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1、MarketingLecture 1Instructor Li ZhihongSept.2011 Business Institute, Jiang Han University1Chapter 1 Production and Development of Marketing 1. Teaching and learning Targets. After studying this chapter, you should be able to: (1) What are the connotation and features of marketing? (2) What is the ma

2、in pathway on which marketing evolves? (3) Discuss the contributions to marketing by classical schools, management schools and behavior schools? 2 2. Production of Marketing (1) the 17th century: originated in Japan (2)the mid of the 19th century: appeared in the USA, McCormick: marketing as a speci

3、al task of management, can satisfy the customers demands and invented its basic tools: market research and analysis, marketing positioning concepts, etc. (3) the end of 19th century: issue some theories as promotion, products, ads, pricing, product designing, brand business, package and physical dis

4、tribution, etc. (4) the beginning of the 20th century:Kreusy taught a course named “The Marketing of Products” in the University of Pennsylvania in 1905. (5) Butler: taught “Marketing Methods” in the university of Wisconsin in 1910 and related the personnel promoton and ads to the final outcome of s

5、elling concept. 3 (6) in 1912: Hagertgy in Harvard University published the first teaching book of marketing in which promotion and ads are discussed. (7)the 30s of the 20th century: various schools emphasized the circulation field as the know-how of promotion, advertisements, and promoting tactics

6、in the conditions of massive economic crisis. Also, many organizations like American Marketing Association, etc was founded. With the conjoint efforts of the theoretic field and the practice, marketing, as a discipline, was established. 43. Development of Marketing (1) Classical Schools: including c

7、ommodity school, functional school, regional school, and institutional school, etc. - commodity school: emphasis on the “what the marketing is” Time :begins in the early stage of the 20th century. Representatives and their points of view: Charles Parlin first put forward the merchandize classificati

8、on framework in 1912. Women merchandizes can be divided into three categories: convenient goods, urgent goods, and option goods. M. Cope classified the merchandizes into convenience, option and peculiarity. 5 Aspinwall: proposed the methods classifying the goods in 1958. He divided the red, the oran

9、ge and the yellow. His classification standards consist of turnover rate, aggregate profits, flexibility, consuming time, and selection time. He called the above “The Characteristics of Goods Theory” In the late 50s to early 60s of the 20th century, the commodity school redefined the convenience, th

10、e option and the peculiarity. In the 70s of the 20th century, make the classification system perfect: products are a combination of the physical elements and the psychological reaction; products should be defined through the consumers behavior and the channel reaction; the products measurement can b

11、e made between the delivery and the retailing time; the links exist between the product communication structure and the buying behavior. On these, the commodity school again classified the goods into four categories: the convenience, the preference, the option, and the peculiarity. 6 - Functional Sc

12、hool: focus on the “how to do” in the marketing. Arch Shaw: the founder of the functional school. He classified the goods according to their functions: risk-taken, goods delivery, financing, sales efforts, making a centralization, arrangement and transshipping of the product. Mercalli: in 1950, he p

13、roposed six functions of the goods for their classification: communication, merchandising, pricing, publicity, logistic, and terminal. McCarthy: in 1960, he initially advanced the typical 4ps theory, namely, products, price, place and promotion. 7 - Regional School: born in 1930s and concerning more

14、 the space role between the transaction parties. Reilly: his book “The Law of Retail Gravitation”, explaining the relative attractiveness of the commercial areas in two different cities to the citizens living there with mathematical formula. Converse: putting forward the “New Laws of Retail Gravitat

15、ion” in 1949, used to judge the limitation between the trade center and the trade area. Hoover: advancing a forecasting sales model, showing more rationality in analyzing the retail transaction.8 About the wholesales: to further establish the theory of the regional wholesales structure, some scholar

16、s raised eight factors affecting the wholesales market scale: product weights relative to the value, easily corrosive, technique of the product differentiation, elements affecting the factory location, price and its strategy, efficiency and services of transport, marketing means of the individual fi

