The Scope of Marketing

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Marketing people are involved in marketing 10 types of entities: goods, services, experiences,
events, persons, places, properties, organizations, information, and ideas.
À × ysical goods constitute t e bulk of most countries¶ production and marketing effort.
T e United States produces and markets billions of p ysical goods, from eggs to steel to air
dryers. In developing nations, goods²particularly food, commodities, clot ing, and ousing²
are t e mainstay of t e economy.

As economies advance, a growing proportion of t eir activities are focused on t e
production of services. T e U.S. economy today consists of a 70±30 services-to-goods mix.
Services include airlines, otels, and maintenance and repair people, as well as professionals
suc as accountants, lawyers, engineers, and doctors. Many market offerings consist of a variable
mix of goods and services.

By orc estrating several services and goods, one can create, stage, and market
experiences. Walt Disney World¶s Magic Kingdom is an experience; so is t e Hard Rock Cafe.
Marketers promote time-based events, suc as t e Olympics, trade s ows, sports events,
and artistic performances.

× Celebrity marketing as become a major business. Artists, musicians, CEOs,
p ysicians, ig -profile lawyers and financiers, and ot er professionals draw elp from celebrity
marketers.
×
Cities, states, regions, and nations compete to attract tourists, factories, company
eadquarters, and new residents.5 ×lace marketers include economic development specialists,
real estate agents, commercial banks, local business associations, and advertising and public
relations agencies.
× ×roperties are intangible rig ts of owners ip of eit er real property (real estate) or
financial property (stocks and bonds). ×roperties are boug t and sold, and t is occasions a
marketing effort by real estate agents (for real estate) and investment companies and banks (for
securities).
Organizations actively work to build a strong, favorable image in t e mind of
t eir publics. × ilips, t e Dutc electronics company, advertises wit t e tag line, ³Let¶s Make
T ings Better.´ T e Body S op and Ben & Jerry¶s also gain attention by promoting social
causes. Universities, museums, andperforming arts organizations boost t eir public images to
compete more successfully for audiences and funds.
T e production, packaging, and distribution of information is one of society¶s major
industries.6 Among t e marketers of information are sc ools and universities; publis ers of
encyclopedias, nonfiction books, and specialized magazines; makers of CDs; and Internet Web
sites.

Every market offering as a basic idea at its core. In essence, products and services are
platforms for delivering some idea or benefit to satisfy a core need.
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T is environment influences t e organization directly. It includes suppliers t at deal directly or

indirectly, consumers and customers, and ot er local stake olders. Micro tends to suggest small,
but t is can be misleading. In t is context, micro describes t e relations ip between firms and
t e driving forces t at control t is relations ip. It is a more local relations ip, and t e firm may
exercise a degree of influence.
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T is includes all factors t at can influence and organization, but t at are out of t eir direct
control. A company does not generally influence any laws (alt oug it is accepted t at t ey
could lobby or be part of a trade organization). It is continuously c anging, and t e company
needs to be flexible to adapt. T ere may be aggressive competition and rivalry in a market.
Globalization means t at t ere is always t e t reat of substitute products and new entrants. T e
wider environment is also ever c anging, and t e marketer needs to compensate for c anges in
culture, politics, economics and tec nology.
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All factors t at are internal to t e organization are known as t e 'internal environment'. T ey are
generally audited by applying t e 'Five Ms' w ic are en, oney, ac inery, aterials and
arkets. T e internal environment is as important for managing c ange as t e external. As
marketers we call t e process of managing internal c ange 'internal marketing.'
Essentially we use marketing approac es to aid communication and c ange management.
T e external environment can be audited in more detail using ot er approac es suc as SWOT
Analysis, Mic ael ×orter's Five Forces Analysis or ×EST Analysis
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SWOT analysis is a tool for auditing an organization and its environment. It is t e first stage of
planning and elps marketers to focus on key issues. SWOT stands for strengt s, weaknesses,
opportunities, and t reats. Strengt s and weaknesses are internal factors. Opportunities and
t reats are external factors.

