1. Know what marketing is and why you should learn about it.
2. Understand the difference between micro-marketing and macro-marketing.
3. Know why and how macro- marketing systems develop.
4. Understand why marketing is crucial to economic development and our global economy.
Know why marketing specialists—including middlemen and facilitators— develop.
6. Know the marketing functions and who performs them.
7. Understand the important new terms.
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Basic MarketingA Global-Managerial ApproachWilliam D. Perreault, Jr.E. Jerome McCarthyChapter 1: Marketing’s Role in the Global EconomyWhen you finish this chapter, you shouldChapter 1 Objectives 1. Know what marketing is and why you should learn about it.2. Understand the difference between micro-marketing and macro-marketing.3. Know why and how macro- marketing systems develop.4. Understand why marketing is crucial to economic development and our global economy.5. Know why marketing specialists—including middlemen and facilitators— develop.6. Know the marketing functions and who performs them.7. Understand the important new terms.1-2Marketing DefinedMicro-marketingThe performance of activities that seek to accomplish an organization’s objectives by anticipating customer needs and directing the flow of need-satisfying goods and services.Macro-marketingA social process that directs an economy’s flow of goods and services to effectively match supply and demand and to meet society’s objectives.1-3Implications of the Definition of Micro-Marketing Applies to profit and nonprofit organizations.NOT just persuading customers to buy.Begins with customer needs and focuses on customer satisfaction.Marketing activities --but it is a philosophy that guides the whole business.Seeks to builds a relationship with the customer.1-4Marketing Is Important!Marketing impacts all of us in our lives as consumersGives us choicesStimulates innovation and economic growthThere are many good job opportunities in marketingRegardless of what career path you take, no firm (or non-profit organization) survives for long if it can’t satisfy some group of customers.1-5Utility and MarketingExhibit 1-1From ProductionFrom MarketingFormTaskTimePlacePossessionUtilityValue that comesfrom satisfyinghuman needs1-6Exchange and MarketingIn very basic economic systems, each seller must meet directly with each buyer in order to exchange something of value. As needs increase, the number of exchanges can soon become unmanageable for one person.Exhibit 1-2A1-7Ten exchanges requiredwithout central marketPotsBasketsHatsKnivesHoes Exchange and MarketingCentralmarketmiddlemanPotsBasketsHatsKnivesHoes Five exchanges requiredwith central marketExhibit 1-2B1-8In a centralized market, a buyer can go to one location to find many different products from many different sellers. By reducing the time both buyers and sellers must spend to complete an exchange, prices can be lowered.Exchange and MarketingExhibit 1-21-9CentralmarketmiddlemanPotsBasketsHatsKnivesHoes Five exchanges requiredwith central marketTen exchanges requiredwithout central marketPotsBasketsHatsKnivesHoes Self-supportingagriculturePreindustrial orcommercialPrimary manufacturingNondurableconsumer productsCapital equipment anddurable consumer productsExportingmanufactured productsStage 1Stage 2Stage 3Stage 4Stage 5Stage 61-10Marketing in Economic DevelopmentMarketing Facilitates Production and ConsumptionExhibit 1-3Production SectorSpecialization and division of labor = heterogeneous supply capabilitiesConsumption SectorHeterogeneous demand for form, task, time, place, and possession utilityDiscrepancies of QuantityDiscrepancies of AssortmentSpatial SeparationSeparation in TimeSeparation of InformationSeparation in ValuesSeparation of OwnershipMarketingneededto overcomediscrepanciesandseparations1-11Many Individual ConsumersTo create utility and direct flow ofneed-satisfying goods and servicesTo overcome discrepancies andseparationsPerform universal marketing functionsMiddlemenintermediariesMany Individual ProducersFacilitatorsModel of Market-DirectedMacro-Marketing SystemExhibit 1-41-12Monitoring by government(s)and public interest groupsKey TermsMicro-Macro DilemmaPure Subsistence EconomyMarketCentral MarketsMiddlemanIntermediaryTariffsQuotasCountertradeWTOGATTEconomies of ScaleProductionCustomer Satis- factionUtility Form Task Possession Time PlaceMicro-MarketingMacro-MarketingEconomic SystemPlanned EconomyMarket-Directed EconomyUniversal Functions of Marketing Buying Selling Transporting Storing Standardization and Grading Financing Risk-Taking Market InformationFacilitatorsInnovationMarketing Ethics1-13
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