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Introduction to marketing. MK definitionsThe definition of marketing can be grouped into 2 big categories: 1st –classical(or narrow) 2 one - modern (broad) In classical terms marketing is defined as the performance of business activities that direct the flow of goods and services from producer to consumer or user. The classical definition is oriented to the physical distribution of ec. Goods and services and it has several disadvantages or weaknesses: -The role of distribution and marketing channels is overvalued.

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troduction to marketing. K definitionse definition of marketing can be grouped into 2 bigtegories:t –classical(or narrow)one - modern (broad)classical terms marketing is defined as therformance of business activities that direct the flowgoods and services from producer to consumer orer The classical definition is oriented to the!sical distribution of ec "oods and services and its several disadvantages or weaknesses:he role of distribution and marketing channels iservaluedovernment and nonprofit organi#ations which are

e$uentl! engaged in marketing activities are

mittedhe strong impact of marketing b! man! publicsch as stockholders%emplo!ees unions or consumergani#ations is not considered

e modern definition of marketing was officiall!cogni#ed b! the &merican 'arketing &ssociation* when it replaced the classical definition with thise 'arketing is the process of planing andecuting the conception% pricing% promotion% andstribution of ideas% goods and services in order toeate e+changes% that satisf! individual andgani#ational ob,ectivese modern definition is much broader because aod definition of marketing should impl! not onl! ec

oods and services but it should cover nonprofitgani#ations% people ideas% places and it must beented to satisf! consumer needs and preferences

e most used definition nowada!s is the definitionven by Kotler  that is also accepted b! themerican 'arketing &ssociation &ccording to thisfinition marketing is the process of anticipationanagement and satisfaction of demand throw thechange process involving goods% servicesgani#ations% people% places and ideas Thisfinition has terms:-anticipation of demand – these activities$uire a compan! to do consumer research on agular basis so that it develops and introducesoducts that are desired b! consumers-management of demand – it includesmulation%facilitation and regulation tasks

Stimulation task make consumers to want the firm.soducts through attractive product design% intensiveomotion% reasonable prices and other strategies

Facilitation – the process whereb! the firm makes its! to bu! it products through convenient locations%ailabilit! of credit and well informed sales people

Regulation – is needed when there are peak periodswhen demand is grater than suppl!-satisfaction of demand – it involves actualrformance% safet! and availabilit! of options afterle services /or consumers to be satisfied% theods% services% organi#ations% people% places andeas% the! are interested in must to fulfill thepectations

he evolution of marketing. e origins of marketing can be traced to people.srliest use of the e+change process% meaning

arter (trading one resource on another)uring the industrial revolution the modern s!stem of arketing began% it includes periods:

1. Production (during the initial stage of

e industrial revolution output was limited andarketing was devoted to the ph!sical distribution ofoducts ompanies didn.t have to conductnsumer research% modif! products or adapt tonsumer needs because the demand was high andmpetition low Their goal was to increase theoduction to keep up with demand

2. Sales period/era (once a compan!as able to ma+imi#e its production capabilities itred a sales force to sell it.s inventor! 0uring thisage consumer tastes and needs received littlensideration% and the role of advertising and salesople was to make desires of consumers feet theoducts being manufactured)

3. Marketing period - it includes 2riods:Marketing department (as competition grew%ppl! began to e+ceed demand % a firm could notrvive without marketing activities% so a marketingpartment was created % it conduced consumer

research and advised managers on how to designprice% distribute% and promote products Themarketing department participated in compan!decisions. marketing compan! period (competition is highand sophisticated so the ma,or decisions within oneorgani#ation are made on the bases of consumerresearch )The central role of marketing has been recogni#ed b!man! companies and marketing department hasbeeduel the e$ual of others in thecompan!onsumers must be drown and kept to thefirm.s brands

Marketing functions. There are basic functions :

