Marketing s history formation and value to consumers firms and society It is more complicated than you think John Weiss Learning Objectives By the end of this class session you should understand The history of marketing Conceptual formations of marketing What the marketing concept is Identification production oriented vs market oriented companies How social responsibility and marketing ethics relate to the marketing concept Some Marketing Historical Perspectives Simple Trade Era Pre 1800 The concept of Markets Production Era 19th and early 20th Centuries Make it and Give Customers Minimal Options Sales Era mid 20th Century on Tell the Customer What to Buy Marketing Concept Era late 20th Century on Build What the Customer Wants and Will Buy Societal Era late 20th Century and on Customers Asking Business to Consider Societal Ethical Impacts on their Decisions Where are We Today Marketing is Built on Other Discipline s Economics Statistics Management Psychology Sociology Anthropology The Marketing Concept Customer satisfaction Total company effort The Marketing Concept Profit or another measure of long term success as an objective Differences between Adopters of the Marketing Concept and Production Oriented Managers Exhibit 1 4 Topic Marketing Orientation Production Orientation Attitudes toward customers Customer needs determine company plans They should be glad we exist trying to cut costs and bringing out better products Product offering Company makes what it can sell Company sells what it can make Role of marketing research To determine customer needs and how well company is satisfying them To determine customer reaction if used at all Interest in innovation Focus is on locating new opportunities Focus is on technology and cost cutting Differences between Adopters of the Marketing Concept and Production Oriented Managers Exhibit 1 4 Topic Marketing Orientation Production Orientation Customer service Satisfy customers after the sale and they ll come back again An activity required to reduce consumer complaints Focus of advertising Need satisfying benefits of goods and services Product features and how products are made Relationship with customer Customer satisfaction before and after sale leads to a profitable long run relationship Relationship ends when a sale is made Costs Eliminate costs that do not give value to customer Keep costs as low as possible Marketing oriented vs Production oriented Firm A Our goal is to run at full capacity and sell everything that we make Firm B Our goal is to build customer loyalty by designing products that they want to buy How did we come to that conclusion Tide Pods Tasty What is Ethical Business Behavior Accountability Decisions Actions Leadership Moral Reasoning for Decisions Honesty Assertions Misrepresentations Compliance with Industry Rules Codes of Ethics Loyalty Holding Information in Confidence Environmental Concern Can be a Moving Target Transparency Information and Policies Accessible Fairness Trade Partners and Consumers Respect for Laws Organizational Rules and Government Regulations The Marketing Concept Social Responsibility and Marketing Ethics Group Needs Micro Macro Dilemma Individual Needs Society s needs must be considered Should all consumer needs be satisfied Do all marketers act responsibly What if it cuts into profits The Marketing Concept Guides Ethics