Introduction to Marketing Decisions

Chapter (1)

Introduction to Marketing Decisions

Marketing had been defined in various ways :

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1. The American Marketing Association (A.M.A.) offers the following definition of Marketing in 1947.

Marketing is a group of commercial activities that direct the flow of goods and services from producer to consumer or user.

This definition includes:

1. Marketing is considered to be a group of commercial activities.
2. These activities are determined by role in flow direction.
3. The flow consists of goods and services.
4. The flow begins with the producer and ends with the consumer or the user.
5. There is a difference between the consumer and the user.

According to this definition the role of marketing takes place between two parties (The producer and the consumer).

2) Paul Mazur:

He defines marketing as: The delivery of a standard of living to society. To achieve the standard of living we have to:

1. Determine the consumer's needs and wants and their priorities based on a field study.
2. Develop a complete system for distributing and pricing goods and services and ensure their availability,
3. Develop existing products and produce new products from time to time in order to raise the standards of living to society.
4. Study product innovation and re-innovation and the possibility of utilizing it to serve the society.

3) William Mcinnes:

William Mcinnes defined marketing as any activity that actualizes potential relationship between the producer and user of economic goods and services.

According to this definition, the separation between the producer and the consumer takes five dimensions:

1. Time dimension                Closed by                  Storage.
2. Place dimension                 Closed by                Transportation.
3. Perceptual dimension        Closed by                Advertising and promotion.
4. Value dimension                  Closed by                Pricing.
5. Possession dimension        Closed by                Negotiation buying and selling.

Second: Broad Definition:

Philip Kotler defined marketing as a human activity directed to Satisfy needs and wants through exchange processes.

This definition includes:

• Marketing is human activity.
• Marketing aims at satisfying consumers needs and wants in the society.
• According to Kotler's definition exchange should take place.
• According to the exchange condition.

1. Two or more parties - individuals, groups. Or organizations must participate.
2. Each party must have something of value to the other party.
3. The parties of the exchange must be capable of communicating with each other to make available "something of value".
4. Each party must be free to give up something of value" : To the other party or to reject it"

A.M.A. 1995:

The American marketing association, recognizing the wide range of marketing activities and offers the following definition of marketing"

Marketing is 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.

This definition of marketing is the most widely accepted by marketing educators and practionners.

Marketing Management Philosophies

Marketing has gone through four Philosophies:

1. The product Philosophy (production Era):

The product philosophy is one of the oldest marketing Philosophies. This philosophy assumes that consumer will respond positively to the quality product offered at a fair price, therefore no need for marketing efforts.

The implications of this philosophy include:

• The organization should focus its efforts on producing good products at a fair price.
• The consumers buy products without any marketing activities. Consumers choose among different products on the basis of obtaining the quality for the price.
• This philosophy takes care of consumers and the organization, but relatively more concern to the organization.

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Figure (1) Product philosophy (Production Era)

1. The Selling Philosophy (Sales era):

This philosophy assumes that organization could buy anything, if it has experience and highly qualified sales force supported by other departments in the organization.

The implications of this philosophy include:

1. The major mission of the organization is to distribute the maximum quantity of its products.
2. The consumers have normal tendency to resist buying.
3. The organization must therefore undertake an aggressive selling and promotion efforts.
4. This philosophy takes care of consumers and the organization but relatively more concern to the organization.

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Figure (2) The selling philosophy (sales Era)

1. The Marketing Philosophy (Marketing Era):

This philosophy assumes that Marketing responsibility is to satisfy consumer's needs and wants, at the same time achieving high profitability for the organization.

This philosophy include the following implications:

1. The organization's mission is to satisfy consumer's needs and wants.
2. It necessary to study consumer's needs and wants through an effective marketing research program.
3. All the marketing activities should be integrated under the management of the marketing department.
4. This philosophy takes care of consumers and the organization equally.

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1. Marketing and society Era:

This philosophy assumes that marketing responsibility to the extends to include society's welfare in addition organization's customers needs and wants and its profitability: