Методичка по Английскому языку для экономистов

Методичка по Английскому языку для экономистов

Advertising Ideas

Advertising is impersonal, usually paid communication intended to

inform, educate, persuade, and remind.

Advertising is a sophisticated form of communication that must work

with other marketing tools and business elements to be successful.

Advertising must be interruptive — that is, it must make you stop thumbing

through the newspaper or thinking about your day long enough to read or

hear the ad. Advertising must also be credible, unique, and memorable in

order to work.

And finally, assuming the actual advertising is built upon a solid

positioning strategy, enough money must be spent to provide a media

schedule for ad frequency, the most important element for ad memorability.

History of Advertising

1. Introduction

Marketing is more than just distributing goods from the manufacturer

to the final customer. It comprises all the stages between creation of the

product and the after-market which follows the eventual sale. One of these

stages is advertising. The stages are like links in a chain, and the chain

will break if one of the links is weak. Advertising is therefore as

important as every other stage or link, and each depends on the other for

success.

The product or service itself, its naming, packaging, pricing and

distribution, are all reflected in advertising, which has been called the

lifeblood of an organization. Without advertising, the products or services

cannot flow to the distributors or sellers and on to the consumers or

users.

2. Early forms

Advertising belongs to the modern industrial world, and to those

countries which are developing and becoming industrialised. In the past

when a shopkeeper or stall-holder had only to show and shout his goods to

passers-by, advertising as we know it today hardly existed. Early forms of

advertising were signs such as the inn sign, the red-and-white striped

barber's pole, the apothecary's jar of coloured liquid and the

wheelwright's wheel, some of which have survived until today.

3. Effect of urban growth

The need for advertising developed with the expansion of population

and the growth of towns with their shops and large stores; mass production

in factories; roads and railways to convey goods; and popular newspapers in

which to advertise. The large quantities of goods being produced were made

known by means of advertising to unknown customers who lived far from the

place of manufacture.

Advertising grew with the development of media, such as the coffee-

house newspapers of the seventeenth century, and the arrival of advertising

agencies nearly 200 years ago, mainly to handle government advertising.

4. Advertising and the modem world

If one looks at old pictures of horse buses in, say, late nineteenth-

century London one will see that they carry advertisements for products

famous today, a proof of the effectiveness of advertising. Thus the modern

world depends on advertising. Without it, producers and distributors would

be unable to sell, buyers would not know about and continue to remember

products or services, and the modern industrial world would collapse. If

factory output is to be maintained profitably, advertising must be powerful

and continuous. Mass production requires mass consumption which in turn

requires advertising to the mass market through the mass media.

16. Advertising involvement

Although advertising is listed as a single element it is associated

with almost every other element, borrowing from them or interpreting them.

(a) The volume, emphasis and timing of advertising will depend on the

product life cycle situation. For instance, at the introductory or

recycling stages, the weight of advertising will be heavier than at the

maturity or decline stages.

(b) Marketing research will provide evidence of motives, preferences

and attitudes which will influence not only the copy platform or

advertising theme but the choice of media through which to express it.

(c) Naming and branding may be initiated by the advertising department

or agency, and clearly plays an important role in advertisement design.

(d) The product image will be projected by advertising.

(e) The market segment will decide the tone or style of advertising,

and the choice of media.

(f) Pricing can play an important part in the appeal of the copy. Is

the product value for money, a bargain or a luxury? Pricing can be a very

competitive sales argument. People are very price conscious.

(g) The product mix has many applications. In advertising, one product

may be associated with another, or each brand may require a separate

campaign.

(h) Packaging can be a vital aspect of advertising, as when pack

recognition is sought. It is itself a form of advertising, especially at

the point-of-sale, as in a supermarket when the package often has to

identify the product and literally sell it off the shelf.

(i) Distribution involves trade advertising such as by direct mail, in

the trade press and at exhibitions.

(j) The sales force has to be familiarised with advertising campaigns

which will support their efforts in the field.

(k) Market education is a public relations activity aimed at creating

a favourable market situation in which advertising will work.

(1) Corporate and financial public relations often uses institutional

advertising in the business press.

(m) Test marketing requires a miniature advertising campaign

simulating the future national campaign.

