Trace the evolution of marketing

Study and Learn the Words:

English	English equivalents	Romanian	Russian
utility (n)	usefulness	avantaj, folos	полезность
form utility	usefulness appeared after processing the product	utilitate apărută în urma prelucrării produsului	полезность, которая появляется после обработки продукта
inn (n)	hotel or motel
place utility	utility which appears after bringing the product at the place of demand	utilitate apărută în urma aducerii produsului în locul cererii	полезность, которая появляется после приношения продукта на место спроса
time utility	utility caused by offering the goods in time	utilitate cauzată de oferta mărfii la timp	полезность, вызванная предложением товара вовремя
possession utility	utility which appears after purchasing the product or service	utilitate apărută în urma achiziţiei produsului sau a serviciului	полезность, которая появляется после приобретения продукта или услуги
title of a product	right to ownership of a product	drept de proprietate asupra produsului	право на продукт
sales slip	bill issued by the seller, receipt	cec de casă eliberat de vînzator	кассовый чек, выписываемый продавцом
along with	together with	concomitent cu	совместно с
conception (n)	general notion, concept	concepţie, idee, noţiune	идея, понятие, концепция
promotion (n)	futherance of the popularity, sales,by publicizing and advertising	publicitate, reclamă pentru un produs	реклама, рекламный материал

The history of marketing may be nearly as long as the history of man on earth. In its earliest form, the market may have consisted of only two people. Each knew that the other had something he wanted at that time: some grain, an animal, or a tool. The two people simply exchanged their goods. In order to have a fair exchange, they both had to agree on the value or utility of what they were offering for trade. But barter had its problems. If one man exchanged a cow for 200 fish, he might not be able to use all 200 fish, and so he would lose both his cow and the value of the fish he could not use. People then began to accept certain objects in exchange for any product. They had to agree on the value of these objects, which became the first money. Some people began to specialize in the production of goods for other people, and others began to offer services. An increasingly complex marketing system was born.

As a society’s total economy becomes more complex, so does the function of marketing. Production becomes more highly specialized. Producers and consumers become more widely separated, and so do the centers of production and consumption. A huge distribution network is necessary to move goods to consumers. Marketing which has been defined as “the performance of business activities that direct the flow of goods and services from producer to consumer or user,” thus is crucial to all phases of business.

Today, the buyer or consumer’s desires must be satisfied. The entire concept of marketing has changed in recent years. The following chart contrasts the old and the new concepts

 

The old concept of marketing emphasized technological research creating a market the product a narrow line of products product performance selling as the major activity sales profits goods as products

The new concept of marketing emphasizes market research identifying a market the consumer a broad range of products customer needs and desires seeing all marketing activities as parts of one system customer satisfaction goods, services, and ideas as products

 

Marketing is today everywhere. The producer, or the consumer, may be a person, a group, a firm, an institution, an organization, a government. The product can be a consumer good: a head of lettuce, a pencil, a washing machine – anything bought by the ultimate consumer for his own use. It may be an industrial good, bought by a government or institution; to be resold; or to be used in the production of other goods. The product could be a service, such as cutting hair, performing a marriage, providing insurance or a hotel room. It may be an idea: “Don’t drive after drinking”, “Protect wildlife”.

The marketing environment is the same for all. For all, it is necessary to gather market information, choose target markets, study consumer behavior, and develop strategies for production, channeling, promotion, and pricing.

The American Marketing Association defines marketing as “the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. ”

Utility is the power of a good or service to satisfy a human need. For a housewife, a can opener has utility. A lunch at a Pizza Hut, an overnight stay at a Holiday Inn, and a Mercedes 420 SEL all satisfy human needs. Each possesses utility.

Form utility is utility that is created by converting production inputs. Marketing efforts may indirectly influence form utility because the data gathered as part of marketing research are frequently used to determine the size, shape and features of a product.

The three kinds of utility that are directly created by marketing are place, time, and possession utility. Place utility is utility that is created by making a product available at a location where customers wish to purchase it. A pair of shoes is given place utility when it is shipped from a factory to a department store.

Time utility is utility that is created by making a product available when customers wish to purchase it. For example, tennis shoes might be manufactured in December but not displayed until April, when customers in a northern city start thinking about summer sports. By storing the shoes until they are wanted, the manufacturer or retailer provides time utility.

Possession utility is utility that is created by transferring title (or ownership) of a product to the buyer. For a product as simple as a pair of shoes, ownership is simply transferred by means of a sales slip or receipt. For such products as automobiles and homes, the transfer of title is a more complex process. Along with the title to its product, the seller transfers the right to use that product to satisfy a need.

Time, place, and possession utility have real value in terms of both money and convenience. This value is created and added to goods and services through a wide variety of marketing activities-from research indicating what customers want to product warranties ensuring that customers get what they pay for. Overall, these marketing activities account for about half of every dollar spent by consumers. When they are part of an integrated marketing program that delivers maximum utility to the customer, most of us would agree that they are worth the cost.