1- marketing management – it includesplaning% implementing and controlling themarketing program and individual marketingfunctions It evaluates the risks and benefits indecision making2- marketing research and anal!sis – itinvolves adapting to e+ternal factors that affectthe success of compan! and collecting data forsolving specific marketing issues- product planing – involves developing andmaintaining products% product assortment%product images% brands% packing% and optionalfeatures-pricing"planing – involves determiningprice levels and ranges% pricing techni$ues%terms of purchase% price ad,ustments% and theuse o price as an active or passive element* promotion planing – involves

communicating with customers and generalpublic through advertising% public relations%personal selling and sales promotion3 distriution planing – includes establishingrelations with distribution generalintermediaries ph!sical distribution% inventor!management warehousing% transportation% hallselling% retailing4 consumer anal!sis – includes evaluation of consumer characteristics% needs and purchasesprocess and also the selection of targetsegments at which we concentrate marketingeffortsroadering the organi#ation marketingscope –involves deciding on the marketingimplementing strateg! or marketing approachthat a compan! should use on internal andinternational markets

Marketing performers. There are several t!pes of marketingperformers'arketing performers are the organi#ationsor individuals that undertake one or moremarketing functions The! includemanufacturers5producers and serviceproviders6 $inal consumers – famil! or personwho bu!s goods and services for personal orfamil! use% &rgani#ational consumers - institutions or organi#ations that bu! goodsand services for use in its operations% 'holesalers (distribuitori angro) –

persons or organi#ations that bu! products toresale them to retailers or organi#ational anfinal consumers6 (etailers- these are persons andcompanies whose activities involve the sale of goods and services to final consumers% Marketing specialists – include firsor persons that concentrate on one specificmarketing function

Marketing )pproaches *Philosophies+ Production concept- according to this approachconsumers will desire products that are available andhighl! affordable % so the management should focuson improvement production and distributionefficienc!Product concept – consumers will want productsthat offer the post $ualit!% performance and features7and organi#ation should devote energ! to makecontinuous product improvementsSelling concept – consumers will not bu! enough of

the organi#ations products unless it undertakelarge selling and promotion effortMarketing concept - achieving organi#ationadepends on determining the needs and wants target markets and delivering the desired satimore efficientl! and effectivel!Societal concept – the organi#ation shoulddetermine the needs% wants and interests of tamarkets and deliver the desired satisfaction mefficientl! than competitors but in a wa! thatmaintains and improves the consumers and sowell being(elationship concept – achieving organi#atigoals depends on establishing long term relatiwith its customers and creating lo!al consum

Marketing environments Microinveronement of the companies all the actors and forces outside marketing thamanagement abilit! to develop and maintainsuccessful transactions with it.s target customcompan!.s microenvironment refers to the comthat affect directl! it.s abilit! to serve its custoTypes: 1. suppliers (there are main groupsresources obtained from suppliers:

afix assets(land%e$uipment%buildbcurrent assets (raw material th

used for the 1 process)7clabor

2.intermediarsamiddleman(retailers%whole

  bph!sical distriution firm(warehouses%transportation firms)%  c financial

intermediaries(companies with financialresources)73.customers markets(final consumers)%  industrial markets(organi#ationalconsumers)%  resale markets(organi#ations that goods and services in order to resell them for

government markets(governmentagencies that bu! goods and services in orderproduce public services or transfer these goodservices to others who need them),.international markets and consumers (fbu!ers: consumers% % government in foreign m-ompetitors & compan! make face with the following t!pescompetition:1direct – among producers and sellers of simproducts

2indirect – among goods and services that csubstituted for one anotherinterindustrial – among all organi#ations compete for the consumer purchasing power

Pulics (organisme publice) – ma! include:1 financial publics(banks%investment funds%stockholders)2media publics – (maga#ines% news papers%and T8- stations) government publics(government agenciesauthorit!)citizan action publics (consumer.s organi#nonprofit organi#ations% emplo!ees unions(sindicatele))* general publics( general image of the comwithin a societ!)Macroenvironement of the companies

Include the larger societal forces that affect microenvironment and indirectl! its compan!9o one business is large or powerful to createimportant changes in the e+ternal environmenmarketing managers need to adapt to allmicroenvironment influences'icroenvironment include the followingforces5factors:1.demografic factors (people statistics suchage% race%ethnicit!% and location0emogrfact ver! important because the basis for an! marpeople and the! are strongl! related to consumbu!er behavior in the marketplace2.natrual factors- the compan! should beconcerned about the following problems relatenatural resources: a The lack of raw materialbincreased level of pollution c increased cost of energy  d government intervention in natural resomanagement  