(n) Advertising research includes copy-testing, circulation and

readership surveys and statistics, recall tests, tracking studies and cost-

per-reply and cost-per-conversion-to-sales figures.

(o) Sales promotion can augment or even replace traditional

advertising.

(p) The after-market calls for advertising to make customers aware of

post-sales services.

(q) The maintenance of customer interest and loyalty may be achieved

by advertising which promotes additional uses and accessories, or simply

reminds.

ADVERTISING

Advertising is used to create consumer interest in a product and also to

increase the sales of that product. It may be described under three

headings:

1 descriptive advertising;

2 persuasive advertising;

3 both descriptive and persuasive advertising together.

Descriptive advertising

This type of advertising gives the most: important facts about the product.

It is the cheapest form of advertising and is used a lot by the small

trader selling through the local paper. It will usually say:

1 what the product is;

2 how much it will cost;

3 where it may be obtained.

Example: 1972 Ford Escort Ј500. Telephone London 1234.

Persuasive advertising

This type of advertising tries to persuade people that the product which is

being advertised has a special quality or usefulness which makes it much

better than other similar products. It is used a lot in television

advertising where consumers arc persuaded to think that if they buy that

product they will become very popular or very happy. This is a

psychological approach, and it is hoped by the advertiser that people will

be persuaded to buy the product. The method uses 'association of ideas'.

Brand names such as Guinness and Oxo are used in persuasive advertising.

Example: 1983 Ford Capri Ј2000 - good condition - low mileage, a bargain,

first to see will buy this attractive car.

Advertising media

Newspapers

There are both national newspapers and local newspapers. Advertising in the

national press is usually much more expensive than advertising in the local

press. Both types of advertising are sold by the column centimetre, the

half page and the page. A page in a national newspaper may cost many

thousands of pounds for one day. This is because national newspapers have

very large circulations (they are read by a lot of people).

Television

Television advertising in Great Britain is controlled by the Television Act

1954. It is the most expensive kind of advertising and costs many thousands

of pounds (on a national network) for just a few seconds of television

time. Charges are made by the second. If the advertisement is shown at a

time when relatively few people are watching, then it will be cheaper. If

it is shown - at a time when many people are watching (peak viewing time)

then the charges are much higher. Television advertising is mostly used by

large organizations and the nationalized industries.

Radio

This kind of advertising is much cheaper than television advertising. It is

very popular in the United States. The most popular radio station in Europe

is Radio Luxembourg, which carries a lot of commercial advertising. In

Great Britain radio advertising is usually carried by local independent

radio stations.

Hoardings

Hoarding advertisements are usually put up in eye-catching positions at the

side of the road. The cost of the advertisement will depend on where the

hoarding is and how large it is. If it is in a very good position and near

the centre of the city where it will be seen by many potential customers,

then it will probably be quite expensive. The sites are usually rented out

to clients on a monthly basis by an advertising agency.

Handbills

These are quite often used by local traders to advertise their goods and

services. They are expensive in labour costs and are not very effective.

Transport

The inside and outside of buses, trains, vans and other kinds of public

transport are used in transport advertising. The most expensive position is

where the advertisement is most likely to be seen by the public such as the

back of a bus or the inside of a bus, especially at the front where the

potential customer will be seated looking at it. The most inexpensive

position is upstairs on the bus or at the back inside the bus. It is

difficult to tell whether transport advertising is effective.

Cinemas

The cinema screen is used for advertising by local and national traders.

Like transport advertising, it is difficult to judge how effective cinema

advertising is.

Neon displays

These are mostly used by large firms. The signs are usually displayed in

city centres.

Technical journals

These are mostly used as an advertising medium by large manufacturing and

distributing companies. They are read by persons and companies who are

interested in this particular kind of product, and the journals will also

contain other information that is useful to the readers. Technical journals

are usually printed once a month. Examples are The Hairdresser, The Radio

and Television Magazine and the Farmers Live Stock Journal. Advertising in

technical journals is a very good method of advertising.

Trade fairs and shows

The Motor Show, the Boat Show, the Radio Show and the Ideal Homes

Exhibition are a few examples of trade fairs and shows. Dairy products may

be advertised at agricultural shows. Aircraft may be advertised and

displayed at the Farnborough Air Show. The disadvantage is that the shows

and exhibitions are expensive to organize.

