Basic Marketing
A Global-Managerial Approach
William D. Perreault, Jr.
E. Jerome McCarthy
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Chapter 1:
Marketing’s Role in the
Global Economy
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Chapter 1 Objectives
When you finish this chapter, you should
1. Know what marketing is and 5. Know why marketing
why you should learn about it. specialists—including
2. Understand the difference middlemen and facilitators—
between micro-marketing and develop.
macro-marketing. 6. Know the marketing
3. Know why and how macro- functions and who performs
marketing systems develop. them.
4. Understand why marketing is 7. Understand the important
crucial to economic new terms.
development and our global
economy.
For use only with Perreault and McCarthy texts.
1-2 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Marketing Defined
Micro-marketing Macro-marketing
The performance of A social process that
activities that seek to directs an economy’s
accomplish an flow of goods and
organization’s objectives services to effectively
by anticipating customer match supply and
needs and directing the demand and to meet
flow of need-satisfying society’s objectives.
goods and services.
For use only with Perreault and McCarthy texts.
1-3 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Implications of the Definition of Micro-
Marketing
• Applies to profit and nonprofit
organizations.
• NOT just persuading customers to buy.
• Begins with customer needs and focuses on
customer satisfaction.
• Marketing activities --but it is a philosophy
that guides the whole business.
• Seeks to builds a relationship with the
customer.
For use only with Perreault and McCarthy texts.
1-4 © The McGraw-Hill Companies, Inc., 1999
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Marketing Is Important!
• Marketing impacts all of us in our lives as
consumers
• Gives us choices
• Stimulates innovation and economic growth
• There are many good job opportunities in
marketing
• Regardless of what career path you take, no
firm (or non-profit organization) survives for
long if it can’t satisfy some group of
customers.
For use only with Perreault and McCarthy texts.
1-5 © The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Utility and Marketing
From Production
Time
Time
Form
Form
Utility
Utility
Value
Value that
that comes
comes Place
Place
from
from satisfying
satisfying
human
human needs
needs
Task
Task
Possession
Possession
Exhibit 1-1 From Marketing
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1-6 © The McGraw-Hill Companies, Inc., 1999
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Exchange and Marketing
Pots
In very basic economic
systems, each seller
must meet directly with
each buyer in order to
Hats Baskets exchange something of
value. As needs
increase, the number of
exchanges can soon
become unmanageable
for one person.
Hoes Knives
Ten exchanges required
without central market
Exhibit 1-2A
For use only with Perreault and McCarthy texts.
1-7 © The McGraw-Hill Companies, Inc., 1999
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Exchange and Marketing
In a centralized market, Pots
a buyer can go to one
location to find many
different products from
Central
many different sellers. Hats market Baskets
By reducing the time both middleman
buyers and sellers must
spend to complete an
exchange, prices can be
lowered. Hoes Knives
Five exchanges required
with central market
Exhibit 1-2B
For use only with Perreault and McCarthy texts.
1-8 © The McGraw-Hill Companies, Inc., 1999
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Exchange and Marketing
Pots Pots
Central
Hats Baskets Hats market Baskets
middleman
Hoes Knives Hoes Knives
Ten exchanges required Five exchanges required
without central market with central market
Exhibit 1-2
For use only with Perreault and McCarthy texts.
1-9 © The McGraw-Hill Companies, Inc., 1999
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Marketing in Economic Development
Self-supporting
Self-supporting
Stage 1 agriculture
agriculture
Preindustrial
Preindustrialor
or
Stage 2 commercial
commercial
Stage 3 Primary
Primarymanufacturing
manufacturing
Nondurable
Nondurable
Stage 4 consumer
consumerproducts
products
Capital
Capitalequipment
equipmentand
and
Stage 5 durable
durableconsumer
consumerproducts
products
Exporting
Exporting
Stage 6 manufactured
manufacturedproducts
products
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1-10 © The McGraw-Hill Companies, Inc., 1999
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Marketing Facilitates Production
and Consumption
Production Sector
Specialization and division of labor = heterogeneous supply capabilities
Spatial Separation
Discrepancies of Quantity
Marketing Separation in Time
needed
to overcome
Separation of Information
discrepancies
and
separations Separation in Values
Discrepancies of Assortment
Separation of Ownership
Consumption Sector
Heterogeneous demand for form, task, time, place, and possession utility
Exhibit 1-3
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Model of Market-Directed
Macro-Marketing System
Many Individual Producers
Middlemen
Facilitators
intermediaries
Perform universal marketing functions
Monitoring by government(s) To overcome discrepancies and
and public interest groups separations
To create utility and direct flow of
need-satisfying goods and services
Many Individual Consumers
Exhibit 1-4
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1-12 © The McGraw-Hill Companies, Inc., 1999
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Key Terms
Production Micro-Macro Universal Functions
Customer Satis- Dilemma of Marketing
faction Pure Subsistence Buying
Utility Economy Selling
Form Market Transporting
Task Central Markets Storing
Possession Middleman Standardization
Time Intermediary and Grading
Place Tariffs Financing
Micro-Marketing Quotas Risk-Taking
Macro-Marketing Countertrade Market Information
Economic System WTO Facilitators
Planned Economy GATT Innovation
Market-Directed Economies of Marketing Ethics
Economy Scale For use only with Perreault and McCarthy texts.
1-13 © The McGraw-Hill Companies, Inc., 1999
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