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17-2 Principles of Marketing [CH 17

Chapter Overview

When you read or hear the word marketing, what does that envision for you?
Do you think of the jingles hawking your favorite product on the radio and
television, your favorite singer or group, or remind you of an upcoming sports
event? Do you dream about that beautiful new car in a print magazine? When you
go online and search for a college textbook for your least cost, or shoes, bedroom

furnishings, or a new phone, is that your concept of marketing? When you think
about going out to dine, will you review the restaurant’s online menu’s, the
restaurant hours and location, is this marketing?
marketing The American Marketing Association defines marketing as the process of
Planning and executing the
conception, pricing, promotion, planning and executing the conception, pricing, promotion, and distribution of
and distribution of ideas ideas, goals, and services to create exchanges that satisfy individual and
goods, and services to create organizational objectives. Given this definition, were you thinking about one
exchanges that satisfy aspect of marketing, probably advertising, which communicates for an exchange to
individual and organizational
objectives. satisfy individual and organizational objectives, with the organization being the
business you will do business with regardless of how their product is delivered?
Could this marketing definition be succinctly stated as marketing includes
exchange everything from conception to consumption, whereas consumption is with the
Process by which two or more
parties give something of ultimate consumer and the concept being forming the good or service in shape,
value to one another to satisfy quantity, form and price that the consumer will decide and consummate their
felt needs. purchase and getting that good or service into the possession of the consumer?
We recognize that marketing covers every aspect of a business; it is business as

a function and includes everything from conception to consumption. Marketing
links the firm with the consumer and includes all three levels of economic
productivity—primary, secondary and tertiary. Primary production includes
farming, forestry, fisheries and mining. The products from primary production are

moved along, to probably change their form, by being either processed or

Figure 17.1 Flow of products through
the three levels of
economic productivity;
Primary, Secondary and
Tertiary. The thickness of
the flow lines indicates
proportionate volume for
each channel.

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