Place, time, and possession utility are only the most fundamental applications of marketing activities. In recent years, marketing activities have resulted from a broad business philosophy known as the marketing concept.

 

I. COMPREHENSION

A) Comment on:

1. Who can be the producer or the consumer? What can be a product?

2. Define the terms “marketing” and “utility”.

3. Identify the differences between the four kinds of utility and give examples of it.

4. How is value created and added to the goods?

B) Read the following definitions of marketing and use them as a basis to formulate your own definition of marketing:

1. “Marketing is too important to be left to the marketing department” (David Packard).

2. “In a truly great marketing organization, you can’t tell who’s in the marketing department. Everyone in the organization has to make decisions based on the impact on the consumer”. (Stephen Burnett).

3. “Most people mistakenly think of marketing only as selling and promotion ….. This does not mean that selling and promotion are unimportant, but rather that they are part of a larger marketing mix, a set of marketing tools but work together to affect the marketplace.” (Philip Kotler)

4. “The aim of marketing is to make selling superfluous. The aim is to know and understand the customers so well that the product or service fits him and sells itself.” (Peter Drucker)

5. “Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer.”

6. “Marketing is getting the right goods and services to the right place, at the right time, at the right price with the right communication and promotion.”

 

II. FOCUS ON GRAMMAR

A) Insert prepositions:

1. …….. a product as simple as a pair of shoes, ownership is simply transferred by means ….. a sales slip or receipt. 2. For such products as automobiles and homes, the transfer ….. title is a more complex process. 3. Time, place, and possession utility have real value ….. terms of both money and convenience. 4. Overall, these marketing activities account …… about half of every dollar spent by consumers. 5. A lunch ….. a Pizza Hut, an overnight stay ….. a Holiday Inn, and a Mercedes 420 SEL all satisfy human needs.

B) Language Note (Sentence linkers)

Look at these ways of linking the different parts of sentences.

Gert decided to run Columbia herself because she needed money to repay her husband’s loan; but she didn’t have any management experience, and the company accountant resigned, so she had a lot of problems at first.

 

1. We use because and so when we want to give the reason for an action or decision. These words can appear in a different position in the sentence.

She decided to run the company because she needed money.

Because she needed money, she decided to run the company.

She needed money, so she decided to run the company.

2. We use but for contrast, when an action or decision is different from what we would normally expect.

She decided to run the company, but she didn’t have any management experience.

3. Normally, we don’t begin a sentence with so, but, or and.

C) Fill in the spaces in the sentences with because, so, or but. The first one is done for you.

1. The company is recruiting 100 new employees this year so it is moving to larger offices.

2. We’re sending her to the Madrid office ….. she speaks good Spanish.

3. The flight was delayed ….. he was late for the meeting.

4. The rooms in the hotel were very comfortable ….. the food in the hotel restaurant wasn’t good.

5. He can’t be our new Financial Director ….. he isn’t a qualified accountant.

6. Last year, sales increased by eight per cent ….. profits fell by two per cent.

 

III. VOCABULARY PRACTICE

A) Insert the words into the gaps. A synonym is given in parentheses before each blank.

value characteristics firm

system primitive brief

network appropriate principles

crucial concept behavior

broad

 

1. A company should offer a (wide) _________ range of products.

2. The (company’s) _________’s (way of acting) __________ was contrary to (guiding ideas) ___________ of good management.

3. It’s (absolutely vital) ____________ for a marketer to have a (whole idea) _________ of the (worth, importance) ____________ of developing marketing strategy.

4. Goods follow a (complex path) ___________ or _________ from producer to consumer.

5. (Qualities) ___________ of a (beginning, undeveloped) ___________ economy include the use of barter.

6. The manager’s (short) ______________ statement to his salesmen was (apt, suitable) _____________; it helped them correct their mistakes.

 

B) Using a dictionary, fill in missing word family members.

verb	noun	adjective
	competition
produce
	consumer
		industrial
	promotion
lose
		technological
govern
	economy
		satisfactory
decide
	emphasis
		different

C) List the opposites:

excluding __________________ more expensive _____________

primary ___________________ up to date __________________

slower ____________________ organized __________________

bought ____________________ youth ______________________

failure ____________________ the same ____________________

within _____________________ single product ________________

worst ______________________ domestic trade _________________

decline _____________________ weak _______________________

IV. DISCUSSION

A) Work in pairs

You and your partner are managers in the same company. You have a number of problems.

1. One solution is suggested for each problem. Think of some more.

 

Problem	Suggested solution	Other solutions
A new competitor, BRP, took 5% of your market share last year.	Reduce your prices.
Your main supplier, TED West, often delivers late (but their prices are the lowest in the town).	Find a new supplier.
The best candidate for the post of Personnel Manager is a woman, but she is expecting a baby in four month’s time.	Employ her.
Not enough staff are using the company canteen; many of them are buying sandwiches in Pret a Manger.	Close the canteen.

 

B) Now discuss each problem, following these guidelines: