Transcript Part III Marketing

Unit Seven
What is all about marketing?
Objectives
 Get the student to be familiar with the concept
of marketing.
 Cultivate the students’ ability of problemsolving.
 Help the students to grasp the techniques for
fast reading.
Section A
 Introduction
 “Marketing is a societal process by which
individuals and groups obtain what they need
and want through creating, offering and freely
exchanging products and value with others.”
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—Philip Kotler
Pre-reading
 Before reading the following passage, answer
the question:
 What do you think are the key ingredients in
marketing?
Text
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Core Marketing Concepts (I)
To explain this definition—“Marketing”, we
will examine the following important terms:
needs, wants, and demands; products and
services; value, satisfaction, and quality;
exchange, transactions, and relationships.
The following Figure shows that these coremarketing concepts are linked, with each
concept building on the one before it.
 Needs, Wants, and Demands
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The most basic concept underlying
marketing is that of human needs. Human
needs are states of felt deprivation. They
include basic physical needs for food,
clothing, warmth, and safety; social needs for
belonging and affection; and individual needs
for knowledge and self-expression. These
needs were not invented by marketers; they
are a basic part of the human makeup.
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Wants are the form human needs take as
they are shaped by culture and individual
personality. An American needs food but
wants a hamburger, French fries, and a soft
drink. A person in Mauritius needs food but
wants a mango, rice, lentils, and beans.
Wants are shaped by one’s society and are
described in terms of objects that will satisfy
needs.

People have almost unlimited wants but limited
resources. Thus, they want to choose products that
provide the most value and satisfaction for their
money. When backed by buying power, wants
become demands. Consumers view products as
bundles of benefits and choose products that give
them the best bundle for their money. A Honda Civic
means basic transportation, affordable price, and fuel
economy; a Lexus means comfort, luxury, and status.
Given their wants and resources, people demand
products with the benefits that add up to the most
satisfaction.
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Outstanding marketing companies go to
great lengths to learn about and understand
their customers’ needs, wants, and demands.
They conduct consumer research about
consumer likes and dislikes. They analyze
customer inquiry, warranty, and service data.
They observe customers using their own and
competing products and train salespeople to
be on the lookout for unfulfilled customer
needs.

In these outstanding companies, people at all
levels—including top management—stay close to
customers. For example, top executives from WalMart spend two days each week visiting stores and
mingling with customers. At Disney World, at least
once in his or her career, each manager spends a
day touring the park in a Mickey, Minnie, Goofy, or
other character costume. Moreover, all Disney World
managers spend a week each year on the front line—
taking tickets, selling popcorn, or loading and
unloading rides. At AT&T, CEO C. Michael Armstrong
often visits one of the company’s customer service
centers, dons a headset, and fields orders to get a
better sense of the problems and frustrations that
AT&T business customers face.
 At Marriott, to stay in touch with customers,
Chairman of the Board and President Bill
Marriott personally reads some 10 percent of
the 8,000 letters and 2 percent of the 750,000
guest comment cards submitted by
customers each year. Understanding
customer needs, wants, and demands in
detail provides important input for designing
marketing strategies.
 Products and Services

People satisfy their needs and wants with products
and services. A product is anything that can be
offered to a market to satisfy a need or want. The
concept of product is not limited to physical objects—
anything capable of satisfying a need can be called a
product. In addition to tangible goods, products
include services, which are activities or benefits
offered for sale that are essentially intangible and do
not result in the ownership of anything. Examples
include banking, airline, hotel, tax preparation, and
home repair services.

More broadly defined, products also include other
entities such as experiences, persons, places,
organizations, information, and ideas. For example,
by orchestrating several services and goods,
companies can create, stage, and market
experiences. Disneyland is an experience; so is a
visit to Niketown. In fact, as products and services
increasingly become commodities, experiences have
emerged for many firms as the next step in
differentiating the company’s offer. In recent years,
for example, a rash of theme stores and restaurants
have burst onto the scene offering.

