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I. What is marketing and why should you learn about it? A. What it’s all about ·
Marketing is more than selling or advertising. Marketing creates customer B. How Marketing Relates to Production ·
Together, production and marketing supply five kinds of
economic utility, the power to satisfy human needs C. Why is marketing important to you? · Marketing is important to every consumer 1. You will be a consumer for the rest of your life 2. Consumers pay for the cost of marketing · Marketing is important to your job 1. Exciting marketing career opportunities 2. You will be working with marketing people 3. Even non-profits must use marketing tools and techniques · Marketing affects economic growth 1. Marketing results in new goods and services 2. Marketing gives customers a choice 3. Resulting in fuller employment, higher incomes and a higher standard of living II.
What is the difference between micro-marketing and macro-marketing A. How is marketing defined? B. Every society needs an economic system · How it operates depends on a society’s objectives and its political institutions C. How are economic decisions made? ·
1. Prices and production are set by government planners, not by supply and demand 2. Consumer choices may be limited 3. Marketing research, branding, and advertising may not be done at all ·
1. Prices are a rough measure of how society values goods and services 2. Prices vary to allocate resources thus achieving a balance of supply and demand 3. Consumers have greatest freedom of choice a.
Conflicts between producers and consumers is called the micro-macro
dilemma 4.
Government’s role is to make sure the economy runs smoothly by
enforcing the rules of the game. a.
Interest rates, money supply, import/export rules, contracts,
monopolies, safe
products… III. Why and how do macro-marketing systems develop? A.
All economies need macro-marketing systems · In a pure subsistence economy no marketing takes place because there is no exchange necessary . · The term marketing comes from the word market · In primitive economies, exchanges tend to occur in central markets ·
Central markets make exchange easier, leaving more time
for producing, consuming and social gatherings. · A common money system simplifies trading because sellers and buyers only have to agree on the price, and not on a mutually beneficial barter of goods. ·
A middleman (or intermediary) reduces the number of
necessary exchanges thereby increasing time for production, consumption and leisure. · The intermediary provides additional time, place, and possession utilities. · Technology is allowing central markets to be located on the Internet, rather than in a physical location. IV. Why is marketing crucial to our economic development and our global economy? A. The role of marketing in economic development · Growth of a nation is the result of an effective macro-marketing system, not the other way around · Producing when there are no markets means that distribution systems and intermediaries do not develop -- the vicious circle of poverty B.
6 Stages of economic development · Different stages of economic development mean that marketing systems vary within them C. Nation’s macro-marketing systems are connected · As a nation grows, its international trade grows ·
· Countries that have not yet developed distribution systems and middlemen intermediaries overcome the problems of trade restrictions by using countertrade · The World Trade Organization (WTO) has three main objectives 1. Help trade flow as freely as possible 2. Provide impartial means for settling international trade disputes 3. Facilitate further negotiations between international trading partners · WTO evolved from and replaced GATT V. Why do marketing specialists – including middlemen and facilitators – develop? A. Can mass production satisfy a society’s consumption needs? · In a modern economy, urbanization brings together large numbers of people who depend on each other to produce the goods and services they need to satisfy their basic needs. ·
Advanced economies take advantage of economies of scale
to drive down the costs of products ·
Effective marketing in an advanced economy is more
difficult because producers and consumers are separated geographically, in time, by information and values, and
separation of ownership. VI. What are the marketing functions and who performs them? A.
The 8 B. Who performs marketing functions? · The marketing functions are all part of the marketing process and cannot be eliminated. · In a planned economy, the government may perform some of the functions · In a market-directed economy, the functions are performed by producers, consumers, and marketing specialists ·
Through specialization or economies of scale, ·
Responsibility for performing the marketing functions
can be shifted and shared, but no function can be completely eliminated. C. How well does our macro-marketing system work? ·
It connects remote producers and consumers ·
The innovation that marketing fosters drives down
prices and give consumers more choices and a higher standard of living. ·
Complaints about marketing include ethics. |
