1
For more Notes, Presentations, Project Reports visit
a2zmba.blogspot.com
hrmba.blogspot.com
mbafin.blogspot.com
NEED OF STUDY
There are several good reasons for studing mar!eting. First of all, mar!eting
issues are important in all areas of the organization"customers are the reasons #h
businesses e$ist% &n fact, mar!eting efforts 'including such services as promotion and
distribution( often account for more than half of the price of a product. )s an added
benefit, studing mar!eting often helps us become more savv consumers. *e #ill
learn, for instance, that the per unit price of a bigger pac!age is fre+uentl higher than
that of a smaller one, and that more e$pensive products are fre+uentl not better in
+ualit.
Criteria that must be met for marketing to occur: ,everal criteria must be
met for mar!eting to occur-
• There must be t#o parties, each #ith unsatisfied needs or #ants. This #ant, of
course, could be mone for the seller.
• .ach must have something to offer. /ar!eting involves voluntar 0e$change1
relationships #here both sides must be #illing parties. Thus, a consumer #ho
bus a soft drin! in a vending machine for 234 must value the soft drin!,
available at that time and place, more than the mone. 5onversel, the vendor
must value the mone more. '&t is interesting to note that mone is, strictl
spea!ing, not necessar for this e$change to ta!e place. &t is possible, albeit a
bit cumbersome, to e$change t#o duc!s for a pair of shoes.(
• The parties must be able to communicate. This could be through a displa in a
store, an infomercial, or a posting on e6a.
The marketing vs. the selling concet: T#o approaches to mar!eting e$ist. The
traditional selling concept emphasizes selling e$isting products. The philosoph here
is that if a product is not selling, more aggressive measures must be ta!en to sell it"
1
2
e.g., cutting price, advertising more, or hiring more aggressive 'and obno$ious( sales7
people. *hen the railroads started to lose business due to the advent of more effective
truc!s that could deliver goods right to the customer8s door, the railroads cut prices
instead of recognizing that the customers ultimatel #anted transportation of goods,
not necessaril railroad transportation. ,mith 5orona, a manufacturer of tpe#riters,
#as too slo# to realize that consumers #anted the abilit to process documents and
not tpe#riters per se. The mar!eting concept, in contrast, focuses on getting
consumers #hat the see!, regardless of #hether this entails coming up #ith entirel
ne# products.
The ! "s#ro$uct% lace &$istribution'% romotion% an$ rice"represent the
variables that are #ithin the control of the firm 'at least in the medium to long run(. &n
contrast, the firm is faced #ith uncertaint from the environment.
The suggested frame#or! of international mar!eting includes motivation for
internationalization, ,*9T analsis, a mi$ of international mar!eting decisions and
consolidation of mar!eting efforts on the basis of revie#ing mar!ets performance.
2
:
(EY TE)*
)e+geocentric orientation: the approach that considers a region as a uniform mar!et
segment and a firm follo#ing this approach adopts a similar mar!eting strateg #ithin
the region but not across the region.
,eocentric orientation: the approach that treats the #hole #orld as a single mar!et
and attempt to formulate integrated mar!eting strategies.
Self reference criterion: an unconscious reference to one8s o#n cultural value,
e$perience and !no#ledge as a basis for decision ma!ing.
Theor- of mercantilism: attributes #ealth of a nation b the size of its accumulated
treasures, usuall measured in terms of gold. ) theor that holds that national should
accumulate financial #ealth in the form of gold b encouraging e$ports and
discouraging imports.
Theor- of international ro$uct life c-cle: the cclical pattern follo#ed b the
international mar!ets over a time due to a variet of factors #hich e$plains the shift in
the mar!ets as #ell as manufacturing bases of the firms.
Domestic marketing: mar!eting practice #ithin the domestic mar!ets.
Foreign marketing: methods and practices used in the home mar!ets and also
applied in overseas mar!ets #ith little adaptation.
Comarative marketing: 5omparative stud of t#o or more mar!eting sstem to
find out the differences and similarities.
