Page 302 - Introduction to Business

276 PART 3 Marketing

The Definition of Marketing

LEARNING OBJECTIVE 1
Explain the different aspects of the definition of marketing.
marketing The determination of the Marketing can be defined as the determination of the needs and desires of markets
needs and desires of markets so that so that products and services can be developed, priced, promoted, and distributed
products and services can be
developed, priced, promoted, and to these markets in order to satisfy the market’s needs and desires and that organi-
distributed to these markets in order to zational objectives can be achieved. A transaction takes place between a buyer and
satisfy the market’s needs and desires a seller; the buyer obtains a product or service, and the seller receives money. A
and the organization’s objectives
wide variety of organizations (businesses, charities, art galleries, universities, gov-
ernments, etc.) market their products, services, and ideas in order to achieve profit
(revenues, market share, an enhanced image, acceptance of a viewpoint, etc.).
reality Ask two of your friends how they would define marketing. Are their
CH ECK definitions close to that given in the text?

Marketers must know what the market’s needs and desires are before products
and services are produced. Companies need to give the market what it wants, not
guess what it wants, in order to increase the likelihood that their products and serv-
ices will be purchased. Boeri Sports USA is a distributor of Italian ski helmets. Marc
Hauser, Boeri’s president, hired InsightExpress to collect data over the Web about its
customers. Pleased with the results, Hauser said: “We learned our potential cus-
tomers’ needs and wants so we can react to them. Making a commitment to tap into
the wrong market could be fatal to our company. InsightExpress showed us that we
1
needed to make a bold move without betting the farm.” In 2001, Thomas Ebeling
was hired as chief executive officer of Novartis’s pharmaceutical business. Formerly
an executive at Pepsico, Ebeling feels that there is little difference between the two
industries; both are extremely competitive markets and both require an in-depth
marketing mix The combination of knowledge of consumer behavior. When justifying interviewing 10,000 people with
products or services, prices, promotion, irritable bowel syndrome—they were asked to describe their symptoms and what
and distribution used to market they wanted from a drug—Ebeling said, “There’s a name to this approach. Give
products or services to specific markets
2
over a specific period of time the customers what they want.” Not only products are marketed; services are mar-
keted too. Most people are amazed when they discover that over 80 percent of our
Entrance to Citibank, Manhattan.
nation’s gross domestic prod-
uct is accounted for by serv-
ices (banking, insurance, edu-
cation, health care, stocks,
consulting, etc.), and 80% of
jobs are located in services
sectors of our economy.
Products and services must
be priced, promoted, and dis-
tributed. The product, price,
promotion, and distribution
are collectively called the
marketing mix.
It is important that a mar-
keter’s product or service sat-
isfy the market. If not, cus-
tomers will turn to other
companies to have their needs
and desires fulfilled.

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