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elps t e marketer to contrast a competitive environment. It as
similarities wit ot er tools for environmental audit, suc as ×EST analysis, but tends to focus on
t e single, stand alone, business or SBU (Strategic Business Unit) rat er t an a single product or
range of products. For example, Dell would analyze t e market for Business Computers i.e. one
of its SBUs
Five forces analsysis looks at five key areas namely t e t reat of entry, t e power of buyers, t e
power of suppliers, t e t reat of substitutes, and competitive rivalry.

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T e power of suppliers tends to be a reversal of t e power of buyers.
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It is very important t at an organization considers its environment before beginning t e

marketing process. In fact, environmental analysis s ould be continuous and feed all aspects of
planning.
T e organization's marketing environment is made up of:
1. T e internal environment e.g. staff (or internal customers), office tec nology, wages and
finance, etc.
2. T e micro-environment e.g. our external customers, agents and distributors, suppliers, our
competitors, etc.
3. T e macro-environment e.g. ×olitical (and legal) forces, Economic forces, Sociocultural

forces, and Tec nological forces. T ese are known as × Jc factors.
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T e political arena as a uge influence upon t e regulation of businesses, and t e spending

power of consumers and ot er businesses. You must consider issues suc as:
1.How stable is t e political environment?
2.Will government policy influence laws t at regulate or tax your business?
3.W at is t e government's position on marketing et ics?
4. W at is t e government's policy on t e economy?

5. Does t e government ave a view on culture and religion?
6. Is t e government involved in trading agreements suc as EU, NAFTA, ASEAN, or ot ers?
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Marketers need to consider t e state of a trading economy in t e s ort and long-terms. T is is

especially true w en planning for international marketing. You need to look at:
1. Interest rates.
2. T e level of inflation Employment level per capita.
3. Long-term prospects for t e economy Gross Domestic ×roduct (GD×) per capita, and so on.
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T e social and cultural influences on business vary from country to country. It is very important
t at suc factors are considered. Factors include:
1.W at is t e dominant religion?
2.W at are attitudes to foreign products and services?
3.Does language impact upon t e diffusion of products onto markets?
4.How muc time do consumers ave for leisure?
5.W at are t e roles of men and women wit in society?
6.How long are t e population living? Are t e older generations wealt y?
7.Do t e population ave a strong/weak opinion on green issues?
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Tec nology is vital for competitive advantage, and is a major driver of globalization. Consider
t e following points:
1. Does tec nology allow for products and services to be made more c eaply and to a better
standard of quality?
2.Do t e tec nologies offer consumers and businesses more innovative products and services
suc as Internet banking, new generation mobile telep ones, etc?
3.How is distribution c anged by new tec nologies e.g. books via t e Internet, flig t tickets,
auctions, etc?
4.Does tec nology offer companies a new way to communicate wit consumers e.g. banners,
Customer Relations ip Management (CRM), etc?

The Scope of Marketing

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T is environment influences t e organization directly. It includes suppliers t at deal directly or

Essentially we use marketing approac es to aid communication and c ange management.

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T e power of suppliers tends to be a reversal of t e power of buyers.

It is very important t at an organization considers its environment before beginning t e

T e organization's marketing environment is made up of:

3. T e macro-environment e.g. ×olitical (and legal) forces, Economic forces, Sociocultural

T e political arena as a uge influence upon t e regulation of businesses, and t e spending

1.How stable is t e political environment?

2.Will government policy influence laws t at regulate or tax your business?

3.W at is t e government's position on marketing et ics?

4. W at is t e government's policy on t e economy?

6. Is t e government involved in trading agreements suc as EU, NAFTA, ASEAN, or ot ers?

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Marketers need to consider t e state of a trading economy in t e s ort and long-terms. T is is

2. T e level of inflation Employment level per capita.

1.W at is t e dominant religion?

2.W at are attitudes to foreign products and services?

3.Does language impact upon t e diffusion of products onto markets?

4.How muc time do consumers ave for leisure?

5.W at are t e roles of men and women wit in society?

6.How long are t e population living? Are t e older generations wealt y?

7.Do t e population ave a strong/weak opinion on green issues?

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