1 SCHOOL OF BUSINESS evsjv `k D gy³ wek we` vjq MBA 1302 Principles of Marketing Course Development Team Writers Professor Abu Sayeed Talukder Department of Marketing University of Dhaka and Professor Dr. Md. Zakir Hossain Bhuiyan Department of Marketing University of Dhaka Editor, Style Editor & Coordinator Md. Jakir Hossain Assistant Professor School of Business Bangladesh Open University This book has been published after being refereed for the students of the School of Business, Bangladesh Open University
2 MBA 1302 Principles of Marketing SCHOOL OF BUSINESS Bangladesh Open University evsjv `k D gy³ wek we` vjq
3 MBA 1302 Principles of Marketing Published by: Publication, Printing and Distribution Department, Bangladesh Open University, Gazipur School of Business, Bangladesh Open University. First Published: June, Reprint: July, Computer Compose & Desk-Top Processing: Mohammad Wahiduzzaman Howlader, Md. Abdus Shahin Cover Design: Monirul Islim Printed in: Mania Art Press, 53/1 Northbrooke Hall Road, Dhaka All rights reserved by the School of Business, Bangladesh Open University. No part of this book can be reproduced in any form without proper permission from the publisher.
4 Dear Students Reading Instructions You may be tempted to skip over the introduction to this textbook. However you need to understand the organisation and the features of this text if you really want to do better and have very worthwhile experiences in this course. Because this is the first course on marketing with an opportunity to learn about the Principles of Marketing. The real focus of the course is what marketing means and how this is used by business firms. Today everyone needs a basic understanding of marketing concepts, not just those of you planning careers in business but also managing any business activities. Therefore, using marketing concept is simply a part of everyday life. Approach of this Text This book will focus primarily upon modern marketing activities. However, most of the marketing concepts will also discuss to apply this concepts in economic activities of individuals, government and non-profit organizations. Throughout the course, we will cast you in many decision-making roles ranging from starving students to corporate executives. Elements of this Textbook This first edition of this course is accompanied by a wide variety of in-text learning aids. Understanding their purpose should help you use them to greater advantage. Each unit starts with unit introduction and followed by a number of learning aids designed to help you study more efficiently. They are intended to illustrate a major theme of the unit in a non-technical way. This text consists of twelve units and each unit is divided into several lessons. As you know, it is a three credit course, so you are supposed to remember that you need to study three lessons in each week to complete the whole course. Each lesson also includes a short-set of learning objectives, which are integarted with the text discussions, lesson summaries, and assignment materials. These objectives identify the main points in each unit and may help you study for exams. However, do not limit yourself to meeting these objectives. Strive to broaden your knowledge. Assignment Materials One of the distinctive features of this text is the nature and variety of its assignment material. We find that students can learn much from one another. This concept, often called Collaborative learning which really works. Discussion Questions are for written answer and exercises & activities are short assignments, usually focusing on a single concept. They are designed to illustrate those concepts quickly and clearly. You also may find them similar to the types of exercises your tutor uses on exams. Supplementary Materials for You We have also developed the study guide for this course in Bengali with a view to make the different concepts easier to you. It includes a summary of the key points in each unit, and a wealth of self-text materials. As an additional study-aid, we explain the each topic in detail.
