Introduction to Marketing

Week 1 was set to be an introduction to marketing. I was hoping I was not going to be reading the Merriam-Webster definition of marketing or a reiteration of the 4 p’s as my previous marketing courses have been focused on. What I discovered instead was a great deal of information, some of it that may even be controversial, that took a much more in depth looking at marketing. There were many things I found to be quite interesting in the week 1 material.

The Artificial Need

I took a specific interest in this week’s discussion about whether or not companies create an artificial need for their products. Drucker states that the primary purpose of a business is to create a customer. In order to create a customer, you must have something to offer the customer that catches their attention and will address a want or need that they have. I tend to think that in most cases it is not creating an artificial need that attracts people to a product but rather suggesting a way that a product will fulfill a need that is already present. Taking the bottled water example from class, the immediate need that was addressed by having bottled water is to take water with you on the go. You will not spill as you would with a conventional drinking glass. Water is now readily available at all times. No need was artificially created or perhaps even prevalent in many consumers’ minds. All that occurred was that this idea was suggested to consumers. The same holds true for the fast food examples that were also discussed. The suggestion was made that a fulfilling meal could be made in a very short amount of time that satisfied a consumer’s need for a meal during the day.

With that said, I can see an argument for the contrary. Why is it that people drink bottled water when they’re not on the go? Why do people with a full fridge leave home and quickly return with a bagged dinner? The original suggested needs are no longer being fulfilled. Rather it is a company who has successfully integrated their product or service as being commonplace in the consumer’s life. This has become the norm and although there may not be an overwhelming need for a specific product or there is a more than suitable alternative, the consumer has become so used to and comfortable with something that it now becomes a preference. Thus, a customer is created.

Profit Maximization

The hot topic of profit maximization presented some interesting arguments this week. My view on the matter is heavily influenced by my experience with a local, family owned ice cream parlor. In this shop, the owner makes a comfortable living, but nothing that would create a big demand for his job. After being in business for 30+ years, there is not currently and has never been a focus on profit maximization. The main focus there has always been to create quality products and provide exceptional service to keep people coming back for more. The prices are very affordable. The only instances where prices get raised are when the prices of supplies demand an increase. The nearest competitors charge nearly double his prices for similar products but his prices remain low. The profit margin for each individual item that is sold on a daily basis is quite low. The only way that this store remains in existence and the owner gets to have a decent living is by having happy, returning customers. Had he ever switched to a profit maximization focus and not kept his prices low and focus on creating a good experience for every customer that came through the door, the business would not have survived for over 30 years.

What's to Come

The big takeaway from week 1 for me is that I am far from fully grasping what marketing is. More importantly, I am actually intrigued to do so. I am anxious to learn more about some of the topics that were teased early on, such as the difference between marketing and sales, the need for marketing throughout the entirety of a business, or the ethical considerations in marketing. There is a great deal left to learn, some of which I find myself already internally debating on whether or not I buy into. Only one week in but based on what has been learned and what has been hinted at so far I have find this course should be much more interesting than what I was expecting and am looking forward to what is to come.