Script by Katrina CarrascoAudio Index
Slow dialog: 1:10
Fast dialog: 19:10
During the next few weeks, we will be learning about the basic principles
of marketing, from conceiving
the idea for a product
, to developing it based on market research
, to promoting
its sale. If you all read the assignment for last night you should already have an idea about what we will be discussing today.
What is marketing? The Chartered Institute of Marketing defines it as the “management process of anticipating, identifying and satisfying customer requirements profitably
.” This definition describes modern
marketing, because only recently have the needs
of the consumer played a part in influencing marketing strategy
. It has only been in that last half-decade
or so, in fact, that companies have based
their product development on market research. Before market research was developed, companies produced whatever goods they felt were most useful, but left it up to
salespeople to find the best ways to sell those goods to customers.
Two terms we will be using frequently in our discussions over the coming weeks are acquisition
and base management
. These terms describe two key parts of marketing strategy. Acquisition refers to the process of acquiring new customers, through advertisings, promotions, and product placement
. Base management refers to the process of maintaining relationships with existing customers, as well as identifying other products they need through interacting
with those customers.
One of the chapters I assigned for today was the introduction to advertising
. As you would have read, advertising is a crucial
part of marketing. Advertising plays a major part
in the acquisition process, and it is probably the part of marketing that you, as young consumers, have most come into contact with.
Advertising and promotion are part of today’s basic marketing strategy, but they fly in the face of
classical economic theory, which operates on the idea that supply
are not dependent
on one another. If the supplier of a good promotes that good, they are in essence
telling the consumer, or demand side of the equation, what it is that they want to consume. Supply is trying to influence demand. Some critics argue that this perverts
the ideal free market