It is very difficult for advertisers to tell whether a particular

advertisement or method of advertising has been effective, but there is no

doubt that without advertising the customer would never hear of some

products. Perhaps the most effective advertising of all is the

recommendation of the product by a satisfied customer to a potential

customer – advertising by word of mouth.

The language of advertising

Here are some methods used in persuasive advertising. Read them

quickly. Decide which appeal to you and which don’t. Now think of an

example for each type from your country.

persuasive advertising

1. Repetition The simplest kind of advertising. A slogan is

repeated so often that we begin to associate a brand name

with a particular product or service.

2. Endorsement A popular personality is used in the

advertisement.

3. Emotional appeal Advertising often appeals to basics such

as mother-love, sex, manliness, feminity.

4. Scientific authority Sometimes the advert shows a person

in a white coat (i.e. a scientist) telling us about the

product. More often it mentions “miracle ingredients” or

“scientific testing” to persuade us.

5. “Keeping up with the jones’s” An appeal to pure snob

value. You want to appeal to be richer or more successful

than your neighbours.

6. Comparison The advert lists the qualities of a product in

direct comparison with rival products.

7. An appeal to fear or anxiety This type is similar to 3,

but works on our fears.

8. Association of ideas This is usually visual. Until it

became illegal in Britain, cigarette advertising showed

attractive, healthy people smoking in beautiful rural

situations.

9. Information If a product is new, it may be enough to show

it and explain what it does.

10. Special offers/free gifts This is a very simple and

direct appeal – it’s half a price!

11. Anti-advertising This is a modern version which appeals

to the British sense of humour. It makes fun of the

techniques of advertising.

Do you agree that the only background for the problems with brand names

would be:

- wrong pronunciation;

- wrong association;

- wrong translation.

Types of advertising

Introduction

1. Scope of advertising

Advertising serves many purposes and many advertisers, from the individual

who places a small classified advertisement in his local newspaper to the

big spender who uses networked TV to sell popular brands to the nation's

millions.

2. Types

It is possible to identify seven main categories of advertising, namely

consumer, industrial, trade, retail, financial, direct response and

recruitment.

Consumer advertising

3. Different kinds

There are two kinds of goods bought by the general public, consumer goods

and consumer durables, which together with consumer services are advertised

through media addressed to the appropriate social grades.

4. Consumer goods

These are the numerous goods to be found in the shops, those which enjoy

repeat sales like foods, drinks, confectionery and toiletries being called

Fast Moving Consumer Goods, (FMCGs).

5. Consumer durables

Usually more expensive and less frequently bought, consumer durables are of

a more permanent nature than consumer goods and include clothes, furniture,

domestic appliances, entertainment goods like radio, television and video,

and mechanical equipment from lawn-mowers to motor-cars.

6. Consumer services

They include services for security and well-being like banking, insurance,

investment, repairs and maintenance, and those more to do with pleasure

such as hotels, restaurants, travel and holidays.

7. Social grades

The social grades system makes it possible to identify certain groups of

people—prospective buyers—and then to pinpoint the media which will reach

them most effectively.

8. Media of consumer advertising

The media of consumer advertising will tend to be those with wide appeal,

and even when more specialist journals such as women's magazines are used

they will still have large circulations. In fact, the term 'consumer press'

is applied to the publications which are displayed for sale in newsagents

shops, on news-stands and on newspaper vendors' pitches'

Most of the trade, technical and professional journals have other forms of

distribution such as special orders placed with newsagents, postal

subscription or free postal controlled circulation. Controlled circulation

are not to be confused with membership or subscription magazines. They are

mailed (free of charge) to selected readers plus those who have requested

copies.

In Britain there are also hundreds of 'free' local newspapers which are

delivered door-to-door every week. With saturation coverage of urban areas

they provide good advertising media for many local businesses.

The primary media of consumer advertising are the press, radio, television,

outdoor and to a limited extent cinema, supported by sales literature,

exhibitions and sales promotion. We should not forget sponsorship,

especially the sponsorship of many popular sports which in turn can be

supported by arena advertising at the sports venue.

