1、Principles of Marketing TutorialsKnowTs FREE textbook quality Principles of Marketing tutorial series offers the Webs most detailed coverage of marketing. The tutorials focus on the key concepts and functions that are common to most marketing situations no matter an organizations size, industry, or
2、geographic location.The tutorials are ideal for business students and teachers, anyone who lacks an understanding of key marketing concepts, and even professional marketers who are in need of a quick refresher on the subject.Each tutorial allows visitors to KnowT to provide comments. We encourage yo
3、u to do so. In this way we can continue to build these tutorials into the best available on the Internet.Our current tutorials are listed below. To access a topic click on the link.Marketing Basics What is Marketing?Marketing Research Marketing Research Planning for Marketing Research Data Collectio
4、n: Primary Research Methods Data Collection: Low-Cost Secondary Research Data Collection: High-Cost Secondary ResearchCustomers and Markets Managing Customers Consumer Buying Behavior Business Buying Behavior Targeting MarketsProduct Product Decisions Managing ProductsDistribution Distribution Decis
5、ions Retailing Wholesaling Managing Product MovementPromotion Promotion Decisions Types of Promotion Advertising Managing the Advertising Campaign Types of Advertising Media Sales Promotion Types of Sales Promotion Public Relations Types of Public Relations Tools Personal Selling Types of Selling Ro
6、les The Selling ProcessPricing Pricing Decisions Setting Price: Part 1 Setting Price: Part 2Marketing Management Managing External Forces Marketing Planning and Strategy Planning with the Product Life Cycle How to Write a Marketing Plan Preparing a Market StudyOther Topics Internet Marketing Global
7、Marketing Careers in Marketing Marketing Education Operating a Marketing BusinessWhat is Marketing?In the first section of our highly detailed Principles of Marketing Tutorials we lay the groundwork for our study of the field of marketing with a close look at marketings key concepts and the importan
8、t tasks marketers perform. We will see that marketing encompasses a wide array of business decisions that are essential to the success of nearly all organizations.Coverage in this part of the tutorial includes a close examination of the definition of marketing. A dissection of the key terms in the d
9、efinition will show that marketings primary focus is to identify and satisfy customers in a way that helps build a solid and, hopefully, sustained relationship that encourages customers to continue doing business with the marketer.We also will spend a short time on the history of marketing and see h
10、ow it has evolved from a process centered on simply getting as many people as possible to purchase a product to todays highly complex efforts designed to build long term customer relationships. Additionally, well see that marketing is not only important to individual organizations it also carries bo
11、th positive and negative influences at a broader societal level. Finally we look at what it takes to be a marketer in todays worldWelcome to MarketingWelcome to the world of marketing and the Principles of Marketing Tutorials from KnowT. The main intention of this tutorial is to offer a straightforw
12、ard examination of one of the most important, exciting and challenging business activities crucial to nearly all organizations.The Principles of Marketing Tutorials are ideal for anyone who is new to marketing as it covers all essential marketing areas. By spending time with this tutorial the market
13、ing novice will quickly gain the foundation needed to appreciate what marketers do and understand the full scope of marketing decision making. For some, reading this tutorial may also offer insight into career options that exist in the marketing field.Experienced marketers may also find this tutoria
14、l useful. Often seasoned marketers tend to focus on just a few areas of marketing as part of their day-to-day activities and this tutorial may serve as a good refresher for areas of marketing for which they have not recently spent much time.Before we get started we should mention that most of what w
15、e discuss applies to all types of businesses including those whose objective is to make money (i.e., for-profit businesses) as well as those not driven by a profit-making motive (i.e., not-for-profit organizations). However, the reader should be aware that we often use the terms organization, compan
16、y, corporation, and firm interchangeably. While the later three terms are often associated with profit-making businesses, the reader should understand the use of one of these terms does not necessarily limit the context of the discussion to for-profit businesses but may apply across all types of mar
17、keting situations including not-for-profits.Definition of MarketingOur starting point for learning about marketing is to begin with the basics and that starts with defining marketing. Since marketing has been an important part of business for a long time we could consult one of the many hundreds of
18、books written on the subject to locate a definition. Or, as is more the custom today, we could search the Internet to see how marketing is defined. Whether we search print or electronic form we will find that marketing is defined in many different ways.Some definitions focus on marketing in terms of
19、 what it means to an organization, such as being the key functional area for generating revenue, while other definitions lean more toward defining marketing in terms of its most visible tasks, such as advertising and creating new products. There probably is no one best way to define marketing, howev
20、er, whatever definition is used should have an orientation that focuses on the key to marketing success customers.For the purpose of this tutorial we will define marketing as follows:Marketing consists of the strategies and tactics used to identify, create and maintain satisfying relationships with
21、customers that result in value for both the customer and the marketer.Marketing Definition DissectedLets examine our definition of marketing in a little more detail by looking at the key terms.Strategies and Tactics - Strategies are best explained as the direction the marketing effort takes over som
22、e period of time while tactics are actionable steps or decisions made in order to follow the strategies established. For instance, if a companys strategy is to begin selling its products in a new country, the tactics may involve the marketing decisions made to carry this out. Performing strategic an
23、d tactical planning activities in advance of taking action is considered critical for long-term marketing success.Identify - Arguably the most important marketing function involves efforts needed to gain knowledge of customers, competitors, and markets (i.e., where marketers do business). We will se
24、e throughout this tutorial how marketing research is utilized in all decision areas. Create - Competition forces marketers to be creative people. When marketers begin new ventures, such as building a new company, it is often based around something that is new (e.g., a new product, a new way of getti
25、ng products to customers, a new advertising approach, etc.). But once something new is launched innovation does not end. Competitive pressure is continually felt by the marketer, who must respond by again devising new strategies and tactics that help the organization remain successful. For marketers