5 Principles of Marketing (MBA 1302) 1. Marketing in a Changing World : Defining the key terms in marketing ( Needs, Wants, Demand, Products, Value, Satisfaction, Quality, Exchange, Transactions, Markets and Marketing); Importance, Scope and functions of marketing; Marketing management philosophies. 2. Strategic Planning and the Marketing Process : Strategic planning & designing business portfolio; Marketing process; Managing the marketing effort. 3. Marketing Environment : Defining marketing environment and the company's microenvironment; The company's macro-environment. 4. Measuring and Forecasting Demand : Defining the market and measuring current market demand; Forecasting future demand. 5. Market Segmentation, Targeting & Positioning for Competitive Advantages : Defining deferent markets and needs for market segmentation; Market segmentation; Market targeting; Market positioning. 6. Consumer Market and Consumer Buyer Behaviour : Factors affecting consumer behaviour; Types of buying decision behaviour; The buyer decision process; The buyer decision process for new products. 7. Designing Products: Products, Brands, Packaging and Service : Definition & classification of product; Individual product decisions (Product attributes, branding, packaging labelling, product support services); Product line & product mix decision; Product life cycle and marketing strategies. 8. Pricing Product: Pricing Consideration and Approaches : Factors to be considered in pricing; General pricing approaches. 9. Placing Products- Distribution Channel and Logistics Management: The nature of distribution channel; Channel behaviour and organisation; Channel design decisions; Channel Management decisions; Physical distribution and logistics management. 10. Placing Products- Retailing and Wholesaling : Retailing & types of retailing; Retailer marketing decisions; Wholesaling & types of wholesaling; Wholesaler marketing decisions. 11. Promoting Product- Advertising, Sales Promotion, Public Relation and Personal Selling : Advertising; Sales Promotion; Public Relations; Role of personal selling and managing the sales force; Principles of personal selling. 12. Marketing Services, Organisations, Persons, Places and Ideas: Service marketing; Marketing of organisations, Persons, Places and ideas. Reference Books : 1. Philip Kotler and Gary Aramstrong - Principles of Marketing, Seventh Edition, Prentice-Hall of India Pvt. Ltd., New Delhi, William J. Statnton and others - Fundamentals of Marketing, Tenth Edition, McGraw-Hill, Inc., Singapore, Joel R. Evans and Barry Berman - Marketing, Third Edition, Macmillan Publishing Co. New York, Paul S. Busch and Michael J. Houston - Marketing, Strategic Foundations, Rich and D. Irwin, Inc., Homewood, Illinois, 1985.
6 CONTENTS Unit -1 Marketing in a Changing Environment... Lesson - 1 : Definition and Meaning of Marketing... Lesson - 2 : Seope, Importance and Functions of Marketing... Lesson - 3 : Marketing Management Philosophies... Unit - 2 Strategic Planning and the Marketing Process... Lesson - 1 & 2 : Strategic Planning... Lesson - 3 : The Marketing Process - Marketing's Role in the Organization... Lesson - 4 : Managing the Marketing Effort... Unit - 3 The Marketing Environment... Lesson - 1 : The Company's Micro Environment... Lesson - 2 & 3 : The Company's Macro Environment... Unit - 4 Measuring and Forecasting Demand... Lesson - 1 & 2 : Defining the Marketing and Measuring Current Market Demand Lesson - 3 : Forecasting Future Demand... Unit - 5 Market Segmenting, Targeting and Positioning... Lesson - 1 & 2 : Market Segmentation : Meaning and Bases... Lesson - 3 : Market Targeting... Lesson - 4 : Market Positioning... Page No Unit - 6 Unit - 7 Consumer Market and Consumer Buyer Behavior... Lesson - 1 & 2 : Factors Affecting Consumer Behaviour and Types of Buying Decision Behavior... Lesson - 3 : The Buyer Decision Process... Designing Products : Products, Brands, Packaging and Services... Lesson - 1 : Definition and Classification of Products... Lesson - 2 : Individual Product Decisions... Lesson - 3 : Product Line and Product Mix Decision : Product Life-Cycle and Marketing Strategies
7 Unit - 8 Pricing Product : Pricing Considerations and Approaches... Lesson - 1 : Internal Factors Affecting Pricing Decisions... Lesson - 2 : External Factors Affecting Pricing Decisions... Lesson - 3 : General Approaches of Pricing Unit - 9 Placing Products : Distribution Channel and Logistic Management... Lesson - 1 & 2 : The Nature of Distribution Channels and Channel Behaviour and Organization... Lesson - 3 : Channel Design Decisions and Channel Management Decisions... Lesson - 4 : Physical Distribution and Logistics Management Unit - 10 Placing Products : Retailing and Wholesaling... Lesson - 1 & 2 : Retailing - Its Nature, Types and Trends... Lesson - 3 : Wholesaling : Nature and Types... Unit - 11 Promoting Products : Advertising, Sales Promotion, Public Relation and Personal Selling... Lesson - 1 & 2 : Advertising : Its Nature and Role... Lesson - 3 : Sales Promotion and Public Relations... Lesson - 4 & 5 : Personal Selling : Its Role and Nature... Unit - 12 Marketing Services, Organizations, Pensions, Places and Ideas... Lesson - 1 & 2 : Service Marketing - Nature, Characteristics and Strategies... Lesson - 3 : Marketing Organization, Person, Place and Idea
8 MARKETING IN A CHANGING WORLD Marketing is an exciting and dynamic contemporary field which is the combination of diverse activities. In today's world, individuals, business firms and organizations - both profit and non-profit engage in marketing. Present day marketing is thought of as the anticipation, management and satisfaction of demand through the exchange process. Over time, different marketing philosophies have evolved that guide marketers in managing their marketing efforts. In this unit, we have discussed the introductory issues relating to marketing by dividing it into three lessons. Let's start the lessonwise discussion:
9 School of Business Blank page Unit-1 Page - 2
10 Bangladesh Open University Lesson 1 : Definition and Meaning of Marketing Lesson objectives After completing this lesson you will be able to : Define marketing and explain its meaning Explain the meaning of core concepts of marketing Identify the main actors and forces in a modern marketing system. What is Marketing? People in a society have different meanings of marketing. Most popularly, marketing is perceived of activities like selling and advertising. Members of a society are today exposed to TV and radio commercials, newspaper ads, bill boards, neon signs, direct mail, sales calls and innumerable types of other sales stimuli. But selling and advertising are only two of many marketing functions and often less important than others. Today, we no longer accept the orthodox meaning of marketing making a sale. Modern marketing must be understood in the new sense of satisfying customer needs. Experiences confirm that if the marketer understands consumer needs properly, design products that provide superior value, prices them competitively and distributes and promotes them efficiently, success in selling is guaranteed. To quote Peter Drucker, "The aim of marketing is to make selling superfluous. The aim is to know and understand the customer so well that the product or service fits... and sells itself". 1 Philip Kotler and Gary Armstrong define marketing "as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others". 2 This definition contains the following important terms: needs, wants and demands; products; value, satisfaction and quality; exchange, transactions and relationship and markets. Figure 1-1 shows that each of these core marketing concepts is linked with the proevious one. To have a comprehensive meaning of marketing, we will now examine these concepts. Selling and advertising are only two of many marketing functions. 1. Philip Kotler and Gary Armstrong, Principles of Marketing, seventh edition, Prentice-Hall of India, New Delhi, 1997; p Ibid., p.6. Principles of Marketing Page - 3
11 School of Business Figure 1-1: Core Marketing Concepts Core marketing concepts Human needs are many and complex. Human needs are shaped by culture and individual personality and take the form of wants. Needs, Wants and Demands The most fundamental concept underlying marketing is human needs which is a state of felt deprivation. Human needs are many and complex. These include basic physical needs, social needs and individual needs. Physical needs consist of needs for food, clothing and shelter; social needs consist of needs for love and belonging; and individual needs consist of needs for knowledge and self-expression. Marketers do not create these needs. They are an integral part of the human existence. If a need is not satisfied, a person will either try to forget the need or search for an object that will satisfy it. Individuals in backward societies may try to reduce their desires and fulfill them with what is available. Individuals in developed societies may try to find or develop objects that will fulfill their needs. Human needs are shaped by culture and individual personality and take the form of wants. A hungry person in Bangladesh may want rice and fish. A hungry person in North India may want chapti and pulses. Wants are expressed in terms of objects that will satisfy needs. As people come across more and more objects that stimulate their interest and desire, producers try to make available more want-satisfying goods and services. Wants are unlimited but resources are limited. People choose goods & services their money. Human wants become demands when backed by buying power. Consumers perceive products as bundles of benefits and choose products that give them the best bundle for their money. For example, a Maruti means basic transportation, low price and fuel economy. A Pajero means comfort, luxury and status. Given their wants Unit-1 Page - 4
12 Bangladesh Open University and resources, people demand products with the benefits that maximize satisfaction. Outstanding marketing companies go to great lengths to learn about and understand their customers' needs, wants and demands. They conduct consumer research, focus groups and customer clinics. They analyze customer complaint, inquiry, warranty and service data. They train salespeople to be on the lookout for unfulfilled customer needs. They observe customers using their own and competing products and interview them in depth about their likes and dislikes. 3 A detailed understanding of needs, wants and demands provides useful information for designing marketing strategies. Products Needs and wants are satisfied with products. A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. 4 Generally, the word product indicates a physical object, such as a refrigerator, a camera, or a toothpaste. But the concept of product is not confined in physical objects. Rather anything that can satisfy a need can be called a product. The term 'goods' and 'services' are often used to distinguish between physical products and intangible ones. Again, other vehicles, such as persons, places, organizations, activities and ideas provide benefits to consumers. Thus, the term product encompasses physical goods, services, persons, places, organizations and ideas that can satisfy consumers' needs and wants. Marketers sometimes substitute the term product by other terms such as satisfier, resource, or offer. The concept of product is not confined in physical objects. Rather anything that can satisfy a need can be called a product. Value, Satisfaction and Quality Consumers generally has the opportunity of selecting the desired product from a wide range of products. To make such a choice consumer consider their perceptions of the value that various products and services offer. Customer value is the difference between the values the customer gains from owning and using a product and the costs of obtaining the product. 5 However, in many cases, consumers do not assess product values and costs precisely or objectively. They take into account perceived value. Customer satisfaction is the extent to which a product's perceived performance matches a buyers expectations. If the product's performance falls short of expectations, the buyer is dissatisfied. If performance matches or exceeds expectations the buyer is satisfied or delighted Ibid., p Ibid., p Ibid., p Ibid., p. 10. Principles of Marketing Page - 5
