Comprehension check

EVOLUTION OF MARKETING

SUPPLEMENTARY READING

SPEECH PRACTICE

1. Summarize the information of Unit 10 to be ready to speak on “Marketing”. The first step to be done is to write a plan of your summary.

2. “Marketing concept is a consumer-oriented, integral, profit-oriented philosophy of business”. Explain this statement and its implications.

3. Explain what each element of the 7 Ps involves.

4. Choose any problem (topic) relating to Marketing and make a short report in class. Refer to different additional sources to make your report interesting, instructive and informative.

The evolution of marketing is the evolution of the exchange process. Unless two or more individuals or organizations have something to exchange,thereis no need formarketing. The desire to exchangeoccurs only when someone produces more than he/shecan consume (a surplus).This surplus is exchanged for surplus someoneelse produced. Possiblythe first marketingtransactiontook place when one cave-dweller,who enjoyed making arrowsbut did not like to hunt, persuaded a fellow cave-dweller, who liked to hunt but did not enjoy making arrows, to accept some arrowsin exchange for some animal skins and meat. Since that primitivetime, marketinghas become verysophisticated indeed.

The Egyptians, Phoenicians, Greeks,and Romans all had well-developed trade systems. The Old Testament contains many references to such marketingtopics as money, wealth, credit, products, international trade, government regulation, middlemen, taxation, poverty, welfare, pricing, trade fairs, and business ethics.

During the Middle Ages trade declined. However, it picked up againduring theAge of Discovery (roughly 1400-1760 A.D.) as merchants sought to extend their reach over much of the world. As you no doubtrecall, Columbus made his first voyage to America in an effort to find amore direct trade route to Asia and the Far East.

In the late 1700sthe Industrial Revolution began, and as it continuedmarketing grew in importance. This latter-day development can be divided into three periods – the production era, the sales era, andthemarketing era.

1. Why is marketing considered to be the evolution of the exchange process?

2. Explain in what way the production era differsfrom the sales era and the marketing era.

WHAT IS MARKETING?

Itis impossible tospeak about marketingwithout understanding what ‘ needs and wants' mean. So let’s begin with the definition of needs and wants. A needoccurs whena person feels physiologically deprived of basicnecessities like food, clothing, and shelter. A wantis a felt need that is shaped by aperson’s knowledge, culture, and personality.So ifyou feel hungry, you have developed a basic need and desire to eat something. Let’s say you then want to eat an apple or a candy bar because, based on your past experience and personality,you know these will satisfy your hungerneed. Effective marketing, in the form of creating an awareness of goodproduct at convenient locations, can clearly shape a person’s wants.

The American Marketing Association, representing marketing professionals in the United States and Canada, states that “ marketingis the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfyindividual and organizational objectives”. Many people incorrectly believe that marketing is the same thing as advertising or personal selling. This definition shows marketing to be a far broader activity. Further, this definition stresses the importance of beneficial exchanges that satisfy the objectives of both those who buy and those who sell ideas, goods, and services.

To serve both buyers and sellers, marketing seeks (1) todiscover the needs and wants of prospectivecustomersand (2) to satisfy them.These prospective customers include both individuals’ buying for themselves and their households and organizations that buy for theirown use (such as manufacturers) or for resale,(such as wholesalers and retailers). The key to achieving these two objectives is the idea of exchange, which is the trade of thingsof value between buyer and seller so that each is better offafter the trade.

For marketing to occur, at least four factors are required: (1) two or more parties (individuals or organizations) with unsatisfied needs, (2)desire and ability on their part to be satisfied, (3) a way for the parties to communicate, and (4) something to exchange.

Дата добавления: 2014-11-29