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.economic factorsarketing managers must understand and react toe ec nvironment and its changese 3 ec.problems of greatest concern to the mostarketers are :ncome distriution7nflation7

recessionuring recession a compan! might use the followingarketing strategies:mprove e+isting products and introducewonesThe goal is to reduce the productivit! hours

aste% and the cost of materialsmantin and e+pand customer services such as salesreplacement parts and other after salervices(warrant!) 7

promoting product value ustomers ma! switchom high $ualit! products to less e+pensive ones7 ins case%companies ma! tr! to focus and promotealit!% durabilit! of the product and also satisfactiond capacit! to save time and mone!

technological factors – are ver! importantcause the! ma! become an effective instrumentainst recession9ew technolog! that reducesoduction costs% can be one of the companies mostluable asset +ternal technologies are important toanagers for 2 reasons:a$uering the technolog! the compan! ma! be ableoperate more efficientl! or to create a betteroducta new technolog! ma! give a compan! a strongmpetitive advantagelegal and political factors – these factorsclude:

legislation(regulating business)the general political climate of the society

cthe degree of concentration of political power  dthe number and the nature of politicalorganizations  ethe activity of public interest groups andregulatory agencies 3cultural factors – include religion% cultural valuesand attitudes%subcultures% role of famil! and societ! and thegender problemsMarketing research process Marketing research is the function which links theconsumer competition and public to the marketertrough information This information is used toidentif! and define marketing opportunities andproblems% generate and evaluate marketing actions%monitor marketing performance and improve

understanding of marketing as a process Themission of marketing research department is toobtain% anal!se and interpret marketing as otherrelevant information needed for decision making at alllevels of management These activities need to becarried out in a cost-effective wa! and with highprofessional standards'arketing research has 3 important functions:1. scanning for opportunities and prolems (agood research operation collects and anal!#esinformation about customers% competitors%technolog!% global ec onditions7it provides input tomarketing managers that the! can use to find newmarkets or e+istent products%cover new segmentsand anticipate competitors movements)2. the risk assessment of future prolems  (whenconsidering alternative marketing strategies themarketing manager should test them against

different situations in order to minimi#e all futurerisks)3. maintaining of current programs(marketingresearch pla!s a ke! role in monitoring the progressof the programs to its ob,ectives)'arketing research is most commonl! used for thefollowing topics:1.understand competitors 2.develop a new strategy or e!isting products 3.identiy mar"eting segmentation opportunities #.understand how customers perceive the product  $.evaluate how customers in dierent mar"etsegments ma"e buying decisions and react to variousadvertising messages. %.determine what price to set  &.orecast the sales o e!isting and new products'.develop new product concept  'arketing research can be conducted in si0 steps:

1.prolem definition – a ke! to an! kind ofresearch is to establish the problem to be addressed2.information needs – the marketer researcherneeds to establish what kinds are most appropriate tosolve the problem3.t!pe of research – the compan! ma! use t!pesof research :a.e+plorator!- this t!pe of stud! obtain preliminar!information that will help better to define theproblem.descriptive – this t!pe of research is used todescribe things such as the market potential for aproduct% demographic data and altitudes ofconsumers who bu! the productc. causal  – this t!pe of research tests h!pothesisabout cause and effect relationships,.data collection – at this stage depending on thetime of information the researcher must establish the

specific data sources including the sample (esantion)of people or organi#ations that are studied. data anal!sis and conclusions – internalorgani#ation or e+ternal must anal!#e the data anddraw conclusions that address the stated problem.reporting – an report is usuall! written tocommunicate the conclusions to the marketingorgani#ations and other relevant groups

Primar! data sources – are those that aregenerated for the particular problem being studiedand are obtained b! the compan! itself ;rimar! data sources may be obtained trough:1.informal research – it is often useful to collectinformation trough informalobservation(friends%relatives% customers)7 thesesources ma! not be representatives samples% butsuch information can help the compan! to form an

h!pothesis about the $ualit! of the compan!.sproduct or the competitors product of the compan!.s

marketing strateg!2. ualitative research – usuall! involves smsamples of customers and provides informatiodoes not lead directl! to decisions% but ma! giimportant input for other researchesThis t!peresearch ma! be of 2 t!pes:afocus group – is the best known and most used $ualitative method<epresent a small gropeople t!picall! chosen for their membership ivarious target groups of interestsThe people could be consumers% non-consumeformer consumers% influencers of bu!ing decisthe! ma! be chosen for their personalcharacteristicsThese people are usuall! brought together in aand have a discussion about the topic chosen