13 School of Business Customer satisfaction is closely related to quality. In an exchange, there should be at least two parties. Transactions lead marketers gradually to relationship marketing. Successful marketing requires matching customer expectations with company performance. Customer satisfaction is closely related to quality. Quality has a direct influence on product performance and hence on customer satisfaction. Many companies have adopted total quality management (TQM) programs. TQM programs are designed to constantly improve the quality of products, services and marketing processes. Exchange, Transactions and Relationships Marketing takes place when people decide to satisfy needs and wants through exchange. Exchange is the act of obtaining a desired object from someone by offering something in return. 7 As a way of fulfilling needs, exchange has many benefits. People don't have to depend on others and they must not necessarily possess the skills to produce everything they need. They can decide to produce things which they excel in and trade them for other goods produced by others. In this way, exchange makes it possible to produce much more than it would have made with any other alternative system. Several conditions must exist for an exchange to take place. In an exchange, there should be at least two parties and each must have something of value to the other. Each party must have the desire to deal with others parties and each must have the freedom of accepting or rejecting the other's offer. Finally, each party must have the ability of communicating and delivering. Whereas exchange is the core concept of marketing, a transaction is marketing's unit of measurement. Transaction is a trade between two parties that involves at least two things of value, agreed-upon conditions, a time of agreement and a place of agreement. 8 In a transaction, one party gives A to another party and gets B in return. For example, a buyer pays Rangs Tk. 25,000 for a television set. This is a typical momentary transaction. But all transactions do not involve money. For example, in a barter transaction, one might trade an old sewing machine in return for secondhand furniture. Transactions lead marketers gradually to relationship marketing. Relationship marketing is the process of creating, maintaining and enhancing strong, value-laden relationships with customers and other stakeholders. 9 Marketing extends beyond creating short-term transactions. Marketers have to build long-term relationships with customers, distributors, dealers and suppliers. This is done by promising and consistently delivering high-quality products, good service and fair prices. Increasingly, marketing is shifting from trying to maximize the profit on each individual transaction to maximizing mutually beneficial relationships with consumers and other parties. The operating 7. Ibid., p Ibid., p Ibid., p. 11. Unit-1 Page - 6
14 Bangladesh Open University assumption is : build good relationship and profitable transactions will follow 10. Markets A market is the set consisting actual and potential buyers of a product. The size of a market depends on three things; the number of people who demonstrate the need, have resources to take part in exchange and are willing to part with these resources in exchange for what they want. Traditionally, the term market referred to the place where buyers and sellers gathered to exchange their goods. To economists, market is a collection of buyers and sellers who transact in a particular product class as in the rice market. To marketers, sellers constitute an industry and the buyers constitute a market. The following figure (Fig: 1-2) shows the relationship between the industry and the market: A market is the set consisting actual and potential buyers of a product. Figure 1-2 : A Simple Marketing System Communication Industry (a collection of sellers) Products/services Money Market (a collection of buyers) Information Source: Philip Kotler and Gary Armstrong, Principles of Marketing, seventh Prentice-Hall of India, New Delhi, 1997; p. 12. edition, Sellers and the buyers are connected by four flows. The sellers send products, services and communicate to the market; in return, they receive money and information. The inner loop shows an exchange of money for goods; the outer loop shows an exchange of information. 11 Modern economies are characterized by division of labor where each individual specializes in producing something, gets payment for his work and buys things with this money. Thus, modern economies thrive on markets. Producers buy resources from resource markets such as rawmaterial markets, labor markets and money markets, transform these resources into goods and services and sell them to middlemen, who sell them to ultimate consumers. Consumers sell their labor and earn income. They spend their income to buy goods and services. The government is another market which buys goods and services from resource, producer 10. Ibid., p Ibid., p. 12. Principles of Marketing Page - 7