Industrial advertising

9. Purpose

The purpose of industrial advertising is twofold:

(a) to promote sales of equipment and services used by industry—machinery,

tools, vehicles, specialist consultancy, finance and insurance come within

this category;

(b) to promote sales of raw materials, components and other items used in

industrial production—under this heading come metals, timber, plastics,

food ingredients, chemicals and parts for assembly into finished equipment

from watches to aircraft.

Hardly any of these products and services will be bought by consumers,

except as replacements as when a motor-car needs a new battery or tyres.

Unless the formula or specification is stated, consumers will be unaware of

most industrial products.

10. Media of industrial advertising

The suppliers of services, equipment, raw materials and components will

usually advertise in media seldom seen by the general or consumer public.

The media used will consist of trade and technical journals, technical

literature and catalogues, trade exhibitions, direct mail, and technical

demonstrations and seminars. Technical journals will have smaller

circulations than the consumer press, and exhibitions will tend to have

fewer exhibitors and smaller attendances than public exhibitions open to

the general public; in fact, admission is usually by ticket or business

card. The amount of money spent on advertising will be far less, and there

may be more reliance on market education using public relations techniques

such as video documentaries, external house journals and technical feature

articles.

11. Special characteristics

Industrial advertising differs in yet another way. Whereas consumer

advertising may be emotive, industrial advertising has to be more detailed

and informative, although not unimaginative. Trade journals provide

valuable international market-places for thousands of products and

services, maintaining sales of long-established ones and introducing new

ones.

Public relations activities, while not to be regarded as free advertising,

may be more effective and economical, especially when the need is to

educate the market and create knowledge and understanding.

Trade advertising

12. Definitions

Trade advertising is addressed to distributors, chiefly wholesalers,

agents, importers/exporters, and numerous kinds of retailers, large and

small. Goods are advertised for resale.

13. Purpose

The purpose of trade press advertising is to inform merchants and traders

about goods available for resale, whether it reminds them about well-

established brands, introduces new lines or, as is often the case,

announces special efforts to help retailers sell goods, e.g. price

reductions, better trade terms, new packages, consumer advertising

campaigns or sales promotion schemes. Such advertising invites enquiries

and orders and also supports the advertiser's field salesmen when they call

on stockists.

14. Media of trade advertising

The trade press may or may not be used for this kind of advertising. There

could be a mix of two or three media addressed to the trade. Direct mail is

often used, especially when it is necessary to provide a lot of information

such as consumer advertising campaign schedules giving dates and times when

and where advertising will be taking place in the press or on radio and/or

television.

Another useful medium is the trade exhibition, sponsored by a trade

magazine or trade association, which will be attended by distributors. Some

of the larger exhibitions may also be open, or open on certain days, to the

general public as well, e.g. motor-car and furniture exhibitions.

Occasionally, commercial television time may be bought to tell retailers

about new lines, or retailers may be mailed to tell them that consumer

advertising campaigns are about to appear on TV.

15. Special characteristics

Since the object of trade advertising is to encourage shopkeepers (whether

large chains or one-man businesses) to stock up the product (especially to

achieve adequate distribution in advance of a consumer advertising

campaign), emphasis will be placed on the advantages of so doing. The

advantages will be higher sales and more profits, and the appeal will be to

the retailer's desire to make money. In so doing, trade advertising will

also have to compete with the 'selling-in' activities of rival

manufacturers.

Trade advertising will be seen as part of the total advertising campaign

for the product and so will be produced by the same advertising agency that

handles the consumer advertising. However, whereas consumer advertising

aims to persuade the consumer about the benefits to be gained from buying

the product, trade advertising aims to persuade the retailer about the

benefits which will result from selling the product. Trade advertising

supports distribution. It prepares the way. There is no point in

advertising products and encouraging consumers to buy them if the goods are

not in the shops. The demand created by consumer advertising must be

satisfied by the availability of the goods in the shops. That is what is

meant by 'adequate distribution'. If the advertised goods cannot be bought,

customers will buy either nothing or, worse still, a rival product!

Retail advertising

16. Introduction

Here we have a form of advertising which lies between trade and consumer

advertising. The most obvious examples are those for department stores and

supermarkets, but it can include the advertising conducted by any supplier

including a petrol station, restaurant or insurance broker.

