MKTG 302 Ch 1 What is Marketing.docx - What is Marketing...

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What is Marketing There is a very famous quote from Henry Ford about their model T car. “Any customer can have any model painted any color that he wants, so long that it is black.” Or, in other words, if you want a Model T, you are only going to get it in black. If Ford would to make that offer today, it would be destined for failure. So why did it work at the turn of the 20 th Century? The answer is relatively simple; automobiles were rather expensive and unaffordable for the common person. Henry Ford’s vision was to make a low cost automobile that his factory workers could afford to buy. He delivered that with Model T in 1908. A low cost, no frills car that was reliable and easy to repair. And he did not offer too many variations or customizations. Doing so would have added to the cost and would have defeated his objective. Model T was a dramatic success because the overriding criteria for the buyers was affordability. As long as the car was cheap, it had a big market and Henry Ford was able to accomplish this by bringing the more efficient assembly line system to manufacturing. By 1918, about half the cars in America were Model T’s. Today, customers have many options to choose from and they are demanding. While some of you may feel that price is the overriding criteria in your purchases, take a closer look and you will quickly conclude that you are rarely opting for the lowest price products. While price may continue to be an important factor, it’s not the only determinant. Beyond price, you have very specific needs and wants. And you will buy them from the marketer who best serves your needs. That brings us to marketing. At its core, it is satisfying customers’ needs and wants. It is a simple and elegant concept and the company that can do the best job of accomplishing that will get those customers. Typically, there are many companies competing for these customers. So a company has to deliver better than its competitors. And that’s also where marketing research comes in. Today, research has to be very precise to access exactly what customers need and want. American Marketing Association’s definition builds on the core of the marketing concept to state that: marketing is the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing Management Philosophies Over the years, marketing management philosophies have also evolved. There are four such philosophies, the production philosophy, the sales philosophy, the marketing philosophy and the societal philosophy. Some authors also talk about the product philosophy, so we will discuss that too here briefly. Let’s go over them one by one.
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