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3. BEING A MARKETING EXPERT: GOOD NEWS BAD NEWS

In many respects you are a marketing expert already. But just to test your expertise, try the marketing expert questions in Figure 1-1. These questions some of them easy, others mind bogglingshow the diverse problems marketing executives grapple with every day. Youll find the answers in the next few pages.

The Good News: You Already have Marketing Experience You are somewhat of an expert because you do many marketing activities every day. You already know many marketing terms, concepts, and principles. For example, would you sell more Sony Walkmans at $500 or $50 each? The answer is $50, of course, so your experience in shopping for productsand maybe even selling themalready gives you great insights into the world of marketing. As a consumer, youve already been involved in thousands of marketing decisions, but mainly on the buying, not the marketing, side.

The Bad News: Surprises About the Obvious Unfortunately, common sense doesnt always explain some marketing decisions and actions.

A U.S. senators reference to Xeroxing some reports in a nationally televised public hearing (Question 1, Figure 1-1) sounds like great publicity for the Xerox Corporation, right? But Xerox was upset. After seeing the hearing on TV, a Xerox attorney contacted the senator the next day to remind him of his misuse of the trademark name Xerox. Legally, Xerox is a registered trademark of Xerox Corporation and, as a brand name, should be used only to identify its products and services. With this reminder and other advertisements (like that shown in the accompanying ad), Xerox is trying to protect a precious asset: its own name.

Under American trademark law, if consumers generally start using a brand name as the basic word to describe an entire class of products, then the company loses its exclusive rights to the name. Xerox would become xeroxjust another English word to describe all kinds of photocopying. That fate has already befallen some famous American products such as linoleum, aspirin, cellophane, escalator, and yo-yo.

Today American firms are spending millions of dollars both in advertising and in court cases to protect their important brand names. Examples are Kimberly-Clarks Kleenex and 3Ms Scotch tape. Coca-Cola takes dozens of restaurants to court every year for serving another cola drink when the patron asks for a Coca-Cola or even a Coke. Because legal and ethical issues such as the Xerox trademark problem are so central to many marketing decisions, they are addressed throughout the book.

The point here is that although your common sense usually helps you in analyzing marketing problems, sometimes it can mislead you. This books indepth study of marketing augments your common sense with an understanding of marketing concepts to help you assess and make marketing decisions more effectively.

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4. MARKETING: USING EXCHANGES TO SATISFY NEEDS

The American Marketing Association, representing marketing professionals in the United States and Canada, states that marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. This definition stresses the importance of beneficial exchanges that satisfy the objectives of both those who buy and those who sell an array of ideas, goods, and serviceswhether they be individuals or organizations.

To serve both buyers and sellers, marketing seeks (1) to assess the needs and wants of prospective customers and (2) to satisfy them. These prospective customers include both individuals buying for themselves and their households and organizations that buy for their own use (such as manufacturers) or for resale (such as wholesalers and retailers). The key to achieving these two objectives is the idea of exchange, which is the trade of things of value between buyer and seller so that each is better off after the trade. This vital concept of exchange in marketing is covered below in more detail.

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