26、, the cycle of creating something new never ends.Maintain - Todays marketers work hard to insure their customers return to purchase from them again and again. Long gone (see our discussion of History of Marketing below) are the days when success for a marketer was measured simply in how many sales t
27、hey made each day. Now, in most marketing situations, marketing success is evaluated not only in terms of sales figures but also by how long a marketer retains good customers. Consequently, marketers efforts to attract customers do not end when a customer makes a purchase. It continues in various wa
28、ys for, hopefully, a long time after the initial purchase.Satisfying Relationships - A key objective of marketing is to provide products and services that customers really want AND to make customers feel their contact with the marketer is helping build a good relationship between the two. In this wa
29、y the customer becomes a partner in the transaction, not just a source of revenue for the marketer.Value for Both Customer and Marketer - Value refers to the perception of benefits received for what someone must give up. For customers, value is most often measured by how much benefit they feel they
30、are getting for their money, though the value one customer feels may differ from what another customer feels even though they purchase the same product. On the other side of the transaction, the marketer for a for-profit organization may measure value in terms of how much profit they make for the ma
31、rketing efforts and resources expended. For a successful marketing effort to take place both the customer and the marketer must feel they are receiving something worth while in return for their efforts. Without a strong perception of value it is unlikely a strong relationship can be built. Throughou
32、t this tutorial we will emphasize value and show ways marketers build value into the products they offer.What Marketers DoIn order to reach the goal of creating a relationship that holds value for customers and for the organization, marketers use a diverse toolkit that includes (but is not limited t
33、o) making decisions regarding:1. Target Markets markets consist of customers identified as possessing needs the marketer believes can be addressed by its marketing efforts2. Products consists of tangible (e.g., goods) or intangible (e.g., services) solution to the markets needs3. Promotion a means f
34、or communicating information about the marketing organizations products to the market4. Distribution the methods used by the marketer that enable the market to obtain products5. Pricing ways for the marketer to set and adjust the cost paid by the market to obtain products6. Supporting Services addit
35、ional options that enhance a products valueWhile these decisions are shown with a number, the order of decision-making does not necessarily follow this sequence. However, as we will discuss, in almost all cases marketers should first identify target markets (#1) prior to making decisions #2 through
36、#6 (commonly called the Marketing Mix) since these decisions are going to be directed toward satisfying the desired target markets.Each option within the marketers toolkit is tightly integrated with all other options so that a decision in one area could, and often does, impact decisions in other are
37、as. For instance, a change in the price of a product (e.g., lowering the price) could impact the distribution area (e.g., requires increased product shipments to retail stores).Additionally, options within the toolkit are affected by factors that are not controlled by the marketer. These factors inc
38、lude economic conditions, legal issues, technological developments, social/cultural changes, and many more. While not managed in the way marketers control their toolkit, these external factors must be monitored and dealt with since these can cause considerable harm to the organization. Ignoring outs
39、ide elements also can lead to missed opportunities in the market especially if competitors are the first to take advantage of the opportunities. As part of the strategic and tactical planning process discussed above it is wise for marketers to pay close attention to the environment outside the organ
40、ization.Finally, as noted earlier, research plays a significant role in all marketing decisions areas. As we will see in the Marketing Research Tutorial, marketing decisions should not be made without first committing time and resources to obtaining needed information.History of MarketingIt is hard
41、for many to believe, but when compared to economics, production and operations, accounting and other business areas, marketing is a relatively young discipline having emerged in the early 1900s. Prior to this time most issues that are now commonly associated with marketing were either assumed to fal
42、l within basic concepts of economics (e.g., price setting was viewed as a simple supply/demand issue), advertising (well developed by 1900), or in most cases, simply not yet explored (e.g., customer purchase behavior, importance of distribution partners).Led by marketing scholars from several major
43、universities, the development of marketing was in large part motivated by the need to dissect in greater detail relationships and behaviors that existed between sellers and buyers. In particular, the study of marketing led sellers to recognize that adopting certain strategies and tactics could signi
44、ficantly benefit the seller/buyer relationship. In the old days of marketing (before the 1950s) this often meant identifying strategies and tactics for simply selling more products and services with little regard for what customers really wanted. Often this meant companies embraced a “sell-as-much-a
45、s-we-can” philosophy with little concern for building relationships for the long term.But starting in the 1950s, companies began to see that old ways of selling were wearing thin with customers. As competition grew stiffer across most industries, organizations looked to the buyer side of the transac
46、tion for ways to improve. What they found was an emerging philosophy suggesting that the key factor in successful marketing is understanding the needs of customers. This now famous Marketing Concept suggests marketing decisions should flow from FIRST knowing the customer and what they want. Only the
47、n should an organization initiate the process of developing and marketing products and services. The marketing concept continues to be at the root of most marketing efforts, though the concept does have its own problems (e.g., doesnt help much with marketing new technologies) a discussion of which i
48、s beyond the scope of this tutorial. But overall, marketers have learned they can no longer limit their marketing effort to just getting customers to purchase more. They must have an in-depth understanding of who their customers are and what they want. The Role of MarketingAs weve seen the key objec
49、tive of an organizations marketing efforts is to develop satisfying relationships with customers that benefit both the customer and the organization. These efforts lead marketing to serve an important role within most organizations and within society. At the organizational level, marketing is a vital business function that is necessary in nearly all industries whether the organization operates as a for-profit or as a not-for-profit. For the for-profit organization, marketing is responsible for most t
