Page 554 - Business Principles and Management

Chapter 20 • Nature and Scope of Marketing

the consumer uppermost in mind during the
design, production, and distribution of a FIGURE 20-1 When a company is customer oriented, the
marketing manager is part of top management.
product is called the marketing concept.
A company that has adopted the market-
ing concept has a marketing manager who is
part of top management and is involved in all
PRESIDENT
major decisions, as illustrated in Figure 20-1.
Marketing personnel work closely with the
other people in the business to make sure the
company keeps the needs of customers in
mind in all operations. The company’s suc-
cess is determined by more than current prof-
its. Profit is important, but long-term success OPERATIONS MARKETING FINANCE
depends on satisfying customers so that they MANAGER MANAGER MANAGER
will continue to buy from the company.

CHECKPOINT

List the eight most common marketing activities.

20.1 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Circle the best answer for each of the following questions.
1. Marketing department employees do which of the following?
a. market research
b. product design
c. product sales
d. all of the above
2. A business that focuses on widespread distribution and promotion is
a. production oriented
b. sales oriented
c. customer oriented
d. market oriented

THINK CRITICALLY
Answer the following questions as completely as possible.
3. Explain why marketing is an important activity in an economy.
4. Explain why the costs of marketing a product are
justified.

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