marketing manager and led b! an professionamoderatorThe focus group is often observed on videotapthe marketing group The moderator usuall! da repot on his conclusionsThe most common disadvantage of focus grouattempting to use these conclusions to draw gsolutions This ma! be an ine+pensive to do rebut because the groups are small and not allbehaviors ma! be generali#ed% the results o ogroup may be misleading=owever% focus group is an important source oinformation for keeping-in-touch with custometheir attitudes and preferences boservation – not all observational techni$informal% so a common observational method up a one-wa! mirror in a supermarket or otheoutlet In this wa!% the marketing manager ca

observe the behaviors of the shoppers in diffedemographic groups The researcher might codifferent items that are e+amined% calculate homuch time is spent considering a purchase in product categor! or evaluate the interactions wsales person3.uantitative research – involves statisticaanal!sis of data in order to provide descriptiveresults It is usuall! applied to a large numberrespondents and provides ver! concrete resultlead directl! to conclusions>uantitative methods ma! be of 3 types:a surve! – a big portion of man! research buthat is devoted to surve! research that is perfb! giving $uestionnaires to people The two prissues for the marketer to consider are the samfrom which the responses are taken and that cused

& compan! ma! use the following t!pes of surresearch:- (ersonal interview) (hone interview  ) ail survey) +nternet survey  The main criteria for evaluating the surve!alternatives are:) ,ost  – most marketers have a fi+ed budresearch% so cost considerations are ver! impo- ,ontrol  – this refers to how percentagecompleted surve!s) Time to obtain data- /le+ibilit! – this characteristic describesman! different kinds of $uestions can be used.e0periment – in science%e+periment is the true wa! to determine the cause and effectrelationshipThe purpose of an e+periment is t

the marketing manager to anal!#e differentinteractions between variables+periments can be of 2 t!pes:- -aboratory e!periment  – that is run in aartificial environment% such as laborator!%classroom%marketing department(car testing)- Field e!periment  – that takes place in arealistic environment% where the product is usused or the process usuall! happenscpanel (panelul de consumatori)- a set of cuswho are enlisted to give responses or to providrepeatedl! over a period of time The main bethis method is the opportunit! to observe chabehavior caused b! changes in marketing variother e+ternal factorsThere are several problems with panelsThe mimportant is panel drop-out (refu#)% because idifficult for marketer to keep panel memberssufficientl! interested to remain on panelsThe

econdar! data sources is important to distinguish secondar! andmar! sources of informationSecondar!formation sources are goals that alread!

0ist and ere not developed for thearticular prolems eing studied. 'arketinganagers alwa!s consult secondar! sources beforessing to primar! data collection becausecondar! sources are usuall! less e+pensive andiklier to obtaincondar! data sources can be of 2 types:internal sources – a good place to startllecting information is within the organi#ation &mpan! ma! use the following sources:past marketing plans – this source made

atistical and strategical information such as:rvious marketing strategies% risks that

peared%time needed for achieving therateg!%etcaccounting department – collects considerable

mount of detailed information on all the compan!ansactions It includes such information as :thetal value of sales% stock inventor!% the sales oftailers and wholesalerssales people – this source ma! give informationated to: changes in attitudes and behavior ofnsumers% attitudes of members in distributionstem% information about competitors and alsonsumer preferencesresearch and development department – thispartment not onl! focus on bringing thempanies product ideas but ma! also anal!#empetitor.s products% costs% technolog!% andalit!e0ternal data sources- this information is

llected b! e+ternal organi#ations or persons forblic use The most often used e+ternal secondar!urces are:trade associations – this industr! organi#ationsten collect information about the membermpanies% the sales and profitsgeneral usiness pulications – newspapers%mpan! activit!% strateg!% the introduction of newoducts%and consumer preferences and attitudetrade pulications – these sources oftenovide detailed sale and share information7 alsow products strategies% promotional plans orrsonal changesacademic pulications –( old books%articlesat !ou ma! find in libraries)corporate reports (annual companies reports)government pulications- this sources is mostmmonl! used in international marketing activities

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oblem is that people who agree to be o panels aret alwa!s representative