Marketing Insights From a to Z: 80 Concepts Every Manager Needs to Know



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Philip Kotler - Marketing from A to Z

120
Marketing Insights from A to Z


What marketing skills do marketers need in order to carry out
their role? J. S. Armstrong, a professor at the Wharton School, Uni-
versity of Pennsylvania, lists the following skills: 
forecasting
,
plan-
ning
,
analyzing
,
creating
,
deciding
,
motivating
,
communicating
, and
implementing
. These skills make up what we call 
marketing ability
,
and it is marketing ability that companies look for in their search for a
marketing vice president.
arkets
Markets can be defined in different ways. Originally a market was a
physical place where buyers and sellers gathered. Economists de-
scribe a market as a collection of buyers and sellers who transact (in
person, over the phone, by mail, whatever) over a particular product
or product class. Thus economists talk about the car market or the
housing market. But marketers view the sellers as the “industry” and
the buyers as the “market.” Thus marketers will talk about markets of
“35 to 50-year-old low-income homemakers” or “auto company
purchasing agents who buy paint for their companies.”
Clearly markets can be defined broadly or narrowly. The
“mass market” is the broadest definition and describes the billions
of people who buy and consume basic products (e.g., soap, soft
drinks). Much of U.S. economic growth has resulted from Ameri-
Markets
121


can companies mastering mass production, mass distribution, and
mass marketing.
At the other extreme we can talk about a “market of one” to
describe a specific individual or company that a marketer may be con-
cerned with. IBM would be called a market of one for consultants
who spend all of their time selling their services only to IBM.
The key point is that the marketer needs to define the 
target
market
as carefully as possible. The “mass market” is too vague. It
is hard to make a product that everyone will want. It is easier to
make a product that some will love. This has led businesses to 
pursue niches and mini-markets. But the downside is that as mar-
kets become sliced into finer segments, the resulting low volume
in each will permit only one or a few companies to survive in 
that market.
Markets are often contrasted to hierarchies as a way of getting
things done. Markets involve people entering into voluntary agree-
ments that will leave both parties better off. Hierarchies, on the
other hand, consist of people of high rank ordering those of lower
rank to perform actions. Relying on markets rather than hierar-
chies is thought by many to be the best way to build a sustainable
self-regulating economy. Command-and-control economies have
not worked.
Marketing is a democratizing force. There are only four ways to
obtain something that you want: 
steal
,
borrow
,
beg
, or 
exchange
. Us-
ing exchange (giving something to get something) is the most moral
and efficient way and is the heart of marketing.
One thing is sure: Markets change faster than marketing. Buyers
change in their numbers, wants, and purchasing power in response to
changes in the economy, technology, and culture. Companies often
don’t notice these changes and maintain marketing practices that
have lost their edge. The marketing practices of many companies to-
day are obsolete.

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