Stores such as Niketown, Cabella's, and
Recreational Equipment Incorporated draw
consumers in by offering fun activities,
fascinating displays, and promotional events
(sometimes labeled “shoppertainment” or
“entertailing”). At theme restaurants such as
the Hard Rock Cafe, Planet Hollywood, or the
House of Blues, the food is just a prop for
what's known as “eatertainment.”
 Thus, the term product includes much more
than just physical goods or services.
Consumers decide which events to
experience, which entertainers to watch on
television, which places to visit on vacation,
which organizations to support through
contributions, and which ideas to adopt. To
the consumer, these are all products. If at
times the term product does not seem to fit,
we could substitute other terms such as
satisfier, resource, or marketing offer.

Many sellers make the mistake of paying
more attention to the specific products they
offer than to the benefits produced by these
products. They see themselves as selling a
product rather than providing a solution to a
need. A manufacturer of drill bits may think
that the customer needs a drill bit, but what
the customer really needs is a hole.
 These sellers may suffer from “marketing
myopia”—they are so taken with their
products that they focus only on existing
wants and lose sight of underlying customer
needs. They forget that a product is only a
tool to solve a consumer problem. These
sellers will have trouble if a new product
comes along that serves the customer's need
better or less expensively. The customer with
the same need will want the new product.
Post-reading
Answer the questions on the text.
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1. What are the terms one discussed in the article?
2. What are the human needs?
3. What elements shape human wants?
4. For what purpose do people at all levels—including
top management—stay close to customers in some
outstanding companies?
5. What are the people’s better standard of products
according to the article?
6. What is the definition of product?
7. What activities does Niketown offer to draw their
customers?
8. What is the mistake that many sellers make?
Section B Reading skills
 Importance of Details
 Details are able to express and include a
large amount of information and these two
are complementary to each other.
 The details are mainly embodied in the
statistics, data, descriptive information; and to
provide a reference case, or quotations.
Speed reading task
 Let’s have a glimpse of more concepts of
marketing. Use techniques for speed reading
to find out the answers to Exercise 1 as
quickly as possible.
True or false
KEY: T T F T T
 1. _____ Exchange is one way that people can have
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a satisfied object.
2. _____ Exchange has been used as way of
satisfying needs.
3. _____ Exchange is the concept of marketing as
well as unit of measurement.
4. _____ You pay sears $350 for a TV set is a
typical transaction.
5. _____ Increasingly, marketing is shifting to
building mutual beneficial relationships with
customers, distributors, dealers and suppliers.
Section C
Case Study
Task
 Discuss the following questions in groups:
 How would you recommend that Harry
proceeds?
 Draft the outline of a report that Harry might
prepare for the board, setting out the
arguments in favor of adopting a marketing
approach. What benefits might Alderson’s
expect form this new way of doing business?
NOTES
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1. Republic of Mauritius
毛里求斯共和国，非洲东部一岛国，位于印度洋西南方。西距马达加斯加约800
公里，与非洲大陆相距2,200公里。整个国土由几个火山岛组成，面积2,040平方
公里，人口约126万。
2. Honda Civic
本田思域: 1972年第一代本田思域诞生，并推出搭载低污染的CVCC发动机。
Civic意思是市民的和公民的，其意思想指这款车是大众化的车款。
3. Lexus
雷克萨斯，是日本丰田汽车旗下，于海外销售的高级轿车品牌。在2005年，雷克
萨斯在海外载誉归来终于打入日本本土市场，使其成为了在全球均有销售的高级
轿车品牌。雷克萨斯自面世而来，在全球众多国家的宣传格言都是：”The
Pursuit of Perfection”。
4. Disney World
迪士尼主题乐园，迪士尼乐园于1955年开幕，此后，在美国和海外又陆续开了9
家，分布在4个迪士尼度假区。2005年9月12日，香港迪士尼乐园开幕，成为大中
华区第一座迪士尼主题公园。
5. Marketing Myopia
营销近视症，由著名的市场营销专家、美国哈佛大学管理学院西奥多·莱维特
(Theodore Levitt)教授在1960年提出。营销近视症是不适当地把主要精力放在产
品上或技术上，而不是放在市场需要(消费需要)上，其结果导致企业丧失市场，
失去竞争力。