A major form of retailing nowadays is direct response marketing or

retailing without shops. This is the modern form of mail-order trading

which has moved from the traditional club catalogues to sophisticated off-

the-page and direct mail campaigns for products and services, of which

financial houses and department stores have become leading participants.

17. Purpose

The purpose of retail advertising is threefold, as outlined below.

(a) To sell the establishment, attract customers to the premises and, in

the case of a shop, increase what is known as 'store traffic', that is the

number of people passing through the shop. If they can be encouraged to

step inside they may possibly buy something which they would not otherwise

be tempted to buy.

(b) To sell goods which are exclusive to the shop. Some distributors are

appointed dealers for certain makes, e.g. the Ford dealer. Others, such as

supermarkets, sell 'own label' goods, having goods packed by the

manufacturer in the name of the retailer. All the goods in the shop may

bear the same brand, or certain lines such as tea, coffee, biscuits or

baked beans may bear the retailer's own label.

(c) To sell the stock of the shop, perhaps promoting items which are

seasonal, or presenting a representative selection, or making special

offers. The latter could be regular policy, or could be organised as

shopping events such as winter or summer sales.

18. Media of retail advertising

The principal of media for retail advertising are:

(a) local weekly newspapers, including numerous free newspapers which gain

saturation coverage of residential areas by being delivered from door to

door;

(b) regional daily newspapers, of which most are 'evenings';

(c) public transport external posters and internal cards, and arena

advertising at sports grounds;

(d) direct mail to regular or account customers, and door-to-door leaflet

distribution;

(e) regional commercial television;

(f) independent local radio;

(g) window bills and point-of-sale displays within the shop;

(h) window and in-store displays;

(i) catalogues.

The shop itself is a considerable advertising medium, and it may well be a

familiar landmark. Marks &: Spencer rarely advertise, but their shops are

so big they advertise themselves. With retail chains, the corporate

identity scheme will quickly identify the location of a branch.

19. Special characteristics

Retail advertising is characterised by four main aspects: creating an image

of the shop, establishing its location, variety of goods offered, and

competitive price offers. Nearly always, the object of the advertising is

to persuade people to visit the shop, although telephone ordering and the

use of credit accounts and credit cards is a growing feature.

Financial advertising

20. Introduction

It is probably difficult to put a limit on what can be contained under this

heading, but broadly speaking financial advertising includes that for

banks, savings, insurance and investments. In addition to advertising

addressed to customers or clients it can also include company reports,

prospectuses for new share issues, records of investments in securities and

other financial announcements.

Some, like building society and National Savings advertisements, may be

addressed to the general public while others will appear in the financial

and business press only.

21. Purpose

The object of financial advertising may be to borrow or lend money, conduct

all kinds of insurance, sell shares, unit trusts, bonds and pension funds

or report financial results.

22. Classes of financial advertising

The main categories in this field are as follows.

(a) Banks advertise their services which today are not confined to

traditional bank accounts but include deposits, loans, insurance, house

purchase, wills and executorship and advice on investment portfolios. Some

banks specialise in certain areas of banking, and others concentrate on

certain kinds of business.

(b) Friendly societies and private medical care organisations like BUPA

offer schemes to provide insurance in time of illness.

(c) Building societies both borrow money from savers and lend money to

house-buyers. Most of their advertising is directed at not only raising

funds but keeping funds so that they have sufficient money to meet loan

applications. Competitive interest rates are important sales points, and

today in Britain there is rivalry between building societies, banks and

insurance companies for the same kind of business.

(d) Insurance companies exist to insure against almost any risk from big

commitments like ships and aircraft worth millions to covering [he risk

that rain may stop play. Some insurance not only covers risks but provides

benefits to savers or pensions in old age. In the cases of fire and theft,

insurance companies are also selling peace of mind should damage or loss be

suffered.

(e) Investments are offered, not only in share issues but in unit trusts

and other investments in which smaller investors can share in the proceeds

of a managed portfolio of shares.

(f) Savings and banking facilities are offered through post offices which

sell National Savings certificates and various bonds and operate the Giro

and Post Office banks.

