Why Study Marketing? “build it and they will come” philosophy doesn’t work

Why Study Marketing? “build it and they will come” philosophy doesn’t work. Marketing helps facilitate exchanges between buyers and sellers for the mutual benefit of both parties. 

Marketing Delivers Value

Not only does marketing deliver value to customers, but also that value translates into the value of the firm as it develops a reliable customer base and increases its sales and profitability.

Marketing Benefits Society

Marketing benefits society in general by improving people’s lives in two ways. First, as we mentioned, it facilitates trade and in economics, trade makes people’s lives better. Then, better marketing means more successful companies, jobs are created. 

From an economic perspective, more choices and smarter consumers are indicative of a higher quality of life. Marketers are trying to deliver offerings of value to consumers by effectively communicating so that consumers are able to make more informed decisions.

Marketing Offers People Career Opportunities

Marketing is the interface between producers and consumers, the one function in the organization in which the entire business comes together. 

Marketing Research

To understand what strategies or tactics work best.

Merchandising

To develop strategies regarding what products wholesalers should carry to sell to retailers.

Sales

To determine the needs, propose offerings, and make sure that the customer is satisfied.

Advertising

Television commercials, print ads, electronic media, Web sites, pop-up ads, podcasts, and more.

Product Development

To identify and create features that meet the customers' needs.

Direct Marketing

Channels such as e-mail, chat lines, telephone, or direct mail.

Digital Media

To determine which consumers receive which message and with IT professionals to create the right look and feel of digital media.

Event Marketing

To plan special events and conversations with potential and current customers in a special setting.

Nonprofit Marketing

Nonprofit marketers typically have smaller budgets. But their work is always very important as they try to change behaviors without having a product to sell.

Criticisms of Marketing

It is costly, and business leaders need to understand the cost/benefit ratio of marketing for wise investments. 

Another criticism is that marketing creates wants among consumers for products and services that aren’t really needed. 

Reference

Tanner, J. & Raymond, M.A. (2010). Principles of Marketing 2.0. Lardbucket.org. Licensed under a Creative Commons by-nc-sa 3.0.

Who Does Marketing? For-Profit Companies, Nonprofit Organizations, and Individuals

Everybody does marketing today, but with different types.

For-Profit Companies

P&G then sells the toothpaste through retailers like Walmart, which has a panel of consumers sample the product and provide feedback through an online community. 

For-profit companies can be defined by the nature of their customers such as B2C (business-to-consumer) or B2B (business-to-business).

Other ways to categorize companies that engage in marketing is by the functions they fulfill such as P&G is a manufacturer and Walmart is a retailer. They have different functions, but all engage in marketing activities by different types.

Nonprofit Organizations

Although an organization like the American Heart Association does not directly benefit, the organization is meeting its mission, or purpose, of getting people to live heart-healthy lives. So, not everything is based only on a financial point of view. Its marketing activities are nonprofit marketing. Even government entities also engage in marketing activities. The Environmental Protection Agency (EPA) runs a number of advertising campaigns designed to promote environmentally friendly activities. 

Individuals

If you sell yourself in an interview, is that marketing? When you work for a wage, you are delivering value in exchange for pay. 

Reference

Tanner, J. & Raymond, M.A. (2010). Principles of Marketing 2.0. Lardbucket.org. Licensed under a Creative Commons by-nc-sa 3.0.