:
;
)E./E0 OF SU12ECT
0hat is marketing3
)lmost ever mar!eting te$tboo! has a different definition of the term
0mar!eting.1 The )merican /ar!eting )ssociation ')/)( uses the follo#ing- 0The
process of planning and e$ecuting the conception, pricing, promotion, and distribution
of ideas, goods, and services to create e$changes that satisf individual and
organizational objectives.1 From this definition, #e see that-
• /ar!eting involves an ongoing process. The environment is 0dnamic.1 This
means that the mar!et tends to change"#hat customers #ant toda is not
necessaril #hat the #ant tomorro#. For e$ample, sales of beef are declining
in the
For more Notes, Presentations, Project Reports visit
a2zmba.blogspot.com
hrmba.blogspot.com
mbafin.blogspot.com
NEED OF STUDY
There are several good reasons for studing mar!eting. First of all, mar!eting
issues are important in all areas of the organization"customers are the reasons #h
businesses e$ist% &n fact, mar!eting efforts 'including such services as promotion and
distribution( often account for more than half of the price of a product. )s an added
benefit, studing mar!eting often helps us become more savv consumers. *e #ill
learn, for instance, that the per unit price of a bigger pac!age is fre+uentl higher than
that of a smaller one, and that more e$pensive products are fre+uentl not better in
+ualit.
Criteria that must be met for marketing to occur: ,everal criteria must be
met for mar!eting to occur-
• There must be t#o parties, each #ith unsatisfied needs or #ants. This #ant, of
course, could be mone for the seller.
• .ach must have something to offer. /ar!eting involves voluntar 0e$change1
relationships #here both sides must be #illing parties. Thus, a consumer #ho
bus a soft drin! in a vending machine for 234 must value the soft drin!,
available at that time and place, more than the mone. 5onversel, the vendor
must value the mone more. '&t is interesting to note that mone is, strictl
spea!ing, not necessar for this e$change to ta!e place. &t is possible, albeit a
bit cumbersome, to e$change t#o duc!s for a pair of shoes.(
• The parties must be able to communicate. This could be through a displa in a
store, an infomercial, or a posting on e6a.
The marketing vs. the selling concet: T#o approaches to mar!eting e$ist. The
traditional selling concept emphasizes selling e$isting products. The philosoph here
is that if a product is not selling, more aggressive measures must be ta!en to sell it"
1
2
e.g., cutting price, advertising more, or hiring more aggressive 'and obno$ious( sales7
people. *hen the railroads started to lose business due to the advent of more effective
truc!s that could deliver goods right to the customer8s door, the railroads cut prices
instead of recognizing that the customers ultimatel #anted transportation of goods,
not necessaril railroad transportation. ,mith 5orona, a manufacturer of tpe#riters,
#as too slo# to realize that consumers #anted the abilit to process documents and
not tpe#riters per se. The mar!eting concept, in contrast, focuses on getting
consumers #hat the see!, regardless of #hether this entails coming up #ith entirel
ne# products.
The ! "s#ro$uct% lace &$istribution'% romotion% an$ rice"represent the
variables that are #ithin the control of the firm 'at least in the medium to long run(. &n
contrast, the firm is faced #ith uncertaint from the environment.
The suggested frame#or! of international mar!eting includes motivation for
internationalization, ,*9T analsis, a mi$ of international mar!eting decisions and
consolidation of mar!eting efforts on the basis of revie#ing mar!ets performance.
2
:
(EY TE)*
)e+geocentric orientation: the approach that considers a region as a uniform mar!et
segment and a firm follo#ing this approach adopts a similar mar!eting strateg #ithin
the region but not across the region.
,eocentric orientation: the approach that treats the #hole #orld as a single mar!et
and attempt to formulate integrated mar!eting strategies.
Self reference criterion: an unconscious reference to one8s o#n cultural value,
e$perience and !no#ledge as a basis for decision ma!ing.
Theor- of mercantilism: attributes #ealth of a nation b the size of its accumulated
treasures, usuall measured in terms of gold. ) theor that holds that national should
accumulate financial #ealth in the form of gold b encouraging e$ports and
discouraging imports.
Theor- of international ro$uct life c-cle: the cclical pattern follo#ed b the
international mar!ets over a time due to a variet of factors #hich e$plains the shift in
the mar!ets as #ell as manufacturing bases of the firms.
Domestic marketing: mar!eting practice #ithin the domestic mar!ets.
Foreign marketing: methods and practices used in the home mar!ets and also
applied in overseas mar!ets #ith little adaptation.
Comarative marketing: 5omparative stud of t#o or more mar!eting sstem to
find out the differences and similarities.
:
;
)E./E0 OF SU12ECT
0hat is marketing3
)lmost ever mar!eting te$tboo! has a different definition of the term
0mar!eting.1 The )merican /ar!eting )ssociation ')/)( uses the follo#ing- 0The
process of planning and e$ecuting the conception, pricing, promotion, and distribution
of ideas, goods, and services to create e$changes that satisf individual and
organizational objectives.1 From this definition, #e see that-
• /ar!eting involves an ongoing process. The environment is 0dnamic.1 This
means that the mar!et tends to change"#hat customers #ant toda is not
necessaril #hat the #ant tomorro#. For e$ample, sales of beef are declining
in the