(g) Brokers offer insurance, pension and investment schemes and advise

their clients on how to manage such financial commitments. The Automobile

Association acts as a broker for motor insurance.

(h) Credit and charge card companies, such as Access, and Barclaycard,

American Express and Diners' Club, promote plastic money facilities, often

on an international scale.

(i) Local authorities borrow money from the public, usually on short-term

loans which are advertised.

(j) Companies announce their intentions and final dividends, giving

summaries of annual reports, and often offering copies of annual reports

and accounts.

23. Media of financial advertising

Choice of media will depend on the target audience. Building societies

appeal to small savers and therefore use the mass media of the popular

press and television. The big national banks with branches everywhere also

use the national press and television. Investment advertising will appear

in the middle-class and business press. Prospectuses for share issues,

which usually occupy two or more pages, appear in newspapers like The Times

and Financial Times. Banks may take stands at exhibitions. They also

produce sales literature about their services, as do insurance companies

especially in the way of proposal forms.

24. Special characteristics

Financial advertising in the press, and especially the business press,

tends to occupy large spaces and contain detailed information necessary to

explain schemes and achieve confidence. The emphasis is generally on

benefits which are usually represented by figures such as interest rates

and returns on investments. Profit, benefits, security, confidence,

credibility and reputation are the keynotes of the copy appeals.

Recruitment advertising

25. Introduction

This form of advertising aims to recruit staff (including personnel for the

police, armed forces and other services) and may consist of run-on

classified advertisements or displayed classified, although other media

such as radio and television are sometimes used.

26. Different kinds

Recruitment advertising is mainly of two kinds, that inserted by employers

whether identified or using box numbers, and that placed by employment or

recruitment agencies which have been commissioned to fill vacancies.

27. Media of recruitment advertising

Except for the occasional recruitment advertisement on radio and

television, the media are mainly made up of the following categories of

press.

(a) National newspapers. Different newspapers appeal to different target

groups, e.g. the managerial advertisements in the Daily Telegraph and

Sunday Times and the teacher advertisements in the weekly education feature

in the Guardian and the Independent.

(b) Trade, technical and professional journals. These are the more obvious

market-places for recruitment advertising addressed to those with special

skills, qualifications and experience.

(c) Regional press. Local dailies and weeklies are used to advertise jobs

offered by local employers.

(d) Free publications. A number of freely distributed publications gain

their revenue chiefly from recruitment advertising, e.g. those which are

distributed in the street to office workers such as secretaries.

Recruitment advertising is also featured in the free newspapers delivered

weekly to homes.

28. Special characteristics

The art of recruitment advertising is to attract the largest number of

worthwhile applications at the lowest possible cost. The advantage of using

a recruitment or selection agency is that applications can be obtained

discreetly and they can be screened to provide employers with a short list

of the best candidates. Two skills have to be applied. The advertisements

must be so worded that they both sell the job and attract the best

applicants, while correct choice of media will bring the vacancy to the

notice of the largest number of good applicants as economically as

possible.

The Higher Purpose of Marketing

What is the higher purpose of marketing? What should an enlightened

marketer try to accomplish?

This question is raised because managers sometimes lose sight of their

ultimate goals and settle for short-term gains of dubious benefit to

themselves and others. When they lose a sense of higher purpose, their work

becomes unsatisfying and their attitude cynical.

The most common view is that the marketer's goal is to maximize the

market's consumption of whatever the company is producing. In this view,

the marketer is a technician who engineers sales gains. Marketing success

means selling more and more gum, cars, and ice cream bars as if the

consumer were a huge consumption machine that must constantly be stuffed

with goods and services. Even if consumers don't want this much

consumption, it is good for the economy and creates jobs. Yet Adam Smith

observed that hunger is limited by the size of the human stomach. More

generally, people will eventually run out of time to consume all that they

could buy. They may rebel against overeating and overdressing, and start

thinking "enough is enough" or even "less is more." Frederick Pohl wrote a

science-fiction short story, "The Midas Touch," in which factories are

completely automated and the goods roll out continuously and people consume

as much as they can in order not to be buried under the goods. In the

story, ordinary people are given high consumption quotas, while the elite

are excused from having to consume so much. Furthermore, the elite are

given the few jobs that are still left to do, so that they don't have to

face the bleakness of no work.