15 School of Business and middlemen markets. It collects taxes from these markets (including consumer markets), and invests to create needed public services. Thus, each nation's economy and the whole world economy are composed of complex interacting sets of markets. These sets of markets are linked through exchange processes. Businesspeople use the term markets to indicate various customer groups such as need markets (holiday-makers), product markets (garments), demographic markets (young and old), and geographic markets (South Asia). The concept of markets are extended to cover also noncustomer groups such as financial markets and labor markets. Activities such as product development, research, communication, distribution, pricing and service are regarded as core marketing activities. Marketing The concept of markets ultimately leads us to the concept of marketing. Marketing is the task of managing markets to create exchanges to satisfy human needs and wants. Thus, we remember our definition of marketing as a process by which individuals and groups obtain what they need and want by creating and exchanging products and value with others. Exchange processes consist of activities. Sellers must locate buyers, assess their needs, design appropriate products and services, set prices of these products and services, promote, store and deliver them. Activities such as product development, research, communication, distribution, pricing and service are regarded as core marketing activities. Generally, it is thought that marketing is performed by sellers. But buyers also take part in marketing activities. Consumers engage in marketing when they look for the goods they need at prices they are willing to pay. The main elements in a modern marketing system are shown in figure 1-3. In the usual situation, marketing involves serving a market of end users in the face of competitors. The company and the competitors send their respective products and messages directly to consumers or through marketing intermediaries (middlemen) to the end users. All of the actors in the system are affected by major environmental forces (demographic, economic, physical, technological, political/legal, social/cultural). 12 Activity: Describe, how marketing is different from market. 12. Ibid., p. 13 Unit-1 Page - 8
16 Bangladesh Open University Figure 1-3 : Main Actors and Forces in a Modern Marketing System Company (marketer) Suppliers Marketing intermediaries End user market Competitors Environment Source: Philip Kotler and Gary Armstrong, Principles of Marketing, seventh edition, Prentice-Hall of India, New Delhi, 1997; p. 12. Principles of Marketing Page - 9
17 School of Business Questions for Review 1. Explain the aims of modern marketing. 2. Some scholars have argued that the desires stimulated by marketing efforts are not genuine : "A man who is hungry need never be told of his need for food." Decide whether this is a valid criticism of marketing. Explain why or why not. 3. Most popularly, marketing is perceived of activities like A. Selling and advertising B. Manufacturing and transporting C. Storing and delivering D. None of the above. 4. Individual needs consist of needs for A. Food B. Love C. Belonging D. Knowledge. 5. If the products performance matches buyers expectations, the buyer is A. Delighted B. Glad C. Satisfied D. Happy. 6. The size of a market depends on the number of people who A. Demonstrate the need B. Have resources to take part in exchange C. Are willing to offer these resources D. All of the above. Ans.: 3. A, 4. D, 5. C, 6. D. Unit-1 Page - 10
18 Bangladesh Open University Lesson 2 : Scope, Importance and Functions of Marketing Lesson objectives After completing this lesson you will be able to: Elaborate on the broad and business dimensions of marketing Explain the importance of marketing Discuss the various marketing functions. Scope of Marketing The definition of marketing stated earlier suggests that the scope of marketing is extremely wide. Marketing involves determining needs and wants, demand and produce products to satisfy them through exchange processes. Under the expanded notion of marketing, individuals, social organizations, political parties, educational institutions, charities and many other organizations are engaged in marketing. We will now look at the broad dimensions of marketing and the business dimensions of marketing to understand what marketing encompasses. Marketing : General Perspective Traditionally, marketing is regarded as an activity performed by business organizations. However, marketing can also be performed by other types of organizations and even by individuals. For example, a political party makes use of marketing when it persuades voters to vote for its candidate. University graduates can use marketing principles to maximize the effectiveness of their search for a job. Against this backdrop, there exists wide variety with respect to marketers, what they are marketing and what are their potential markets. For example, marketers might include, in addition to business firms, such diverse social units as the Bangladesh National Cadet Corp trying to attract new members, 'Shandhani' who persuades people to donate blood in their blood bank. So, marketers are people and organizations that wish to make exchanges. In addition to wide variety of items generally considered as goods and services, idea, persons, places and organizations are also marketed. For example, smoking is harmful for health (idea marketing), attend Runa Laila's concert (person marketing), come to Rangamati for holiday making (place marketing), and 'Acme' -science for the well being of the mankind (organization marketing). In this general perspective, markets cover more than the direct consumers of products. For example, in addition to its students, a public university's market is composed of government agencies who provide funds, citizens living around the university who may be affected by university activities and alumni who support various university programmes. A company's Principles of Marketing Page - 11
