Introduction to Marketing

21178 Words Jun 12th, 2007 85 Pages

Current Marketing Fundamentals Course Web Site


What is marketing? Almost every marketing textbook has a different definition of the term "marketing." The American Marketing Association (AMA) uses the following: "The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives." From this definition, we see that:

Marketing involves an ongoing process. The environment is "dynamic." This means that the market tends to change—what customers want today is not necessarily what they want tomorrow. For example, sales of beef are declining in the United States because
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Smith Corona, a manufacturer of typewriters, was too slow to realize that consumers wanted the ability to process documents and not typewriters per se. The marketing concept, in contrast, focuses on getting consumers what they seek, regardless of whether this entails coming up with entirely new products.

The 4 Ps—product, place (distribution), promotion, and price—represent the variables that are within the control of the firm (at least in the medium to long run). In contrast, the firm is faced with uncertainty from the environment.

The Marketing Environment

Elements of the environment. The marketing environment involves factors that, for the most part, are beyond the control of the company. Thus, the company must adapt to these factors. It is important to observe how the environment changes so that a firm can adapt its strategies appropriately. Consider these environmental forces:

Competition: Competitors often "creep" in and threaten to take away markets from firms. For example, Japanese auto manufacturers became a serious threat to American car makers in the late 1970s and early 1980s. Similarly, the Lotus Corporation, maker of one of the first commercially successful spreadsheets,
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