A sounder goal for the marketer is to aim to maximize consumer

satisfaction. The marketer's task is to track changing consumer wants and

influence the company to adjust its mix of goods and services to those that

are needed. The marketer makes sure that the company continues to produce

value for the target customer markets.

Even consumer satisfaction, however, is not a complete goal for the

marketer. The act of creating "goods" to satisfy human desires also creates

some "bads" in the process. Every car that is produced satisfies a

transportation need and at the same time contributes to the level of

pollution in society. The economist Kenneth Arrow noted that high gross

national product also means high gross national pollution. The sensitive

marketer has to take responsibility for the totality of outputs created by

the business. First, the marketer is a member of the public and therefore

victimizing himself to some extent. Second, the society has spawned

consumerists, environmentalists, and other public-action groups, who make

life difficult for those firms that are indifferent to the "bads" they

create in the process of pursuing profits.

Ultimately, the enlightened marketer is really trying to contribute to the

quality of life. The quality of life is a function of the quantity and need-

satisfying quality of goods and services, the quality of the physical

environment, and the quality of the cultural environment. Too often the

firm rests its case on its ability to produce great quantities of goods and

services and does not pay enough attention to its impact on the other

components of life quality.

Marketing

Marketing is the cornerstone discipline of some of the most successful

companies in America and a discipline of growing interest to companies and

nonprofit organizations throughout the world. All organizations face the

problem of how to increase value for target markets that are undergoing

continuously changing needs and wants. Organizations must thoughtfully

define their products, services, prices, communications, and distribution

in a way that meets real buyer needs in a competitively viable way. That is

the task of marketing.

Although selling is a very old subject, marketing is a relatively new

subject. It represents a higher-order integration of many separate

functions - selling, advertising, marketing research, new-product

development, customer service, physical distribution - that impinge on

customer needs and satisfaction. Many organizations at first resist

marketing because it threatens vested interests within the organization and

their own concepts of how to manage the organization effectively. Marketing

gradually gets established, however, first as a promotion function, later

as a customer service function, still later as an innovation function, then

as a market positioning function, and ultimately as an analysis, planning,

and control function. Few companies understand and install marketing in its

full form when first considering it. Even after marketing is effectively

implemented in an organization, there is a tendency for many managers to

forget its main principles in the wake of success.

Marketing's task in the organization is not only to help it recognize

business opportunities and serve the various publics but also to harness

the organization's energy to enhance the quality of life in society.

Marketing is human activity directed at satisfying needs and wants through

exchange processes.

Human Needs and Wants

The starting point for the discipline of marketing lies in human needs and

wants. Mankind needs food, air, water, clothing, and shelter to survive.

Beyond this, people have a strong desire for recreation, education, and

other services. They have strong preferences for particular versions of

basic goods and services.

There is no doubt that people's needs and wants today are staggering. In

one year, in the United States alone, Americans purchased 67 billion eggs,

250 million chickens, 5.5 million hair dryers, 133 billion domestic air

travel passenger miles, and over 20 million, lectures by college English

professors. These consumer goods and services led to a derived demand for

more fundamental products, such as 150 million tons of steel and 3.7

billion pounds of cotton. These are a few of the wants and needs that get

expressed in a $1.3 trillion economy.

A useful distinction can be drawn between needs, wants, and intentions,

although these words are used interchangeably in common speech. A need is a

state of felt deprivation of some generic satisfaction arising out of the

human condition. People require food, clothing, shelter, safety, belonging,

esteem, and a few other things for survival. People actually need very

little. These needs are not created by their society or by marketers; they

exist in the very texture of human biology and the human condition.

Wants are desires for specific satisfiers of these ultimate needs. A person

needs food and wants a steak, needs clothing and wants a Pierre Cardin

suit, needs esteem and buys a Cadillac. While people's needs are few, their

wants are many. Human wants are continually shaped and reshaped by social

forces and institutions such as churches, schools, corporations, and

families.

Intentions are decisions to acquire specific satisfiers under the given

terms and conditions. Many persons want a Cadillac; only a few intend to

buy one at today's prices.

These distinctions shed light on the frequent charge by marketing critics

that "marketers create needs" or "marketers get people to buy things they

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