Chapter 1
As you read the chapter, make notes about each of the following:
 | The Purpose of Marketing |
| Importance of Marketing |
| Exchange as the Focus of Marketing |
| Quality in Marketing |
| Concepts in Marketing |
| Relationships in Marketing |
| Marketing Model |
Define each key term you find.
Summarize each term in your own words. List the important points for
each term. Give a "real life" example of each term.
(hover your mouse over the word for a popup definition)
| exchange |
| separations |
| transporting function |
| storing function |
| facilitating functions |
| marketing concept |
| market orientation |
| marketing myopia |
| marketing stategy formulation |
| target markets |
| marketing mix |
The objectives tell
you what you are expected to know upon completion of the chapter.
I have made some notes for you. Expand on any that are new to you.
1. Define marketing.
The American Marketing Association defines marketing as "the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that will satisfy individual and organization objectives." In simpler terms, marketing is the process of identifying and satisfying customer needs with want-satisfying goods and services.
2. Explain the exchange process.
The basis for any marketing activity is exchange. Exchange is the process by which two or more parties give something of value to each other to satisfy each party’s perceived needs. This "something of value" can be a product, service, or idea - of a person, such as an entertainer, athlete, or politician.
3. List the separations between producers and consumers.
Separations are gaps that divide potential parties and create marketing opportunities. The purpose of marketing is to close, or actualize, these gaps. There are five different forms of separation between potential exchange parties:
| Spatial - space |
| Temporal - time |
| Perceptual - information |
| Ownership - credit |
| Value - satisfaction |
- Delineate the basic functions of marketing.
| Exchange Functions: buying and selling; |
| Logistic Functions: transporting and storing; |
| Facilitating Functions: financing, risk taking, providing information, standardizing/grading. |
5. Describe the four types of utilities and their functions.
| Form Utility - what |
| Place Utility - where |
| Time Utility - when |
| Ownership Utility - how |
6. Describe the marketing concept.
When an organization focuses all of its efforts on making products or providing services that satisfy its customers at a profit, it is employing the marketing concept.
7. Explain the concept of marketing myopia.
However it views and defines itself, an organization must avoid defining the organization’s purpose too narrowly. A narrow focus is known as marketing myopia. For instance, the railroads defined themselves as train companies instead of as providing transportation.
8. Understand the concept of non-profit marketing.
Non-profit means the organization’s goal is not-for-profit. What is the product? What is the price? How is it distributed and promoted?
9. Identify the elements of the marketing mix.
Marketing strategy entails (1) identifying target markets and (2) developing marketing mixes directed at fulfilling the needs of specific market segments. Marketing efforts generally are not aimed at the entire population, or market, but instead, are directed at specific target markets, or those groups identified as potential users of the product. A marketing mix is a specific combination of four sets of controllable variables—products, distribution elements or place, prices, and marketing communications or promotions—designed to appeal to and satisfy the needs of market segments. The marketing mix is referred to as the four Ps - product, price, promotion, and place.
Answer the Discussion Questions.
- Discuss how marketing can be used in different organizations. Include in your discussion profit/non-profit organizations.
- Explain the "something of value" that is exchanged when the Air Force advertises to potential recruits. What does the Air Force receive and what does the potential recruit receive?
- Discuss the concept of marketing myopia. Provide examples of various firms that define themselves myopically? And more broadly?
