a dear th of reliable information that advertisers can use to

justify buying ads on the Web. So far, advertisers have been caught in a culture clash

between technology buffs and traditional researchers. The result: not enough data that

can be applied to multiple web sites. Individual sites provide information about the num-

ber of visitors they receive, but such results can't easily be compared to what other sites

may be supplying And most sites can't distinguish one Derson visiting the same site over

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