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Marketing Basics - Kotler Philip

Marketing system goals

We know that marketing in one way or another affects interests; everyone, be it a buyer, seller or ordinary citizen. But these people can have goals that contradict each other. Consider the following example.

SOCIETY (Human Welfare)

Three factors underlying the concept of social ethical marketing

BUYERS (SATISFACTION) FIRM (Profit)

Fig. 5. Three factors underlying the concept of socially-ethical marketing

CUSTOMER. College student John Smith wants to purchase stereo equipment. In a large radio store, he sees different blocks for a stereo set. Several questions immediately arise:

• Is there a wide selection of brands?

• Does any of these brands have the characteristics I need?

• Is the price acceptable?

• Does the seller seem to be trying to help, self-reliant and honest?

• Is there a guarantee and is there a well-established system of after-sales service?

John Smith wants the market to offer him high-quality products at reasonable prices and in places convenient for shopping. A marketing system can do a lot to satisfy a customer.

SELLER. Bill Thompson? stereo marketing manager of a stereo equipment company. To work successfully, he needs to solve several problems:

• What characteristics do consumers expect from stereo equipment?

• Which consumer groups and what specific needs should the firm strive to meet?

• What should be the design and price of the product?

• What warranty and service should I offer?

• What wholesalers and retailers should I use?

• What measures in the field of advertising, personal selling, sales promotion and propaganda could contribute to the sale of goods?

In preparation for entering the market with its proposal, the seller will have to make a number of complex decisions. The market is very demanding, and to develop a proposal that attracts and satisfies customers, you need to think in terms of modern marketing.

CITIZEN. Jane Adams, a state senator, is specifically interested in marketing activities for entrepreneurs. As a legislator representing the interests of citizens, she is concerned about the following issues:

• Are the products offered by manufacturers safe and reliable?

• Do manufacturers accurately describe their products in advertisements and on packaging?

• Is there competition within the market due to which there is a sufficient selection of goods in terms of quality and prices?

• Are retailers and service workers fair to consumers?

• Does the activity related to the production and packaging of goods harm the environment?

Jane Adams plays the role of consumer guardian and advocates for their education, information and protection. The marketing system has a big impact on the quality of life, and lawmakers want it to work the best it can.

Marketing affects so many people in such diverse ways that it inevitably creates controversy. Some actively dislike modern marketing activities, accusing them of destroying the environment, bombarding the public with stupid advertising, creating unnecessary needs, infecting young people with a sense of greed and a whole host of sins. Consider the following statements:

Over the past 6000 years, marketing has been considered the field of easy money hunters, scammers, scammers, and sellers of worthless goods. Most of us “succumbed” to cheeky persuasions, and we were all repeatedly pushed to acquire all kinds of “things” that we, in fact, did not need and which, as it turned out later, we didn’t really want to have15. What does a person need, really need? A few pounds of food every day, warm, shelter, six feet, where to lie down, and some kind of work activity that gives a sense of accomplishment. And it's all ? on the material side. And we know that. But our economic system is constantly brainwashing us until we find ourselves buried under a grave hill from reminders of payment terms, mortgages, ridiculous trinkets, toys that distract our attention from the realization of utter idiocy of a charade that has been resolved all our life 16.

Others fiercely defend marketing. Consider the following statements:

Aggressive marketing policies and practices are mainly responsible for the high material standard of living in America. Today, thanks to large-scale, low-cost marketing, we use goods that were once considered luxury goods and are still considered such in many foreign countries17.

Advertising feeds people's consumer abilities. It creates needs for a higher standard of living. It sets a goal for a person to provide himself and his family with better housing, better clothes, better food. It stimulates his zeal and productivity. It unites in a fruitful marriage the things that in other circumstances simply would not agree with each other18.

What should society expect from a marketing system? This question is relevant, because authorities at various levels are increasingly resorting to the regulation of the marketing activities of firms. In some cases, government intervention can literally go to extremes.

In India, some government officials would like to ban brand names for sugar, soap, tea, rice, and other basic consumer goods. They claim that due to the appropriation of brand names, packaging and advertising, the retail prices of goods increase.

In the Philippines, some government officials advocate a public pricing system, namely, restraining the prices of basic consumer goods through state price controls.

In Norway, some government officials advocate prohibiting the ownership of certain “luxury goods”, such as swimming pools, tennis courts, airplanes, and luxury cars, on personal property rights. In their view, Norwegian resources are too limited to be spent on such purposes. These officials advocate the “collective consumption" of expensive goods and services.

In the early 70s, the Federal Trade Commission took a number of measures to ensure the "veracity of advertising." The regulation on the rationale for advertising requires firms to be ready to provide documentary evidence of any statements contained in the advertisement. The provision on correctional advertising requires that a company guilty of disseminating a false statement spend 25% of its advertising budget on appeals explaining the actual state of affairs. The counter-advertising clause facilitates access to the media to voice opinions against anti-product groups (for example, anti-smoking groups).

The likely and already occurring tightening of marketing regulation on a global scale leads to the most significant question: what is the true purpose of the marketing system? Four alternative answers are proposed: achieving the highest possible high consumption; achieving maximum customer satisfaction; presentation of the widest possible choice; maximum improvement in the quality of life.