Understanding marketing requires a grasp of its principles, strategies, and the environment in which businesses operate.
Marketplaces and Consumer Needs
A shopping mall, catalog, television network, and website are all marketplaces because they provide a medium where buyers and sellers come together. Within these spaces, a consumer’s want is distinguished from a basic need—it is a culturally and socially shaped desire for a specific product. The marketing concept emphasizes first identifying such needs and then creating products to satisfy them, rather than simply pushing existing goods.
Orientations in Marketing
A production orientation focuses on manufacturing and distribution efficiency, believing consumers will favor affordable and accessible products. Modern marketing has shifted toward consumer involvement, such as Kao Corporation’s campaign encouraging teenage girls to design ads, an example of consumer-generated content.
Business Transactions and Exchanges
Marketing applies to both consumers and businesses. When a retail outlet buys shoes to resell, it illustrates business-to-business marketing. At the heart of all marketing lies an exchange—as in trading yardwork for a home-cooked meal. For an exchange to happen, both parties must have something the other values.
Technology and the Marketing Mix
The evolution of Web 2.0 brought interactive, two-way communication through social networking. Within the marketing mix, the element most tied to distribution is place, as it ensures products reach consumers effectively.
Ethics and International Trade
The American Marketing Association stresses honesty, transparency, responsibility, and citizenship, but equality is not formally listed as an ethical value. On the global stage, the World Trade Organization (WTO) regulates trade rules among nations. Evaluating economies often depends on measures such as standard of living, which reflects purchasing power and consumption levels.
Competition is safeguarded by the Sherman Antitrust Act, designed to prevent monopolies. Global pricing practices like dumping (selling imports below cost) can disrupt fair trade. The Wheeler-Lea Amendment protects consumers by outlawing misleading advertising.
Competition, Corruption, and Economics
Product competition arises when different products attempt to satisfy the same need (e.g., coffee vs. energy drinks). U.S. firms abroad are restricted by the Foreign Corrupt Practices Act, which forbids bribery. Economically, inflation occurs when prices rise and money’s value falls. In global strategies, companies may adopt standardization by using the same product across markets rather than customizing.
Planning and Strategy
Effective marketing requires planning. Typical steps include situation analysis, setting objectives, developing strategies, and implementation. However, “defining and articulating mission and values” is not part of the formal planning steps. The control stage ensures results are measured against objectives and adjusted. In Scrum methodology, “planning” is replaced with sprints, emphasizing iterative action.
In large corporations, each strategic business unit (SBU) is a separate profit center, operating with independence. Tools like SWOT analysis help managers evaluate strengths, weaknesses, opportunities, and threats. The final planning step is to implement and control the marketing plan.
Functional planning is short-term and tactical, whereas strategic planning is long-term. To measure impact, firms use return on marketing investment (ROMI). While action plans include budgets, timelines, and controls, pricing strategies are handled separately. Collectively, all of a firm’s lines of business form its business portfolio.
Research and Data in Marketing
Marketing research methods vary. To establish cause-and-effect, researchers use causal research. Data can be primary (collected firsthand) or secondary (existing sources). A survey commissioned by the company is primary data, while government reports or trade studies are secondary.
To evaluate customer service, businesses employ mystery shoppers. Focus groups often use one-way mirrors so clients can observe unbiased discussions. Simple observation records natural behaviors without interference.
A marketing dashboard provides real-time performance metrics. Using published studies like the AOL/Roper Cyberstudy reflects reliance on secondary data sources. However, web-based samples may lack representativeness because not all populations have internet access. Large syndicated surveys are also examples of secondary data, while mechanical observation (e.g., cameras, scanners, or sensors) represents primary data collection without human intervention.
Marketplaces and Consumer Needs
A shopping mall, catalog, television network, and website are all marketplaces because they provide a medium where buyers and sellers come together. Within these spaces, a consumer’s want is distinguished from a basic need—it is a culturally and socially shaped desire for a specific product. The marketing concept emphasizes first identifying such needs and then creating products to satisfy them, rather than simply pushing existing goods.
Orientations in Marketing
A production orientation focuses on manufacturing and distribution efficiency, believing consumers will favor affordable and accessible products. Modern marketing has shifted toward consumer involvement, such as Kao Corporation’s campaign encouraging teenage girls to design ads, an example of consumer-generated content.
Business Transactions and Exchanges
Marketing applies to both consumers and businesses. When a retail outlet buys shoes to resell, it illustrates business-to-business marketing. At the heart of all marketing lies an exchange—as in trading yardwork for a home-cooked meal. For an exchange to happen, both parties must have something the other values.
Technology and the Marketing Mix
The evolution of Web 2.0 brought interactive, two-way communication through social networking. Within the marketing mix, the element most tied to distribution is place, as it ensures products reach consumers effectively.
Ethics and International Trade
The American Marketing Association stresses honesty, transparency, responsibility, and citizenship, but equality is not formally listed as an ethical value. On the global stage, the World Trade Organization (WTO) regulates trade rules among nations. Evaluating economies often depends on measures such as standard of living, which reflects purchasing power and consumption levels.
Competition is safeguarded by the Sherman Antitrust Act, designed to prevent monopolies. Global pricing practices like dumping (selling imports below cost) can disrupt fair trade. The Wheeler-Lea Amendment protects consumers by outlawing misleading advertising.
Competition, Corruption, and Economics
Product competition arises when different products attempt to satisfy the same need (e.g., coffee vs. energy drinks). U.S. firms abroad are restricted by the Foreign Corrupt Practices Act, which forbids bribery. Economically, inflation occurs when prices rise and money’s value falls. In global strategies, companies may adopt standardization by using the same product across markets rather than customizing.
Planning and Strategy
Effective marketing requires planning. Typical steps include situation analysis, setting objectives, developing strategies, and implementation. However, “defining and articulating mission and values” is not part of the formal planning steps. The control stage ensures results are measured against objectives and adjusted. In Scrum methodology, “planning” is replaced with sprints, emphasizing iterative action.
In large corporations, each strategic business unit (SBU) is a separate profit center, operating with independence. Tools like SWOT analysis help managers evaluate strengths, weaknesses, opportunities, and threats. The final planning step is to implement and control the marketing plan.
Functional planning is short-term and tactical, whereas strategic planning is long-term. To measure impact, firms use return on marketing investment (ROMI). While action plans include budgets, timelines, and controls, pricing strategies are handled separately. Collectively, all of a firm’s lines of business form its business portfolio.
Research and Data in Marketing
Marketing research methods vary. To establish cause-and-effect, researchers use causal research. Data can be primary (collected firsthand) or secondary (existing sources). A survey commissioned by the company is primary data, while government reports or trade studies are secondary.
To evaluate customer service, businesses employ mystery shoppers. Focus groups often use one-way mirrors so clients can observe unbiased discussions. Simple observation records natural behaviors without interference.
A marketing dashboard provides real-time performance metrics. Using published studies like the AOL/Roper Cyberstudy reflects reliance on secondary data sources. However, web-based samples may lack representativeness because not all populations have internet access. Large syndicated surveys are also examples of secondary data, while mechanical observation (e.g., cameras, scanners, or sensors) represents primary data collection without human intervention.