19 School of Business The essence of marketing is a transaction or exchange. markets include government agencies, environmentalists and shareholders. Thus, any individual or group with whom a person or organization has an existing or potential exchange relationship can be regarded as market. Marketing can occur any time one social unit (person or organization) strives to exchange something of value with another social unit. Thus, the essence of marketing is a transaction or exchange. In this broad sense, marketing consists of activities designed to generate and facilitate, exchanges intended to satisfy human needs or wants. 13 Marketing : Business Perspective In a society, organizations and individuals are involved in and exposed to various marketing activities. These organizations may or may not be profit oriented although they may face some marketing problems. However, popular notion of marketing does not provide a conceptual framework for practical purposes. Marketing should be visualized as a whole to get maximum return out of the investments in marketing activities. So, we need to define marketing from a business viewpoint that will guide managers in business and nonprofit organizations in carrying out their marketing tasks. Our definition of marketing applicable in a business or a nonprofit organization-is as follows : Marketing is a total system of business activities designed to plan, price, promote and distribute want-satisfying products to target markets to achieve organizational objectives. This definition has the following significant implications: The entire system of business activities should be customer-oriented. Customers' wants must be recognized and satisfied. Marketing should start with an idea about a want-satisfying product and should not end until the customers' wants are completely satisfied, which may be some time after the exchange is made. 14 A fundamental task of marketing is to generate consumer interest for goods and services. Importance of Marketing It is important to study marketing for a number of reasons. Marketing stimulates demand, costs a large part of sales, employs people, supports industries, affects all consumers and plays a major role in daily lives. Since marketing stimulates demand, a fundamental task of marketing is to generate consumer interest for goods and services. Increased consumer interest in goods and services increases demand and hence increases the Gross National Product (GNP) of a country. A large portion of sales revenue goes to cover marketing costs. These costs should not be mistaken as marketing profits nor should it be 13. Willian J. Stanton and others, Fundamentals of Marketing, 10th edition, McGraw, Hill, Inc., New York. 1994; p Ibid., p. 6. Unit-1 Page - 12
20 Bangladesh Open University assumed that the elimination of marketing activities would lower prices. Amount spent to cover various marketing costs is justified because marketing performs very important functions to bring goods and services from producer to consumer who are separated from each other. A sizable portion of a country's civilian labor force is engaged in marketing activities. This includes people employed in the retailing, wholesaling, transportation, warehousing and communications industries and those involved with marketing and activities for manufacturing, financial, service, agricultural, mining and other industries. In USA, for instance about 17 million people work in retailing, 6 million in wholesaling and 4 million in transportation. And projections indicate that future employment in marketing will remain strong. 15 Some industries run on the support of marketing activities, such as advertising and marketing research. Total annual U.S. advertising expenditures exceed $ 100 billion. Many agencies, including Young & Rubicam, J. Walter Thompson, McCann-Erickson and Ogilvy & Mather, have worldwide billings of $1 billion or more. Approximately $1.8 billion is spent yearly in the United States on marketing research. 16 People are consumers of various goods and services produced in a society. Knowledge of marketing make consumers better informed, more selective and more efficient. Consumers can establish effective channels of communication with organizations and can get complaints resolved more easily and favorably. An understudying of the role of marketing lead the consumers toward forming consumer groups. These consumer groups have often significant influence on the activities of marketers. Marketing has a strong influence on beliefs and life-styles of the members of a society. Often, marketing has been blamed for developing materialistic attitudes, fads, product obsolescence, a reliance on gadgets, conspicuous consumption and superficial product differences and wasting resources. Marketers counter these allegations by saying that they merely respond to the desires of people and make the best goods and services they can at the price people will pay. Marketing plays an important role in improving the quality of life. For example, marketers encourage companies to make safer products such as low-nicotin cigarettes. Marketers create public service messages on energy conservation, cures for diseases, abuses of alcohol and other issues of public interest. They also help new goods, ideas and services to be accepted and assimilated by people. A knowledge of marketing is also valuable for those not directly involved with marketing. For example, marketing principles can be utilized by doctors, lawyers, management consultants, financial analysts, research and development personnel, economists, statisticians, city planners, nonprofit institutions and others. Each of these professions and Marketing has a strong influence on beliefs and life-styles of the members of a society. Marketing plays an important role in improving the quality of life. 15. Joel R. Evans and Barry Berman, Marketing, third edition, Macmillan Publishing Company, New York. 1987; p Ibid., pp Principles of Marketing Page - 13