Chapter 1 in Review

Marketing management pdf notes.

To illustrate the marketing era/concept Peter Drucker, in 1954 said: "if we want to know what business is we must first start with its purpose. There is only one valid definition of business purpose: to create a customer. What business thinks it produces is not of first importance-especially not to the future of the business or to its success.

What the customer thinks he/she is buying, what he/she considers "value" is decisive-it determines what a business is, what it produces, and whether it will prosper." -Peter Drucker, The Practice of Management, 1954, P.37. John B McKitterick, President of General Electric, 1957, addressing the AMA said: "It is customer oriented, integrated, profit oriented philosophy of business." Still need to make a profit "meeting needs profitably" Handout. `Do Call Us': More companies. For the launch of Windows 95, Microsoft has contracted five additional companies (including Unisys and DEC) to handle the anticipated overlaod in demand for the 1-800 #. They had the capacity available to handle 40,000 phone calls in the first day (twice their usual capacity), but still left customers waiting for service.

Societal Marketing Concept : Focus on other stakeholders, as well as the business and its customers. Need to balance 3 items Company profits Customer wants Society's interests The difference between short term consumer wants and long term consumer welfare. An example of a company adopting the Societal concept: Starkist. Dolphin Safe Tuna Actually more expensive than regular tuna, but is more appealing due to society's concerns.