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P. 63
40 PART 1 UNDERSTANDING MARKETING MANAGEMENT
American Apparel is a fully
vertically integrated company
that conducts all its business
from its Los Angeles,
California, location.
systems for television studios. Its customer group is television studios; the customer need is light-
ing; the technology is incandescent lighting. The company might want to expand to make lighting
for homes, factories, and offices, or it could supply other services television studios need, such as
heating, ventilation, or air conditioning. It could design other lighting technologies for television
TABLE 2.3 Product-Oriented versus Market-Oriented Definitions of a Business
Company Product Definition Market Definition
Union Pacific Railroad We run a railroad. We are a people-and-goods mover.
Xerox We make copying equipment. We help improve office productivity.
Hess Corporation We sell gasoline. We supply energy.
Paramount Pictures We make movies. We market entertainment.
Encyclopaedia Britannica We sell encyclopedias. We distribute information.
Carrier We make air conditioners and furnaces. We provide climate control in the home.
