Marketing, Media and Communication

Lake Tuggeranong College2012 Semester 2

Course Requirements• Attendance – Attend 90% of classes– Provide documentation for absences

• Assessment – Submit 70% of assessment – Late penalties 5% per day – Notional Zero awarded after 7 days late

• Void notices – Warning that a V grade may be warranted – Fix the problem, don’t ignore it!

Course Outline (draft)Final will be issued in printed form

• Term 3 – Marketing – Test Week 5 25%– Assignment Week 7 25%

• Term 4 – Media & Communication– Test & assignment 25% each

What is Marketing?

• Find THREE definitions of Marketing– use quality internet resources

(not general references like Wikipedia, Tutor2U, etc.)– Take down bibliographic details

• Modify, merge and adapt into a single definition – Reference with in-text Chicago referencing– Easiest is to use MS Word:

References | Manage Sources

What is Marketing?

• “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”

American Marketing Association. Definition of Marketing. 2007. http://www.marketingpower.com/AboutAMA/Pages/DefinitionofMarketing.aspx/ (accessed July 23, 2012).

What is Marketing?

• “Marketing is the process of identifying, anticipating and satisfying customer requirements.”

Government of South Australia. What is Marketing? 2011. http://www.sa.gov.au/subject/Business,+industry+and+trade/Starting+and+managing+a+business/Running+a+business/Selling+to+customers/Marketing/What+is+marketing?+ (accessed July 23, 2012)

History of Marketing• Pre-industrial era (before c.1800)

– “Cottage industry” of individual artisans producing quality hand-made products, often in rural areas

– Some early exceptions in cities: • Egibi brothers (c.600-500BCE) owners of agricultural real estate in and around Babylon – main profits

made from banking and trading, esp. tools and slaves, to tenants (earliest example of third-line forcing?)

• Athens c.400BCE pottery factories, silver mining/distribution (famous speech by Themistocles selling the idea of building a war fleet instead of citizens pocketing the cash)

• Hypereides of Athens: wealthy leather merchant c.450BCE equipped triremes (warships) with images of bulls on their sails in honour of his trade (earliest billboard advertising?)

• Han Dynasty China c.200BCE-200CE luxury trade as far as Rome for silk, ceramics, spices • Rome c.100CE warehousing, widespread shipping, concrete

– No true marketing: single (or few) suppliers to many customers• Hellenistic era (late Greece, early Rome) most industries were owned by aristocrats, or the monarch

(King or Emperor),• Taxes and prohibitions enforced royal monopoly (eg royal family sole seller of salt, dried fish, fish

sauce, iron, pottery etc.)• Still the case in some countries, eg Thai royal family

History of Marketing (cont’d)• Printing press (from 15th C.) beginning of newspapers and

handbills “advertising” – Example: Shakespeare plays advertised by printed flyers (c.1600) – Low levels of education limited the audience for printed materials (hand-drawn

and woodcut pictures) – Government gazettes gradually giving way to commercial newspapers as literacy

and incomes improved (Early 19th C. Sydney Gazette becomes Sydney Morning Herald)

• European world (mid 19th C.)– increasing income from industrial production – First Britain, then Germany & USA – Colonies provided cheap, long-term supply of basic commodities eg

wool, cotton, iron, coal – Colonies also became markets for “home country” products

History of Marketing (cont’d)• Early industrial era (c.1800s)– Mass marketing of simple industrial products (steel,

wood, coal, machinery, tools)– Factories, production lines of low-skilled workers,

increasingly specialised by region or city eg Manchester fabrics, Sheffield steel, Birmingham “Toy” industry

– Improving literacy, but most illiterate: newspapers and gazettes still read aloud in public, eg London coffee houses

– Still no need to consider customer wants or preferences

History of Marketing (cont’d)• 1914-1918 The Great War

– Great colonial empires take sides: • UK, France, Russia vs.

Germany, Austria-Hungary, Turkey• Entry of USA tipped the balance in favour of UK & allies • Losing empires stripped and distributed to the winners: new markets!

– “Wonders of industry” become “dark satanic mills”• Millions killed by machineguns, poison gas, military logistics, heavy artillery, aircraft, tanks• "mills that produce dark metal, iron and steel, for diabolic purposes . . . . London . . . was a war arsenal and the hub of the

machinery of war” (David Erdman) • Mass propaganda demonises enemies and manipulates the populace (political marketing) • Questions arise: is industry really a force for good?

1920s-1940s Growth of communism• Socialist and Communist critique of marketing

– “Amidst all the turmoil and exultation that marked the final days of the German Democratic Republic, an East German worker was heard to say, ‘What bothered us most about the Government is that they treated us like idiots’.

“In the capitalist lands, of course, people are first made into idiots, so when they are treated as such few take notice (market economies) have as one of their main functions to befuddle the understanding of those who live in them.”(Bertell Ollman)

History of Marketing (cont’d)• However, centrally planned production and distribution became increasingly difficult in complex

societies. The needs of citizens were often unmet.

– “They pretend to pay us, and we pretend to work”

– A man enters a restaurant and says to the waitress: 'A steak and a kind word, love.' The waitress brings him the steak and turns to go. 'What about the kind word?' says the man playfully. The waitress bends down to him and whispers: 'Don't eat it, the meat's off.'

– Three men were sitting at a restaurant table. Up came the waiter. ‘I’ll have a steak, medium rare, and boiled potatoes,' says the first man. The waiter writes down the order. 'And I'll have a veal cutlet with fried potatoes,' says the second man. The waiter writes it down. 'And for me, please, roast beef with baked potato,' says the third. The waiter turns towards the kitchen: 'Vanya,' he shouts to the chef, 'three meats!' (Russian jokes, 1994)

• Most Communist regimes collapsed in the early 1990s– Most surviving Communist regimes are small and relatively simple: Laos, North Korea, Cuba – People’s Republic of China is the obvious exception, but today is basically a capitalist nation!

Marketing in the past 20 years