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MMaarrkkeettiinnggMMaannaaggeemmeennttEExxeerrcciissee2003913WHATISMARKETING?Whatdosetheitem“marketing”mean?Mostpeoplemistakenlythinkofmarketingonlyassellingandpromotion.Someoneisalwaystryingtosellsomething.Itseemsthatwecannotescapedeath,taxes,orselling.Everyoneknowsabouthotproductstowhichconsumersflockitdroves.WhenPolaroiddesigneditsSpectra(=Spectrum)camera,whenColicfirstsoldCabbagePatchdolls,whenFordintroduceditsTaurusTcar,thesemanufacturerswereswampedwithorders.Theyhaddesignedtherightproductsnotmetooproducts,butonesofferingnewbenefits.PeterDrunker(·),aleadingmanagementthinker,putitthisway:Theaimofmarketingistomakesellingsuperfluous.Theaimistoknowandunderstandthecustomersowellthattheproductorservicefitshimandsellsitself.Thisdoesnotmeanthatsellingandpromotionareunimportant,butratherthattheyarepartofalargermarketingmix',asetofmarketingtoolthatworktogethertoaffectthemarketplace.Hereisourdefinitionofmarketing:Marketingisasocialandmanagerialprocessbywhichindividualsandgroupsobtainwhattheyneedandwantthroughcreatingandexchangingproductsandvaluewithothers.Toexplainthisdefinition,wewilllookatthefollowingcoreconcept:needs,wants,demand,products,exchanges,transactions,andmarkets.Themostbasicconceptunderlyingmarketingisthatofhumanneeds.Ahumanneedisastateoffeltdeprivation()inaperson.HumanshaveMaycomplexdeeds.Theyincludebasicphysicalneedsforfood,clothing,·1·warmth,andsafety;socialneedforbelongingandaffectionandindividualneedsforknowledgeandself-expression.Asecondbasicconceptinmarketingisthatofhumanwants,whicharetheformhumanneedstakeasshapedbycultureandindividualpersonality.AhungrypersoninBaliwantsmangoes(),sucklingpig(),andbeans.AhungrypersonintheUnitedStatesstopsatMcDonald'sforahamburger.Frenchfries(),andaCoke.Wantsaredescribedintermsofobjectsthatwillsatisfyadeed.Asasocietyevicteesthewantofitsmembersexpand.Sellersoftenconfusewantsanddeeds.Thesesellerssufferfrommarketingmyopia.Theyconcentratesomuchontheirproductsthattheyfocusonlyonexistingwantsandlosesightofunderlyingcustomerneeds.Peoplehavealmostunlimitedwantsbutlimitedresources.Theythereforechooseproductsthatproducethemostsatisfactionfortheirmoney.Whenbackedbybuyingpower,wantsbecomedemands.Itiseasytolistasociety'sdemandsatagiventime.Inasingleyear,forexample,240millionAmericansmightpurchase67billioneggs,2billionchickens,5millionhairdryers,133billiondomesticairpassengermiles,andover20millionlecturesbycollegeEnglishprofessors.Theseareafewofthedemandsina$3.5millioneconomy.Humanneedswantsanddemandssuggestthatthereareproductstosatisfythem.Aproductisanythingthatcanbeofferedtoamarketforattention,acquisition,useorconsumptionthatmightsatisfyaneedorwants.Thecloserproductscometomatchingconsumers'wants,themoresuccessfultheywillbe.Producersneedtoknowwhatconsumerswantandthenprovideproductsthatcomeascloseatpossibletosatisfyingthesewants.Theconceptofproductisnotlimitedtophysicalobjects.Anythingcapableofsatisfyinganeedorwantcanbecalledaproduct.Marketingoccurswhenpeopledecidetosatisfyneedsandwants·2·WHATISMARKETING?throughexchange.Exchangeistheactofobtainingadesiredobjectfromsomeonebyofferingsomethinginreturn.Exchangeisthecoreconceptofmarketing.Foranexchangetotakeplace,severalconditionsmustbesatisfied.Theremustbeatleasttwoparities,andeachmusthavesomethingofvaluetotheother.Eachpartyneededgoods.Thusthehuntertransactswithonemarkettoobtainalltheneededgoodsratherthanwiththreeotherpersons.Merchantsandcentralmarketplacesgreatlyreducethetotalnumberoftransactionsneededtoaccomplishagivenvolumeofexchange.Asthenumberofpersonsandtransactionsincreasesinasociety,thenumberofmerchantsandmarketplacesalsoincreases.Inadvancedsocieties,marketsneednotbephysicalplaceswherebuyersandsellersinteract.Withmoderncommunicationsandtransportation,amerchantcanadvertiseaproductonlateeveningtelevision,takeordersfromhundredsofcustomersoverthephone,andmailthegoodstothebuyersonthefollowingdaywithouthavinghadanyphysicalcontactwiththebuyers.Theconceptofmarketsfinallybringsasfullcircletotheconceptofmarketing.Marketingmeansworkingwithmarketstobringaboutexchangesforthepurposeofsatisfyinghumanneedsandwants.Thuswereturntoourdefinitionofmarketingasaprocessbywhichindividualsandgroupsobtainwhattheyneedandwantthroughcreatingandexchangingproductsandvaluewithothers.Exchangeprocessesinvolvework.Sellershavetosearchforbuyers,identifytheirneeds;designgoodproductspromotethem,storeanddeliverthemsetpricesandprovideserviceafterthesale.Suchactivitiesasresearch,productdevelopment,communication,distribution,pricing,andservicearecoremarketingactivities.Althoughwenormallythinkofmarketingasbeingcarriedonbysellers,buyersalsocarryonmarketingactivities.Consumersdomarketingwhentheysearchforthegoodstheyneedatpricestheycanafford.Inaseller'smarket,sellershavemorepowerandbuyershavetobethe·3·moreactivemarketers.Inabuyer'smarket,buyershavemorepowerandsellershavetobemoreactivemarketers.TheEnd·4·It’saMassMarketNoMoreThenewethnicconsumerisforcingU.S.companiestochangethewaystheyselltheirwaresSPICYMEXICANFOODSnormallystimulatethetastebuds,seldomcontroversy.Butatele