Marketing provides needed direction for production and helps makes sure that the right goods and services are produced and find their way to consumers.

Production and marketing supply five kinds of economic utility:

Form

When someone produces something

Task

When someone performs a task

Possession

Obtaining good or service and having the right to use it

Time

Having the product available when the customer wants it Place Having the product available where the customer wants it

Place

Having the product available where the customer wants it
 
 

• As a consumer
• As a career
• It plays a big part in economic growth and development

MICRO MARKETING DEFINED

Performance of activities that seek to accomplish an organization’s objectives by anticipating customer/client needs and directing flow of need satisfying goods and services form producer to consumer. Marketing begins with meeting the customer's needs
 
 

MACRO-MARKETING DEFINED

Macro Marketing is a social process that directs an economy's flow of goods and services from producer to consumer in a way that effectively matches supply and demand and accomplishes the objectives of society.
 
 

All economic systems must develop a method to decide what/how much to produce and distribute by whom, when, to whom, and why.
 
 

Planned economic systems: Government planners decide what and how much is to be produced by whom, when, and why. Prices are set by government planners -- works well as long as economy is simple.

Market directed systems: Consumers make choices in market place.

Price is a measure of value: Prices in production sector and consumption sector vary to allocate resources and distribute income according to consumer preferences. Conflicts can result.

Micro-Macro Dilemma: What is good for some producers and consumers may not be good for society as a whole. Thus, government must step in and set and enforce the “rules of the game.”
 
 

Pure subsistence economy: No marketing takes place. Market: Group of potential customers with similar needs who are willing to exchange something of value with sellers. Central markets: Places where buyers and sellers can meet face to face. Money: Common money system simplifies bartering process Middleman: Facilitates exchange process. Provides time, place, possession, utilities.

Without an effective macro-marketing system, many people in less developed countries are not able to leave their subsistence way of life.  There are no buyers and no intermediaries.  Breaking this cycle will require major changes in the micro and macro marketing systems.
 
 

US accounts for 23% of the world's total economic output.  Tariffs and quotas may reduce trade. e.g. taxes on imported goods. As a result, many firms rely on countertrade.
 
 

Economies of scale mean lower costs of production

Marketing facilitates production and consumption

Purpose of macro-marketing system is to overcome discrepancies by assisting with the universal functions of marketing (8): buying, selling, transporting, storing, grading and standardization, financing, risk taking, and market information.
 
 

It connects remote producers with consumers and encourages growth and new ideas. Note: Must pay attention to ethics!!
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Five stages in marketing evolution:

1) Simple trade era: Families traded/sold surplus to middlemen

2) Production era: 1920’s If you can make it, you can sell it

3) Sales era: sell at all cost

4) Marketing department era: All functions brought together under one department

5) Marketing company era: Whole company is guided by marketing concept.
 
 

Means that the organization aims all efforts at satisfying customers at a profit. This requires a central focus. (See exhibit 2-1)

Production orientation -- make whatevre products are easy and try to sell them.  Marketing orientation means trying to offer customers what they need, using a total company effort, and trying to make a profit while doing so.

Marketing concept applies in nonprofit organizations. e.g., education, health care, churches, etc.
 
 

It is the customer's point of view of the various benefits and costs that is important. Customer value -- the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits -- is important to a marketer.
 
 
 

MARKETING CONCEPT, SOCIAL RESPONSIBILITY AND MARKETING ETHICS

Must focus on social responsibility: Obligation is to improve positive effects on society and reduce negative effects. e.g., cfc’s, gun control, cigarettes. Question is “How does this conflict with being profitable”?. Must balance.

See exhibit 2-4.

The marketing management process: See exhibit 2-5

1) Planning marketing activities

2) Directing (implementing) activities

3) Controlling plans

Marketing strategy: specifies target market and mix

Target market: Homogenous group of customers (See exhibit 2-7 for production vs marketing orientation views of the market)

Marketing mix: The 4 P’s -- Product, Place (Distribution), Price and Promotion

See Exhibit 2-9 for strategy decision areas organized by the four Ps.
 
 

Marketing mix involves the 4 P’s (see exhibit 2-8) -- The controllable variables.  Note:  Customer is at the center of the 4 P's

Product: good or service for target market

Place: reaching the target market

Promotion: telling and selling the customer (personal selling, mass selling and sales promotion

Price: make it right

Note: 4 P’s are all equally important and the marketing mix (4 P’s), and target market are interrelated.
 
 

Marketing plan: Delineates strategy and provides time line. It involves:

• Marketing mix (4 P’s)
• Company’s anticipated resources/costs
• Results expected
• Control procedures

See exhibit 2-12

See exhibit 2-13