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Marketing is a general term used to describe all the various activities involved in

transferring goods and services from producers to consumers. In addition to the


functions commonly associated with it, such as advertising and sales promotion,
marketing also encompasses product development, packaging, distribution channels,
pricing, and many other functions. The modern marketing concept, which is applied
by most successful small businesses, is intended to focus all of a company's activities
upon uncovering and satisfying customer needs. After all, an entrepreneur may come
up with a great product and use the most efficient production methods to make it, but
all the effort will have been wasted if he or she is unable to consummate the sale of
the product to consumers.
The importance of marketing in the modern business climate cannot be overstated. In
fact, management guru Peter F. Drucker has claimed that marketing "is so basic it
cannot be considered a separate function. It is the whole business seen from the
point of view of its final result, that is, from the customer's point of view." Marketing
is the source of many important new ideas in management thought and practicesuch
as flexible manufacturing systems, flat organizational structures, and an increased
emphasis on serviceall of which are designed to make businesses more responsive
to customer needs and preferences. This suggests that small business owners must
master the basics of marketing in order to succeed.
In the Macmillan Small Business Handbook, Mark Stevens discussed four main areas
of marketing in which entrepreneurs should concentrate their efforts:1) determining
the needs of customers through market research; 2) analyzing their own competitive
advantages and developing an appropriate market strategy; 3) selecting specific target
markets to serve; and 4) determining the best marketing mix to satisfy customer
needs. The first three tasks are most appropriately performed when a start-up business
is preparing to enter a market, or when an existing business is considering entering a
new market or promoting a new product. The marketing mix, on the other hand,
includes the main decision areas that an entrepreneur must consider on an ongoing
basis. Some elements of the market environment, such as the general economic
conditions, are beyond a small business owner's control. But he or she can adjust
elements of the company's marketing mixwhich consists of the "four Ps": product,
place, price, and promotionto better fit the market environment.

BACKGROUND
The term "marketing" is derived from the word "market," which refers to a group of
sellers and buyers that cooperate to exchange goods and services. The modern concept
of marketing evolved during and after the industrial revolution in the 19th and 20th
centuries. During that period, the proliferation of goods and services, increased
worker specialization, and technological advances in transportation, refrigeration, and
other factors that facilitated the transfer of goods over long distances resulted in the
need for more advanced market mechanisms and selling techniques. But it was not
until the 1930s that companies began to place a greater emphasis on advertising and
promoting their products and began striving to tailor their goods to specific consumer
needs. By the 1950s, many larger companies were sporting entire marketing
departments charged with devising and implementing marketing strategies that would
complement, and even direct, overall operations. Since the 1970s, the primary

marketing trend has been a greater focus on providing benefits, rather than products,
to customers.

MACRO-MARKETING AND MICROMARKETING


Macro-marketing refers to the overall social process that directs the flow of goods and
services from producer to consumer. It is the economic system that determines what
and how much is to be produced and distributed by whom, when, and to whom. E.
Jerome McCarthy and William D. Perreault, Jr. identified eight universal macromarketing functions that make up the economic process:1) buying, which refers to
consumers seeking and evaluating goods and services;2) selling, which involves
promoting the offering; 3) transporting, which refers to the movement of goods from
one place to another; 4) storing, which involves holding goods until customers need
them; 5) standardization and grading, which entails sorting products according to size
and quality; 6) financing, which delivers the cash and credit needed to perform the
first five functions; 7) risk taking, which involves bearing the uncertainties that are
part of the marketing process; and 8) market information, which refers to the
gathering, analysis, and distribution of the data necessary to execute these marketing
functions.
In contrast, micro-marketing refers to the activities performed by the individual
providers of goods and services within a macro-marketing system. Such organizations
or businesses use various marketing techniques to accomplish objectives related to
profits, market share, cash flow, and other economic factors that can enhance their
well being and position in the marketplace. The micro-marketing function within an
entity is commonly referred to as marketing management. Marketing managers strive
to get their organizations to anticipate and accurately determine the needs and wants
of customer groups. Afterward they seek to respond effectively with a flow of needsatisfying goods and services. They are typically charged with planning,
implementing, and then measuring the effectiveness of all marketing activities.

THE TARGET MARKETING CONCEPT


Micro-marketing encompasses a number of related activities and responsibilities.
Marketing managers must carefully design their marketing plans to ensure that they
complement related production, distribution, and financial constraints. They must also
allow for constant adaptation to changing markets and economic conditions. Perhaps
the core function of a marketing manager, however, is to identify a specific market, or
group of consumers, and then deliver products and promotions that ultimately
maximize the profit potential of that targeted market. This is particularly important for
small businesses, which more than likely lack the resources to target large aggregate
markets. Often, it is only by carefully selecting and wooing a specific group that a
small firm can attain profit margins sufficient to allow it to continue to compete in the
marketplace.
For instance, a manufacturer of fishing equipment would not randomly market its
product to the entire U.S. population. Instead, it would likely conduct market research

using such tools as demo-graphic reports, market surveys, or focus groupsto


determine which customers would be most likely to purchase its offerings. It could
then more efficiently spend its limited resources in an effort to persuade members of
its target group(s) to buy its products. Perhaps it would target males in the Midwest
between the ages of 18 and 35. The company may even strive to further maximize the
profitability of its target market through market segmentation, whereby the group is
further broken down by age, income, zip code, or other factors indicative of buying
patterns. Advertisements and promotions could then be tailored for each segment of
the target market.
There are infinite ways to address the wants and needs of a target market. For
example, product packaging can be designed in different sizes and colors, or the
product itself can be altered to appeal to different personality types or age groups.
Producers can also change the warranty or durability of the good or provide different
levels of follow-up service. Other influences, such as distribution and sales methods,
licensing strategies, and advertising media also play an important role. It is the
responsibility of the marketing manager to take all of these factors into account and to
devise a cohesive marketing program that will appeal to the target customer.