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Importance of Marketing
Marketing
“All activities directed toward
identifying and satisfying
customer needs and wants
through a process of
exchange”
What is Marketing?
All activities from producer to consumer--Micro marketing
Study of the facilitating of exchange
Deliver a standard of living--Macro marketing
An unnecessary evil that is the cause of debt, dishonesty,
selfishness, materialism
 Price, Place, Promotion, Product, Sales Management, Marketing
Research
 Selling
 Obtaining and servicing demand
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Religious View on Marketing
Marketing facilitates exchange, and exchange creates
wealth and a higher standard of living
D&C 104:16, 17 . . . .; and behold this is the way that I, the Lord, have decreed to
provide for my saints, that the poor shall be exalted, in that the rich shall be made low.
For the earth is full, and there is enough to spare; yea, I prepared all things, and have
given unto the children of men to be agents unto themselves . . .
Helaman 6:8,9 . . . The Lamanites did go whithersoever they would, whether among the
Lamanites or among the Nephites; and thus they did have free intercourse one with
another, to buy and to sell and to get gain . . . And it came to pass that they became
exceedingly rich, both the Lamanites and the Nephites; and they did have an exceeding
plenty of gold and silver, and of all manner of precious metals . . .
Jacob 2:19 And after ye have obtained hope in Christ ye shall obtain riches, if ye seek
them; and ye will seek them for the intent to do good--to clothe the naked, and feed the
hungry, and to liberate the captive, and administer relief to the sick and the afflicted.
Role of Marketing
Marketing is the only revenue-generating
activity of a firm
Marketing creates positive cash flows
Marketing is not more important, its role
is very different & critical to a firm
Exchange Process
SYNERGISTIC RESULT OF
EXCHANGE
 1. BUYER PREFERS PRODUCT TO CASH
 2. SELLER PREFERS CASH TO PRODUCT
 BOTH ARE BETTER OFF AFTER EXCHANGE
 BOTH HAVE INCREASED THEIR SENSE OF WELLBEING
(UTILITY)
 COLLECTIVE UTILITY (SATISFACTION) OF SOCIETY IS
RAISED BY INDIVIDUAL EXCHANGES
BUYER SATISFACTIONS
 SHOPPING MAKES SOME PEOPLE HAPPY
 BUYING MAKES SOME PEOPLE HAPPY
 OWNING (POSSESION) CAN INCREASE SENSE OF
WELLBEING
 MARKETING MAKES PEOPLE MATERNALISTIC AND
SELFISH
 PEOPLE OFTEN INWARD FOCUSED RATHER THAN
SOCITAL FOCUSED
Marketing and Economic Development
Motivates consumption
Motivates production and income
Motivates more production and
consumption
Gets efficiency of production &
distribution
Drives the economy
Marketing Creates Utility (Value)
Form utility
 conversion of raw materials and components into finished goods
and services
Time Utility
availability of goods and services when consumers want them
Place utility
availability of goods and services at convenient locations
Ownership utility
ability to transfer title to goods or services at convenient
locations
Four Eras in Marketing
Production Era--Prior to 1920s
“A good product will sell itself”
Sales Era--Prior to 1950s
“Creative advertising and selling will overcome consumer’s
resistance and convince them to buy”
Marketing Era--Since 1950s
“The consumer is king! Find a need and fill it”
Relationship Era--Began in 1990s
“Long-term relationships with customers and other partners lead
to success”
Marketing Myopia
Marketing myopia is management’s failure
to recognize the scope of its business
Product-oriented, rather that customeroriented management endangers future
growth
4 P’s of Marketing
Product Strategy
Pricing Strategy
Distribution Strategy
Promotional Strategy
Target Markets
A target market is a group of people
toward who the firm decides to direct its
marketing efforts (Why would this be
worthwhile?)
Marketing Mix
Product Positioning
The Costs of Marketing
“On the average, one-half of the costs involved in
a product such as Pizza Hut pizza, an ounce of
Joy perfume, a pair of Calvin Klein jeans, or even
a European vacation can be traced directly to
marketing”
Categories of NonTraditional Marketing
Person Marketing
ex: Political candidates
Place Marketing
ex: Las Vegas
Cause Marketing
ex: Just Say No
Event Marketing
ex: World Cup
Organization Marketing
ex: United Way
Non-Profit Marketing
Profit-seeking firms measure profitability
in terms of sales and revenues
While not-for-profit organizations may
attempt to maximize their return from
specific services, they usually substitute
less exact goals, such as service-level
standards, for overall evaluation criteria
Cause Marketing
Marketing Technology
Internet marketing
How does this approach affect traditional
marketing strategies
FOCUS ON PRICE
COST OF GETTING CUSTOMERS
EXCLUDES THOSE WITHOUT COMPUTER ACCESS
PHYSICAL FLOW OF GOODS
CAN NOT FEEL SMELL OR TASTE
Marketing software