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March 30, 2003

To the reader: You are enrolled in a principles of marketing course. This publication is intended to supplement your lecture materials. As you read through the text, note that it is keyed to illustrations used in class.

The course is divided into three sections. Section one covers introduction to marketing, consumer behavior, industrial buyer behavior, the marketing environment, where marketing fits into the organization, market segmentation, and product differentiation. Section two covers product and pricing. Section three covers promotion (sales) and distribution. As you read the book, consider that it is organized as follows: marketing and its environment (consumer behavior, industrial buyer behavior, marketing environment), product, pricing, promotion, and distribution. So, coverage begins with introductory concepts and proceeds into the marketing mix elements (product, price, promotion and place). You may wonder whether this book covers all aspects of marketing. No, it does not cover all aspects of marketing. You will find only basic concepts herein. If you seek specific, contemporary examples of marketing concepts, check out a traditional textbook from the library or purchase a recent edition from a used book store. Try the Perreault and McCarthy textbook (14th edition) or the Kotler and Armstrong textbook.

Section I: Concepts of Marketing A. Who is a Marketer? Consider first that marketing is driven by people and their needs. It is people driven. Contrast marketing, a people driven discipline with accounting or information systems—policy or rule driven disciplines. In marketing, you are trying to identify and cater to people’s needs. In a policy driven discipline, you are adhering to generally accepted accounting principles or to the precepts of ‘C’ or COBOL, programming languages, or network structures. You may wonder what is