17、rm, and additional services. - Institutional School: laying more emphasis on the research of the marketing organization. Weld: the founder of institutional school. He cared for the marketing channel efficiency in his book “The Marketing of Farm Products” in 1916. Butter: emphasizing the effectivenes

18、s of the intermediary to the producer and the consumer in his book “Marketing and Merchandizing”. He thought that the market organization could do nothing to the basic effectiveness and the form effectiveness, but played an important role in the place and the time effectiveness. 9 Breyer: in his boo

19、k “The Marketing Institutions”, he explained the process forming the marketing structure. Bauldston: exploring an approach how to design marketing channels that could make the marketer obtain more profitability. About the connotation on the deferring and speculation: some scholars proposed the postp

20、onement theory for the intermediary : the backward postponement, i.e. refusing to buy; the forward postponement, i.e. buying when he was sure to be able to sell out. (2) Management Schools: appearing from the 1940s to 1950s and including the management school, the systematic school, the social excha

21、nge school, etc. - The management school: in the end of the 1950s, the management schools advanced the marketing concept as the buyer market was becoming bigger and bigger. Their main points of view were as follows: 10 Marketing would rather make the commercial behavior suitable for the consumers be

22、nefits than master the know-how to let the consumer behave as the commercial benefits. The management school insisted for the first time in 1956.that marketers should segment the market and strive to establish various marketing combinations so as to satisfy the different demands of the consumer. Its

23、 contribution: telling the market segmentation from the product differentiation; the application of the market segmentation in the industrial market; the quantitative analysis of the market segmentation; the principles to deal with various elements as products, price, place and promotion in the mark

24、eting combination. 11 - Systematic School In the 1960s, the systematic school came into being with the birth of the systematic theory. It proposed the following points of view: A firm was an integrated system of different functions, in which the strength produced in the information, raw materials, h

25、uman resources, and capital, etc decides the basic trend of the growth, fluctuation, and decline of it. Its production, marketing and consumption should be in the same systematic framework. It explored the systematic theory on the marketing and raised three types of systems: the atomic system, the m

26、echanic system and the biological system. 12 - Behavior Schools: composing of the organizational power school, the consumerism school and the buyer behavior school. Organizational Power School: starting in the 1950s and growing up in the 1970s and 1980. It more concerns the target and demands of the

27、 distribution member as manufacturers, wholesalers and retailers rather than the consumers welfare. In its book “Distribution Channels: Behavior Perspective” issued in 1969, detailed topics were discussed. Consumerism School: mainly discussing the following topics: the product security and the consu

28、mer information; the discriminatory issue of the consumer; the satisfaction and dissatisfaction of the consumer. Its representative is Philip Kotler.13 Buyer Behavior School: mainly engaged in studying target customers, customer sizes, customers buying incentives, and so on. Its features: the consum

29、er behavior is part of the human behavior; it focuses on the package product and the durable consumption goods and the buying behavior of the industrial and service industries. Contribution of Behavior Schools: contributing much in raising the consumers satisfaction, safeguarding the consumers right

30、s and valuing the marketing in the social economical development.144. Connotation and Nature of Marketing (1) Connotation of Marketing: a science to study the marketing activities and their rules of the firm, and also an integrated and comprehensive applied economy. (2) Nature of Marketing: applicab

31、ility, comprehensiveness, practicality, and artistry. 155. Research Approaches of Marketing (1) Commodity Research Approach: or the product research approach. Its objects are usually some kinds of products, especially that of the non-farming product and the industrial finished outcome and it mainly

32、analyzes the marketing issues, such as Krueusi. (2) Functional Research Approach: in 1940, Alexander, Sarfare, Ilder and Alderson are representatives. They more concern marketing plans, investigation and budget controls, etc. Three marketing functions: exchange function like buying and selling; supplly function like transport and stock; service function like financing, risk taking, and market information, etc. 16 (3) Institution Research App

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